Press Release August 11, 2026 AADHYAN RESIDENCES 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)	200.00	0.00	ACUITE B | Stable | Assigned	-	SEBI
Total Outstanding	200.00	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Total Withdrawn	0.00	0.00	-	-	-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.

Rating Rationale

Acuité has assigned its long-term rating of ‘ACUITE B’ (read as ACUITE B) on the Rs. 200.00 Cr. proposed Non-Convertible Debentures of Aadhyan Residences Private Limited (ARPL). The outlook is ‘Stable’. Rationale for rating assigned The rating assigned takes into account significant risks associated towards funding, implementation and demand for the project. Further, the rating also factors the susceptibility of company's operations towards inherent cyclicality in the real estate industry and regulatory risks associated with it. However, the rating draws comfort from the long-standing experience and established track record of promoter i.e Inspira group for more than two decades in real estate business.

About the Company

Incorporated on 22 May 2026, ARPL is a group company of the IINSPIRA Group, Bangalore. The group is currently planning to undertake the development of a residential real estate project in Singasandra region of Bangalore, comprising apartment units with a total saleable area of approximately 4.6 lakh sq. ft. To fund the project, ARPL proposes to raise Rs. 200 crore through Non-Convertible Debentures (NCDs) in two tranches. The proceeds will be utilized for the acquisition of land and meeting construction-related expenses. The current directors of the company are Mr. Ravi Kodlu Sriram and Mr. Sureshkumar.

Unsupported Rating

­Not Applicable

Analytical Approach

Acuité has considered standalone business and financial risk profile of ARPL to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of the group with experienced management ARPL is a group company of Inspira Group, a Bangalore-based real estate developer having presence across residential and commercial real estate segments. The group is led by Mr. Prabhu Ur, Mr. Aravind M.S., and Mr. Akarsh Reddy, who collectively bring significant experience in the real estate sector. Over the past two decades, the group has developed a strong track record through the successful execution of multiple projects. Till date, the Inspira Group has completed approximately 18 projects and currently has four ongoing projects. The group has also delivered over 1.5 million sq. ft. of residential and commercial real estate, reflecting its established market presence and execution capabilities.

Weaknesses

­High project execution risk The project is proposed to be developed at an estimated cost of Rs. 408 crore (including land), to be funded through promoter contribution of Rs. 45 crore, NCDs of Rs. 200 crore, and the balance through customer advances. Of the proposed NCD proceeds, approximately Rs. 65 crore will be utilized for land acquisition, with remaining amount earmarked for project development. Given the reliance on customer advances for a sizeable portion of the project cost, the funding profile remains exposed to market response and sales traction. Further, the project is at a nascent stage, with land acquisition yet to be completed and negotiations with the landowner currently underway. The company is also in the process of raising the proposed NCDs, timely financial closure of which remains a key rating monitorable. In addition, the requisite statutory approvals are yet to be obtained, following which the project is expected to be launched by the end of the year. Accordingly, the project remains exposed to implementation, funding, and demand risks. Susceptibility to geographical concentration, real estate cyclicality, regulatory risks and intense competition in the industry The operations of the group are majorly located in and around Bangalore which keeps the firm exposed to geographic concentration risk. Further, the real estate industry in India is highly fragmented with most of the real estate developers, having a city specific or region-specific presence. The risks associated with real estate industry are cyclical in nature and directly linked to drop in property prices and interest rate risks, which could affect the operations. Moreover, the industry is also exposed to certain regulatory risks linked to stamp duty and registration tax directly impacting the demand and thus the operating growth of real estate players. Hence, business risk profile will remain susceptible to risks arising from any industry slowdown.

Rating Sensitivities

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

Ability to achieve sales at rates above projected levels, supported by strong collections, thereby enhancing visibility of cash inflows and improving debt service coverage ratio (DSCR) to above 2x. Significant progress in the project execution

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

Any substantial delay in project execution resulting in significant time or cost overruns. Lower-than-expected sales volumes or slower realization from customer bookings adversely impacting debt service coverage ratio to below 1.05 times

All Covenants

­Collateral cover of at least 2.0X times.  Pledge over 100% of shares of the Issuer and security providers. For Skylark Realty Private Limited, 100% shares held by Promoter and confirmation about the transaction from other shareholders First charge over 2 acres and 39 guntas land for Singhsandra Project Pledge over 100% of shares of Skylark Realty Private Limited till the transfer of above land parcel to the Issuer.

Liquidity Position

Stretched

The company was incorporated in May 2026 and proposes to raise Rs. 200 crore through an NCD issuance to fund land acquisition and other expenses relating to a real estate project that is currently at the planning stage. While the proposed tenure of the NCDs is four years, the detailed repayment schedule is yet to be finalised. The company’s liquidity position is expected to remain stretched, given the project’s nascent stage, sizeable upfront funding requirements and high dependence on customer advances for project execution and debt servicing. Commencement of project sales and receipt of customer advances (projected at ~Rs.51 crores in FY 2027-28) will remain critical to meeting the project expenses and repayment obligations. The proposed moratorium of two quarters on coupon payments from the date of first disbursement is expected to provide some relief to cash flows in the near term.

Outlook - Stable

­

Other Factors affecting Rating

­None

Key Financials :

­The company was incorporated in May 2026. However, the operations have not yet started.

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 • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Parth Patel Senior 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 6 RBI 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 a Fixed Deposits raised by NBFCs, HFCs, FIs RBI 11 b Fixed Deposits raised by Banks 7 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 6 RBI 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) 7 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. 6 By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues. 7 To be finalized following a discussion with the regulatory authorities.   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 8 Not applicable 8 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.