Press Release September 29, 2026 HELLA INFRA MARKET RETAIL PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Non Convertible Debentures (NCD)	250.00	0.00	ACUITE A- | Assigned | Rating Watch with Developing Implications	-	SEBI
Total Outstanding	250.00	0.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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.

Erratum: This press release is to rectify an error which was inadvertently captured in rationale for rating.

Rating Rationale

­Acuité has assigned the long-term rating at ‘ACUITE A-’ (read as ACUITE A Minus) on Rs. 250.00 Cr. proposed of  Non Convertible Debentures (NCD) of Hella Infra Market Retail Private Limited (HIMRPL). The ratings have been placed under 'Rating Watch with Developing Implications'. Rationale for rating Acuite takes note of the recent announcement of Hella Infra Market Ltd (HIML) becoming a subsidiary of Shalimar Paints Ltd (SPL) with a follow up qualified institutional placement (QIP) raise of Rs 1,000 Cr in SPL and share swap of ~Rs 10,000 Cr. This is in lieu of the earlier plan of listing of HIML in stock exchanges. The QIP funds are expected to raise in two equal tranches of Rs 500 Cr in Sep 2026 & Dec 2026 to be utilised for debt repayment/ prepayment and general corporate purposes. Furthermore, the group plans to merge HIML with SPL over the medium term. However, all these transactions are subject to requisite approvals from the regulatory authorities. Therefore, Acuite has placed the rating on 'Rating Watch with Developing Implications' in view of the proposed share swap transaction between HIML and SPL, coupled with the proposed QIP fund raising. The successful completion of the share swap transaction and timely infusion of funds through the QIP remain key monitorable factors, as these are expected to have a significant bearing on the group's capital structure, leverage profile, and financial flexibility. The rating assign factors continues to factor in the group's diversified revenue profile across construction and building material segments, supported by its strong market position in key product categories which has resulted in a year-on-year growth in operating performance. The FY26 (Prov.) revenues improved from Rs 18,469.67 Cr to Rs 19,718.25 Cr supported by growth in EBITDA margin from 8.20% in FY25 to 8.98% in FY26(Prov.). However, Q1FY27 performance moderated due to geopolitical crisis majorly impacting the tiles business leading to revenue and EBITDA of Rs 4,607 Cr. and 8.22% respectively in comparison Rs 5,122 Cr and 8.53% in Q1FY26. However, with stabilisation of the global environment, the management expects operating performance to stabilise from Q2FY27 onwards. The rating continues to derive comfort from the presence of reputed institutional investors, along with the group's demonstrated ability to mobilize resources through equity raising and debt refinancing initiatives over the years. The rating remains constrained by the significant debt-funded capex and acquisition-led expansion undertaken by the group, which has adversely impacted its financial risk profile and resulted in moderation in debt protection metrics and coverage indicators. Nevertheless, the substantial debt refinancing and fund raising completed in FY2026 and Q1FY2027, coupled with the anticipated proceeds from the proposed QIP, receipt of debt refinancing proceeds, are expected to support deleveraging and improve the group's debt protection metrics over the medium term. However, the debt repayment obligations are increasing substantially in FY29 and therefore further infusion is expected to be required to service the debt obligations, timely receipt of which remains a key monitorable. The rating is further constrained by the group's working capital-intensive operations, characterized by elevated debtor levels.

About the Company

­Incorporated in Sept’ 2019, Hella Infra Market Retail Private Limited (“Company” or “HIMRPL”) is a wholly owned subsidiary of Hella Infra Market Limited (“HIML” or “Hella”). HIMRPL has been provides an online B2B procurement marketplace for real estate and construction materials in India, aiming to transform the construction ecosystem through technology. Mr. Aaditya Gajendra Sharda ,Mr. Souvik Pulakesh Sengupta and Ms. Aarti Gajendra Sharda are the present directors of the company. The company is based in Thane.

