Press Release June 26, 2026 HMM INFRA LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	90.00	ACUITE A- | Negative | Reaffirmed	-	RBI
Bank Loan Ratings	0.00	35.00	-	ACUITE A1 | Assigned	RBI
Bank Loan Ratings	0.00	125.00	-	ACUITE A1 | Reaffirmed	RBI
Total Outstanding	0.00	250.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 A-' (read as ACUITE A minus) and short-term rating of 'ACUITE A1' (read as ACUITE A one) on the Rs. 215.00 Cr. of bank loan facilities of HMM Infra Limited (HIL). The Outlook is revised to 'Negative' from 'Stable'. Acuite has assigned the short-term rating 'ACUITE A1' (read as ACUITE A one) on the Rs. 35.00 Cr. of bank loan facilities of HMM Infra Limited (HIL). Rationale for Rating The outlook revision reflects the company’s moderation in operating performance, as evidenced by a decline in operating income to Rs. 344.32 Cr. in FY26 (est.) from Rs. 577.55 Cr. in FY25 and Rs. 534.39 Cr. in FY24. Consequently, operating margin stood lower at 11.19% in FY26 (est.) as against 14.21% in FY25, while the PAT margin declined to 4.88% from 8.50% over the same period. The decline in operating performance is primarily attributable to lower absorption of fixed costs due to reduced scale of operations. The moderation in revenues is largely on account of the extended monsoon in North India and delays in land acquisition processes by government departments, which impacted order execution. However, the rating continues to derive comfort from the company’s healthy financial risk profile, adequate liquidity position, and the extensive experience of its promoters in the industry. Further, the company’s order book of approximately Rs. 1,758.14 Cr. as on March 31, 2026, to be executed over the medium term (up to FY28), provides revenue visibility, with the order book standing at around 4.21 times of FY26 (est.) revenue. The successful execution of an order book is a key monitorable. The rating is further constrained by an intensive working capital cycle and susceptibility to volatility in raw material prices and cyclicality inherent in the steel industry.

About the Company

­HMM Infra Limited was incorporated in 1996 and was engaged in manufacturing/fabrication of heavy steel structures and galvanized structures. The company has an automated H beam fabrication line for Steel Bridges, Power Plants, Refineries and other Heavy Steel Structures, etc. The company has a single manufacturing unit in Ambala, Haryana spread in 63,000 square metre with an installed capacity of 48,000 Metric Tonnes (MT) per annum. In 2022, the company decided to bid directly to the government tenders. The company is managed by Mr.  Bhupinder Goel as Managing Director and Mrs.  Alka Goel, Mr.  Mannan Goel, Mrs.  Tanya Goel, Mr.  Mahipal Singh and  Mr.  Sudhir Mittal as directors.

Unsupported Rating

­Not Applicable

Analytical Approach

­A­cuite has considered the standalone business and financial risk profile of HMM Infra Limited for arriving at the rating.

Key Rating Drivers

Strengths

­Experienced Management ­The company is managed by Mr. Bhupinder Goel, chairman cum managing director having experience of more than three decades in the same line of business and plays a vital role in business strategies and effective implementation of the projects. In addition to that, they have highly experienced top management who are looking for day-to-day operations of the company. Acuite believes that the rich experience of the promoters will benefit the company in the longer run for bagging the fresh orders and timely execution of the unexecuted order book. Healthy Financial Risk Profile The company’s financial risk profile remains healthy, marked by an improvement in its net worth to Rs. 225.70 Cr. as on March 31, 2025, from Rs. 176.50 Cr. as on March 31, 2024, primarily on account of accretion of profits to reserves. The capital structure continues to be comfortable, with gearing remaining below unity at 0.54 times as on March 31, 2025, as against 0.58 times as on March 31, 2024. Further, the coverage indicators remain adequate, with interest coverage and debt service coverage ratios standing at 6.32 times and 1.90 times, respectively, as on March 31, 2025. The total outside liabilities to tangible net worth (TOL/TNW) ratio remained stable at 1.04 times as on March 31, 2025. Acuité believes that the company’s financial risk profile will continue to remain healthy over the near to medium term, supported by moderate leverage and limited debt-funded capital expenditure towards machinery and equipment. Healthy Order Book, providing revenue visibility The company has a healthy unexecuted order book position to the tune of Rs. 1758.14 Cr. approximately as on 31st March 2026. The OB/OI of the company stood 4.21 times of FY26 (est.) revenue and 3.04 times of FY25 revenue. Going forward, the ability of the company to bag new orders and timely execution of the existing orders will remain a key rating monitorable.

