Press Release April 27, 2026 EASTERN NAVIGATION PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	27.22	ACUITE BBB | Stable | Reaffirmed	-	RBI
Bank Loan Ratings	0.00	16.13	-	ACUITE A3+ | Reaffirmed	RBI
Total Outstanding	0.00	43.35	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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) and short-term rating of 'ACUITE A3+' (read as ACUITE A three plus) on the bank facilities Rs.43.35 Cr. of Eastern Navigation Private Limited. The outlook remains 'Stable'. Rationale for Rating The rating reflects the group’s business risk profile, supported by diversified revenue streams, a healthy order book position, a well-established customer base and experienced management. The group’s performance is marked by an improvement in profitability while maintaining stable operating revenue. The operating income stood at Rs.107.61 Cr. in FY25 as against Rs.109.25 Cr. in FY24, with an improvement in operating margins to 32.92% in FY25 from 24.35% in FY24. Further, the group achieved operating revenue of Rs.116.56 crore till February 2026 (before inter-company transaction adjustments). Revenue movement remains dependent on project execution timelines and the selective nature of orders undertaken by the group. The financial risk profile remains healthy, aided by an improving net worth and a comfortable capital structure. The liquidity profile has improved, supported by steady and enhanced accruals, unencumbered fixed deposits and a comfortable current ratio. However, the rating is constrained by intensive working capital requirements, as reflected in high Gross Current Asset (GCA) days of 294 days in FY25 compared to 226 days in FY24.

About the Company

­Founded in 1957 by the Singhee family based in Kolkata, Eastern Navigation Private Limited (ENPL) is under the directorship of Mr. Basant Kumar Singhee and Mr. Yaswant Kumar Singhee. ENPL stands as a prominent supplier of maritime support fleet services. At present, the company offers a diverse range of marine services, including comprehensive marine solutions for mid-stream construction, encompassing bridge and tower construction, dredging in both hard and soft river and coastal strata, handling and transportation of critical cargo through India’s inland waterways, offshore and underwater projects, marine craft construction, and the provision of marine logistics support to various shipping lines and infrastructure firms.

About the Group

­ReachAsia, an affiliated entity of ENPL, is a partnership firm that was established in 2000. This firm’s primary focus lies in the production and maintenance of barges and various marine vessels within Howrah, West Bengal. ENPL sources its vessels from ReachAsia, and the group is currently overseen by Mr. Yaswant Singhee.

Unsupported Rating

­Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

­Acuité has taken a consolidated view of Eastern Navigation Private Limited and ReachAsia as both the entities are in a similar line of business, share common management and have significant operational linkages between them. The group herein is referred to as Eastern Group.

Key Rating Drivers

Strengths

­Established Presence With a nearly six-decade operational history, ENPL boasts a strong position in the stevedoring business. The group is under the capable management of Mr. Basant Kumar Singhee and Mr. Yaswant Kumar Singhee. Furthermore, the group has established healthy relationship with renowned customers including Larsen & Toubro Ltd, Adani Ports and SEZ ltd., Afcons Infrastructure Ltd, Reliance Industries Limited, Kolkata Port Trust and more. This reduces the counterparty risk. Additionally, the group maintains a substantial fleet of approximately 120 vessels, and the current leadership brings nearly three decades of valuable experience. Improvement in Profitability, Albeit Stability in Revenue The group reported operating income of Rs.107.61 Cr. in FY25 as against Rs.109.25 Cr. in FY24. Further, it has achieved a revenue of Rs.116.56 Cr. (before inter-company transaction adjustments) till February 2026. Revenue movement remains dependent on project execution timelines and the selective nature of orders undertaken, with project durations typically ranging between 2–7 years. The revenue mix comprises 25 percent from Reachasia and 75 percent from ENPL. ENPL derives 90–95 percent of its revenue from three key verticals—infrastructure, port services, and logistics—although the contribution from each segment varies year to year. The group has a healthy unexecuted order book of Rs.259.31 crore as on January 2026, providing medium-term revenue visibility. The EBITDA margin improved to 32.92 percent in FY25 from 24.35 percent in FY24, primarily due to higher revenue contribution from the logistics segment which commands better margins. The PAT margin stood at 18.20 percent in FY25 as against 11.40 percent in FY24. Acuité believes that the group’s scale of operations will witness marginal improvement over the medium term, supported by revenue diversification and a healthy order book position. Healthy Financial Risk Profile The group’s financial risk profile remains healthy, supported by improving net worth, low gearing and comfortable debt protection metrics. The tangible net worth stood at Rs.126.47 Cr. as on March 31, 2025, compared to Rs.104.30 Cr. as on March 31, 2024, driven by accretion to reserves. Gearing improved to 0.22 times as on March 31, 2025 from 0.31 times as on March 31, 2024. The Total Outside Liabilities to Tangible Net Worth (TOL/TNW) stood at 0.74 times as on March 31, 2025. Debt protection metrics remain comfortable, reflected in an Interest Coverage Ratio (ICR) of 10.61 times and a Debt Service Coverage Ratio (DSCR) of 4.45 times in FY25. Acuité believes that the financial risk profile will remain at similar levels over the medium term, supported by improving net worth and a comfortable capital structure.

