Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 166.61 ACUITE BBB | Stable | Upgraded - RBI
Bank Loan Ratings 0.00 108.39 Not Applicable | Withdrawn - RBI
Total Outstanding 0.00 166.61 - - -
Total Withdrawn 0.00 108.39 - - -
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 upgraded its long-term rating to ‘ACUITE BBB’ (read as ACUITE triple B) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) on Rs. 166.61 Cr. bank facilities of Ashar Ventures. The outlook is 'Stable'.
Also, Acuité has withdrawn its long-term rating on Rs. 108.39 Cr. bank facilities of Ashar Ventures without assigning any rating as the same is a proposed facility. The rating has been withdrawn on account of the request received from the issuer. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.

Rationale for rating
The rating upgrade reflects substantial progress achieved in the ongoing Ashar Pulse project, with a majority of the project cost already incurred in line with the envisaged timelines. The rating further factors healthy cash flow generation from the project, enabling prepayment of debt through surplus cash flows. The rating also derives comfort from the extensive experience of the promoters, established brand presence in the real estate market, relatively low execution and funding risks associated with the project. However, the rating remains constrained by the entity's significant geographical concentration risk, partnership constitution, and inherent cyclicality of the real estate industry. Further, future crystallisation, launch, and funding tie-up of the proposed projects under the entity, along with their impact on the overall credit and business risk profile, shall remain key rating monitorable.

About the Company

Established in 2012, Ashar Ventures is engaged in construction of residential and commercial real estate projects. The firm is currently developing a residential project, ‘Ashar Pulse', with total saleable area of ~4.90 lakh sq. ft., comprising 1018 saleable units. The entity is a part of Ashar Group which was established in 2001, and Mr. Ajay Ashar is the Chairman and Managing Director of the group. Ashar Group has its well-established presence in Thane, Mumbai with a history of delivering more than 5 million sq. ft. of commercial and residential area. The partners of the firm are Mr. Ajay Ashar and Kryshnajay Developers Pvt Ltd.
 
Unsupported Rating
­Not Applicable
 
Analytical Approach

­Acuité has considered the standalone business and financial risk profile of Ashar Ventures to arrive at the rating.
 
Key Rating Drivers

Strengths

Established track record of operations with experienced management
Thane-based Ashar Group, promoted by Mr. Ajay Ashar, has an established track record in real estate sector with more than two decades of experience in developing residential and commercial projects across various group entities. Currently, Ashar Ventures is developing Ashar Pulse, a residential-cum-commercial project with a saleable area of ~0.49 million sq. ft. and has recently completed Ashar Arize in April 2026. The project Pulse benefits from its location in a well-developed micro-market with established social infrastructure, including hospitals, schools, and retail facilities. Further, Acuité derives comfort from the promoters’ established execution track record and extensive industry experience, which are expected to support the timely completion of the ongoing project and monetisation of the balance inventory. Going forward, the launch and execution of new real estate projects under Ashar Ventures shall remain a key rating monitorable.

Low project risk
As of June 30, 2026, Project Pulse has incurred ~90 percent of the overall project cost, including ~93 percent of construction cost, thereby resulting in low implementation risk given the limited balance cost to be incurred and expected project completion by December 2026. Further, demand risk remains low, supported by healthy sales traction with ~72 percent of the saleable inventory (aggregating to ~Rs. 639 Cr.) sold as of June 30, 2026, with total collections of Rs. 463.88 Cr. as of June 30, 2026 from the booked units. While the total project cost has increased to Rs. 735.16 Cr. from earlier budgeted of Rs. 679.16 Cr., however, the funding risk continues to remain low, aided by adequate customer collections which have supported prepayment of project debt obligations as well. Therefore, overall project risk continues to remain low, however, timely sale of balance inventory and realisation of customer collections shall remain key rating monitorable.


Weaknesses

Geographical concentration risk and intense competition in the industry
The Ashar group have mostly executed its past projects in and around Thane, Mumbai. Moreover, ongoing project of the firm is also located in Thane. Hence, the entity is expected to remain geographically concentrated until any further diversification to a different city/state. Furthermore, the firm continues to remain exposed to intense competition from the established real estate developers in Thane, Mumbai.

Susceptibility to cyclicality inherent in the Indian real estate industry
The real estate segment in India is cyclical and affected by volatile prices and opaque transactions. Further, the real estate industry in India is highly fragmented, with most developers having a city-specific or region-specific presence. The risks associated with the industry are cyclical in nature and directly linked to fluctuations in property prices and interest rates, which could affect the sales velocity and the operations of the project. Moreover, the industry is also exposed to certain regulatory policies and regulations which directly impacts the demand and operating growth of real estate players. Hence, business risk profile of the firm will remain susceptible to risks arising from any industry slowdown.

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)

­­­Ashar Ventures maintains a debt service reserve account (DSRA) equivalent to one quarter of interest obligations along with escrow mechanism.

Stress case Scenario
Acuité believes that, given the presence of DSRA, and escrow mechanism, the entity 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:
  • ­Timely receipt of OC for Ashar Pulse within targeted timelines of January 2027
Potential triggers (individual or collective) for a downward rating action:
  • ­Delay in completion of the ongoing real estate project resulting in cost overruns
  • Lower than expected collections resulting in DSCR falling below 1.2 times
Liquidity Position
Adequate

Liquidity is marked adequate supported by steady customer collections, timely bank loan disbursements and promoter infusions. Further, the firm has repaid principal obligations of Rs. 108.29 Cr. till June 30, 2026, out of total disbursed debt of Rs. 274.90 Cr. Going forward, the firm is projected to generate cash flows of ~Rs. 347.38 Cr. between July 2026 and September 2027, compared with debt obligations of Rs. 174.67 Cr. during the same period, resulting in a projected DSCR of 1.52 times over the debt tenure. Also, the firm needs to maintain debt service reserve account (DSRA) amounting to one quarter of interest (Rs. 4.68 Cr. outstanding as on August 31, 2026), thereby providing additional comfort in terms of debt servicing capacity and supports the firm’s overall financial flexibility. Additionally, the firm had cash and bank balances of Rs. 4.38 Cr. as on June 30, 2026.
 
Outlook: Stable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 402.04 282.43
PAT Rs. Cr. 82.77 38.99
PAT Margin (%) 20.59 13.80
Total Debt/Tangible Net Worth Times (3.28) (7.53)
PBDIT/Interest Times 5.90 3.72
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
03 Jul 2025 Term Loan Long Term 275.00 ACUITE BBB- | Stable (Reaffirmed)
Term Loan Long Term 90.00 ACUITE Not Applicable (Withdrawn)
04 Apr 2024 Term Loan Long Term 275.00 ACUITE BBB- | Stable (Assigned)
Term Loan Long Term 90.00 ACUITE BBB- | Stable (Assigned)
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Lender’s Name ISIN Facilities Listing Status Regulated By Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 108.39 Simple ACUITE Not Applicable | Withdrawn
INDUSIND BANK LIMITED Not avl. / Not appl. Term Loan Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. 02 Mar 2028 166.61 Simple ACUITE BBB | Stable | Upgraded ( from ACUITE BBB- )
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.
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Contacts

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