Press Release

Press Release

March 31, 2026

M M BROTHERS
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	11.00	ACUITE BBB- \| Stable \| Assigned	-
Bank Loan Ratings	15.20	ACUITE BBB- \| Stable \| Reaffirmed	-
Bank Loan Ratings	9.00	-	ACUITE A3 \| Assigned
Bank Loan Ratings	140.80	-	ACUITE A3 \| Reaffirmed
Total Outstanding	176.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short-term rating of ‘ACUITE A3’ (read as ACUITE A three) on Rs.156.00 crore of bank facilities of M M Brothers (MMB). The outlook is ‘Stable’.
Further, Acuite has assigned the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short term rating of ‘ACUITE A3’ (read as ACUITE A three) on Rs.20.00 crore of bank facilities of M M Brothers (MMB). The outlook is ‘Stable’.

Rationale for Rating:

The firm has demonstrated healthy medium-term revenue traction, supported by execution progress and outstanding order book that provides revenue visibility. Despite the moderation observed in FY 25 in terms of revenue, the firm has already recorded revenue of Rs. 159.41 crore as on 15-03-2026, indicating medium-term revenue growth. Further, the firm has an outstanding order book of Rs. 384.14 crore, which provides strong revenue visibility over the medium term. Operating profitability has improved and is expected to remain stable, aided by the firm’s capability to undertake relatively higher-margin contracts. However, profitability was impacted in the past due to higher finance costs, though margins are expected to improve going forward. The financial risk profile remains comfortable, reflected in stable leverage and coverage indicators, while liquidity is adequate, supported by sufficient net current assets and low near-term repayment . Collection efficiency has shown improvement in the current period, despite some stretch observed earlier. Retention money receivable remains a key monitorable, as delays in project execution could impact timely realization. Additionally, given the partnership structure, the firm remains exposed to the risk of capital withdrawal, and any significant reduction in partners’ capital could adversely affect the overall financial risk profile.

About the Company

Established in 1980, Jaipur based M M Brothers is a government contractor for electrical works, such as Laying of underground cable, erection and commissioning of Sub-Stations, survey, installation, testing, Shifting of line/cables, street lighting work and commissioning of 11 kilovolt (KV) to 33 KV electrical lines, transmission towers, and meters. M M Brothers was established by Late Mr. Dhoop Chand Sogani as a proprietorship concern, MMB was reconstituted as a partnership firm in April 2010.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered standalone financial and business risk profile of M M Brothers to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and reputed clientele
MMB was established in 1980 by Mr. Dhoop Chand Sogani and is currently managed by Mr. Sunil Sogani Tiwari and Mrs. Sangeeta Sogani. The firm has established track record of more than three decades in the same line of business. The promoters possess vast experience of over three decades in this industry and are ably assisted by an experienced second line of management. The Client base of firm includes Jodhpur Vidyut Vitran Nigam Ltd, Jaipur Vidyut Vitran Nigam Ltd, Urban Improvement Trust Kota, Public Works Dept, Rishikesh. West Bengal State Electricity Dev Co etc. Acuité believes that MMB will benefit from experienced management which will help the firm to maintain long standing relations with its customer.

Scale of Operations:
The firm reported a decline in total revenue to Rs.112.91 crore in FY25 from Rs.139.12 crore in FY24, primarily due to slower project execution arising from site clearing issues; however, revenue momentum has improved subsequently, with Rs.159.41 crore achieved as on 15-03-2026, indicating medium-term growth prospects. As of February 2026, the firm had a healthy outstanding order book of Rs.384.14 crore, translating into a strong OB/OI ratio of 3.42x, providing robust revenue visibility. Despite the moderation in FY25 revenues, operating profitability improved, with EBITDA margin rising to 12.30% from 10.74% in FY24 due to lower job work and direct expenses Further the firm is expecting their operating profit will be in range of 12.50%–13.00% supported by securing higher-margin contracts. However, PAT margin moderated to 4.50% in FY25 from 7.45% in FY24 due to higher finance costs and recognition of tax provision from FY25. Acuité believes operating performance is likely to improve, supported by YTD performance, although sustainability of profitability remains a key monitorable.

Stable Financial Risk Profile:
The firm’s financial risk profile remains comfortable, marked by an improved net worth, low leverage, and stable debt protection metrics. The tangible net worth increased to Rs.68.79 crore in FY25 from Rs.59.63 crore in FY24, driven by accretion to internal accruals. Gearing remained below unity at 0.35 times in FY25 (FY24: 0.37 times). Coverage indicators were stable, with interest coverage ratio (ICR) and debt service coverage ratio (DSCR) at 2.28 times and 1.79 times, respectively, in FY25. Additionally, TOL/TNW and Debt/EBITDA stood at 0.81 times and 1.60 times, respectively in FY 25. Acuité believes that the firm’s financial risk profile will remain stable over the medium term, supported by healthy accruals and the absence of any debt-funded capital expenditure plans however risk of capital withdrawal considering its partnership constitution will be key monitorable.

