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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 505.00 | ACUITE A- | Stable | Reaffirmed | - |
| Non Convertible Debentures (NCD) | 65.00 | ACUITE A- | Stable | Reaffirmed | - |
| Non Convertible Debentures (NCD) | 75.00 | Provisional | ACUITE A | Stable | Assigned | - |
| Bank Loan Ratings | 30.00 | - | ACUITE A2+ | Reaffirmed |
| Total Outstanding | 675.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE A-’ (read as ACUITE A Minus) and short term rating of 'ACUITE A2+' (read as ACUITE A Two Plus) on Rs. 535 Cr. bank facilities of RDC Concrete (India) Limited (RDC). The outlook is 'Stable'.
Acuité has also reaffirmed the long-term rating of 'ACUITE A-' (read as ACUITE A Minus) on Rs 65.00 Cr. of Non Convertible Debentures (NCD) of RDC Concrete (India) Limited (RDC). The outlook is 'Stable' Further, Acuite has assigned the long-term rating of ' Provisional ACUITE A' (read as Provisional ACUITE A) on Rs 75.00 Cr. of proposed Non Convertible Debentures (NCD) of RDC Concrete (India) Limited (RDC). The outlook is 'Stable'. The rating on the Rs.75.00 Cr. Proposed NCD is provisional, and the final rating is subject to receipt of pending documentation:
Rationale for rating
The rating factors in the diversified revenue portfolio of the group in construction supplies with strong market position in key segments resulting in healthy y-o-y growth in the operating performance of the group. The rating also draws comfort from the presence of reputed investors such as Tiger Global, Fundamental, etc. and strong resource mobilisation ability of the group in terms of equity raise and debt refinancing over the years. The rating is however constrained by the significant capex and acquisitions done over the years, primarily driven by external debt which has impacted the financial risk profile leading to stretched coverage indicators. However, with significant debt refinancing and fund raising in FY26, moderate improvement in debt protection metrics is expected over the medium term and shall remain a key rating sensitivity. The rating is further constrained by the intensive working capital operations of the group marked by elevated debtor days and limited track record of operations. Further the rating factors the leading market position of RDC at a consolidated level with a diversified geographical presence and robust growth in operating performance driven by growing volumes owing to continuous capacity additions and efficiency of operations. The rating also factors the average financial risk profile of RDC driven by improving net worth owing to profit accretions and moderate credit metrics with low debt service coverage ratio due to increasing debt funded capex. Moreover, the rating on proposed NCDs of RDC factors additional cushion in the form of creation of DSRA equivalent to 12.6 percent of the issue size coupled with presence of structured T-n payment mechanism for repayment to debenture holders. |
| About the Company |
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Incorporated in April 1993 and acquired by Hella Group in December 2021, RDC Concrete (India) Ltd (RDC) along with its subsidiaries Neptune Readymix Concrete Private Limited, Ultrafine Minerals & Admixtures Private Limited, Robo Silicon Private Limited and Robo Quarries Private Limited, is the second largest player of ready-mix concrete manufacturing in India. The company’s products and services include ready-mixed concrete, transport and pumping, and technical services and also some special concrete solutions such as RDC selfcrete, RDC fibre cretes, RDC liteCrete, RDC hempcrete, etc. The company currently has 130 operational RMC plants, of which 94 plants are commercial and 36 plants are captive plants. Nearly 93.30% of the shareholding of the company is with Hella Infra Market Ltd (HIML) and is promoted by Mr. Souvik Sengupta and Mr. Aaditya Sharda. The company is based in Thane.
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| About the Group |
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Established in 2016, Hella Group is a Thane based manufacturer cum aggregator dealing in various types of construction materials. The group provides a wide range of industrial products (concrete, steel, cement, aggregates), building materials & services (walling, wood, plumbing, roofing), consumer interior essentials (tiles and sanitary ware, modular kitchen and hardware, paint, electrical appliances) and chemical compounds. It runs its business through India’s first multi-product and multi-channel construction material platform – Infra.Market which is one of the biggest marketplaces and aggregators in the country having a tie-up with more than 500+ suppliers and 9,000+ retail stores (of which 1250+ retailers are dealer stores operating under the group's brand name). The group has also launched 30+ premium franchise stores measuring 10,000 sq. ft. Further, it has established a key presence across 22+ states in India and also has an export presence in Middle East and Asian countries such as Jordan, Vietnam, Singapore, Dubai, UK, Hong Kong, etc.
