Press Release March 10, 2026 N A CONSTRUCTION PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	11.50	ACUITE BBB- | Stable | Assigned	-
Bank Loan Ratings	288.50	-	ACUITE A3 | Assigned
Total Outstanding	300.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has assigned its long-term rating of ‘ACUITE BBB-' (read as ACUITE triple B minus) and short-term rating of 'ACUITE A3' (read as ACUITE A three) on Rs. 300.00 Cr. bank facilities of N A Construction Private Limited (NACPL) . The outlook is 'Stable'. Rationale for rating: The assigned rating considers the extensive industry experience of the promoters over three decades in civil construction industry and long operational track record of the company. The rating also factors in stable operating revenue which is expected to continue on the back of the healthy order book position as on December 31, 2025. It also considers healthy financial risk profile of the company marked by healthy net worth and debt protection metrics. However, the rating is constrained by working capital-intensive operations, exposure to execution- related risks, the tender-driven nature of the business amidst high geographic and segment concentration risks. The rating takes cognizance of the recent ED raid which resulted in the temporary freeze on the bank accounts of the company, however as per the written evidence received from the management, the ED  released the freeze and blocked only minimal fixed deposit, which is not likely to have a material impact on the liquidity position and credit risk profile of the company.

About the Company

­N A Construction Private Limited (NACPL) is a Mumbai-based company specializing in urban infrastructure development. Originally established as a proprietary concern in 1993 and subsequently converted to Private limited company in 2009. The company  is promoted by Mr. Nasirali  A. Madraswala, Shaheen Nasirali Madraswala who have been engaged in civil construction business for over three decades. The company’s expertise spans the full lifecycle of urban infrastructure—from road concretization and bridge construction to complex stormwater management systems with focus on public sector projects where company acts as a civil contractor.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of NACPL to arrive at this rating.

Key Rating Drivers

Strengths

Established track record of operations and experienced management N A Construction Private Limited (NACPL) is a Mumbai-based civil engineering company specializing in urban infrastructure development. Originally established as a proprietary concern in 1993 and subsequently converted to Private limited company in 2009.  The promoters, Mr. Nasirali A. Madraswala, has nearly three decades of experience in the civil construction industry, He handles taking decision regarding tenders and execution related matters. Shaheen Nasirali Madraswala, has nearly two decades of experience in the civil construction industry. The extensive industry experience of the promoters has enabled them to establish a healthy relationship with its various various government bodies in maharashtra and suppliers. Acuité believes that the company will maintain stable growth in its existing business profile over the medium term on the back of an established track record of operations with experienced management. Stable operating performance and healthy order book position The company has recorded stable revenue growth, reporting Rs. 580.60 Cr. in FY2025 against Rs. 550.45 Cr. in FY2024 and Rs. 376.58 Cr. in FY2023. The revenue has remained stable on account of change in market Conditions. The EBITDA margins of the company are range bound which stood at 8.48 percent in FY2025 as compared to 8.22 percent in FY2024 and 8.55 percent in FY2023. The company has already registered revenues of Rs.563.66 Cr. in 11MFY2025-26. The company having an unexecuted order book position of Rs.2166.87 Cr. as on December 31, 2025. The company is planning to execute the outstanding orders of Rs. 600-645 Cr. in next 12- 13 months of time. The outstanding order book is 3.73 times the FY2025 revenue which gives revenue visibility for the medium term. However, Acuité believes that NACPLs business risk profile to remain stable over the medium term on account of healthy order book position. Healthy financial risk profile Company’s financial risk profile is healthy, marked by healthy net worth along minimal gearing and healthy debt protection metrics. The net worth of the company stood at Rs.185.10 Cr. as on March 31st, 2025, against Rs.148.95 Cr. as on March 31, 2024, and Rs. 118.17 Cr. as on March 31st, 2023, respectively. The net worth improved on account of accretion of profits in reserves. The gearing of the company stood at 0.20 times as on March 31,2025, as against 0.24 times as on March 31, 2024, and 0.17 times as on March 31st, 2023. Company’s debt protection metrics is healthy marked by– Interest coverage ratio (ICR) and debt service coverage ratio(DCSR) stood at 22.88 times and 16.71 times as on March 31, 2025, respectively as against 36.06 times and 16.26 times as on March 31, 2024, and 21.79 times and 17.08 times as on March 31, 2023. TOL/TNW stood at 1.40 times as on March 31st, 2025, against 1.32 times as on March 31st , 2024 and 1.27 times as on March 31st, 2023, respectively. The debt to EBITDA of the company stood at 0.69 times in March 2025 as against 0.74 times in FY2024 and 0.57 times in FY2023. Acuite believes that financial risk profile of the company will remain stable over the medium term.

