Experienced management and established operational track record
AIL has a track record of operations of around two decades in the construction sector. The company is promoted by Mr. Chaturbhuj Rathi, Mr. Narendra Rathi, and Mr. Surendra Rathi, who have over three decades of experience in civil construction work. They are well supported by a team of experienced and qualified professionals. AIL has successfully completed various projects under different government departments such as M.P. Public Works Department, Bhopal, C.G. Public Works Department, Southeastern Railway, C.G. Water Resources Division, C.G. Housing Board, and NHAI. The long-standing experience of the promoters and the long track record of operations have helped the company establish comfortable relationships with key suppliers and reputed customers. Acuite believes that the long track record and rich experience of the promoters’ augur well for the relationship with their key suppliers and customers.

Moderate Financial Risk Profile
The financial risk profile of the company remained moderate marked by moderate net worth, low gearing and comfortable debt-protection metrics. The tangible net worth of the company improved to Rs. 167.53 Cr. as on March 31, 2026(Prov.) from Rs. 147.13 Cr. as on March 31, 2025, on account of accretion to reserves. The gearing of the company stood at 0.86 times as on March 31, 2026(Prov.), against 0.70 times as on March 31, 2025. Debt protection metrics – Interest coverage ratio (ICR) and debt service coverage ratio (DSCR) stood at 3.40 times and 2.02 times as on March 31, 2026(Prov.), respectively as against 5.09 times and 1.52 times as on March 31, 2025, respectively. TOL/TNW (Total outside liabilities/Total net worth) stood at 1.60 times and 1.75 times as on March 31, 2026(Prov.), and 2025 respectively. The debt to EBITDA of the company stood at 3.01 times as on March 31, 2026(Prov.), as against 1.95 times as on March 31, 2025. Acuite believes the financial risk profile of the company will remain moderate on account of steady net cash accruals and no major debt funded capex plan over the near term.

Working capital intensive operations
AIL's working capital operations remains intensive marked by high gross current asset (GCA) of 318 days in FY2026 (prov.) as against 288 days for FY2025. GCA days ae mainly led by high debtor days and other current assets. The inventory days stood at 14 days in FY2026 (prov) as against 3 days in FY2025. The debtor days stood at 101 days for FY2026(prov) as against 104 days in FY2025. High debtor days are due to delay in payments from government and large corporations. However, AIL has no bad debts. Subsequently, the payable period stood at 158 days as on March 31, 2026(prov) as against 124 days as on March 31, 2025, respectively. However, the reliance on working capital limits is high, marked by an average of~ 90.20 percent usage of fund-based limits and ~ 81.70 percent usage of non-fund-based limits over the past twelve months ending in May 2026. Acuite believes that the working capital operations of the company will remain intensive on account of the nature of AIL’s business.

Susceptibility of profitability to volatility in input cost amidst tender based nature of business
Major raw materials used in civil construction activities are steel and cement, while in road construction activities, they are stone, asphalt/bitumen, and sand, which are usually sourced from large players/dealers at proximate distances. The raw material and labour costs form the majority portion of the total cost of sales for the last three years. As the raw material prices and labour costs are volatile in nature, the profitability of the company is subject to fluctuations in raw material prices and labour costs. However, the company has an in-built price variation clause for major raw materials like cement, bitumen, and steel in the majority of its contracts, which protects its margins to an extent.