Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 112.19 ACUITE BBB | Stable | Reaffirmed - RBI
Bank Loan Ratings 0.00 41.81 Not Applicable | Withdrawn - RBI
Total Outstanding 0.00 112.19 - - -
Total Withdrawn 0.00 41.81 - - -
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 the long-term rating of ‘ACUITE BBB’ (read as ACUITE Triple B) on the Rs. 112.19 Cr. bank facilities of Bansal Pathways Damoh Katni Private Limited (BPDKPL). The outlook is 'Stable'. 
Further, Acuité has withdrawn its long-term rating on the Rs.41.81 Cr. bank facilities without assigning any rating as it is a proposed facility of Bansal Pathways Damoh Katni Private Limited (BPDKPL). The rating is being withdrawn on account of request received from the issuer and is in accordance with Acuité's policy on withdrawal of ratings as applicable to the respective facility/ instrument.

Rationale for rating
The rating reaffirmation factors in the strong and experienced sponsor profile of Bansal Construction Works Private Limited, which has an established track record in developing and operating road projects. The rating also considers BPDKPL’s toll-plus-annuity revenue model, receipt of 21 out of 26 scheduled annuity receipts up to February 2026, and stable toll collections. Further, the presence of DSRA and major maintenance reserve account (MMRA) balances of around Rs.30.27 crore as on June 2026, coupled with a structured escrow waterfall mechanism, supports liquidity and debt servicing. However, the rating remains constrained by the moderate average DSCR of around 1.21x over the residual debt tenure. Therefore, any major deviation in the toll collection, delay in annuity receipts, major increase in the maintenance expenses or increase in interest rates affecting the company's ability to service debt obligations shall be a key rating monitorable.

About the Company

­Bansal Pathways Damoh Katni Private Limited (BPDKPL) is a special purpose vehicle (SPV) incorporated on 27th May, 2013 sponsored by Bansal Construction Works Private Limited for construction of 2-lane road of 117.94 kilometres in a section of State Highway-14 between Damoh and Katni, Madhya Pradesh. The project was awarded by the Madhya Pradesh Road Development Corporation (MPRDC) under Design, Build, Finance, Operate & Transfer (DBFOT) (BOT Toll + Annuity) and achieved its commercial operations date (COD) in August, 2015 against scheduled COD in June, 2016. The concession period is for 15 years from the date of project appointment, ending in November 2028. The directors of the company are Mr. Anil Bansal, and Mr. Sunil Bansal.
 
Unsupported Rating
­Not Applicable.
 
Analytical Approach

­Acuite has considered the standalone business and financial risk profile of Bansal Pathways Damoh Katni Private Limited (BPDKPL) for arriving at this rating.
 
Key Rating Drivers

Strengths

­Strong and experienced sponsor  
Bansal Construction Works Private Limited (BCWPL) is the flagship company of Bansal Group, Bhopal (M.P.) undertaking construction works (both private and government sector), road construction, infrastructure development works, and other developmental works since 2010. It is presently engaged in all verticals of the infrastructure construction domain, including the mode of cash contracts on an Engineering Procurement and Construction (EPC) basis, Public Private Partnership model through BOT contracts, BOT (Annuity+Toll) projects, BOT (Annuity) projects, Hybrid Annuity Mode (HAM) projects and the construction and development of various government facilities. Additionally, BCWPL is the sponsor and corporate guarantor to various road SPVs of the group including BPDKPL, Bansal Pathways Private Limited, Bansal Pathways Guna Sironj Private Limited, etc.

Track record of annuity payments and stable toll collections
BPDKPL completed construction and achieved final COD in August 2015, around 10 months ahead of the scheduled COD of June 2016, resulting in a bonus annuity of approximately Rs.23 crore in March 2016. The company has received 21 bi-annual annuities of Rs.17.76 crore each up to February 2026 from MPRDC. However, annuity receipts have witnessed delays in recent years, including the 17th to 21st instalments, primarily due to delays in processing by the concerned department. The 22nd annuity, due in August 2026, remains outstanding and is expected to be received in the first week of October 2026. Besides annuity income, the company generates toll revenue from two toll booths on the project road. Toll collections marginally moderated to Rs.20.84 crore in FY2026 (Prov.) from Rs.21.07 crore in FY2025 due to monthly traffic fluctuations; however, collections improved by 3.5% year-on-year to Rs.8.49 crore during April-August FY2027 from Rs.8.20 crore during the corresponding period of FY2026. Going forward, timely receipt of annuity instalments and sustained toll collections will remain key rating sensitivities.

