Press Release

Press Release

February 17, 2026

LAXMI INFOBAHN SOFTWARE TECHNOLOGY PARK LLP
Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	250.00	ACUITE BB \| Stable \| Assigned	-
Total Outstanding	250.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned its long term rating of 'ACUITE BB' (read as ACUITE double B) on the Rs.250.00 Cr. bank facility of Laxmi Infobahn Software Technology Park LLP (LISTPL). The outlook is 'Stable'.

Rationale for rating
The rating assigned reflects the extensive promoter experience and factors in its long and stable relationship with the reputed tenant. The rating is further supported by the defined payment-waterfall mechanism arising from the escrow framework. However, these strengths are moderated by the susceptibility to the lessee’s operating performance, alongside inherent occupancy and renewal risks. Additionally, the rating remains exposed to the uncertainty surrounding the timely absorption of any vacant sq. ft area, which could affect the stability of future rental cash flows.

About the Company

Laxmi Infobahn Software Technology Park LLP (LISTPL), established in May 2017 and based in Hyderabad, Telangana, is engaged in developing commercial and technology park infrastructure. The LLP is promoted by Mr. Amarendra Reddy Gavva and Mr. Abhinav Reddy Gavva and is associated with the creation of large Grade-A office and IT park assets, notably GAR Infobahn Towers 5 and 6 at Kokapet, Hyderabad, with a combined leasable area of 29 lakh sq. ft. The project caters to reputed multinational and domestic occupiers, including major tenants such as Capgemini, Alstom, Lansum, and Cognizant.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of the LISTPL to arrive at this rating

Key Rating Drivers

Strengths

Extensive promoters experience
LISTPL, incorporated in May 2017 and headquartered in Hyderabad, focuses on the development of Grade-A commercial and technology park assets. The promoters bring over three decades of experience in the commercial real estate and leasing space, enabling the company to establish a strong presence in Hyderabad’s office market. Their proven execution capability is reflected in the successful development of Towers 5 and 6, together offering around 29 lakh sq. ft. of premium leasable area at Kokapet. Tower 5 continues to attract marquee occupiers such as CTS, while Tower 6 is gaining traction with reputed tenants including Capgemini, Alstom, Zeta and Lansum. The projects enjoy strategic locations within key commercial clusters like Kokapet and the Financial District. Acuité believes the company will continue to derive benefits from its established market position and the strong capability of its promoters.

Adequate cashflow position backed by ESCROW mechanism and maintenance of DSRA
Tower 6 comprises a developer share of 8.32 lakh sq. ft., of which 7.25 lakh sq. ft. from the Ground to 19th floor is earmarked and escrowed to the LRD facility of Rs 90 crore and the LAP facility of Rs160 crore. The tower presently reflects ~45% occupancy, supported by long-term leases with reputed tenants such as Capgemini, Alstom, Zeta and Lansum, ensuring visibility and stability of rental inflows. Revenue resilience is further strengthened by the contracted rental levels and periodic escalation clauses. The escrow mechanism ensures structured prioritisation of interest and principal servicing, with any surplus applied toward prepayment of debt. Liquidity is supported by a fully maintained debt service reserve account (DSRA) equivalent to three months of LRD instalments and an additional Rs 8.4 crore DSRA for the LAP facility. Consequently, Tower 6 demonstrates adequate cash-flow coverage, with DSCR expected to improve over the tenure of the loan, supported by stable lease rentals and consistent tenant occupancy.

Weaknesses

Lessee concentration risk with high level of vacancy
LISTPL has high lessee concentration risk with the top tenants occupying around ~45 per cent of the total leasable area. This also leads to higher risk on cash flow in case of delay in receiving rentals from key customers. Further, timely renewal of these lease agreements wil remain as a key rating monitorable. Further, ~ 55 per cent of the space is vacant, thus timely locking in of tenants to ensure continued adequacy of cash flows will remain as a key rating monitorable.

Susceptibility to tenant’s performance along with occupancy and renewal risk
LISTPL primarily generates cash flows from lease rentals. The company's ability to meet its repayment obligations will be dependent on the continued and timely flow of rentals as per the agreed terms under arrangement. The occurrence of events such as delays in receipt of rentals, or early exits/renegotiation by tenants due to the latter's lower than expected business performance may result in disruption of cash flow streams, thereby affecting LISTPL's debt servicing ability. In FY2025, the revenue decline to Rs.44.40 Cr. from Rs.80.00 Cr. in FY2024 mainly due to reduced rental inflows following partial tenant exits and lower occupancy levels during the year. The moderation was further influenced by slower leasing traction and a shift to revised lease arrangements. The renewals leasing at better terms, any significant renegotiations by the lessee can adversely impact the cash flows from the property.

Exposure to inherent cyclicality in the real-estate industry
Being a cyclical industry, the real estate is highly dependent on macro-economic factors which make the company’s sales vulnerable to any downturn in the real-estate demand and competition within the region from various established developers.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

The projected cash flows remain adequate to meet the debt obligations, supported by expected improvement in occupancy levels and timely rental inflows. The presence of DSRA equivalent to the three months of LRD instalment and an additional Rs.8.4 Cr DSRA for the LAP facility, further provides liquidity comfort.

Stress scenario:
Even under the stress scenario of lower than expected occupancy and delayed collection, the DSRA provides critical liquidity buffer, providing temporary cover during cash flows volatility.

Rating Sensitivities

T?imely renewal of lease rolls with timely leasing out vacant spaces
Any significant decline in occupancy levels leading to cash flow mismatches.

Liquidity Position:

Adequate

The liquidity of the company is adequate marked by generation of sufficient accruals of Rs.32.72 Crore to its maturing repayment obligations of Rs.21.52 Crore. It is further supported by maintenance of DSRA, equivalent to three months of repayment obligation of LRD facility and additional DSRA of Rs.8.4 Cr for LAP . In addition, as per the terms of sanction, it stipulates an escrow mechanism through which rent receipts are routed and used for payment as per the defined payment waterfall. The average debt service coverage ratio (DSCR) on LRD facility is expected at ~ 1.84 times over the tenue of the loan.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	44.40	80.00
PAT	Rs. Cr.	5.69	(22.74)
PAT Margin	(%)	12.80	(28.43)
Total Debt/Tangible Net Worth	Times	(165.40)	(47.76)
PBDIT/Interest	Times	0.99	1.67

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

None

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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 :

Not Applicable

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
ICICI BANK LIMITED	Not avl. / Not appl.	Term Loan	01 Aug 2024	Not avl. / Not appl.	01 Aug 2039	90.00	Simple	ACUITE BB \| Stable \| Assigned
ICICI BANK LIMITED	Not avl. / Not appl.	Term Loan	01 Aug 2024	Not avl. / Not appl.	01 Aug 2039	160.00	Simple	ACUITE BB \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Dharmavarapu Sai Kiran
Senior 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.

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