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 ‘ACUITÉ BBB' (read as ACUITE triple B) from ‘ACUITÉ BBB-' (read as ACUITE triple B minus) on the Rs.117.00 Cr. bank facilities and its short-term rating to ‘ACUITÉ A3+’ (read as ACUITE A three plus) from ‘ACUITÉ A3’ (read as ACUITE A three) on the Rs.83.00 Cr. bank facilities of A B Infrabuild Limited (ABIL). The outlook is revised from 'Positive' to ‘Stable’.
Further, Acuité has assigned its long term rating of ‘ACUITÉ BBB' (read as ACUITE triple B) on the Rs.25.00 Cr. bank facilities and its short term rating of ‘ACUITÉ A3+’ (read as ACUITE A three plus) on the Rs.25.00 Cr. bank facilities of A B Infrabuild Limited (ABIL). The outlook is ‘Stable’.
Rationale for rating
The rating upgrade reflects ABIL’s healthy order book (~3.81x FY26 revenue), improving scale of operations with steady execution driving revenue growth and stable profitability. The financial risk profile is healthy with improving net worth, below unity gearing, and comfortable debt protection metrics, while liquidity remains adequate, supported by healthy accruals, enhanced working capital limits, and customer advances from railway projects (notably the Bhubaneswar project). However, the rating is constrained by the working capital-intensive nature of operations, reflected in elevated debtor days, high unbilled revenue and retention money, leading to high reliance on bank limits (~92% utilization) making improvement in working capital management a key monitorable.
About the Company
Established in 2011 and headquartered in Mumbai, A B Infrabuild Limited (ABIL) is a Grade "AA" contractor registered with Municipal Corporation of Greater Mumbai and Class 1(A) Contractor with Public Works Department, Maharashtra. ABIL is an engineering, procurement and construction (EPC) company engaged in civil and structural work, new station infrastructure, redevelopment of old stations, new railway lines, gauge conversion, track inking, track formation, building of rail over bridge, foot over bridge, etc. with specialisation in railway projects. The company is promoted by Mr. Amit Bholanath Mishra, supported by its directors namely, Mr. Bharatkumar Punmaji Parmar, Ms. Shivani Amit Mishra, Mr. Shreeprakash Deonarayan Singh, Mr. Udayan Anantrao Chindarkar, Ms. Archana Rakesh Pandey, Mr. Sadiq Shakil Merchant And Ms. Reshma Dagdu Wadkar.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profiles of ABIL to arrive at the rating.
Key Rating Drivers
Strengths
Established track record of operations
ABIL has an established track record of over two decades. The company holds Grade "AA" registration with the Municipal Corporation of Greater Mumbai and Class 1(A) certification from the Public Works Department, Maharashtra. Further, the promoter Mr. Amit Bholanath Mishra has an experience spanning over two decades as an EPC contractor which has helped ABIL in increasing its scale of operations over the years .
Healthy order book along with improving revenues with range bound profitability
ABIL has a healthy outstanding order book of ~Rs.977.18 Cr. as on 31st March 2026 (3.81 times of FY26 revenue), which provides steady revenue visibility over the medium term. Further, the company has bided for orders worth ~Rs.848 Cr. The revenue of the company is improving Y-o-Y basis and stood at Rs.256.18 Cr. in FY2026 against Rs.208.23 Cr. in FY2025 and Rs.183.61 Cr. in FY2024. The improvement is primarily attributable to timely completion and billings of projects along with inflow of new orders. The EBIDTA margin stood at 14.86% in FY2026 against 16.00% in FY2025 (exceptional year due to certain orders received during monsoons) and 13.18% in FY2024. Further, the PAT margin stood largely remained range bound at around 7.55% in FY2026 against 7.74% in FY2025. Going forward, the revenue is expected to improve gradually on account of further anticipated inflow of new orders along with expected timely completion and billings of the projects.
