Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 10.00 ACUITE BBB | Stable | Assigned - RBI
Bank Loan Ratings 0.00 15.00 ACUITE BBB | Stable | Reaffirmed - RBI
Bank Loan Ratings 0.00 16.00 - ACUITE A3+ | Assigned RBI
Bank Loan Ratings 0.00 59.00 - ACUITE A3+ | Reaffirmed RBI
Total Outstanding 0.00 100.00 - - -
Total Withdrawn 0.00 0.00 - - -
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
 
Rating Rationale

­Acuite has reaffirmed its long-term rating of 'ACUITE BBB' (read as ACUITE Triple B) on the Rs.15.00 Cr. bank facilities and short-term rating of ‘ACUITÉ A3+’ (read as ACUITE A three plus) on the Rs. 59.00 Cr. bank facilities of Ideas Electricals And Engineers Limited (IEEL) (Erstwhile Ideas Electricals And Engineers Private Limited). The outlook is 'Stable'.
Acuite has assigned its long-term rating at 'ACUITE BBB' (read as ACUITE Triple B) and short-term rating at ‘ACUITÉ A3+’ (read as ACUITE A three plus) on the Rs. 26.00 Cr. bank facilities of Ideas Electricals And Engineers Limited (IEEL)(Erstwhile Ideas Electricals And Engineers Private Limited). The outlook is 'Stable'.

Rationale for rating
The rating reaffirmation considers stable operating performance albeit modest scale of operations expected to improve steadily on the back of healthy order book position. The rating also factors in the experienced management, healthy financial risk profile and adequate liquidity position of the company. However, the rating remains constrained by moderately intensive working capital management and tender-based nature of operations in an intensely competitive construction sector.

About the Company
Ideas Electricals and Engineers Limited (IEEL) was originally established in 2008 as a partnership firm and was subsequently reconstituted into a private limited company in December 2018 as Ideas Electricals & Engineers Private Limited (IEEPL). The Company was further converted into a public limited company in April 2026 and is presently known as Ideas Electricals and Engineers Limited (IEEL). The Company is managed by three directors, Mr. Subhash R. Sarda, Mr. Sunil B. Gadekar, and Mr. Virendra Pratap Singh. IEEL is an Aurangabad-based company engaged in engineering, procurement and construction (EPC) of electrical projects. The Company undertakes electrical works for various industries, including sugar, cement, fertilizer, metallurgical plants, and other industrial segments.
 
Unsupported Rating
­Not Applicable
 
Analytical Approach
Acuité has considered standalone business and financial risk profiles of IEEL to arrive at the rating.
 
Key Rating Drivers

Strengths
­Experienced management and long operational track record
IEEL has been operating for nearly two decades, reflecting an established operational track record. The company is managed by Mr. Subhash R. Sarda and Mr. Sunil B. Gadekar, along with a team of experienced personnel. The directors have around two decades of experience in the construction business. It has successfully completed various projects with a number of reputed private and government counterparties, such as MSETCL, Indian Railways, Rail Vikas Nigam Ltd., Ultratech Cement Ltd., Adani, and Hindalco, to name a few. Acuité believes that the long track record and rich experience of the directors’ augur well for the company's relationships with key suppliers and customers.

Stable operating performance backed by healthy order book position
The company has achieved revenue of Rs. 178.79 Cr. in FY 2025, compared to Rs. 170.09 Cr. in FY 2024. Furthermore, In FY26(Est.), the Company reported revenue of ~Rs. 257.96 Cr. The company has a healthy unexecuted order book which stood at ~Rs. 551 Cr. as on April 2026, which provides revenue visibility over the medium term. The order book comprises projects from state-owned utilities such as MSETCL, RVNL, KPTCL, PTCUL and CSPTCL, as well as select private sector clients including Ultratech Cement and Goldcrest Cement. In addition, the Company has submitted bids aggregating ~Rs. 270 Cr., which are expected to materialise over the next 1–2 quarters, subject to tender outcomes. Profitability improved in FY25. with operating margin increased to 11.93 per cent in FY25 (FY24: 11.77 per cent) and PAT margin to 8.51 per cent in FY25 (FY24: 7.89 per cent). Improvement in margins was supported by execution mix, including contribution from larger ticket-size projects, and operating efficiencies. Acuité believes that IEELs operating performance would remain comfortable over the medium term backed by its healthy order book position.