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| Unsupported Rating |
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Acuite A-|Stable
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| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| To arrive at the rating of RDC Concrete (India) Limited (RDC), Acuite has consolidated the financial and business profiles of RDC, its parent company Hella Infra Market Limited (HIML, formerly known has Hella Infra Market Private Limited) including all the subsidiaries and associates of HIML. The consolidation takes into account the integrated nature of business of companies, cashflow fungibilities, operational linkages and common management. The rating also factors the corporate guarantee extended by HIML to RDC for all the borrowings and continued financial support extended through unsecured loans.
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| Key Rating Drivers |
| Strengths |
| Sustained equity infusions supported by reputed investors and strong resource mobilisation ability
The group is backed by reputed investors like Tiger Global, Accel India, Evolvence India, Sacap Capital, etc who have been with the group since 2019 and extended support in the form of equity infusions in each of the fund raising rounds. On an overall basis, group has raised Rs 3058 Cr. from FY20 to FY25 (excluding Rs. 900 Cr. against swap acquisition of tile companies in FY25). Further in FY26, the group raised Rs 879.00 Cr. till February 2026 and planning to further raise of Rs 60.00 Cr. in the month of March 2026. Overall from FY19 to recent raise in FY26, the valuation have grown multi fold from Rs 100.00 Cr. to Rs 25,000 Cr. respectively. Also, the group has refinanced total debt of Rs. 1,250 Cr. (Rs 1000.00 Cr - committed amount and Rs 250.00 Cr under green shoe option) in FY26, against which Rs 750 Cr. is refinanced in FY26 and balance Rs 250 Cr. to be received in early of April-26/May-26.The equity raised and debt refinanced is to meet the repayment obligations and capex requirements of the group. Diversified revenue streams with strong market position in key segments The group is engaged in all sorts of construction materials with key focus on products which have a fragmented market, drive macroeconomic shifts and high export potential. The key focus is to establish a robust distribution system expanding at B2B levels and develop a strong brand. The group has secured strong domestic market positions, with being the largest manufacturer of ACC blocks and 2nd highest ranking in categories like Concrete and Tiles. Majority of the product portfolio expansion is on account of acquisitions including Equiphunt in 2020, RDC Concrete in 2021 and Shalimar Paints in 2022. The group has also ventured into new segments such as Bath & Fittings in 2020, Walling Manufacturing in 2023 and Wood Panel & Modular Kitchen in 2024. The extensive product range offers an edge over the competitors and allows to capture larger share of customers wallet through cross selling opportunities. Further, RDC is a leading player in the RMC business and has over the years diversified its geographic reach from predominantly being a Southern India player to a Pan India player having a significant presence in south. In FY25, southern region accounted for 40% of sales (FY21: 53%; FY17: 65%), western region 30% (21%; 13%) while the northern and eastern region accounted for the balance 30% with nearly equal share. The diversification has resulted in RDC enjoying a healthy market share. The company has established relationships with marquee clients such as Tata Projects Ltd, Kalpataru Group, Larsen & Toubro Ltd, and ITD Cementation India Ltd, etc. Notably, its top 10 clients contributed only 20% of revenue in FY2025, highlighting a well-diversified and extensive customer base. The company has densified its RMC business by further penetrating its existing locations and adding more RMC plants and leveraging on its parentage diverse geographical mix. The company has 130 operating plants as of March 2025 (FY24: 106 plants; FY23: 81 plants). Strong growth in operating performance The operating revenues of the group has been growing at a strong pace with Rs. 14,527.23 Cr. in FY2024 to Rs. 18,469.67 Cr. in FY2025 posting a growth of ~27 percent. This growth in revenues is majorly attributable to the concrete segment (30.6% of FY25 revenue), steel segment (21.3%) and chemical segments (12.5%). With increasing share of private labels in the revenue mix, the operating margins have also improved significantly from 7.13% in FY24 to 8.20% in FY25 mainly on account of increasing economies of scale. The group recorded a revenue of Rs 14,388 Cr. for 9MFY26 with an EBITDA margin of 8.19%. Currently, majority of revenue is driven from B2B channel mix (74.50% of FY25 revenue), however, the group has a constant focus on expanding its retail network as well through development of extensive distribution network. On a consolidated basis, RDC’s revenue from operations grew by 23% from Rs. 2,030.54 Cr. in FY24 to Rs 2,503.87 Cr. in FY25 driven by company’s focus on acquiring new clients in the industrial segment and successful expansions across various cities with a geographically diversified plant network contributing to increased production and increasing sales volume from 4,618 kilo cubic meters in FY24 to 5,289 kilo cubic meters in FY25. The expansion in scale and footprint led to improved fleet utilisation and a significant reduction in logistics costs, resulting in an improvement in operating profit margins from 8.50% in FY23 to 8.87% in FY25. Acuité believes this volume-led growth is likely to continue through FY26–FY27, supported by the commissioning of additional plants and the ramp-up of recently operationalised facilities, which is expected to further improve margins over the medium term. |