Healthy financial risk profile
ABIL’s financial risk profile is healthy, marked by growing net worth, low gearing and comfortable debt protection metrics. The net worth of the company improved to Rs.169.28 Cr. as on 31st March 2026 against Rs.110.38 Cr. as on 31st March 2025. The improvement in the net worth is on account of right issue of equity shares during the year and accretion of profits into reserves which helped in improving the gearing to 0.68 times as on 31st March 2026 from 0.78 times as on 31st March 2025. Despite increase in debt levels, the debt protection metrics stood comfortable in FY2026; with interest coverage ratio at 4.07 times and debt service coverage ratio at 2.69 times. Furthermore, the Debt-EBITDA stood at 2.77 times. Going forward, any significant increase in the working capital requirements leading to moderation of the same remains a key rating monitorable.
Weaknesses
Intensive working capital management
The company has an intensive working capital operations along with high reliance on the bank limits. The gross current asset days stood at 388 in FY2026 against 317 in FY2025. This is mainly due to unbilled revenue that stood at Rs.110.54 Cr. as on March 31, 2026 (Rs.81.11 Cr. as on March 31, 2025). The debtor days also elevated and stood at 148 in FY2026 against 88 in FY2025. The stretch in the debtor days is on account of increase in the share of railway related project as compared to the total order book value and the average receivable period from these government railway projects is around 180 days. The creditor days stood at 79 days in FY2026 against 75 days in FY2025. The average utilization of the working capital limits stood high at ~91.95% in the last 12 months ending March 2026.
Going forward, any further stretch in the working capital cycle leading to pressure on liquidity will remain a key rating monitorable.
Tender based nature of operations and competitive industry
ABIL is engaged in bidding for tenders in the infrastructure segment, which is marked by the presence of several mid- to large-sized players; hence, the company faces intense competition from other players in the sector. The risk becomes more pronounced as tendering is based on a minimum amount of bidding for contracts. The company acquires tenders at competitive prices, which may affect its profitability. There are uncertainties attached to the allotment of tenders. However, the risk is mitigated to some extent, given the promoter's experience of more than two decades in the industry, which has enabled the company to procure tenders on a regular basis.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Sustained improvement in operating performance with revenues reaching above ~Rs.500 Cr. along with improvement in the profitability margins.
Improvement in the working capital cycle.
Improvement in the financial risk profile.
Potential triggers (individual or collective) for a downward rating action:
Deterioration in operating performance with revenues falling below ~Rs.200 Cr. or decline in profitability margins.
Further elongation in working capital cycle or increased reliance on working capital borrowings, leading to deterioration in the financial risk profile.
Liquidity Position
Adequate
ABIL’s liquidity position is adequate, marked by healthy net cash accruals of Rs.24.33 Cr. in FY2026 against minimal repayment obligations of Rs.2.67 Cr. during the same period. Going forward, the company is expected to generate healthy net cash accruals in the range of ~Rs.30-37 Cr. in FY27 & FY28 against repayment obligation of ~Rs.4 – 5 Cr. during the same period. The reliance on working capital limits stood high, with fund-based utilisation at around 91.95% for the past 12 months ending March 2026. The current ratio stood moderate at 1.66 times, and cash balance stood at Rs.3.29 Cr. as on 31st March 2026. However, company has recently taken enhancement of working capital limits of Rs.67 Cr. from Feb 2026 onwards to support the growth in operations. Additionally, to support liquidity and working capital requirements, the company has received approximately Rs.9.16 crore as of March 31, 2026, in the form of customer advances from one railway project which has provided some liquidity comfort.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Actual)
FY 25 (Actual)
Operating Income
Rs. Cr.
256.18
208.23
PAT
Rs. Cr.
19.34
16.12
PAT Margin
(%)
7.55
7.74
Total Debt/Tangible Net Worth
Times
0.68
0.78
PBDIT/Interest
Times
4.07
4.97
Status of non-cooperation with previous CRA (if applicable)
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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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