Press Release

Press Release

July 21, 2026

MAHARASHTRA STATE ROAD DEVELOPMENT CORPORATION LIMITED
Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	17500.00	ACUITE A+ \| Stable \| Assigned	-	RBI
Total Outstanding	0.00	17500.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 assigned the long term rating of ACUITE A+ (read as ACUITE A plus) on the Rs. 17500.00 Cr. bank facilities of Maharashtra State Road Development Corporation Limited (MSRDC). The outlook is 'Stable'

Rationale for rating
The rating assigned reflects the strategic importance of MSRDC as the implementation agency for key road infrastructure projects in the state of Maharashtra. MSRDC undertakes the construction of various projects through its SPVs. Further, the entity is wholly owned by the Government of Maharashtra and receives continued operational and financial support from the state government. Additionally, majority of MSRDC’s debt is guaranteed by the state government. However, the rating is constrained by the high debt onboarding and long gestation period of the projects. These risks are moderated to some extent by MSRDC’s long track record of operations.

About the Company

Maharashtra State Road Development Corporation Limited (MSRDC) was established in 1996 by the government of Maharashtra. The entity is engaged in undertaking construction and operation of various road infrastructure projects. MSRDC is charged with the responsibility of planning, designing, constructing and managing select road projects, flyovers, bridges, light rail transit, sea links and water transport etc. in Maharashtra and integrated road development projects in select cities of the state. It also provides roadside amenities and any other infrastructure tasks specifically assigned to it. The operations are overseen by the deputy Chief Minister, who is the chairman of the entity.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of MSRDC Limited to arrive at the rating.

Key Rating Drivers

Strengths

Strategic importance to the state government to implement key infrastructure projects
MSRDC was established by the GoM in 1996 to undertake road infrastructure projects across the state. The entity receives assistance from the government in the form of financial aid, guarantees against debt as well as assistance in land acquisition. The financial assistance is received in the form of grants, loans and guarantee for debt availed. The board and management comprises of government officials appointed by the state, with the deputy Chief Minister being the chairman. Over the years, the entity has been the implementation agency for some of key projects of the state namely Samruddhi Mahamarg, Mumbai Pune Expressway, Bandra Worli Sea link, etc

Financial flexibility and resource mobilization ability
MSRDC was established to implement road infrastructure development projects for the Government of Maharashtra. The entity generates revenues from toll collection, project monetisation receipts and lease rentals. Further, the entity earns significant interest on its large cash balances. The corporation also receives government grants on a timely basis for its various projects. Further, as a strategically important arm of the GoM and strong historical track record of executions, it enjoys financial flexibility in terms of raising funds from financial institutions at favourable rates, securitized against project cashflows with long moratorium periods.

Fiscal position of government of Maharashtra
Maharashtra is India’s leading industrial state; it’s gross state domestic product (GSDP) is expected (at current prices) to be Rs. 54.09 Lakh Cr. for FY2026-27 as against Rs 51.01 Lakh Cr. for FY2025-26 (RE). The fiscal deficit of Maharashtra for FY2026-27 is targeted at 2.8 percent of GSDP against 3.0% percent in FY2025-26 (RE).

Weaknesses

Significant capex plans elevating the debt levels
The authority is currently executing some key projects such as Versova Bandra sea link, Jalna Nanded expressway, Pune ring road project, etc. These projects are majorly funded through a mix of external debt and grants. Therefore, with the increasing project execution pipeline, the external debt has increased. Moreover, this debt is expected to increase further in the near to medium term, owing to debt drawdowns for ongoing projects and new developments to be financed through additional borrowings.

Project execution risk
Large scale infrastructure projects generally have long gestation periods, also face delays owing to issues such as land acquisition, regulatory hurdles, environmental clearance, etc. which may lead to significant time and cost overruns. However, considering the long track record of project execution by MSRDC, the risk is mitigated to some extent.

Rating Sensitivities

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

Reduction in debt levels thereby lowering finance costs and leading to positive cash accruals
Timely completion and monetisation of projects

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

Significant increase in debt levels or lowering of inflows leading to rise in gearing above 1.5 times
Any change in support extended by GoM

Liquidity Position

Strong

The corporation has an operational track record of three decades, that has helped it to accumulate healthy cash and bank balances, which stood at ~Rs. 4935.88 Cr. on March 31, 2025 (Prov.). While the continuous capex leads to fluctuation in the cash balances, the continued inflow of grants and interest income is expected to keep the liquidity position of the entity, strong over the medium term. MSRDC received grants of ~Rs. 6000 – 7000 Cr. and interest income of ~Rs. 90 – 100 Cr. in FY2025 (Prov.)

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Provisional)
Operating Income	Rs. Cr.	1462.46	1297.02
PAT	Rs. Cr.	(745.79)	(70.04)
PAT Margin	(%)	(51.00)	(5.40)
Total Debt/Tangible Net Worth	Times	0.83	0.45
PBDIT/Interest	Times	0.63	0.90

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

None

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
• Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.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 :

Not Applicable

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Rural Electrification Corporation Ltd.	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	30 Jun 2042	17500.00	Simple	ACUITE A+ \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kruti Patel
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

¹Includes 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.
³The 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.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.