| Weaknesses |
| Dependence on external debt to support acquisitions, capex and working capital significantly impacted financial risk profile, expected to improve through equity infusions and debt refinancing
While, tangible net worth of the group stood improving at healthy levels to Rs 3,709.27 Cr. in FY2025 as against Rs 2,009.15 Cr. in FY24, the significant dependence on external debt to support acquisitions, capex, working capital and lease liabilities however led to an increase in the debt. The gearing though improved remained high at 1.77 times in FY 2025. Moreover, the debt protection metrics stood low with debt service coverage ratios remaining below unity in FY25. Further, the financial risk profile of RDC at a consolidated level also stood moderate with growing networth from Rs 152.17 Cr. in FY24 to Rs 229.29 Cr. in FY25 owing to profit accretions and moderate credit metrics with Debt/EBITDA of 3.16 times as on FY25 (3.18 times in FY24) due to increasing debt levels towards the capex funding and low debt service coverage ratios, repayments managed through unsecured loan infusions by group companies. RDC's capex intensity is likely to increase in the near term with the company incurring a total capex and acquisitions of around ~Rs 160 Cr. in FY25 with around 24 plants added. The company proposes to add another 25 plants, each year, over FY26-FY28, in addition to capex at its subsidiary Ultrafine Minerals & Admixtures, resulting in average capex spends of around Rs 140-150 Cr. each year. These capex spends are expected to fund through a mix of debt and equity. Therefore, while the company’s ongoing expansion plans are expected to increase net debt levels over FY26–FY28, a gradual ramp-up of the newly added capacities to sustain credit metrics shall be a key rating sensitivity. However, the recent debt refinancing of Rs 1,250 Cr. and equity raise of Rs 879 Cr. in FY26 (till Feb-26) is expected to improve the financial risk profile significantly over the medium term. Additionally, the management also proposes for raising funds through initial public offer by Q2FY27, approval received from SEBI on DRHP in Jan 2026. While listing being pending, the same has not been factored in the rating, however, successful fund raising shall further improve the capital structure and be a key rating monitorable. Intensive working capital requirements The working capital operations of the company is intensive marked by high gross current asset days of 173 days in FY2025 (163 days in FY2024). This is mainly attributable to elevated debtor levels which stood at 124 days in FY2025. Further other current assets including advance to suppliers and balance with government authorities also contributed to high GCA days. The receivable days is expected to remain in the range of 120 days over the medium term. The company sources materials from leading players like Ultratech, JSW Steel, etc. Further, since the company is majorly supplying materials directly from manufacturer and key materials such as concrete is perishable in nature, inventory maintenance is low at 10-20 days. The debtors levels of RDC also stood at 108 days in FY25 (105 days in FY24), however, creditor days improved to 150 days in FY25 as against 137 days in FY24 providing moderate ease to working capital. The receivable days is expected to remain in the range of 90-120 days over the medium term. Therefore, given the inherent risks associated with collections, RDC’s ability to efficiently manage its working capital remains a key determinant of its overall credit profile. Limited track record and inherent challenges of construction business The group has a relatively short operating track record as operations started in 2016. Also, the construction sector is fragmented with low entry barriers and numerous small players, hence exposes the company to intense competition risks. Further, growth in construction industry is vulnerable to the developments in infrastructure and real estate sector. |
| 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 DSRA provided in the form of cash/ fixed deposit/ debt securities rated AA and above, sovereign debt securities, shall be adequate to provide sufficient liquidity cushion. Moreover, the repayment schedule is elongated with debt repayments starting from end of 27th month of allotment.Further, the historical track record of group in raising equity and refinancing debt provides additional comfort for managing debt servicing even in stress case scenarios. |
| ESG Factors Relevant for Rating |
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The group has commitment to energy management and product stewardship. On the environment safeguard front, the group preserves natural resources and reduces energy intensive processes by engaging in use of recycled metal scrap and production of secondary steel, exports chemical raw materials to make sustainable and alternative fuels like Bio-diesel, is setting up recyclable and low energy consuming Oriented Polyvinyl Chloride pipes to replace the traditional cement pipes.Further, the group has developed healthy employment practices such as insurance benefits, health and safety policies, corporate social responsibility programs for upskilling, vocational training, gender equality and rural development. Further, it promotes gender diversity and inclusivity. The board comprises of a strong team of promoters and experienced industry professionals. Also, to manage the corporate governance anti bribery, anti corruption and whistleblower policy has been framed. The group ensures efficient credit risk management and indulges in data privacy and data security practices.
