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.
Erratum - This press release is to rectify an error which was inadvertently captured in Rating Rationale
section. The detailed review of the rating was communicated through press release dated December 22, 2025.
Rating Rationale
Acuité has withdrawn its long-term rating on Rs. 334.00 Cr. Non-Convertible Debentures of Ahmedabad Ring Road Infrastructure Limited (ARRIL) without assigning any rating as the NCDs are fully repaid. The rating is being withdrawn on account of request received from the issuer and No objection Certificate (NOC) received from the debenture trustee.
Also, Acuité has withdrawn its long-term rating on Rs. 33.00 Cr. proposed Non-Convertible Debentures of Ahmedabad Ring Road Infrastructure Limited (ARRIL) without assigning any rating as it is a proposed facility.The rating is being withdrawn on account of request received from the issuer.
The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.
About the Company
Ahmedabad Ring Road Infrastructure Limited (ARRIL) is a special purpose vehicle (SPV) promoted by Sadbhav Engineering Limited (SEL) through its step-down subsidiary, Sadbhav Infrastructure Projects Limited (SIPL), for implementing the ring road project around the municipal limits of Ahmedabad city. The project was awarded by Ahmedabad Urban Development Authority (AUDA) for broadening the then existing 76 km two-lane ring road around Ahmedabad to four lanes along with operation and maintenance of the same up to December 2026 on a build, operate and transfer (BOT) model. The directors of the company as on June 30, 2025 are Mr. Mahendrasinh Rajusinh Chavada, Mr. Jatin Thakkar, Mr. Purushottambhai Bhulabhai Patel, Mr. Jignasu Yogendrabhai Dixit and Mr. Tarang Madhukar Desai.
Unsupported Rating
Not Applicable
Analytical Approach
Not Applicable
Key Rating Drivers
Strengths
Not Applicable
Weaknesses
Not Applicable
ESG Factors Relevant for Rating
The infrastructure development industry has a significant social impact, as it is a labour-intensive business. Social issues significant for the industry are community support and development, employee safety and human rights. Governance issues that are relevant include board and management compensation, transparency in related party transactions, shareholder’s rights and board diversity. The extent of direct or indirect emissions and the efficiency of deployment of vehicle fleets and heavy machinery has a considerable impact in the environmental performance of this industry. Since material costs are relatively high, strategies should be in place to reduce wastages and recycle raw materials to the extent possible to minimize the environmental impact.
SEL, the sponsor company, has policies in corporate governance category on board independence, key management retention and business conduct and ethics. The company has designated committees for corporate social responsibility (CSR), risk management, stakeholders’ relationship, nomination and remuneration amongst others. The company has a total of 5 number of board of directors out of which 2 are executive directors, 2 non-executive directors and 1 independent director. The company has CSR committee consisting of 3 members with major focus on promoting education, health care, sustainable livelihood, protection of the environment, infrastructure development, eradicating hunger and poverty amongst others.
Rating Sensitivities
Not Applicable
Liquidity Position
Not Applicable
Outlook: Not Applicable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
266.67
235.42
PAT
Rs. Cr.
61.08
68.81
PAT Margin
(%)
22.90
29.23
Total Debt/Tangible Net Worth
Times
0.88
0.44
PBDIT/Interest
Times
2.68
5.39
Status of non-cooperation with previous CRA (if applicable)
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.
Contacts
List of instruments and names of regulators of the instruments
