Press Release April 28, 2026 AVP INFRACON LIMITED Rating Assigned and Upgraded

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	65.00	ACUITE BBB+ | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	75.20	ACUITE BBB+ | Stable | Upgraded	-	RBI
Bank Loan Ratings	0.00	53.00	-	ACUITE A2 | Assigned	RBI
Bank Loan Ratings	0.00	31.80	-	ACUITE A2 | Upgraded	RBI
Total Outstanding	0.00	225.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 upgraded its long-term rating to ‘ACUITE BBB+' (read as ACUITE triple B plus) from ‘ACUITE BBB' (read as ACUITE triple B) and its short-term rating to ‘ACUITE A2' (read as ACUITE A two) from ‘ACUITE A3+' (read as ACUITE A three plus) on Rs.107.00 Cr. bank facilities of AVP Infracon Limited (AVPIL). The outlook is 'Stable'. A­cuite has assigned its long-term rating of ‘ACUITE BBB+' (read as ACUITE triple B plus) and its short-term rating of ‘ACUITE A2' (read as ACUITE A two) on Rs.118.00 Cr. bank facilities of AVP Infracon Limited (AVPIL). The outlook is 'Stable'. Rationale for rating The rating upgrade reflects the significant improvement in operating revenues in FY2025, backed by a comfortable unexecuted order book and stable profitability margins, with continued momentum observed during H1FY2026. The rating further draws comfort from the group’s healthy financial risk profile, marked by comfortable capital structure and adequate liquidity position. The experienced management team and the group’s established operational track record in the engineering ,procurement & construction(EPC)segment also supports the rating. However, the rating remains constrained by the working capital–intensive nature of operations, high geographical concentration in the order book, and inherent risks associated with the tender-based nature of business amidst intense competition in the construction industry.

About the Company

­Tamil Nadu based AVP Infracon Limited (erstwhile AVP Constructions Private Limited) was incorporated in September 2009. The company derives its revenues primarily from construction activities including infrastructure developmental works, constructions work such as technically complex and high value projects like Express ways, National Highways, Flyovers, Bridges and Viaducts, Irrigation Projects, Urban Development - Civic amenities and other projects etc. As on March 2025, it is having 124 fleet strength units and three ready mix concrete (RMC) plant and one blue metal crusher unit located at Tirupur, Coimbatore, Dharapuram.Mr. D.Prasanna , Mr B. Venkateshwarlu , Mr D.Vasanth and Mrs D. Bhagyavathy are the present directors of the company.

About the Group

AVP Renewable Energies Limited (AVPREL)-Wholly owned subsidiary AVP Renewable Energies Limited (AVPREL) is a Tamil Nadu–based company incorporated on October 14, 2024. The company is primarily engaged in the design, installation, and maintenance of solar energy systems, along with wind and other renewable energy solutions. AVPREL focuses on delivering sustainable and technologically advanced clean-energy projects. AVP RMC -Partnership firm Chennai based firm AVP RMC, is a  partnership firm with AVPIL holding majority stake of 90% as a partner along with four other partners namely Mr. D Prasanna, Mr. B Venkateshwaralu , Mr K Jaiganesh and Mr D Vasanth. It is engaged into the business of manufacturing and supply of readymade concrete. Kanthan Blue Metals-Partnership firm It is partnership firm with 90 percent stake held by AVPIL . It is engaged into the business of quarrying and production of blue metal aggregates for construction.

Unsupported Rating

­Not applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuite has considered the consolidated business and financial risk profile of AVP Infracon Limited (referred to as AVP Group)  to arrive at the rating. The consolidated is in the view of common management, operational linkages, financial linkages between the entities and a similar line of business. List of consolidated entities given in the annexures below.

