Press Release

Press Release

August 26, 2026

AIG ENGINEERING PRIVATE LIMITED (ERSTWHILE AKHIL INFRA PROJECTS PRIVATE LIMITED)
Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	14.50	ACUITE BBB \| Stable \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	125.50	-	ACUITE A3+ \| Reaffirmed	RBI
Total Outstanding	0.00	140.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 reaffirmed its long-term rating at ‘ACUITE BBB’ (read as ACUITE triple B) and short-term rating at ‘ACUITE A3+’ (read as ACUITE A three plus) on Rs. 140.00 Cr. bank facilities of AIG Engineering Private Limited (Erstwhile Akhil Infra Projects Private Limited)(AIGEPL). The outlook is ‘Stable’.

Rationale for rating

The rating reaffirmation takes into account of healthy order book position of 3.20 times of FY 26 revenue, providing steady revenue visibility over near to medium term. The rating reflects the company’s experienced management, established track record of operations, and long-standing relationships with government authorities. Further, the rating considers the improving operating performance and moderate financial risk profile of the company. However, the rating is constrained by working capital intensive operations and risks pertaining to competitive and fragmented industry.

About the Company

Incorporated in 2013, AIG Engineering Private Limited is a Karnataka based company engaged in civil construction specializing in irrigation, water supply, drainage and treatment plants.The name of the company has been changed to AIG Engineering Private Limited from Akhil Infra Projects Private Limited (w. e. f. July 14, 2025) . The registered office of the company is in Bangalore and is promoted by G. Sathyanarayana and G. Bhagya Rathna.

Unsupported Rating

Not Applicable.

Analytical Approach

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

Key Rating Drivers

Strengths

Established track of operations and experienced management

The company is a first-class civil contractor, having established presence in executing specialized projects of underground works, water sewage treatment plants, irrigation, etc. The company is owned and operated by Mr. Satyanarayana Ganamani, who has more than two decades of experience in the field of civil construction. The promoters’ extensive industry experience and past record of timely execution of projects have aided the company in establishing relations with various Karnataka government divisions. However, as on date, AIGEPL is majorly working on central government scheme projects like Amrut 2.0 and Jal Jeevan Mission in the state of Karnataka. Moreover, AIGEPL is planning to expand the drip irrigation projects in the state of Jharkhand and Bihar, mitigating the geographical concentration risk. Additionally, after receiving an electrical license in 2024, the company secured a few solar and electrical orders with certain Joint Venture (JV) partners.

Moderate financial risk profile
The financial risk profile of the company stood moderate marked by moderate net worth, low gearing and comfortable debt protection metrics. The tangible net worth of the company stood at Rs. 54.65 Cr. as on March 31, 2026 (Prov.) as compared to Rs. 38.80 Cr. as on March 31, 2025, owing to accretion of profits to reserves and consideration of unsecured loans of Rs 5.67 Cr. as quasi-equity in FY 25 and FY 26 (Prov). The gearing (debt-equity) increased marginally to 0.49 times in FY 26 (Prov.) as compared to 0.45 times in FY 25 due to increase in working capital borrowings. Moreover, the debt protection metrics stood comfortable with interest coverage ratio of 4.44 times in FY 26 (Prov.) and debt service coverage ratio at 3.27 times in FY 26 (Prov.). Total outside Liabilities/Total Net Worth (TOL/TNW) stood at 1.97 times as on March 31, 2026 (Prov.).

Improving operating performance marked by healthy order book
The company marked an operating revenue of Rs. 271.48 Cr. in FY 26 (Prov.) as compared to Rs. 169.19 Cr. in FY 25. The revenue increased during the period majorly due to improved order execution during the period. Further, AIGEPL has an outstanding unexecuted order book of Rs. 867.69 Cr. as on March 31, 2026 (3.20 times of FY 26 Prov. revenue) to be executed in the next 2-3 years. Apart from this order book, the company has been marked as L1 bidder for the projects of approximately Rs. 300 Cr. The company also acts as a technical partner in certain Joint Ventures (JV), earning a 3–4% commission of the total project cost.
The operating margin of the company stood improved at 10.28 percent in FY 26 (Prov.) as compared to 10.10 percent in FY 25 on account of better absorption of fixed cost. The PAT margin improved marginally to 5.84 percent in FY 26 (Prov.) as compared to 5.36 percent in FY 25.

Weaknesses

Working capital intensive operations

The working capital operations of the company remained intensive marked by gross current assets of 184 days as on March 31, 2026 (Prov.) as against 169 days as on March 31, 2025, majorly driven by other current assets and debtor days. The debtor days stood higher at 78 days as on March 31, 2026 (Prov.) as against 38 days as on March 31, 2025, due to high year end billings. The company has terms of credit for its debtors in the range of 15-30 days. However, the creditor days stood improved at 94 days as on March 31, 2026 (Prov.) as against 116 days as on March 31, 2025.

