Press Release

Press Release

April 08, 2026

ARTECH REALTORS PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	86.46	ACUITE BBB- \| Stable \| Assigned	-
Bank Loan Ratings	125.00	ACUITE BBB- \| Stable \| Reaffirmed	-
Total Outstanding	211.46	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed its long-term rating of 'ACUITE BBB-' (read as ACUITE triple B Minus) on the Rs.125.00 Cr. bank facilities of Artech Realtors Private Limited (ARPL). The outlook is 'Stable’.

Acuite has assigned the long term rating of 'ACUITE BBB-' (read as ACUITE triple B Minus) on the Rs.86.46 Cr. of facilities of Artech Realtors Private Limited (ARPL). The outlook is 'Stable’.

Rationale for Rating
The rating reaffirmation factors in the successful completion of several projects as well as the progress in ongoing projects along with augmentation of customer advances as expected. The rating further factors in the extensive experience of the management and the company’s long operational track record along with comfort from adequate cash flows position. However, the rating remains constrained on account of execution risk in ongoing projects as ~ 60 per cent of work is pending completion with ~ 62 per cent of unsold inventory. The rating also remains constrained on account of susceptibility to cyclicality in real estate business and Regulatory risks.

About the Company

Artech Realtors Private Limited (ARPL) was incorporated in the year 1994. The company is engaged in real estate development in the state of Kerala. The promoters include Mr. T.S. Asok, the Managing Director, Ms. Lekha Thankamony Amma, Director. The company has completed and launched 71 projects in various locations in Trivandrum, Kollam, Kottayam, Thrissur and Thiruvalla covering more than 10 million square feet area in affordable luxury to ultra luxury dwelling units.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has taken a standalone view of the business of ARPL to arrive at the rating

Key Rating Drivers

Strengths

Experienced management with long operational track record
ARPL is into real estate business since 1994. The company is promoted and managed by Mr. T. S. Asok and Mrs. T Lekha. The promoters have over three decades of experience in the construction and development of real estate. The company has an established track record of developing an area of more than 100 lakh square feet. Since inception, Group has completed more than 71 projects and with a successful track record in past projects, the company has the intent of executing larger residential projects. Acuite believes the established track record of the company and its extensive experience in developing residential projects will help the company in maintaining its business risk profile.

Successful completion of key projects with healthy bookings
In the previously completed ~ 11 projects including Kaazcha, Rainforest, Diamond enclave, Gateway, Inspire, Freedom and Elite among few ARPL completed 100 percent of the construction with a total salable area of 16.15 lakh Sq Ft with sold area of 14.27 lakh sq ft., which accounts for around 88.35 percent of total saleable area. The average sale price of ~9000 per sq ft., with customer advances of over Rs.1000 crores received. Further the company has a receivable of Rs.174 crore from the unsold inventory against an outstanding debt of Rs.87.89 crore as of December 2025. Also, the company is currently working on 4 projects with 6 new projects to be launched in FY2027. Acuite believes that company would receive continued cash flows from the sold and unsold inventory which would support liquidity further.

Weaknesses

Moderate execution & offtake risk in ongoing projects
The ARPL is currently has 4 ongoing projects with a total saleable area of ~8.01 lakh SFT, consisting of 475 residential flats, with an overall project cost of Rs.393 crore. The project is being financed through a combination of promoter contribution of Rs.60 crore, term loan of Rs.155.00 crore, and the balance from customer advances. As of December 2025, the firm has incurred Rs. 154.41 crore, reflecting 39.29 per cent progress, and has sold 191 units, covering 3.03 lakh sq. ft. As of December 2025, ~37.86 percent of the units sold, thus exposing the firm to moderate offtake risk. Acuité notes that timely promoter infusion, orderly drawdown of the sanctioned term loan, and continued realisation of customer advances will remain critical for ensuring the timely completion of the ongoing projects.

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.

Rating Sensitivities

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

Timely sale and collections from sold and unsold inventory
Average DSCR remaining above 2.25 times

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

Any delays in execution of ongoing projects leading to cost or time overrun.
Average DSCR falls below 1.5 times.

Liquidity Position

Adequate

ARPL has adequate liquidity which is evident from timely receivables from customer which is sufficient to repay the debt obligations. The liquidity is supported by cash balances of Rs.3.94 Cr. as on March 31, 2025, as against Rs.1.61 Cr. as on March 31, 2024. Further the company has healthy cash inflows from its projects which is sufficient to meet its interest expenses and debt repayments. The average DSCR stood healthy at 1.99 times.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	155.59	137.54
PAT	Rs. Cr.	9.17	8.15
PAT Margin	(%)	5.89	5.93
Total Debt/Tangible Net Worth	Times	2.02	1.53
PBDIT/Interest	Times	1.88	2.08

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
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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
16 Jan 2025	Term Loan	Long Term	14.71	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	8.39	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	12.71	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	3.21	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	37.20	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	12.30	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	14.40	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	3.17	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	18.91	ACUITE BBB- \| Stable (Reaffirmed)
19 Oct 2023	Term Loan	Long Term	6.84	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	12.00	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	18.85	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	18.51	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	38.00	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	21.41	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	9.39	ACUITE BBB- \| Stable (Assigned)
14 Mar 2023	Term Loan	Long Term	36.93	ACUITE BBB- \| Stable (Assigned)
14 Mar 2023	Term Loan	Long Term	1.07	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
Dhanlaxmi Bank Ltd	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Sep 2026	5.05	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Dhanlaxmi Bank Ltd	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Oct 2028	5.22	Simple	ACUITE BBB- \| Stable \| Reaffirmed
ICICI BANK LIMITED	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Aug 2026	14.96	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Kerala Financial Corporation	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Feb 2029	9.76	Simple	ACUITE BBB- \| Stable \| Reaffirmed
ICICI BANK LIMITED	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 May 2029	31.16	Simple	ACUITE BBB- \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Mar 2027	32.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
CSB Bank Limited	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Sep 2027	7.60	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Kerala Financial Corporation	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Oct 2028	19.25	Simple	ACUITE BBB- \| Stable \| Reaffirmed
ICICI BANK LIMITED	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Dec 2028	32.55	Simple	ACUITE BBB- \| Stable \| Assigned
CSB Bank Limited	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Sep 2027	0.23	Simple	ACUITE BBB- \| Stable \| Assigned
South Indian Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Mar 2027	14.35	Simple	ACUITE BBB- \| Stable \| Assigned
Tamil Nadu Mercantile Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Jul 2035	19.33	Simple	ACUITE BBB- \| Stable \| Assigned
Kerala Financial Corporation	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Mar 2030	20.00	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Akshat Shah
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.

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.

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