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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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| All Covenants |
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For NCDs of Rs 65.00 Cr
For Provisional NCDs of Rs 75.00 Cr
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| Liquidity Position |
| Adequate |
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Historically, the liquidity of the group has been stretched with accruals of Rs 668.92 Cr. in FY25 as against repayment obligations of Rs 1,648.91 Cr. for the same period and debt servicing was managed through debt raise and refinancing. With the equity raise of Rs 879 Cr till Feb-26 and debt refinancing of Rs 750.00 Cr. in FY26, the group's liquidity is expected to remain adequate over the medium term. Further, the group is expected to generate net cash accruals of ~Rs 1,000.00 Cr - 1,200.00 Cr. in FY27 - FY28 respectively as against annual repayment of ~Rs 580.00 Cr to 1,017.00 Cr. The current ratio of the group stood moderate at 1.10 times as on March 31,2025. Further, group maintained total cash balance of Rs 940.61 Cr. as on December 31, 2025, of which Rs 326.57 Cr. is unencumbered. The overall utilisation of fund-based limits stood at ~79.51% for seven months ending on February 28, 2026.
At a consolidated level, RDC's net cash accruals increased from Rs 108.60 Cr. in FY24 to Rs 136.34 Cr. in FY25, however, marginally insufficient to manage the debt repayment obligation of 138.06 Cr (including lease liabilities), however, managed through unsecured loan infusions from group. The company enhanced its fund-based limits by Rs ~60 Cr. in FY25 from Rs 115 Cr. in FY24 to support the business growth. Further, the company also had healthy cash and cash equivalents balance of Rs 112.7 Cr of which ~Rs 58 Cr. stood unencumbered as on March 31, 2025. |
| Outlook-Stable |
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 18469.67 | 14527.23 |
| PAT | Rs. Cr. | 219.74 | 378.04 |
| PAT Margin | (%) | 1.19 | 2.60 |
| Total Debt/Tangible Net Worth | Times | 1.77 | 2.17 |
| PBDIT/Interest | Times | 1.92 | 2.20 |
| Key Financials | ||||||||||||||||||||||||
Consolidated -RDC Concrete (India Limited)
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| Status of non-cooperation with previous CRA (if applicable) |
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Not applicable
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| Any Other Information |
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Supplementary disclosures for Provisional Ratings
A. Risks associated with the provisional nature of the credit rating In case there are material changes in the terms of the transaction after the initial assignment of the provisional rating and post the completion of the issuance (corresponding to the part that has been issued). Acuite will withdraw the existing provisional rating and concurrently, assign a fresh final rating in the same press release, basis the revised terms of the transaction. B. Rating that would have been assigned in absence of the pending steps/ documentation The rating would be equated to the standalone rating of the entity: ACUITE A-/ Stable C. Timeline for conversion to Final Rating for a debt instrument proposed to be issued The provisional rating shall be converted into a final rating within 90 days from the date of issuance of the proposed debt instrument. Under no circumstance shall the provisional rating continue upon the expiry of 180 days from the date of issuance of the proposed debt instrument. |
| 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 • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm |
| Note on complexity levels of the rated instrument |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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