About the Group

Established in 2016, Hella Group is a Thane based manufacturer cum aggregator dealing in various types of construction materials. The group provides a wide range of industrial products (concrete, steel, cement, aggregates), building materials & services (walling, wood, plumbing, roofing), consumer interior essentials (tiles and sanitary ware, modular kitchen and hardware, paint, electrical appliances) and chemical compounds. It runs its business through India’s first multi-product and multi-channel construction material platform – Infra. Market which is one of the biggest marketplaces and aggregators in the country having a tie-up with more than 500+ suppliers and 9,000+ retail stores (of which 1250+ retailers are dealer stores operating under the group's brand name). The group has also launched 30+ premium franchise stores measuring 10,000 sq. ft. Further, it has established a key presence across 22+ states in India and also has an export presence in Middle East and Asian countries such as Jordan, Vietnam, Singapore, Dubai, UK, Hong Kong, etc.

Unsupported Rating

­Not applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

­To arrive at the rating of Hella Infra Market Retail Private Limited (HIMRPL), Acuite has consolidated the financial and business profiles of HIMRPL, its parent company Hella Infra Market Limited (HIML, formerly known has Hella Infra Market Private Limited) including all the subsidiaries and associates of HIML. The consolidation takes into account the integrated nature of business of companies, cashflow fungibilities, operational linkages and common management.

Key Rating Drivers

Strengths

Sustained equity infusions supported by reputed investors and strong resource mobilisation ability The group is backed by reputed investors who have been with the group since 2019 and extended support in the form of equity infusions in each of the fund-raising rounds. On an overall basis, group has raised Rs 3,058 Cr. from FY20 to FY25 (excluding Rs. 900 Cr. against swap acquisition of tile companies in FY25). Further in FY26, the group raised Rs 915.55 Cr in FY26 followed by a raise of Rs 107 Cr in till July-26. Overall, from FY19 to recent raise in FY26, the valuation has grown multi fold from Rs 100.00 Cr. to Rs 25,000 Cr. respectively. Also, the group has refinanced total debt of Rs. 1,000 Cr. in HIML (excluding Rs 250.00 Cr under green shoe option) in FY26, against which Rs 870 Cr. is disbursed till date and further Rs 125.00 Cr is expected to be disbursed by the end of Sep-26. This refinancing shall majorly cover all the repayments due till March 2027. The group is further refinancing NCDs of Rs 250 Cr in Hella Retail to repay the entire debt obligations of this company due from FY28 onwards. Further the proposed QIP funding from Shalimar Paints Limited of Rs 1,000 Cr is expected to be raised in FY27 and to be majorly utilized towards repayment of its existing debt obligations, thereby supporting the group's deleveraging efforts and strengthening its overall financial profile. Acuite believes that the successful completion of the QIP and timely infusion of funds remain key monitorable. Diversified revenue streams with strong market position in key segments The group is engaged in all sorts of construction materials with key focus on products which have a fragmented market, drive macroeconomic shifts and high export potential. The key focus is to establish a robust distribution system expanding at B2B levels and develop a strong brand. The group has secured strong domestic market positions, with being the largest manufacturer of ACC blocks and 2nd highest ranking in categories like Concrete and Tiles. Majority of the product portfolio expansion is on account of acquisitions including Equip hunt in 2020, RDC Concrete in 2021 and Shalimar Paints in 2022. The group has also ventured into new segments such as Bath & Fittings in 2020, Walling Manufacturing in 2023 and Wood Panel & Modular Kitchen in 2024. The extensive product range offers an edge over the competitors and allows to capture larger share of customers wallet through cross selling opportunities. Growth in operating performance The operating revenues of the group has been growing and stood at Rs 19,718.25 Cr in FY2026(Prov.) from Rs 18,469.67 Cr. in FY2025 posting a growth of ~7 percent. This growth in revenues is majorly attributable to the concrete segment (35.19% of FY26 revenue), steel segment (21.06%) and chemical segments (6.09%). With increasing share of private labels in the revenue mix, the operating margins have also improved to 8.98% in FY2026(Prov.) from 8.20% in FY25 mainly on account of increasing economies of scale. Currently, majority of revenue is driven from B2B channel mix (71.90% of FY26 revenue), however, the group has a constant focus on expanding its retail network as well through development of extensive distribution network.

