Press Release February 16, 2026 TELECOMMUNICATIONS CONSULTANTS INDIA LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	640.00	ACUITE AA- | Stable | Reaffirmed	-
Bank Loan Ratings	1947.00	-	ACUITE A1+ | Reaffirmed
Total Outstanding	2587.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has reaffirmed its long-term rating of ’ACUITE AA-’ (read as ACUITE Double A minus) and its short term rating of ‘ACUITE A1+’ (read as ACUITE A one plus) on Rs. 2587.00 crore of bank facilities of Telecommunications Consultants India Limited (TCIL). The outlook is ‘Stable’. Rationale for rating The rating reflects the company’s strategic importance as a Government of India (GoI) undertaking, its improved scale of operations, and its healthy financial risk profile. The liquidity position and coverage indicators also remain strong. TCIL has received additional receipts of approximately Rs. 4,166.83 Cr. arising from the disinvestment in Bharti Hexacom Limited (BHL), of which around Rs. 3,727.78 Cr. has been transferred to the GoI as a special dividend in FY25. However, the rating is constrained by the increasing competitive intensity in the sector and the tender-based nature of operations, which exposes the company’s margins to susceptibility. Additionally, the company’s working capital operations remain intensive, with elevated gross current assets (GCA) due to delays in bill realization.

About the Company

­TCIL, a Delhi based company incorporated in 1978, is wholly owned by the Department of Telecommunications, Government of India. It undertakes turnkey and consultancy projects in India and abroad, primarily in the access network segment. These projects involve ducting and cabling for network rollouts. The company also undertakes other operations including maintenance of telecom networks, civil and architectural projects and provides consultancy for network design and information technology. TCIL has diversified into other activities such as civil construction of buildings and undertakes road projects on a build operate-transfer basis. The company has footprint in over 50 countries.

Unsupported Rating

­­Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profile of Telecommunications Consultants India Limited (TCIL) to arrive at the rating.

Key Rating Drivers

Strengths

­Government of India undertaking TCIL is a wholly owned entity of the Government of India. The company is under administrative control of Department of Telecommunications, Ministry of Communications. Acuité believes that TCIL will continue to benefit from the government. The continuing ownership from GOI will continue to remain a key rating sensitivity factor. Improvement in scale of operations albeit decline in profitability The company witnessed an improvement in its scale of operations, with operating income increasing to Rs. 2,947.95 Cr. in FY2025 from Rs. 2,541.51 Cr. in FY2024. Further, it has a healthy unexecuted order book of approximately Rs. 9,772.94 Cr. as on December 31, 2025. Going forward, the company’s ability to secure new orders and ensure timely execution of its existing orders will remain a key rating monitorable. The EBITDA margin stood at 1.33% in FY2025, compared to 3.62% in FY2024, with the decline primarily attributable to an increase in raw material costs and the execution of new orders at lower margins. The PAT margin, however, improved significantly to 122.38% in FY2025, from 2.89% in FY2024, mainly due to a substantial gain of Rs. 4,166.83 crore from the sale of the company’s stake in Bharti Hexacom Limited (BHL) during FY2025. The company achieved revenues of Rs. 1,022.98 crore in H1FY2026. Acuite believes that the company is expected to report a better top line in the near to medium term, supported by a strong order book and stable margins compared to previous years. Healthy Financial Risk Profile The financial risk profile of the company remains healthy, marked by a net worth of Rs. 509.88 Cr. as on March 31, 2025, compared to Rs. 673.23 Cr. as on March 31, 2024. The decline in net worth is primarily on account of a dividend payout of Rs. 3,761.50 Cr. in FY2025. The company’s capital structure is comfortable, with the gearing ratio standing at 0.15 times as on March 31, 2025, against 0.02 times as on March 31, 2024. Furthermore, the coverage indicators improved significantly, reflected in an interest coverage ratio of 355.33 times and a debt service coverage ratio of 316.75 times as on March 31, 2025, compared to 9.80 times and 6.87 times, respectively, in the previous year. The TOL/TNW ratio stood at 7.28 times as on March 31, 2025, compared to 4.76 times in the previous year, while the Debt/EBITDA improved to 0.02 times as on March 31, 2025, from 0.12 times as on March 31, 2024. Acuite believes that, going forward, the company’s financial risk profile will remain strong, supported by the absence of any major debt-funded capex plans.

Weaknesses

Intensive working capital operations The working capital operations of the company are intensive, as reflected in GCA days of 416 days as on March 31, 2025, compared to 418 days as on March 31, 2024. The high GCA days is largely attributable to debtor days, which increased to 254 days in FY2025 from 214 days in FY2024. The stretch in receivables is primarily on account of delays in payments from government institutions. Notwithstanding the high GCA days, the company’s reliance on bank limits has remained low. The lower limit utilization is supported by the company’s back-to-back debtor–creditor arrangement, wherein payments to creditors are made only after corresponding bills are realized from debtors. This mechanism supports the company’s liquidity position. Acuite believes that the working capital operations of the company will remain intensive over the medium term due to the nature of its business. ­Susceptibility of operating income due to tender based nature of operations The company exhibits fluctuations in its operating income as it is majorly dependent on government tenders for its orders. The tender-based nature of operations makes it vulnerable to order cyclicality. Any slowdown in receipt of orders or delays in execution will impact revenues and affect operating performance.