Susceptibility to tender-based operations
The revenue and profitability for tendering based operations depends entirely on the ability to win tenders wherein entities face intense competition, thus requiring them to bid aggressively to procure contracts and restrict the operating margin to a moderate level. Also, given the cyclicality inherent in the construction industry, the ability to maintain profitability margin through operating efficiency becomes critical.

Rating Sensitivities

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

Growth in operating performance with net cash accruals increasing above Rs. 25-30 Cr.
Improvement in working capital cycle.

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

Higher than expected increase in debt levels, leading to higher leverage and stretch on liquidity
Decline in operating performance, adversely impacting net cash accruals falling below Rs. 10.00 Cr

Liquidity Position

Adequate

The company’s liquidity position is adequate marked by sufficient net cash accruals of Rs. 16.75 Cr. in FY 26 (Prov.) as against maturing debt repayment obligations of Rs. 0.67 Cr. for the same period. Going forward, the company is expected to generate sufficient net cash accruals in the range of Rs.17-23 Cr. in FY27-FY28 as against repayment obligations of Rs.0.74 Cr. and Rs. 1.04 Cr. respectively. The current ratio stood comfortable at 1.29 times as on March 31, 2026 (Prov.). Further, the unencumbered cash and bank balances of the company stood at Rs. 15.93 Cr. as on March 31, 2026 (Prov.). Additionally, the average bank limit utilisation stood moderate marked by fund-based limit utilisation of 86.17 percent and non-fund-based limit utilisation of 68.63 percent for the last fourteen months ended May’ 26, providing some liquidity cushion. The company had a high reliance on the working capital limits till April 2026 however an enhancement of Rs. 20.00 Cr. availed in May 26. Further, the company proposes to increase their limits by Rs. 5-10 Cr. to support the business growth.

Acuité believes the company will maintain adequate liquidity position over the near to medium term.

Outlook: Stable

Other Factors affecting Rating

None.

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	271.48	169.19
PAT	Rs. Cr.	15.84	9.06
PAT Margin	(%)	5.84	5.36
Total Debt/Tangible Net Worth	Times	0.49	0.45
PBDIT/Interest	Times	4.44	3.64

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
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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
09 Jul 2025	Letter of Credit	Short Term	5.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	42.50	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	30.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	2.50	ACUITE A3+ (Upgraded from ACUITE A3)
	Proposed Bank Guarantee	Short Term	5.22	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	35.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Cash Credit	Long Term	2.50	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	5.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	2.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Term Loan	Long Term	0.28	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Proposed Cash Credit	Long Term	5.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Secured Overdraft	Long Term	5.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
03 Jul 2024	Bank Guarantee (BLR)	Short Term	12.00	ACUITE A3 (Reaffirmed)
	Letter of Credit	Short Term	5.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	22.50	ACUITE A3 (Reaffirmed)
	Proposed Bank Guarantee	Short Term	87.08	ACUITE A3 (Assigned)
	Cash Credit	Long Term	5.50	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	0.42	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Cash Credit	Long Term	2.08	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Cash Credit	Long Term	2.92	ACUITE BBB- \| Stable (Assigned)
	Cash Credit	Long Term	2.50	ACUITE BBB- \| Stable (Reaffirmed)
23 May 2024	Bank Guarantee (BLR)	Short Term	12.00	ACUITE A3 (Reaffirmed)
	Letter of Credit	Short Term	5.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	22.50	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	5.50	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	0.42	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Cash Credit	Long Term	2.08	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	2.50	ACUITE BBB- \| Stable (Reaffirmed)
23 Feb 2023	Bank Guarantee (BLR)	Short Term	22.50	ACUITE A3 (Assigned)
	Proposed Letter of Credit	Short Term	1.50	ACUITE A3 (Assigned)
	Proposed Bank Guarantee	Short Term	15.00	ACUITE A3 (Assigned)
	Cash Credit	Long Term	5.00	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	2.26	ACUITE BBB- \| Stable (Assigned)
	Working Capital Demand Loan (WCDL)	Long Term	0.50	ACUITE BBB- \| Stable (Assigned)
	Proposed Cash Credit	Long Term	3.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	0.24	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	42.50	Simple	ACUITE A3+ \| Reaffirmed
ICICI BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	48.00	Simple	ACUITE A3+ \| Reaffirmed
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE A3+ \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.50	Simple	ACUITE BBB \| Stable \| Reaffirmed
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A3+ \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE BBB \| Stable \| Reaffirmed
ICICI BANK LIMITED	Not avl. / Not appl.	Secured Overdraft	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Roshni Gupta
Associate 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

¹Includes 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.
³The 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.