Weaknesses

­Moderate financial risk profile to improve through QIP infusion While tangible net worth of the group stood improving at healthy levels to Rs 5,110.16 Cr as on March 31,2026(Prov.) from Rs 3,709.27 Cr as on March 31,2025, the significant dependence on external debt to support acquisitions, capex, working capital and lease liabilities however led to an increase in the debt in the past. Moreover, over the past two year, the group has successfully infused equity and refinanced debt thereby improving the coverage indicators. The gearing improved and stood at 1.13 times as on March 31,2026 (Prov.) (1.77 times as on March 31,2025). The debt protection metrics stood low with debt service coverage ratios remaining below unity in FY26, while the obligations was serviced through debt refinancing of Rs 750.00 Cr. and equity raise of Rs 915.55 Cr. in FY26. Further, receipt of balance of refinanced debt of Rs 245.00 Cr and equity raise of Rs. 107 Cr along with proposed additional debt refinancing of Rs 250 Cr and upcoming proceeds from QIP of Rs 1,000 Cr in FY27 are expected to significantly strengthen the financial risk profile in FY27 & FY28. However, the debt repayment obligations are increasing substantially in FY29 and therefore further infusion is expected to be required to service the debt obligations, timely receipt of which remains a key monitorable.  Intensive working capital requirements The working capital operations of the company is intensive marked by high gross current asset days of 167 days in FY2026 (Prov.) (173 days in FY2025). This is mainly attributable to elevated debtor levels which stood at 124 days in FY2026 (Prov.). Further other current assets including advance to suppliers and balance with government authorities also contributed to high GCA days. The receivable days is expected to remain in the range of 125 days over the medium term. Inventory holding requirements remain low, ranging between 10-23 days, considering the perishable nature of key raw materials such as concrete. Inherent challenges of construction business The construction sector is fragmented with low entry barriers and numerous small players, hence exposes the company to intense competition risks. Further, growth in construction industry is vulnerable to the developments in infrastructure and real estate sector.

ESG Factors Relevant for Rating

­The group has commitment to energy management and product stewardship. On the environment safeguard front, the group preserves natural resources and reduces energy intensive processes by engaging in use of recycled metal scrap and production of secondary steel, exports chemical raw materials to make sustainable and alternative fuels like Bio-diesel, is setting up recyclable and low energy consuming Oriented Polyvinyl Chloride pipes to replace the traditional cement pipes.Further, the group has developed healthy employment practices such as insurance benefits, health and safety policies, corporate social responsibility programs for upskilling, vocational training, gender equality and rural development. Further, it promotes gender diversity and inclusivity. The board comprises of a strong team of promoters and experienced industry professionals. Also, to manage the corporate governance anti bribery, anti corruption and whistleblower policy has been framed. The group ensures efficient credit risk management and indulges in data privacy and data security practices.

Rating Sensitivities

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

­ Steady growth in scale of operations along with improvement in margins Improvement in debt coverage indicators with Debt/ EBITDA reducing below 2.00 times

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

­Delay in receipt of QIP proceeds leading to deterioration in financial risk profile with Debt/ EBITDA increasing over 3.5 times Decline in scale of operations coupled with lowering of margins Elongation of working capital cycle