Rating Sensitivities

Movement in scale of operations & margins Movement in Working Capital Operation

Liquidity Position

Strong

The liquidity profile of the company is strong, as reflected by adjusted net cash accruals of Rs. 336.13 crore in FY2025, after accounting for a dividend payout of Rs. 3,761.50 crore, against nil debt repayment obligations during the same period. The current ratio stood at 1.03 times in FY2025. The company has minimal utilization of its fund-based working capital limits, as its operations are largely funded through internal accruals. The company maintains a healthy liquidity buffer, with cash and bank balances of Rs. 51.60 crore and unencumbered fixed deposits amounting to Rs. 508.98 crore. Acuite believes that, going forward, the liquidity profile of the company will remain strong, supported by steady accruals and the absence of major debt-funded capex plans.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	2947.95	2541.51
PAT	Rs. Cr.	3607.69	73.37
PAT Margin	(%)	122.38	2.89
Total Debt/Tangible Net Worth	Times	0.15	0.02
PBDIT/Interest	Times	355.33	9.80

Status of non-cooperation with previous CRA (if applicable)

­Not Applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 22 Nov 2024 Bank Guarantee/Letter of Guarantee Short Term 0.14 ACUITE A1+ (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 600.00 ACUITE A1+ (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 80.00 ACUITE A1+ (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 300.00 ACUITE A1+ (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 50.00 ACUITE A1+ (Reaffirmed) PC/PCFC Short Term 150.00 ACUITE A1+ (Reaffirmed) Bank Guarantee (BLR) Short Term 100.00 ACUITE A1+ (Reaffirmed) Bank Guarantee (BLR) Short Term 250.00 ACUITE A1+ (Reaffirmed) Bank Guarantee (BLR) Short Term 197.00 ACUITE A1+ (Reaffirmed) Bank Guarantee (BLR) Short Term 250.00 ACUITE A1+ (Reaffirmed) Bank Guarantee (BLR) Short Term 350.00 ACUITE A1+ (Reaffirmed) Secured Overdraft Long Term 100.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Cash Credit Long Term 50.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Cash Credit Long Term 50.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Cash Credit Long Term 25.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Proposed Long Term Bank Facility Long Term 34.86 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) 25 Aug 2023 Secured Overdraft Long Term 100.00 ACUITE A+ | Stable (Reaffirmed) Cash Credit Long Term 50.00 ACUITE A+ | Stable (Reaffirmed) Cash Credit Long Term 50.00 ACUITE A+ | Stable (Reaffirmed) Cash Credit Long Term 25.00 ACUITE A+ | Stable (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 0.14 ACUITE A1+ (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 600.00 ACUITE A1+ (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 80.00 ACUITE A1+ (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 300.00 ACUITE A1+ (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 135.00 ACUITE A1+ (Reaffirmed) PC/PCFC Short Term 150.00 ACUITE A1+ (Reaffirmed) Bank Guarantee (BLR) Short Term 100.00 ACUITE A1+ (Reaffirmed) Bank Guarantee (BLR) Short Term 250.00 ACUITE A1+ (Reaffirmed) Bank Guarantee (BLR) Short Term 197.00 ACUITE A1+ (Reaffirmed) Bank Guarantee (BLR) Short Term 150.00 ACUITE A1+ (Reaffirmed) Bank Guarantee (BLR) Short Term 319.86 ACUITE A1+ (Reaffirmed) Bank Guarantee (BLR) Short Term 80.00 ACUITE A1+ (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating IDBI Bank Ltd. Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 150.00 Simple ACUITE AA- | Stable | Reaffirmed ICICI BANK LIMITED Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 197.00 Simple ACUITE A1+ | Reaffirmed INDIAN OVERSEAS BANK Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 300.00 Simple ACUITE A1+ | Reaffirmed Punjab and Sind Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 70.00 Simple ACUITE A1+ | Reaffirmed State Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 250.00 Simple ACUITE A1+ | Reaffirmed INDUSIND BANK LIMITED Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE A1+ | Reaffirmed Indian Bank Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 250.00 Simple ACUITE A1+ | Reaffirmed Bank Of Baroda Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 600.00 Simple ACUITE A1+ | Reaffirmed H D F C Bank Limited Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 80.00 Simple ACUITE A1+ | Reaffirmed H D F C Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE AA- | Stable | Reaffirmed ICICI BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE AA- | Stable | Reaffirmed Indian Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE AA- | Stable | Reaffirmed INDIAN OVERSEAS BANK Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE AA- | Stable | Reaffirmed INDUSIND BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE AA- | Stable | Reaffirmed Punjab and Sind Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE AA- | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE AA- | Stable | Reaffirmed Bank Of Baroda Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 150.00 Simple ACUITE A1+ | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE AA- | Stable | Reaffirmed Bank Of Baroda Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 100.00 Simple ACUITE AA- | Stable | Reaffirmed IDBI Bank Ltd. Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 100.00 Simple ACUITE AA- | Stable | Reaffirmed

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.