Key Rating Drivers

Strengths

­Experienced management and reputed clientele base The group has established track record of operations for over 15 years of experience in civil construction services. Promoters of the group namely Mr D Prasanna, Mr. B Venkateshwaralu are having two decades of experienced in the field of civil construction. The group has collaborations with key government organisations like Greater Chennai Corporation, NHAI, Ministry of Road Transport and highways, Tamil Nadu Public Works department, Tamil Nadu Highways department. The group also benefits from a diversified infrastructure portfolio along with its strategic foray into renewable energy. Acuité believes that the group is expected to benefit from the promoter’s extensive experience and established relationships with their reputed clientele. Augmentation in operating performance backed by comfortable order book and healthy profit margins The group’s consolidated revenue improved to Rs 292.81 Cr. in FY2025 from Rs 161.01 Cr. in FY2024 registering a growth of 81.86 percent primarily driven by efficient execution of order book and securing of fresh contracts. Further, it has achieved the revenue of Rs 195.73 Cr. in H1FY2026. Further, AVPIL has an unexecuted comfortable order book position to the tune of Rs 446.77 Cr. as on March 15, 2026 expected to be completed in coming 12 months to 24 months providing stable revenue visibility over the medium term. Moreover, operating margin remained healthy at 20.67 percent in FY2025 (21.83 percent in FY2024) supported by better execution of orders, benefits arising from its integrated business model with backward integration through its blue metal unit providing raw material security, cost efficiency, and supports large-scale project execution. The trend has sustained in the current year as well, with the group reporting an operating margin of 22.51 percent in H1FY2026, and it is expected to remain at similar levels over the near term. Acuité believes that the sustainability of the healthy margins amid the group’s expansion and rising scale of operations will remain a key monitorable over the medium term. Healthy financial risk profile The financial risk profile of the group remains healthy, supported by an improving net worth base along with comfortable gearing and debt protection metrics. The group’s net worth improved to Rs.130.77 Cr. as on March 31, 2025 (includes unsecured loans of Rs 4.61 Cr. treated as quasi equity), from Rs.110.46 Cr. as on March 31, 2024, primarily due to the accretion of profits to reserves. However, the group’s total debt increased to Rs.168.65 Cr. as on March 31, 2025, from Rs.51.30 Cr. as on March 31, 2024, mainly on account of the availment of equipment loans and higher short-term borrowings undertaken to scale up operations and meet working capital requirements. Consequently, gearing increased but remained comfortable at 1.29 times as on March 31, 2025 (against 0.46 times as on March 31, 2024). The debt protection indicators also remained comfortable, reflecting an interest coverage ratio (ICR) of 4.85 times and a debt service coverage ratio (DSCR) of 1.56 times for FY2025. Further as on September 2025, the company has received Rs.10.00 Cr. (25 percent of the issue price of share warrant). Acuite believes the financial risk profile of the group will continue to remain healthy, supported by steady net cash accruals, the absence of major debt-funded capex plans, and the issuance of share warrants which is expected to strengthen the net worth base going forward.

Weaknesses

­Working capital intensive nature of operation The group’s working capital requirements improved but remains intensive as reflected by high gross current assets (GCA) of 322 days for 2025 (434 days for FY 2024). The elongated GCA days is driven primarily by elevated inventory levels, moderate receivable days and sizeable portion of funds tied up in other current assets such as balances with government authorities, supplier advances. The inventory days stood at 159 days in FY2025 and debtors days stood at 79 days in FY2025. Acuité believes that the operations of the group will remain working capital intensive over the medium term based on the nature of business. High geographical concentration The group derives majority of revenue from government projects limited to Tamil Nadu thereby reflecting higher geographic concentration. Moreover, the unexecuted order book of the company is also geographically limited to state of Tamil Nadu only. However, the group is focusing to widening the geographic footprint in near to medium terms. Inherent risks in tender-based businesses and intense competition in the industry Intense competition from several players, and exposure to risks arising from dependence on tenders. Growth in revenue and profitability depends on the group's ability to bid successfully and executes order within stipulated time frame.

Rating Sensitivities

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

­ Steady growth in scale of operations with timely execution and growth in order book resulting in revenues above Rs 600.00 Cr coupled with sustained profitability margin Improvement in debt coverage indicators

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

­ Decline in scale of operations due to delay in order execution or low order book growth with revenues falling below Rs 350.00 Cr Elevation in debt levels impacting in the financial risk profile Elongation of working capital cycle

Liquidity Position

Adequate

The group’s liquidity remains adequate supported by steady net cash accruals of Rs 37.52 Cr. as on March 31, 2025 as against long term debt repayment obligation of Rs.17.22 Cr. during the year. Over FY2026-FY2027, the company is expected to generate cash accrual in the range of Rs 55.00 - 72.00 Cr. as against its maturing repayment obligations in the range of ~Rs. 19.00 Cr - 24.00 Cr. The liquidity profile is further supported by cash and bank balance of Rs 27.93 Cr. and a comfortable current ratio of 1.38 times as on March 31, 2025. However, the average utilisation of its working capital limits stood high at ~93.77 percent for fund based and ~48.32 percent for non-fund based in last 10 months ended January 2026. Moreover, the group has enhanced its fund-based limits by Rs 45.00 Cr. in Feb 2026 for supporting the business growth.

Outlook-Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	292.81	161.01
PAT	Rs. Cr.	33.10	18.67
PAT Margin	(%)	11.30	11.59
Total Debt/Tangible Net Worth	Times	1.29	0.46
PBDIT/Interest	Times	4.85	5.26

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

­Not applicable

Any Other Information

­None

Applicable Criteria

• 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

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 28 Jan 2025 Bank Guarantee (BLR) Short Term 15.00 ACUITE A3+ (Assigned) Bank Guarantee (BLR) Short Term 12.00 ACUITE A3+ (Assigned) Letter of Credit Short Term 3.50 ACUITE A3+ (Assigned) Bank Guarantee (BLR) Short Term 25.00 ACUITE A3+ (Assigned) Cash Credit Long Term 10.00 ACUITE BBB | Stable (Assigned) Cash Credit Long Term 10.00 ACUITE BBB | Stable (Assigned) Cash Credit Long Term 25.00 ACUITE BBB | Stable (Assigned) Proposed Long Term Bank Facility Long Term 6.50 ACUITE BBB | Stable (Assigned)

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

­ Sr No Name of the entity 1 AVP Infracon Limited 2 AVP Renewable Energies Limited 3 AVP RMC 4 Kanthan Blue Metals

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Divya Bagmar Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

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