Press Release

Press Release

April 07, 2026

ZERONE TECHNOLOGIES PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	30.00	ACUITE AA \| CE \| Stable \| Reaffirmed	-
Total Outstanding	30.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long term rating of ‘ACUITE AA (CE)’ (read as ACUITE double A (Credit Enhancement)) on Rs.30.00 crore bank facilities of Zerone Technologies Private Limited (ZTPL). The outlook is ‘Stable’.

Rationale for rating
The rating continues to derive comfort from credit enhancement in the form of Standby Letter of Credit (SBLC) issued by ‘The Commercial Bank, Qatar’ to secure the facilities availed by ZTPL. The current SBLC is valid till 30th April, 2026. The rating also factors the company’s improving scale of operations, marked by an operating income of Rs. 53.73 Cr. in FY2025 as against Rs. 42.80 Cr. in FY2024. Moreover, the company has registered revenue of around Rs.48.00 Cr. till 25th March 2026. The EBITDA and PAT margin stood at 6.17% and 1.57%, respectively, in FY2025. The stability in revenue is further backed by an unexecuted order book of Rs. 74.48 Cr. as on February 2026. The rating also takes into account the financial risk profile of the company, which improved yet remained average as reflected by a net worth of Rs. 12.73 Cr. as on 31st March 2025 and gearing ratio at 1.70 times as on 31st March 2025. However, the rating remains constrained by the intensive working capital operations marked by GCA days, which stood at 329 days as on 31st March 2025 and exposure to the highly competitive nature of the industry. Acuité also notes that any material change in the credit profile of the SBLC issuing bank i.e. 'The Commercial Bank, Qatar' (CBQ) and timely extension of the validity of SBLC by CBQ will be key rating sensitivity factors.

About the Company

New Delhi based, Zerone Technologies Private Limited was incorporated in 2012. The company is engaged in the supply, installation, and maintenance of IT and telecom infrastructure products and services. The company provides services such as structured cabling, network infrastructure, enterprise voice systems, collaborative conversion, and CCTV solutions, among others, wherein the company mainly acquires Greenfield IT implementation projects, primarily in the hospitality, healthcare, and education sectors across the country. The company presently caters to corporate customers and also undertakes subcontracts from companies catering to government bodies. Mr. Jaspal Singh Sehdave, Mr. Vasudevan Krishnamoorthy, Mr. Rahul Mathur are directors of the company.

About ‘The Commercial Bank, Qatar’
The Commercial Bank, Qatar (CBQ) is one of Qatar’s leading private sector banks, with a well-established domestic franchise and a strong presence in corporate and commercial banking. The bank offers a range of products and services across retail, corporate banking, and wealth management divisions.

Unsupported Rating

ACUITE BB-/Stable

Analytical Approach

Acuite has considered the standalone view of the business and financial risk profile of Zerone Technologies Private Limited. Further, the rating derives comfort from credit enhancement in the form of Standby Letter of Credit (SBLC) issued by 'The Commercial Bank, Qatar' (CBQ) to secure these facilities availed by ZTPL. The facilities amounting to Rs. 35.00 Cr. sanctioned from Axis Bank Limited are secured by SBLC from 'The Commercial Bank, Qatar'. The current SBLC is valid till 30th April, 2026.

Key Rating Drivers

Strengths

Facilities secured by SBLC from 'The Commercial Bank, Qatar’
ZTPL’s working capital requirements are supported by an overdraft facility of Rs. 35.00 Cr., which is backed by a Standby Letter of Credit (SBLC) issued by The Commercial Bank, Qatar (CBQ) and the limits availed have 100% security cover. As part of the banking arrangements, the company’s bank guarantee limit is also a sub-limit under the overdraft facility. The SBLC is currently valid until April 30, 2026, and is renewed on a three-month basis. The rating assumes that the SBLC will be renewed in a timely manner, ensuring that the lending bank’s exposure remains fully secured till the maturity of the facilities. Further, Acuite also notes that any material change in the credit profile of The Commercial Bank, Qatar (CBQ) and timely extension of the validity of SBLC by CBQ will be key rating sensitivity factors.

Established presence in the Information Technology industry
ZTPL commenced operations in 2013 and is engaged in providing system integration services, including products and solutions in IT, telecom infrastructure, and software solutions. The day-to-day operations are led by directors Mr. Rahul Mathur, Mr. Vasudevan Krishnamoorthy, and Mr. Jaspal Singh Sehdave, who possess extensive experience in the IT infrastructure industry, and the same has benefited the company in establishing relationships with suppliers and reputed clientele, including Godrej & Boyce, Holiday Inn Express, and Bamboo Hotel & Global Centre, among others. Acuité believes that ZTPL will continue to benefit from its established track record of operations and the experience of the management.

Improvement in scale of operations
The revenue from operations of the company stood at Rs. 53.73 Cr. in FY2025 as against Rs. 42.80 Cr. in FY2024, supported by the execution of orders by the company. Moreover, the company has registered revenue of around Rs. 48.00 Cr. till 25th March 2026. The stability in revenue is further backed by an unexecuted order book of Rs. 74.48 Cr. as on February 2026. The orders are related to the supply, installation & maintenance of IT products and services, primarily in the hospitality, healthcare, and education sectors across the country. The EBITDA margin of the company stood at 6.17% in FY2025 as against 7.19% in FY2024 on account of increase in raw material procurement costs during the year. Further, the operating profit margins are fluctuating as each order executed by the company is different in nature as well as size, and highly skilled manpower is required for the specialized services. Despite this, the PAT margin improved and stood at 1.57% in FY2025 as against 1.16% in FY2024. Acuité expects that the company will continue to sustain its order book position and maintain its business risk profile over the medium term on the back of execution of orders in hand coupled with the incremental order book of the company. However, the ability of the company to improve its profitability position while scaling up its operations will remain a key rating monitorable.