Weaknesses

Intensive working capital operations Company's working capital operations are intensive in nature as reflected through the gross current assets (GCA) of 128 days in FY2025 against 98 days in FY2024 and 93 days in FY2023. GCA days also includes other current assets of Rs. 112.37 Cr. (advance tax paid, Advances to Suppliers, Other receivables and recoveries). Inventory days stood at 41 days in FY2025 compared to 28 days in FY2024, 6 days in FY2023. Debtor days stood at 37 days in FY2025 against 43 days in FY2024 and 52 days in FY2023. The improvement in debtors days on account of better follow-up with respective departments. The reliance on working capital limits are moderate with ~ 82 percent utilization of the Non-fund-based limits used over the past 6 months ending in December 2025. Acuite believes, the working capital operations are expected to remain intensive given the nature of business. Significant Geographical  concentration in revenue profile NACPL’s executed 100 percent orders in the state of Maharashtra over the past financial years. It can be observed that the contribution from a single state (i.e. Maharashtra) is around 100 per cent in FY2025, thereby leading to significant geographical concentration risk. Acuité believes that NACPL will remain geographically concentrated over the medium term. Any geographical diversification in revenue profile will lead to lower concentration risk over the medium term. Susceptibility of profitability to volatility in raw material prices and tender based business The civil construction segment is characterized by stiff competition on account of the low complexity of work involved and minimal entry barriers in terms of qualifications required for the tenders floated. This results in the presence of a large number of contractors in this segment, leading to intensely competitive bids, putting pressure on margins. Further, the margin is exposed to volatility in raw material prices. However, the built-in price variation clause in the contracts mitigates the risk to an extent and long presence and established relationship with the clients provides comfort. ED raid issue The company previously executed desilting projects for the Municipal Corporation of Greater Mumbai (MCGM) during the 2013–2017 period. In line with standard industry practice for one- year municipal tenders, all primary project documentation and work logs were submitted to MCGM to facilitate payment releases. While the Economic Offences Wing (EOW) has initiated a wider sectoral probe, management has indicated that the allegations pertaining to NACPL relate only to works amounting to Rs. 2.34 Cr. which was executed in 2012-13. On July 31, 2025, the EOW initiated an inquiry which led to a temporary freeze on multiple bank accounts, fixed deposits, and current assets of NACPL totaling to Rs. 67 Cr. as on August 1, 2025. Following the submission of comprehensive technical and financial clarifications by the company, the ED released the lien on Rs. 59 Cr. of the FDRs on September 3, 2025. However, considering net worth of company, temporary blocking of Rs. 8 Cr is not likely to materially impact the liquidity position and credit risk profile of the company.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

­Growth in revenues more than 25% and sustainability in the profitability Stable working capital cycle and sustained financial risk profile

Potential triggers (individual or collective) for a downward rating action:

­Any large debt funded capex, impacting the financial risk profile and liquidity Revenue falling by 20-25 percent and steep decline in profitability Any adverse impact from ED’s ongoing scrutiny of the company’s governance practices

Liquidity Position

Adequate

Company’s liquidity is adequate with net cash accruals (NCA)s of Rs.39.76 Cr. during FY2025, while its maturing debt obligations are Rs. 0.15 Cr. during the same period. Going forward, the company is expected to generate cash accruals in the range of Rs. 39-43 Cr. net cash accruals against its repayment obligations of Rs. 1.12-1.44 Cr. However, the reliance on working capital limits stood by average of  82 percent utilization of the Non-fund-based limits used over the past 6 months ending in December 2025. The company has maintained unencumbered cash and bank balances Rs. 35.21 Cr. and the current ratio stood at 1.86 times as on March 31, 2025. Acuité expects that the liquidity of the company is likely to be Adequate over the medium term on account of healthy cash accruals.

Outlook: Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	580.60	550.45
PAT	Rs. Cr.	36.15	30.77
PAT Margin	(%)	6.23	5.59
Total Debt/Tangible Net Worth	Times	0.20	0.24
PBDIT/Interest	Times	22.88	36.06

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 KOTAK MAHINDRA BANK LIMITED Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 47.50 Simple ACUITE A3 | Assigned ICICI BANK LIMITED Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 49.00 Simple ACUITE A3 | Assigned INDUSIND BANK LIMITED Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 55.00 Simple ACUITE A3 | Assigned YES BANK LIMITED Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 66.10 Simple ACUITE A3 | Assigned YES BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE BBB- | Stable | Assigned INDUSIND BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BBB- | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Bank Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 70.90 Simple ACUITE A3 | Assigned KOTAK MAHINDRA BANK LIMITED Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.50 Simple ACUITE BBB- | Stable | Assigned ICICI BANK LIMITED Not avl. / Not appl. Secured Overdraft 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 Moparthi Anuradha Devi 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.