Weaknesses

Decline in scale of operations The company witness moderation in operating performance, as evidenced by a decline in operating income to Rs. 344.32 Cr. in FY26 (est.) from Rs. 577.55 Cr. in FY25 and Rs. 534.39 Cr. in FY24. The moderation in revenues is largely on account of the extended monsoon in North India and delays in land acquisition processes by government departments, which impacted order execution. Consequently, operating margin stood lower at 11.19% in FY26 (est.) as against 14.21% in FY25, while the PAT margin declined to 4.82% from 8.50% over the same period. The decline in operating performance is primarily attributable to lower absorption of fixed costs due to reduced scale of operations. Acuité believes that going forward the company’s ability to ramp up operations along with improvement in profitability will remain a key monitorable. Intensive working capital operations The working capital operations of the company are intensive in nature, as reflected in its Gross Current Assets (GCA) days, which stood at 213 days in FY25 as against 171 days in FY24. The elongation in the working capital cycle is primarily driven by an increase in debtor days, which stood at 105 days in FY25 as compared to 46 days in FY24. However, the inventory holding period improved to 75 days in FY25 from 108 days in FY24. Creditor days also increased to 57 days in FY25 from 35 days in FY24, providing partial support to the working capital cycle. Acuité believes that the working capital operations of the company will remain intensive over the near to medium term owing to the inherent nature of its business. ­­Susceptibility to volatility in raw material prices and cyclicality inherent in the steel industry The company performance remains vulnerable to cyclicality in the steel sector given the close linkage between the demand for steel products and the domestic and global economies. The end-user segments such as real estate, civil construction, and engineering also display cyclicality. The steel industry is sensitive to the shifting business cycles, including changes in the general economy and seasonal changes in the demand and supply conditions in the market. Any significant reduction in demand and prices adversely impacting the operating margins and cash accruals of the group will remain a key monitorable.

Rating Sensitivities

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

Growth in the scale of operations by 70% along with improved profitability margins, reaching an operating margin of 14%. Timely execution of order book and bagging new orders.

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

Reduction in OB/OI below 1.5 times Any elongation in working capital management.

Liquidity Position

Adequate

The company’s liquidity position is adequate, supported by healthy net cash accruals of Rs. 53.57 Cr. in FY2025 as against debt repayments of Rs. 21.95 Cr. during the same period, indicating a sufficient cushion. The company maintained cash and bank balances of Rs. 0.75 Cr. as on March 31, 2025, with a comfortable current ratio of 1.54 times. The average utilization of fund-based and non-fund-based working capital limits remained at 86.61% and 55.22%, respectively, over the seven months ended April 2026. Acuité believes that the company’s liquidity will remain adequate over the near to medium term, supported by steady cash accruals and limited reliance on debt-funded capital expenditure.

Outlook: Negative

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	577.55	534.39
PAT	Rs. Cr.	49.11	44.19
PAT Margin	(%)	8.50	8.27
Total Debt/Tangible Net Worth	Times	0.54	0.58
PBDIT/Interest	Times	6.32	6.42

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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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 31 Mar 2025 Cash Credit Long Term 15.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 5.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 40.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 30.00 ACUITE A- | Stable (Assigned) Bank Guarantee (BLR) Short Term 60.00 ACUITE A1 (Assigned) Bank Guarantee (BLR) Short Term 15.00 ACUITE A1 (Assigned) Bank Guarantee (BLR) Short Term 25.00 ACUITE A1 (Assigned) Bank Guarantee (BLR) Short Term 25.00 ACUITE A1 (Assigned)

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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

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below: A. Rating Activity:   Sr. No. Instrument / activity Name Regulator of the instrument 1 Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities) SEBI 2 Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities) MCA 3 Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)1 SEBI 4 Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)1 SEBI 5 Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)1 RBI 6 Listed Commercial Paper and NCDs with original maturity less than 1 year RBI 7 Unlisted Commercial Paper and NCDs with original maturity less than 1 year RBI 8 Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs 2 RBI 9 External Commercial Borrowings and other similar borrowings RBI 10 Certificates of Deposit RBI 11 Fixed Deposits raised by NBFCs, Banks, HFCs, FIs RBI 12 Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs MCA 13 Inter Corporate Deposits/Loans extended by Corporates MCA 14 Borrowing programme 3 - 15 Issuer Ratings 4 - 16 Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs) SEBI 17 Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs SEBI 18 Listed Security Receipts SEBI 19 Unlisted Security Receipts RBI 20 Independent Credit Evaluation (ICE) RBI 21 Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) RBI 22 Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities)) SEBI 23 Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities)) MCA 24 Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) 1 Investor-side Regulator such as IRDAI, PFRDA 5   1 Includes securitisation transactions involving assignee payout, acquirer's payout. 2 Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. 3 The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators. 4 There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. 5 These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.   B. Other activities:   Sr. No. Activity Name Regulator of the activity 1 Monitoring Agency SEBI 2 Research activities, incidental to rating, such as research for Economy, Industries and Companies 6 Not applicable 6 permitted by SEBI vide SEBI Master Circular for CRAs. 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