Press Release

Press Release

March 19, 2026

ACHOLE DEVELOPERS PRIVATE LIMITED
Rating Assigned and Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	40.00	ACUITE A \| Stable \| Assigned	-
Bank Loan Ratings	195.10	ACUITE A \| Stable \| Upgraded	-
Bank Loan Ratings	0.90	-	ACUITE A1 \| Upgraded
Total Outstanding	236.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has upgraded its long-term rating to ‘ACUITE A’ (read as ACUITE A) from ‘ACUITE A-’ (read as ACUITE A Minus) on bank facilities Rs. 195.10 crore and short term rating to 'ACUITE A1' (read as ACUITE A One) from 'ACUITE A2+' (read as ACUITE A Two Plus) on bank facilities of Rs. 0.90 crore of Achole Developers Private Limited (ADPL). The outlook is 'Stable'.
Further, Acuité has assigned a long-term rating of ‘ACUITE A’ (read as ACUITE A) on bank facilities Rs. 40.00 crore of Achole Developers Private Limited (ADPL). The outlook is 'Stable'.

Rationale for the Rating
The rating upgrade reflects the moderate improvement in overall occupancy levels at ADPL’s Capital Mall and the strengthening of its cash flow position on the back of refinancing of high-cost debt. The rating continues to draw strength from the strong promoter profile and the demonstrated operational track record of the promoter group in running malls across the country. Further, the rating benefits from the company’s established tenant mix comprising of well-known retail brands. The mall maintains healthy occupancy levels at ~97 per cent with medium- to long-term lease agreements in place. These strengths are partly offset by the inherent dependence of revenues on tenant performance, coupled with occupancy and renewal risks, as certain lease contracts are due to expire in FY27. The company also remains exposed to broader macroeconomic and external factors in the real estate sector.

About the Company

Incorporated in 2018, Achole Developers Private Limited (ADPL) is an entity registered in Mumbai, engaged in owning and operating the Capital Mall located in Nalasopara, Maharashtra. The Company is owned by Lake Shore India Retail Venture Fund (Lake Shore) and Mr. Darpan Shah in a 70:30 shareholding ratio. The Abu Dhabi Investment Authority (ADIA) is the primary investor in Lake Shore India Retail Venture Fund. The Directors of the company are Mr. Karim Kasimali Merchant, and Mr. Rajamani Koshtishwaran Iyer, Mr. Scott Eisenberg, and Ms. Neha Shah.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of ADPL to arrive at this rating

Key Rating Drivers

Strengths

Established Promoter Profile and Strong Institutional Backing
ADPL is promoted by the Lake Shore India Retail Venture Fund (LSIRVF), which holds 70 per cent shareholding, while the remaining 30 per cent is with Mr. Darpan Shah. LSIRVF’s primary investor is the Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, providing the platform with strong financial depth and long-term investment capacity. ADIA’s backing has strengthened Lake Shore’s ability to undertake and manage large-scale retail real-estate projects across major urban centres. The group has successfully developed multiple malls in the Mumbai Metropolitan Region (MMR), Pune, Gurugram, and Ghaziabad, Hyderabad and currently operates six malls. Acuite expects the ADPL continue to benefit from the group’s established market presence, experienced management team, and robust promoter support, which collectively enhances its operational and financial flexibility.

Stable Revenue Visibility Driven by Long-Term Lease agreements and reputed tenant mix

The Capital Mall generates a stable revenue stream through lease arrangements with tenants across multiple sectors, supported by medium to long-term agreements. The occupancy has increased to ~97 per cent in current fiscal as against ~95 per cent in previous fiscal. Its tenant base comprises well-established brands such as Peter England, Jockey, Arrow, Louis Philippe, Allen Solly, KFC, Pantaloons, Reliance Trends, and Nykaa, among others, reflecting a strong and diversified lessee profile. The lease agreements have tenures ranging from 2 to 18 years, along with an inbuilt 15 per cent rent escalation every three years, ensuring steady growth in rental income. Additionally, the mall has lock-in periods of 12 to 60 months with its tenants, providing revenue stability and reducing vacancy risk. Acuite believes that ADPL’s revenue profile will remain supported by this medium to long term lease structures, consistent escalation clauses, and the presence of reputed tenants.

Adequate cash flows evidenced by strong debt-servicing indicators
The company’s cash flow position remains adequate, with average debt service coverage ratio (DSCR) at ~3.33 times over the tenure of the loans, i.e., until FY40–41. The expected improvement in DSCR is largely attributed to the proposed refinancing of high-cost non-convertible debentures (NCDs) in FY26. ADPL has been sanctioned LRD loan of Rs. 40 crore at a rate of interest similar to the existing LRD facility. Acuite believes that ADPL’s debt-servicing ability will remain adequate, supported by improved cash flows arising from the refinancing of high-cost debt.