Weaknesses

­Intensive working capital operations The group’s operations remain working-capital intensive, reflected in Gross Current Assets (GCA) of 294 days in FY25 as against 226 days in FY24. The high GCA days are primarily driven by elevated receivable levels, with debtor days at 199 days in FY25 compared to 152 days in FY24. While credit terms with key customers, generally range between 30–45 days, delays of 15–20 days are common. In the infrastructure vertical, although payment terms are contractually set at 30 days, actual realization is often significantly delayed, ranging from four months to one year. The group deals with reputed counterparties, which mitigates counterparty risk to an extent. Inventory days increased to 40 days in FY25 from 8 days in FY24, while creditor days also rose to 377 days in FY25 from 192 days in FY24. Acuite believes that the working capital operations of the group will remain at the similar levels over the medium term due to elongated receivables cycle. Susceptibility to volatile margins due to nature of operations The group’s operating profitability has remained volatile, as reflected in fluctuating EBITDA margins of 32.92 percent in FY25, 24.35 percent in FY24, 21.41 percent in FY23 and 26.32 percent in FY22. ENPL provides a wide range of marine services, including Over Dimensional Cargo (ODC) transport, marine logistics support, dredging through spud barges, underwater infrastructure maintenance and jetty upkeep. Margins vary based on the nature and composition of the order book, with ODC transport generally being a higher-margin segment. Acuité notes that the group’s profitability remains susceptible to the type of projects executed and the timing of their completion, which will remain a key monitorable over the medium term.

Rating Sensitivities

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

Growth in operating income by more than 50%. Significant improvement in the operating profitability position.

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

­Any large debt funded capex, impacting the financial risk profile and liquidity Revenue falling by 20-25 percent and steep decline in profitability

Liquidity Position

Adequate

The group’s liquidity position is adequate, supported by net cash accruals of Rs.25.38 crore in FY25 against long-term debt obligations of Rs.3.01 crore during the same period. The current ratio stood at 1.58 times in FY25 as against 1.45 times in FY24. The group reported cash and bank balance of Rs.2.57 crore as on March 31, 2025, along with unencumbered fixed deposits of Rs.11.74 crore. The utilisation of working capital bank limits is at 13.15 percent for the six months ended January 2026. Acuité believes that the liquidity of the group is expected to remain adequate over the medium term, supported by comfortable accruals, unencumbered fixed deposits and low reliance on short-term borrowings.

Outlook: Stable

­

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	107.61	109.25
PAT	Rs. Cr.	19.58	12.46
PAT Margin	(%)	18.20	11.40
Total Debt/Tangible Net Worth	Times	0.22	0.31
PBDIT/Interest	Times	10.61	6.30

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 • Service Sector: https://www.acuite.in/view-rating-criteria-50.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 27 Jan 2025 Bank Guarantee (BLR) Short Term 5.00 ACUITE A3+ (Reaffirmed) Proposed Short Term Bank Facility Short Term 6.48 ACUITE A3+ (Reaffirmed) Cash Credit Long Term 10.67 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 0.19 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 1.07 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 1.07 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 1.60 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 2.26 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 1.51 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 13.50 ACUITE BBB | Stable (Reaffirmed) 21 Nov 2023 Bank Guarantee/Letter of Guarantee Short Term 5.00 ACUITE A3+ (Reaffirmed) Proposed Short Term Bank Facility Short Term 4.23 ACUITE A3+ (Reaffirmed) Cash Credit Long Term 10.67 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 23.45 ACUITE BBB | Stable (Reaffirmed)

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

­ Sr. No.  Company name 1 Reachasia 2 Eastern Navigation Private Limited

Contacts

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

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