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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 8.53 | ACUITE BBB- | Stable | Assigned | - |
| Bank Loan Ratings | 71.47 | - | ACUITE A3 | Assigned |
| Total Outstanding | 80.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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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 the bank facilities of Rs. 80.00 crore of Omaxe Limited (OL). The outlook is 'Stable'.
Rationale for Rating The assigned ratings factors the group’s long and established track record of over three decades in the real estate sector, evidenced by the successful completion of more than 275 projects since inception. The group has delivered over 9 crore sq. ft. of saleable area and has a presence across 30 cities in Northern India. The ratings also derive comfort from the stable operating performance, reflected in healthy collections, satisfactory coverage indicators, and lower reliance on external debt. As on September 30, 2025, the Omaxe Group is developing more than 90 projects, wherein the expected total collections are projected to be more than twice the remaining project cost to be incurred, thereby providing a healthy financial buffer for ongoing and upcoming projects. Liquidity remains adequate, supported by a projected average DSCR above 2 times during FY26 to FY29. However, the above strengths are constrained by ongoing litigations at the Group level, sustained losses reported over the past four financial years, and exposure to implementation and execution risks inherent to the real estate sector. |
| About the Company |
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Delhi-based Omaxe Limited, incorporated in 1989, mainly engaged in the business of developing real estate specializing in residential, commercial, retail, integrated townships, group housing, shopping malls, office spaces, etc. The company is managed by Mr. Rohtaas Goel as founding chairman, Mr. Vinit Goel as Whole Time director and Mr. Mohit Goel as director of the company.
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| About the Group |
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The Omaxe Group is one of India’s established real estate and infrastructure development groups, with a legacy spanning over three decades. Founded by Mr. Rohtaas Goel, the group has diversified interests across residential, commercial, retail, integrated townships, and public–private partnership (PPP) infrastructure projects. With a strong focus on Tier II and Tier III cities, the Omaxe Group has played a significant role in urban development across North and Central India, earning recognition for its large-scale developments and long-term commitment to regional growth.
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has consolidated 145 subsidiaries / step-down subsidiaries / associate entities together referred as Omaxe Limited Group (OL group). The detailed list is attached in the Annexure 2.
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| Key Rating Drivers |
| Strengths |
| Experienced promoters with established track record of operations
OL derives strength from the extensive experience of its promoters, who collectively possess decades of experience in the construction and real estate development sector. The Group has an established track record in the successful execution of real estate projects across multiple segments, including townships, group housing and commercial complexes. As on September 30, 2025, the group has delivered over 9 crore sq. ft. of saleable area, with the successful completion of more than 275 projects since inception. The Group has a sizeable land bank of over 2,100 acres across North India, which provides visibility for future project development and supports long-term growth prospects. Acuité believes that, supported by its extensive experience and established execution capabilities, the Group is well-placed to complete and deliver its ongoing projects in a timely manner. Moderate improvement in sales collections & velocity The Group’s overall collections have witnessed a steady improvement, registering a CAGR of 11.6% during FY23–FY25. As on date, the group expects outstanding receivables of over Rs. 4,000 crore from sold inventory and more than Rs. 11,000 crore from unsold inventory, which are likely to be realised over the medium term. The group has already received collections of over Rs. 1,700 crore up to H1 FY26 and expects total collections to exceed Rs. 3,000 crore by March 2026, primarily driven by its marquee project, The Omaxe State. Acuité believes that the group’s established execution capabilities and brand presence in the Northern Indian market will continue to support improved sales traction and collection profile going forward. |
| Weaknesses |
| Ongoing Litigations against the Omaxe Group
