Press Release

September 25, 2026

AMAR KRISHNA LEISURE PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	80.50	ACUITE BB \| Stable \| Assigned	-	RBI
Total Outstanding	0.00	80.50	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuite has assigned the long-term rating of 'ACUITE BB' (read as ACUITE double B) on the Rs. 80.50 Cr. bank facilities of Amar Krishna Leisure Private Limited (AKLPL). The outlook is 'Stable'.

Rationale for rating

The rating reflects the extensive industry experience of promoters in the hospitality industry. The company is currently setting up a 5-star hotel having 152 room keys (standard, deluxe and suites) along with integrated amenities, including banquets, conference rooms, marriage lawn, dining and other facilities under the brand name of ‘Novotel’ at Arandiya Village, Mangliya Road, Indore Bypass, Indore, Madhya Pradesh. The project benefits from its location providing good connectivity to business districts, transportation hubs, and tourist destinations such as Ujjain. The location is expected to attract both business and leisure travellers while also benefiting from demand generated by weddings and social events. The rating is further supported by limited funding risk, with term debt tied up and promoter contribution (in form of equity and interest free unsecured loans) being infused in a timely manner depending on the progress on.
The rating is constrained by the nascent stage of the project construction, exposing AKLPL to implementation risks. As of 30th June 26, 32.48% of the total project cost total (inclusive of land cost) has been incurred. Any time or cost overruns could adversely impact the company’s financial risk profile and will remain a key monitorable. Additionally, the company’s ability to commence operations in a timely manner i.e. 1^st November 2028 and achieve the envisaged revenue ramp-up and profitability levels will be key monitorable.

About the Company

Indore based; Amar Krishna Leisure Private limited was incorporated in the year 2013. The company is primarily involved in the hospitality industry and currently setting up a 5-star hotel with other modern amenities at Indore, Madhya Pradesh. It is promoted and managed by Mr. Rajkumar Arora, Mr. Mohit Arora and Mr. Sapan Arora (sons of Mr. Rajkumar Arora).

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has taken standalone business and financial risk profile of Amar Krishna Leisure Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Experienced promoters in the hospitality industry
The company is promoted by Mr. Rajkumar Arora, who has over three decades of experience in the hospitality industry in Indore. Mr. Sapan Arora and Mr. Mohit Arora (sons of Mr. Rajkumar Arora) have over one decade of experience in the hospitality sector and has experience in organizing weddings, social functions, and large-scale events. They have demonstrated execution capabilities through other projects, including Hotel Surya, Indore Residency Club (restaurants), and Farzi Café, Indore through their group entities. Acuite believes that the promoters' established presence in the local hospitality market is expected to support operational efficiency, customer acquisition, and event-related business generation for the proposed property.

Association with reputed brand and favourable location of the project
AKLPL has entered into an agreement with Accor Hotels, an established global hospitality operator, for the operations of its upcoming hotel, thereby benefiting from Novotel’s brand recognition and service standards. Further, the project is located at AH47 national highway providing good connectivity to business districts, transportation hubs, and tourist destinations such as Ujjain. This supports demand from business and leisure travellers, while also benefiting from demand generated by weddings and social events thereby strengthening the project’s operating prospects. Acuite believes the locational advantage will benefit the company going forward.

Limited funding risk as tie up of term debt is completed and timely infusion of promoter’s contribution is witnessed
The cost of the project is Rs.126.16 Cr. (inclusive of land cost) funded through a mix of term loans of Rs.80.00 Cr. and promoters’ contributions in the form of equity and interest free unsecured loans of Rs.46.16 Cr. The term loans were sanctioned by the banks in a consortium agreement and the promoters' contribution is also being infused in a timely manner. As of June 2026, 11.04% of the term loan has been disbursed and 69.65% of promoters’ contribution has been infused. The promoters may infuse additional funds, if required. Acuite believes that the project has limited funding risk as term loan has been disbursed and promoters’ contribution has also been brought in as per the covenants.

Weaknesses

Project implementation risk
The project commenced construction in July 2023 and remains at an early stage, and around 32.48% of the total project cost (inclusive of land cost) incurred as on June 30, 2026. The scheduled commercial operational date (SCOD) is expected to be 1st November 2028. At this stage, the development is exposed to execution risks, including potential time and cost overruns and hence remains a key rating sensitivity. There is a risk of implementation of project in a time bound manner as any external factor such as delay in civil construction or changes in design outlined or any other unforeseen circumstances can impact the completion timeline.

Hospitality industry remains exposed to vagaries of tourism sector and intense competition
The operating performance of hospitality properties remains vulnerable to seasonal trends, economic cycles, and external factors such as geopolitical developments, security concerns, and disease outbreaks. The industry is also exposed to demand-supply dynamics, the overall health of the tourism sector and fluctuations in tourist arrivals. Further, the company is likely to face competition from other premium hotels in the vicinity catering to both corporate and leisure segments. However, this risk is expected to be mitigated by the property's strategic location, limited competition in the vicinity, and its association with a reputed brand. These factors are likely to support healthy occupancy levels, average room rates (ARRs), and sustainable business performance.

Rating Sensitivities

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

Significant construction progress of more than 75% achieved in FY27
Sooner than expected completion of project

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

Any significant delays in completion of the project
Any cost overrun in the project by more than 15%

Liquidity Position

Adequate

Acuite derives comfort from the company's adequate liquidity position, backed by substantial upfront promoter infusion towards project funding and a structured term loan repayment schedule that is expected to support cash flow adequacy during project stabilisation. As on June 30, 2026, the project has been funded through promoter infusion of Rs. 32.15 crore in the form of equity capital and interest-free unsecured loans, along with term loan disbursements of Rs. 8.83 crore, constituting 69.65% and 11.04% of the total project cost, respectively.
The term loan repayment is scheduled to commence from May 2029 and end up to October 2040. Acuite derives comfort from the estimated average DSCR of 2.05 times over the period FY2029-FY2040.
Although the project remains at an implementation stage, the financial closure incorporates creation of a Debt Service Reserve Account (DSRA) and an escrow mechanism through which project receipts will be routed. The company has maintained a DSRA balance of Rs. 0.82 crore as on June 30, 2026, equivalent to approximately one month's debt servicing obligations comprising interest and principal repayments. Going forward, the company's liquidity position is expected to remain adequate, supported by promoter support and a structured debt servicing framework.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	0.00	0.00
PAT	Rs. Cr.	0.02	0.00
PAT Margin	(%)	0.00	0.00
Total Debt/Tangible Net Worth	Times	0.05	0.00
PBDIT/Interest	Times	107.41	27.28

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
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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 :

Not Applicable

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
Union Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.50	Simple	ACUITE BB \| Stable \| Assigned
Punjab National Bank	Not avl. / Not appl.	Term Loan	Unlisted	RBI	31 Dec 2025	Not avl. / Not appl.	30 Sep 2040	31.00	Simple	ACUITE BB \| Stable \| Assigned
Union Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	31 Dec 2025	Not avl. / Not appl.	31 Mar 2040	49.00	Simple	ACUITE BB \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Manvi Khaitan
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.

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