Healthy financial risk profile
The financial risk profile of IEEL is healthy marked by moderate net worth, low gearing, and healthy debt protection metrics. The net worth of the company stood at Rs. 78.46 Cr. as of 31st March 2025, compared to Rs.62.96 Cr. as of 31st March 2024, this includes Rs. 7.81 Cr. of unsecured loans from promoter’s considered as part of quasi-equity, based on the undertaking given by the company. The gearing of the company remained low at 0.09 times as on March 31, 2025 and March 31, 2024. Further, debt protection metrics were healthy with interest coverage ratio (ICR) at 13.59 times in FY25 (FY24: 9.73 times) and DSCR at 8.21 times in FY25 (FY24: 6.20 times). The Debt/EBITDA remained low at 0.30 times in FY25 (FY24: 0.27 times), while NCA/TD stood at 2.32 times in FY25 (FY24: 2.53 times). Acuité believes the financial risk profile of the company will remain healthy, owing to steady net cash accruals and the absence of any major debt funded capex in the near term.

Weaknesses
­Moderately Intensive Working Capital Management
The working capital operations of the company are moderately intensive in nature, marked by GCA days of 261 days in FY2025 compared to 173 days in FY2024. The elongation was mainly driven by higher receivables, with debtor days increasing to 100 days in FY2025 from 53 days in FY2024. Receivables were elevated at year-end as the Company executed ~37 per cent of annual sales in Q4, resulting in higher closing debtors; the normal collection period is ~60–90 days. Inventory days remained largely stable at 34 days in FY2025 (FY2024: 31 days). Creditor days increased to 113 days in FY2025 from 26 days in FY2024, indicating higher outstanding payables at the year-end; the normal credit period is ~40–45 days. Average utilisation of fund-based working capital limits remained moderate at ~67 per cent over the six months ended March 2026. Acuité believes that the working capital operations of the company will continue to remain moderate due to the nature of business.

Susceptibility of Profitability to the Tender-Based Nature of business and Intense Competition
Tender-based operations limit pricing flexibility in an intensely competitive industry. Revenue and profitability depend entirely on the ability to win tenders. Entities in this segment face intense competition, which requires them to bid aggressively to procure contracts, thereby restricting operating margins to a moderate level. Additionally, given the cyclicality inherent in the construction industry, the ability to maintain profit margins through operating efficiency becomes critical. Acuité believes that the company’s business and financial profiles may adversely impact due to the presence of stiff competition and the inherent risks associated with tender-based operations.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:
  • Consistent Improvement in scale of operation with revenue improving above Rs. 300-350 Cr. while maintaining the profitability margins.
  • Timely execution of orders
  • Sustenance of healthy financial risk profile.
Potential triggers (individual or collective) for a downward rating action:
  • Significant deterioration in operating performance
  • Elongation in working capital cycle with GCA above 300 days
Liquidity Position
Adequate
­The company’s liquidity position is adequate, marked by sufficient net cash accruals of Rs. 16.00 Cr. in FY2025 against its maturing debt obligations of Rs. 0.47 Cr. in the same year. Additionally, it is expected to generate sufficient cash accruals in the range of Rs. 22.42 – 26.26 Cr. against maturing repayment obligations of Rs. 0.40 – 0.39 Cr. over the medium term. The reliance on fund-based working capital limits is moderate, with average utilization of ~67% over the past 6 months ending March 2026. The current ratio stands at 2.17 times as of March 31, 2025, compared to 2.95 times as of March 31, 2024. Going forward, liquidity is expected to remain adequate, supported by healthy accrual generation in the near term.
 
Outlook: Stable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 178.79 170.09
PAT Rs. Cr. 15.21 13.42
PAT Margin (%) 8.51 7.89
Total Debt/Tangible Net Worth Times 0.09 0.09
PBDIT/Interest Times 13.59 9.73
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
24 Jan 2025 Bank Guarantee (BLR) Short Term 39.00 ACUITE A3+ (Assigned)
Proposed Bank Guarantee Short Term 20.00 ACUITE A3+ (Assigned)
Cash Credit Long Term 10.00 ACUITE BBB | Stable (Assigned)
Proposed Cash Credit Long Term 5.00 ACUITE BBB | Stable (Assigned)
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Lender’s Name ISIN Facilities Listing Status Regulated By Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
H D F C Bank Limited Not avl. / Not appl. Bank Guarantee (BLR) Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 59.00 Simple ACUITE A3+ | Reaffirmed
H D F C Bank Limited Not avl. / Not appl. Bank Guarantee (BLR) Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 16.00 Simple ACUITE A3+ | Assigned
H D F C Bank Limited Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE BBB | Stable | Reaffirmed
H D F C Bank Limited Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE BBB | Stable | Assigned
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
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