Press Release March 04, 2026 TOLANI PROJECTS PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	11.00	ACUITE BBB | Stable | Assigned	-
Bank Loan Ratings	89.00	-	ACUITE A3+ | Assigned
Total Outstanding	100.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has assigned the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) and short term rating of 'ACUITE A3+' (read as ACUITE A three plus) on the Rs.100.00 Cr. bank facilities of Tolani Projects Private Limited (TPPL). The outlook is 'Stable'. Rationale for rating assigned The rating assigned reflects the established presence of the company in the Oil & Gas engineering procurement & construction (EPC) industry. The operations is  supported by the healthy order book from reputed clientele, ensuring sound revenue visibility in the near future. Additionally, the rating also factors the healthy financial risk profile of the company with low gearing and comfortable debt protection metrics. However, the rating continues to remain constrained on moderate working capital operations. Further it also factors the investments made by the company in its associate entities. The rating is also constrained by the tender based nature of operations along with fragmented and competitive industry.

About the Company

Founded in 1979 in Gujarat as a proprietorship under the name Tolani Fabricators by Mr. Narain Tolani and later transitioned into a private limited company in 2010, Tolani Projects Private Limited (TPPL) specializes in pipeline construction and project installations, serving primarily Public Sector Undertakings (PSUs) in the oil and gas industry. In addition, the company undertakes civil infrastructure projects across Gujarat, including drainage pipelines and sewerage pumping stations. The current directors of the company are Mr. Narain Tolani, Mrs. Veenaben Tolani, Mr. Dipesh Tolani and Mr. Pradip Tolani.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered a standalone approach while assessing the business and financial risk profile of TPPL to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operations TPPL has a track record of over four decades in the industry and currently holds an AA Class Contractor certificate issued by the Government of Gujarat. The company has executed city pipeline projects in Ahmedabad, Surat, Ratlam, Haryana, Madurai, Vijayawada, and other locations. At present, TPPL has a presence in around 18 states and lays an average of 150–200 km of pipeline network each year. In addition, it undertakes O&M works for projects across Gujarat, Rajasthan, and Madhya Pradesh. The promoter, Mr. Narain Tolani, has over four decades of experience as an EPC contractor in the oil and gas industry, which has supported TPPL in expanding its operations over the years. Healthy order book and reputed client portfolio TPPL serves customers across all three verticals of the oil and gas industry—Upstream, Midstream, and Downstream. Over the years, the company has executed projects for Public Sector Undertakings (PSUs) such as Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation Limited (IOCL), Gas Authority of India Limited (GAIL), and Bharat Petroleum Corporation Limited (BPCL), as well as for private players including the Adani Group. As of January 1, 2026, the company’s outstanding order book stood at Rs.706.82 crore (Rs.409.55 crore received in FY26), representing ~3.4 times of its operating income for FY25. Therefore, while the revenues have remained stable at Rs.269.09 Cr. in FY25 (Rs.267.87 Cr. in FY24) driven by slower execution of the order book caused by delays in receiving Letters of Award (LOAs), which led to the deferment of certain projects, however, the healthy orderbook position is expected to improve the performance over the medium term, which remains a key rating monitorable. Moreover, the company reported an increase in the operating margins to 9.52 percent in FY25 as against 7.56 percent in FY24, however, on an overall basis the margins are expected to remain at a steady at around 10 percent. Healthy financial risk profile The net worth of the company improved to Rs.73.17 crore as on March 31, 2025 as against Rs.59.81 crore as on March 31, 2024, mainly on account of accretion of profits to reserves. The company’s gearing ratio stands below unity at 0.16 times as of March 31, 2025 (0.22 times as of March 31, 2024) along with a moderate TOL/TNW at 1.17 times as on March 31, 2025 (1.53 times as on March 31, 2024. Further, the interest coverage and Debt/ EBITDA also stood comfortable at 9.3 and 0.43 times respectively as on March 31, 2025. Acuite expects the financial risk profile of the company to remain healthy in the absence of any major long term debt planned and improving cash accruals.

Weaknesses

Moderately intensive working capital operations The company's working capital operations remain moderate, as indicated by gross current asset (GCA) days of 113 days in FY2025 (116 days in FY2024). The GCA days are primarily on account of higher debtors and other current assets consisting of loans and advances provided to other entities, The debtor’s days for the company stood at 86 days in FY25, up from 81 days in FY2024. However, the inventory days for the company stood low at 1 day in FY25 (9 days in FY24). However, the company is able to get additional liquidity buffer by stretching its creditors, which stood at 99 days in FY25 compared to 121 days in FY24. Acuite believes that working capital operations of the company may continue to remain moderate considering the company’s operation. Investments in associate company As of March 31, 2025, the company has invested approximately Rs.24.18 crore in its associate businesses, both in the form of equity as well as loans and advances. Of these majority is towards its new city gas distribution business with Gasonet Services (HP) Limited, Gasonet Services (RJ) Limited and Gasonet Services (UK) Limited, where the company holds ~11% stake in each entity. Tender based nature of operations, competitive & fragmented industry TPPL primarily undertakes projects in the Oil & Gas Industry, wherein the sector is marked by the presence of several mid to large sized players. The risk becomes more pronounced as tendering is based on minimum amount of bidding on contracts and there exists susceptibility to inherent cyclicality in the infrastructure segment. The company acquires tenders at competitive prices, which may affect its profitability. Further, there are uncertainties attached to the allotment of tenders. However, the risk is mitigated to some extent, given the group’s strong background in the industry, which has enabled the company to procure tenders on a regular basis.

Rating Sensitivities

Timely execution of outstanding orderbook leading to improvement in the scale of operations along with improvement in margins   Continued maintenance or improvement of the financial risk profile Significant investment in associate businesses impacting the liquidity profile Elongation in the working capital operations

Liquidity Position

Adequate

The liquidity position of the company is adequate marked by healthy net cash accruals (NCA) of Rs.21.65 crore in FY25 against the repayment obligations of Rs.2.65 crore. Further, going ahead the company is expected to generate NCA in the range of Rs.20-25 crore against the repayment obligations of Rs.3.10 crore each for next 2 years. The current ratio of the company stood at 1.19 times as on March 31, 2025. The average bank limit utilization for last 6 months ended Jan 2026 stood low at ~11.22 percent. Further, the company had cash and bank balance of Rs.0.95 crore as on March 31, 2025. Acuite believes that the liquidity position of the company will continue to remain adequate on account improving cash accruals against no major debt repayment obligations.

Outlook : Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	269.09	267.87
PAT	Rs. Cr.	19.77	13.71
PAT Margin	(%)	7.35	5.12
Total Debt/Tangible Net Worth	Times	0.16	0.22
PBDIT/Interest	Times	9.30	9.37

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 • 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 :

­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 Canara Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 71.00 Simple ACUITE A3+ | Assigned A U Small Finance Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 18.00 Simple ACUITE A3+ | Assigned A U Small Finance Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE BBB | Stable | Assigned Canara Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE BBB | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE BBB | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Parth Patel 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. 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.