Weaknesses

Moderate Financial Risk Profile
The financial risk profile of the company remains moderate, characterized by a moderate net worth base, comfortable debt protection metrics and relatively high gearing. The company’s net worth stood at Rs. 70.54 crore as on 31 March 2025, compared with Rs. 82.77 crore as on 31 March 2024, primarily due to losses incurred in previous years. The gearing increased to 3.06 times in FY2025 from 2.50 times in FY2024. As of FY2025, the company’s total debt stood at Rs. 215.66 crore, comprising Rs. 198.30 crore of long term borrowings, Rs. 14.01 crore of short term debt and Rs. 3.36 crore of maturing obligations. However, the recently sanctioned Lease Rental Discounting term loan of Rs. 40 crore, is intended to refinance high cost debt. The refinancing is expected to significantly reduce the interest cost for ADPL, contributing to the improvement in the overall financial risk profile of the company. Acuite believes that the financial risk profile of the company will continue to remain moderate, as evident from its moderate net worth position and high gearing albeit supported by comfortable debt protection metrics.

Susceptibility of cash flows to Tenant Performance, Occupancy Levels and Renewal Risk
ADPL generates its cash flows primarily from lease rentals, and its ability to meet repayment obligations depends on the continued and timely receipt of rentals as per the agreed terms. Any delays in rental inflows, early exits by tenants, or lease renegotiations arising from weaker than expected tenant performance may disrupt the cash flow stream and affect the company’s debt servicing ability. Certain lease contracts are due for expiry in 2026 and are expected to be renewed. Non renewal of these contracts may impact overall occupancy and revenues. Acuite believes that ADPL remains exposed to risks from tenant performance, occupancy levels and upcoming lease renewals, and any non renewal by key tenants may affect cash flow stability.

Vulnerability to External Factors and Cyclicality in the Real Estate Sector
ADPL’s revenues remain exposed to broader macroeconomic and external conditions that may affect the business performance of its tenants. The rating also factors in the sensitivity of the company’s debt coverage metrics to changes in interest rates or any material decline in occupancy levels, both of which could weaken its financial profile. Acuite believes that ADPL’s earnings and debt coverage metrics will remain vulnerable to external economic conditions and variations in occupancy levels.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

ADPL maintains a Debt Service Reserve Account (DSRA) equivalent to 3 months of interest and instalment repayment obligation along with the ESCROW mechanism.

Stress Case scenario

Acuite believes that, given the presence of DSRA mechanism, ADPL will be able to service its debt on time, even in a stress scenario.

Rating Sensitivities

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

Sustenance of high occupancy levels above 97 per cent
Any favorable revision in the existing lease agreement terms

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

Decline in average DSCR below 1.3 times
Non- Renewal of lease agreements expiring in FY27

Liquidity Position

Adequate

The liquidity position of the company is adequate, supported by the generation of sufficient cash flows to meet its debt obligations. Liquidity is further strengthened through the maintenance of a Debt Service Reserve Account that covers three months of repayment commitments. In addition, as per the sanctioned terms, the company operates under an escrow mechanism through which all rent receipts are routed and applied in accordance with the defined payment waterfall. The average DSCR over the tenure of the debt obligations is around 3.33 times. The company has a cash and bank balance of Rs. 5.46 crore as on 31st March 2025. The average utilisation of fund based working capital limits stood at around 66 per cent for the six months ended January 2026.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	48.94	46.48
PAT	Rs. Cr.	(12.29)	(17.30)
PAT Margin	(%)	(25.11)	(37.23)
Total Debt/Tangible Net Worth	Times	3.06	2.50
PBDIT/Interest	Times	0.83	0.69

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

Not Applicable

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

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
24 Feb 2025	Term Loan	Long Term	120.00	ACUITE A- \| Stable (Assigned)
	Term Loan	Long Term	75.00	ACUITE A- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	0.10	ACUITE A- \| Stable (Assigned)
	Bank Guarantee (BLR)	Short Term	0.90	ACUITE A2+ (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Union Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.90	Simple	ACUITE A1 \| Upgraded ( from ACUITE A2+ )
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.10	Simple	ACUITE A \| Stable \| Upgraded ( from ACUITE A- )
Union Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2039	195.00	Simple	ACUITE A \| Stable \| Upgraded ( from ACUITE A- )
Union Bank of India	Not avl. / Not appl.	Term Loan	20 Jan 2026	Not avl. / Not appl.	31 Mar 2040	40.00	Simple	ACUITE A \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Dheeraj Salian
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

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.