Weaknesses

Intensive Working Capital:
The firm’s working capital management remained intensive in FY25, with gross current assets (GCA) days stretching to 228 days from 179 days in FY24, primarily due to elongation in debtor days. Debtor days increased to 140 days in FY25 from 97 days in FY24, mainly on account of higher year-end revenue booking and delays in fund realisation from government departments. Notably, around 27% of the annual revenue was booked in March 2025 compared to 20% in March 2024. Of the total receivables, approximately 92% were within the 0–180 days bracket, and the same has since been realised in the current year. The firm generally extends an average credit period of 90–120 days to its customers. Inventory holding remained stable at 60 days in FY25 (FY24: 59 days), in line with the firm’s average inventory cycle of around 2 to 2.25 months. Payable days also increased to 122 days in FY25 from 74 days in FY24, largely aligned with the higher debtor cycle. Acuité believes that working capital intensity will improve over the medium term, supported by timely collections from customers GCA days is expected to be in the range of 145-160 days.

Tender-based Operations:
The firm operates in a tender-driven industry that is largely unorganized and highly competitive, wherein revenue generation is significantly dependent on its ability to successfully bid for and secure contracts. Given the competitive intensity and price sensitivity inherent in tender-based operations, timely execution, cost efficiency, technical qualifications, and competitive pricing play a critical role in winning tenders and sustaining revenue growth. Consequently, the firm’s financial performance remains closely linked to its success rate in tender awards and its ability to consistently replenish its order book.

Rating Sensitivities

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

Revenue increased more than Rs.250 crore and sustainability in profitability
Improvement in working capital cycle

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

Significant decline in revenue and EBITDA margin below 8%
Any deterioration in financial risk profile and any elongation working capital cycle

Liquidity Position

Adequate

The firm’s liquidity profile remains adequate, marked by net current assets of Rs. 5.60 crore as on FY25 against minimal long-term repayment obligations of Rs. 0.24 crore during the same period. The current ratio stood at 1.37 times in FY 25. Further the NCA is expected to be in the range of Rs.10-12 crore against the long term repayment of Rs 1.5-2 crore in the medium term.The firm maintained cash and bank balance at Rs. 0.92 crore in FY 25. Working capital utilization levels remained moderate, with fund-based limits utilized at around 70% and non-fund-based limits at 88% for the six months ended February 2026. Acuité believes the firm’s liquidity will remain adequate in the medium term, aided by steady cash accruals and the absence of major long-term borrowings.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	112.91	139.12
PAT	Rs. Cr.	5.08	10.36
PAT Margin	(%)	4.50	7.45
Total Debt/Tangible Net Worth	Times	0.35	0.37
PBDIT/Interest	Times	2.28	3.21

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

Not Applicable

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

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
25 Mar 2025	Bank Guarantee (BLR)	Short Term	15.00	ACUITE A3 (Reaffirmed)
	Letter of Credit	Short Term	3.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	6.00	ACUITE A3 (Assigned)
	Bank Guarantee (BLR)	Short Term	47.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	38.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	7.00	ACUITE A3 (Assigned)
	Bank Guarantee (BLR)	Short Term	19.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	1.00	ACUITE A3 (Assigned)
	Cash Credit	Long Term	1.80	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	1.20	ACUITE BBB- \| Stable (Assigned)
	Cash Credit	Long Term	7.00	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	2.00	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	3.00	ACUITE BBB- \| Stable (Assigned)
	Secured Overdraft	Long Term	5.00	ACUITE BBB- \| Stable (Reaffirmed)
26 Dec 2023	Letter of Credit	Short Term	3.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	47.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	38.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	15.00	ACUITE A3 (Assigned)
	Bank Guarantee (BLR)	Short Term	19.00	ACUITE A3 (Assigned)
	Cash Credit	Long Term	7.00	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	2.00	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	5.00	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Punjab National Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE A3 \| Reaffirmed
YES BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	45.00	Simple	ACUITE A3 \| Reaffirmed
ICICI BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	21.00	Simple	ACUITE A3 \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE A3 \| Reaffirmed
YES BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.80	Simple	ACUITE A3 \| Reaffirmed
ICICI BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.00	Simple	ACUITE A3 \| Assigned
Punjab National Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A3 \| Assigned
Punjab National Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.80	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Punjab National Bank	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 Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.40	Simple	ACUITE BBB- \| Stable \| Reaffirmed
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
ICICI BANK LIMITED	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
ICICI BANK LIMITED	Not avl. / Not appl.	Working Capital Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Nov 2028	5.00	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Shreya Banerjee
Analyst-Analytical 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.