All Covenants

­Currently not available, since these are proposed NCD limits

Liquidity Position

Adequate

Historically, the group's liquidity profile remained stretched, with net cash accruals of Rs. 801.17 Cr in FY2026 (Prov.) against debt repayment obligations of Rs. 1,752.23 Cr during the same period. Debt servicing requirements were largely met through a combination of debt refinancing and equity raising activities. However, the liquidity position has witnessed improvement supported by equity infusion of Rs. 915.55 Cr in FY2026 and Rs. 107.00 Cr in FY2027 (till July 2026), along with debt refinancing of Rs. 870.00 Cr undertaken till date. Further, the proposed QIP of Rs. 1,000 Cr, debt refinancing of Rs 250 Cr and receipt of balance of committed debt refinancing of Rs 125 Cr is expected to provide additional liquidity support. The proceeds received shall be utilised to refinance and prepay debt to an extent of ~Rs 815 Cr in FY27. The group is projected to generate net cash accruals in the range of ~ Rs. 980.00 Cr to Rs. 1,105.00 Cr during FY2027-FY2028 against annual repayment obligations of around Rs. 613.29 Cr to Rs. 1,021.33 Cr (including lease liabilities and without considering prepayment and refinancing) over the same period. The current ratio stood comfortable at 1.43 times as on March 31, 2026 (Prov.). Further, the group-maintained unencumbered cash and bank balances of Rs. 314.15 Cr as on March 31, 2026. The average utilisation of fund-based working capital limits remained moderate at ~76.94% during the twelve months ended July 2026.

Outlook

­Not Applicable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	19718.25	18469.67
PAT	Rs. Cr.	308.56	219.74
PAT Margin	(%)	1.56	1.19
Total Debt/Tangible Net Worth	Times	1.13	1.77
PBDIT/Interest	Times	2.17	1.92

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

­None

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 • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.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 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr No Name of Company 1 Hella Infra Market Limited 2 Hella Infra Market Retail Private Limited 3 Hella Chemical Market Private Limited 4 Hella Infra Market Wood Products Private Limited 5 Sociam Equipment Solutions Private Limited (SESPL) 5A Sociam Singapore Pte Limited 6 Hella Infra Pipes & Fittings Private Limited (Formally known as Hella Road Technologies P Ltd) 7 Hella Infra Market Ceramics Private Limited (Formally known as Trinity Marketplace Pvt Ltd) 8 Shalimar Paints Limited (Listed) 8A Shalimar Adhunik Nirman Limited 8B IM Inicio Projects Private Limited (formerly known as Eastern Speciality Paints & Coatings Private Limited) 9 Hella Infra Market Metal Private Limited (erstwhile Rajuri Steels & Alloys Pvt Ltd) 10 Hella Infra Market Singapore Pte Limited 11 HIM Infra General Trading LLC 12 RDC Concrete (India) Limited 12A Neptune Readymix Concrete Private Limited 12B Ultrafine Mineral & Admixture Private Limited 12C ROBO Silicon Private Limited 12D ROBO Quarries Private Limited 13 Hella Infra Market Steel Private Limited 14 Ketan Constructions Private Limited 15 Emcer Tiles Private Limited 15A Sanford Vitrified Private Limited 15B Keros Stone LLP 15C Evetis Stone Private Limited 15D Lenswood Ceramic LLP 16 Engistone India Private Limited 17 Millennium Inframarket TBS Private Limited (erstwhile Lorenzo Vitrified Tiles Private Limited) 17A Millennia Ceramica Private Limited 17B Millennia Tiles Private Limited 17C Millennium Granito India Private Limited 17D Clan Vitrified Private Limited 17E Millennium Ceramic LLP 17F Acer Granito Private Limited 17G Millennium Vitrified Tiles Private Limited 17H Millennium Tiles LLP 17I Millennium Cera Tiles Private Limited 17J Millenium Papers Private Limited 17K Millennium Corrugated LLP 17L Millennium Cera International Private Limited (erstwhile Millennium Overseas Partnership) 18 Amstrad Consumer India Private Limited 19 Mactile India Private Limited 19A Metro City Tiles Private Limited 19B Metro World Tiles Private Limited 19C Metro Tiles LLP 19D MetroStar Tiles LLP 19E Mozzaico Ceramic LLP

Contacts

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

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