Weaknesses

Average Financial Risk Profile
The financial risk profile of the company improved yet remained average, marked by net worth of Rs.12.73 Cr. as on 31st March 2025 as against Rs.7.96 crore as on 31st March 2024. The increase in net worth is on account of capital infusion coupled with the accretion of profits into reserves. The capital structure of the company is marked by gearing, which improved and stood at 1.70 times as on 31st March 2025 as against 3.66 times as on 31st March 2024. Further, the coverage indicators of the company, reflected by the interest coverage ratio and debt service coverage ratio, stood at 1.45 times and 0.99 times, respectively, as on 31st March 2025 as against 1.28 times and 0.83 times, respectively, as on 31st March 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 3.38 times as on 31st March 2025 as against 5.33 times as on 31st March 2024 and the Debt/EBITDA stood at 4.99 times as on 31st March 2025 against 7.32 times as on 31st March 2024. Acuite expects the financial risk profile of the company to improve going forward, backed by steady accruals and no major debt-funded capex plans in the near to medium term.

Intensive Working Capital operations
The working capital operations of the company remained intensive, marked by GCA days, which stood at 329 days as on 31st March 2025 against 397 days as on 31^st March 2024. The high GCA days are on account of a high outstanding balance in the form of debtors and inventory. The debtor days stood at 130 days as on 31st March 2025 as against 161 days as on 31st March 2024 as the receivables take time to realize as per order completion, and the inventory holding stood at 108 days as on 31^st March 2025 against 156 days as on 31^st March 2024 wherein the company maintains inventory including computers, laptops, sensor doors, etc. as and when required for order execution. Further, the creditor days of the company stood at 196 days as on 31st March 2025 against 162 days as on 31st March 2024. Acuite expects the working capital operations of the company to remain on similar levels in the near to medium term owing to the nature of operations.

Exposed to highly competitive nature of industry
Zerone Technologies Private Limited operates in the highly competitive IT and IT-enabled services industry, wherein it faces competition from established Indian IT majors as well as regional players. The competitive intensity exerts pressure on pricing, margins, and order inflows, particularly in large-scale Greenfield IT implementation projects. While the company’s diversified services and vertical mix, along with deeper clients, provide some mitigation, Acuité believes that sustained exposure to intense competition may constrain profitability and scalability over the medium term.

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)

Acuite takes into consideration the benefit derived by ZTPL from the credit enhancement in the form of standby letter of credit (SBLC) issued by 'The Commercial Bank, Qatar' (CBQ) for the facilities availed. The SBLC is a legally enforceable, irrevocable, unconditional and covers the entire amount.

Stress Case Scenario
While the rating has been derived on the standalone credit risk profile and cash flows of the entity, Acuite believes, given the SBLC from 'The Commercial Bank, Qatar' (CBQ), in case of any stress case scenario, the required support would come from CBQ.

Rating Sensitivities

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

Growth in operating income by more than 50% supported by healthy order accretion.
Significant improvement in the operating profitability position.
Improved capital structure with comfortable debt protection metrics.

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

Decline in revenue y-o-y and/or operating profitability margins below 4%.
Stretch in the working capital cycle.
Timely extension of the validity of SBLC by the issuing bank.
Any movement in the credit profile of the current SBLC issuing bank i.e. 'The Commercial Bank, Qatar' (CBQ).

All Covenants

SBLC from 'The Commercial Bank, Qatar' for Rs.35.00 Cr. Limits availed at any point of time shall have 100% security cover.
SBLC to be renewed before maturity/expiry date

Liquidity Position

Adequate

The liquidity profile of the company is adequate, marked by net cash accruals of Rs.0.95 Crore as on 31st March 2025 against the debt repayment obligation of Rs.0.99 Crore over the same period. The gap in repayment has been met by working capital management. Additionally, the cash and cash equivalents available with the company stood at Rs.4.07 Crore as on 31st March 2025 against Rs.0.16 Crore as on 31st March 2024. The current ratio of the company stood at 0.97 times as on 31st March 2025 against 0.94 times as on 31st March 2024. Further, the average fund-based bank limit utilization of the company stood at 84.28% in the last six months ended February 2026. Acuité expects the liquidity profile of the company to improve over the medium term, supported by steady accruals to repayment obligations, flexibility to infuse funds by the promoters, and adequate cash and cash equivalents.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	53.73	42.80
PAT	Rs. Cr.	0.84	0.50
PAT Margin	(%)	1.57	1.16
Total Debt/Tangible Net Worth	Times	1.70	3.66
PBDIT/Interest	Times	1.45	1.28

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
• Service Sector: https://www.acuite.in/view-rating-criteria-50.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Explicit Credit Enhancements: https://www.acuite.in/view-rating-criteria-49.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
07 Jan 2025	Secured Overdraft	Long Term	29.50	ACUITE AA (CE) \| Stable (Reaffirmed)
07 Jan 2025	Proposed Long Term Bank Facility	Long Term	0.50	ACUITE AA (CE) \| Stable (Reaffirmed)
27 Oct 2023	Secured Overdraft	Long Term	29.50	ACUITE AA (CE) \| Stable (Reaffirmed)
27 Oct 2023	Proposed Long Term Bank Facility	Long Term	0.50	ACUITE AA (CE) \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
AXIS BANK LIMITED	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE AA \| CE \| Stable \| Reaffirmed

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No.	Company Name
1	Zerone Technologies Private Limited
2	The Commercial Bank, Qatar

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Archita Sharma
Associate 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.

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