On July 30, 2024, SEBI passed an order citing irregularities in the Company’s financial statements for FY2019–FY2021, imposing market access restrictions and monetary penalties aggregating Rs. 47 lakh on 16 group entities. The Company has appealed before SAT, which granted a stay on the restrictions on October 1, 2024; the matter remains sub-judice. Acuité believes any adverse outcome is unlikely to materially impact operations or financials, though reputational risk remains. Following IT searches in March 2022, the Company received a tax demand of Rs. 298.31 crore in August 2024. The Honourable High Court has provided relief by dismissing similar cases on procedural grounds, and management expects existing and potential demands to be quashed. While group-level tax disputes amount to ~Rs. 1,800 crore, Acuité notes that any adverse ruling could temporarily impact liquidity. Omaxe Limited developed the 336.5-acre Omaxe City, Patiala township under a PPP agreement with PDA/PUDA signed in 2006, which included residential and commercial development and a proposed 60-acre IT/Bio-Tech Park. Due to weak demand for IT infrastructure, the request for land-use change was rejected, and delays in project execution led to termination of the agreement in June 2011, followed by prolonged litigation and status-quo orders. An arbitration tribunal later directed Omaxe to surrender the 60 acres and upheld PUDA’s entitlement to 20% revenue share of Rs. 53 crore along with interest from August 2018, resulting in an estimated liability of ~Rs. 85 crore. As of March 2025, Rs. 145 crore has already been secured in an escrow account as fixed deposits. Omaxe has appealed against the revenue-share ruling. Acuité notes that the escrowed amount adequately covers the estimated liability and, therefore, the matter is not expected to impact the Company’s future cash flows, though it remains a legal risk. Continuous net losses The group has been reporting net losses from past four financial years. The revenue recognition is linked to the transfer of control and satisfaction of performance obligations, instead of construction progress or customer billing. Consequently, revenue from ongoing projects could not be recognised during the construction phase and was deferred until achievement of specified milestones, while construction, finance, and overhead costs continued to be incurred. This results into a timing mismatch between cost recognition and revenue recognition, leading to accounting losses in the reported financials. Susceptibility to Real Estate Cyclicality and Regulatory Risks The real estate industry in India is highly fragmented with most of the real estate developers, having a city specific or region-specific presence. The risks associated with real estate industry are cyclical in nature and directly linked to drop in property prices and interest rate risks, which could affect the operations. Given the high level of financial leverage, the high cost of borrowing prevents the real estate's developers' from significantly reducing prices to boost sales growth. Moreover, the industry is also exposed to certain regulatory risks linked to stamp duty and registration tax directly impacting the demand and thus the operating growth of real estate players. |
| ESG Factors Relevant for Rating |
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Omaxe Limited operates in the real estate sector, which is inherently exposed to environmental, social, and governance (ESG) risks due to its dependence on land use, natural resources, regulatory approvals, and multiple stakeholders. From an environmental perspective, the company faces risks related to energy consumption, water usage, waste generation, and carbon emissions during construction and operational phases. Omaxe has adopted select environment-friendly practices, including energy-efficient designs and water management systems across certain projects, which partially mitigates environmental risks; however, exposure to evolving environmental regulations remains. On the social front, Omaxe contributes to employment generation and urban infrastructure development through its residential, commercial, and integrated township projects. Social risks are primarily linked to project execution timelines, labour safety, customer grievances, and contractor management, which are typical for the sector. The company has internal mechanisms for grievance redressal and project monitoring, though execution-related challenges persist. From a governance standpoint, Omaxe Limited, being a listed entity, is subject to regulatory oversight and disclosure requirements. The presence of an established board structure and statutory committees supports governance practices. Nevertheless, capital allocation discipline, compliance adherence, and transparency in related-party transactions remain key governance monitorables. Overall, environmental compliance, execution discipline, and governance oversight will continue to be important ESG considerations from a credit perspective. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Adequate |
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The liquidity profile is adequate marked by sufficient collections against the scheduled debt obligations. The average projected DSCR from FY 26 to FY 29 stood comfortable above 2 times. Approximately 91% of the balance cost to be incurred on the ongoing projects is covered against committed receivables. Acuite believes that going forward, company will able to meet its debt obligations comfortably from cash flows.
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| Outlook - Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 1560.99 | 1614.32 |
| PAT | Rs. Cr. | (685.40) | (405.91) |
| PAT Margin | (%) | (43.91) | (25.14) |
| Total Debt/Tangible Net Worth | Times | (2.89) | 1.81 |
| PBDIT/Interest | Times | (2.72) | (2.47) |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any Other Information |
| None. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.htm |
| Note on complexity levels of the rated instrument |
Rating History : |
| Not Applicable. |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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