Waterfall mechanism in escrow account and maintenance of DSRA & MMRA
BPDKPL has escrow mechanism through which cash flows from authority is routed and used for payment as per the defined payment waterfall. Only surplus cash flow after meeting operating expense, debt servicing obligation and provision for major maintenance expense can be utilised as per borrower’s discretion during the concession period. Further, the company maintains a DSRA equivalent to one instalment of principal plus 3 months of interest for debt servicing and MMRA reserve towards the major maintenance expenses in the upcoming years (collectively ~Rs.30.27 Cr. maintained as on June 30, 2026).


Weaknesses

Exposure to traffic, operation & maintenance and interest fluctuation risk
BPDKPL’s revenue comprises annuity income from MPRDC of Rs.35.52 crore and toll collections of Rs.20.84 crore in FY2026 (Prov.), exposing its cash flows to fluctuations in traffic volumes. Further, the company is required to undertake routine and major maintenance throughout the concession period to remain eligible for annuity receipts. The last major maintenance was undertaken in 2023 at a cost of Rs.2.50 crore, while the next cycle is scheduled in 2027 at an estimated cost of Rs.2.99 crore. Any material increase in O&M expenditure could affect operating margins and debt-servicing ability. Additionally, the MCLR-linked borrowings expose the company to interest-rate fluctuations, which may increase its debt-servicing obligations.

Moderate DSCR 
The average DSCR stands at approximately 1.21x over the residual debt tenure; however, annual coverage remains tight at 1.05x in FY2027 and 1.04x in FY2028, indicating limited headroom. Therefore, the company's debt servicing abilities is highly vulnerable to toll collections and timely receipt of bi-annual annuities. Any change in the volume of traffic can also impact the cash flows of the company. 

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)

­BPDKPL maintains a Debt Service Reserve Account (DSRA) equivalent to one instalment of principal and 3 months’ interest along with escrow mechanism.
 

Rating Sensitivities

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

­

  • Timely receipt of annuity payments from MPRDC

  • Improvement in debt coverage indicators with DSCR above 1.30x

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

­

  • Significant delay in receipt of annuity payments from Madhya Pradesh Road Development Corporation impacting liquidity and debt servicing.

  • Any deterioration in traffic volumes and increase in O&M expenses may impact the debt servicing ability

  • Deterioration in debt coverage metrics, with DSCR remaining below 1.0x

Liquidity Position:
Adequate

The liquidity profile of BPDKPL is adequate marked by Bi-annual receipt of annuity payments from MPRDC along with toll revenues generation. The company generated net cash accruals of Rs.35.59 Cr. in FY26 (Prov.) against debt obligations of Rs.34.50 Cr. during the same period. The liquidity of the company is also supported by DSRA and MMRA reserve of ~Rs.30.27 Cr. as on 30th June, 2026. The company had a cash and bank balance of Rs 0.16 Cr. as on March 31, 2026 (Prov.). The project’s cash flows are expected to be sufficient to meet its debt servicing obligations  (~Rs 101.8 Cr. in FY2027-2028) with an average DSCR is expected to be around 1.21 times over the tenure of the debt.
 
Outlook: Stable
­
 
Other Factors affecting Rating

­None
 

Particulars Unit FY 26 (Provisional) FY 25 (Actual)
Operating Income Rs. Cr. 57.93 56.58
PAT Rs. Cr. 16.46 16.03
PAT Margin (%) 28.42 28.34
Total Debt/Tangible Net Worth Times 0.93 1.40
PBDIT/Interest Times 4.04 3.55
Status of non-cooperation with previous CRA (if applicable)
­Not Applicable.
 
Any other information

­Acuite takes note of the ongoing CBI investigation on the directors pertaining to a bribery case on a group company.
 
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
09 Jul 2025 Term Loan Long Term 79.77 ACUITE BBB | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 0.73 ACUITE BBB | Stable (Reaffirmed)
Term Loan Long Term 73.50 ACUITE BBB | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 72.00 ACUITE Not Applicable (Withdrawn)
15 Apr 2024 Term Loan Long Term 85.40 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable)
Term Loan Long Term 105.00 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable)
Proposed Long Term Bank Facility Long Term 35.60 ACUITE BBB | Stable (Downgraded from ACUITE BBB+ | Stable)
27 Feb 2024 Term Loan Long Term 85.40 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 105.00 ACUITE BBB+ | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 35.60 ACUITE BBB+ | Stable (Reaffirmed)
­

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. 41.81 Simple ACUITE Not Applicable | Withdrawn
Punjab National Bank Not avl. / Not appl. Term Loan Unlisted RBI 30 Sep 2017 Not avl. / Not appl. 30 Sep 2028 72.77 Simple ACUITE BBB | Stable | Reaffirmed
Punjab National Bank Not avl. / Not appl. Term Loan Unlisted RBI 31 Mar 2022 Not avl. / Not appl. 30 Jun 2027 39.42 Simple ACUITE BBB | Stable | Reaffirmed
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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