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 reaffirmed the long term rating of 'ACUITE BBB+' (read as ACUITE triple B plus) on the Rs. 113.46 Cr. bank facilities of Bansal Pathways Guna Sironj Private Limited (BPGSPL). The outlook is 'Stable'.
Further, Acuite has also withdrawn its long term rating on the Rs. 22.04 Cr. bank facilities of Bansal Pathways Guna Sironj Private Limited (BPGSPL) 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 The rating has been withdrawn on account of the request received from the Issuer.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 reaffirmation
The rating reaffirmation considers the receipt of 18 half yearly annuity payments till date. Further, there have been no instances of delay in the debt servicing, despite delays in the receipt of annuity from the authority due to administrative issues. The rating also draws comfort from the continuous operational and financial assistance provided by the sponsor; Bansal Construction Works Private Limited, who has also provided a corporate guarantee to the company. Further, the waterfall mechanism in escrow and maintenance of debt service reserve account (DSRA) equivalent to one half yearly instalment and three months interest along with free fixed deposits provides additional support. However, the rating remains constrained by the payment risk related to delay in receipt of annuity payments and risk related to increase in the interest rates or operational and maintenance expenses.
About the Company
Bansal Pathways Guna-Sironj Private Limited (BPGSPL) is a Special Purpose Vehicle (SPV) incorporated on 10th February, 2015 sponsored by Bansal Construction Works Private Limited. The SPV has undertaken the widening and improvement of existing road into two-laning with paved shoulders between Guna and Sironj in the state of Madhya Pradesh on Design, Build, Finance, Operate & Transfer model (DBFOT) (BOT Toll + Annuity). The project was awarded by the Madhya Pradesh Road Development Corporation (MPRDC) and it achieved its commercial operations date (COD) on March, 2017 against scheduled COD in November, 2017. The concession period is for 15 years from the date of project appointment, ending in November, 2030. The directors of the company are Mr. Anil Bansal and Mr. Sunil Bansal.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profile of Bansal Pathways Guna Sironj Private Limited (BPGSPL) 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.). The company was incorporated on June 28, 2010 to undertake construction works (both private and government sector), road construction, infrastructure development works, and other developmental works. It is promoted by Mr. Sunil Bansal and Mr. Anil Bansal. The company 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 BPGSPL, Bansal Pathways Private Limited, Bansal Pathways Damoh-Katni Private Limited, etc.
Waterfall mechanism in escrow account and presence of debt-service reserve account (DSRA)
BPGSPL has an escrow mechanism through which cash flows received 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. The company has to maintain a DSRA equivalent to one instalment of principal and 3 months’ interest for debt servicing (current o/s DSRA and MMRA of ~Rs. 18.56 Cr. as on 31July 2026).
Weaknesses
Susceptibility to delays in annuity receipts
The company remains exposed to counterparty-linked payment risks, as annuity receipts from the authority have been delayed vis-à-vis the scheduled due dates due to procedural and administrative issues. The December 2025 annuity was delayed and received on March 31, 2026. During the interim period, debt servicing obligations were supported through temporary funding from the sponsor and partial DSRA utilization. However, the same was replenished on annuity receipt. Further, the June 2026 annuity payment has also been delayed. The interest and principal servicing in July 2026 were managed by utilizing the free deposits and support from the sponsor. Therefore, the company remains exposed to such delays in receipt of the annuity which could adversely impact debt-servicing ability. Acuité believes that any delay or deduction in annuities will affect the debt servicing capabilities of BPGSPL.
Low DSCR
The average debtor service coverage ratio (DSCR) stands low at ~1.06x for the balance debt tenor. 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 impact the cash flows of the company. Also, the company has to ensure proper maintenance of the road for the entire concession period so as to be eligible for annuities. Additionally, the company is also exposed to inherent risks associated with O&M expenses and finance cost as any increase in such expenses can impact the profitability margins and subsequently impact the debt service ability of the company. However, healthy credit counterparty profile and presence of a strong sponsor mitigates the risk to some extent.
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)
BPGSPL maintains a Debt Service Reserve Account (DSRA) equivalent to one instalment of principal and 3 months’ interest along with escrow mechanism.
Stress case Scenario
Acuité believes that, given the presence of DSRA and waterfall payment in escrow mechanism, BPGSPL 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 annuity payments
Improvement in DSCR above 1.10 times
Potential triggers (individual or collective) for a downward rating action:
Decline in DSCR below 1.01 times
Any deterioration in traffic volumes and increase in O&M expenses or finance cost impacting the debt servicing ability.
Liquidity Position
Adequate
BPGSPL’s liquidity position is adequate, supported by receipt of annuities from MPRDC along with generation of toll revenue. The company has received eighteen annuities amounting to ~Rs. 296.38 Cr. till March 2026. Acuité expects that the liquidity of BPGSPL is likely to remain adequate backed by consistent annuity inflows from authority and toll collections along with maintenance of a DSRA equivalent to one principal instalment and three months’ interest obligations (o/s. DSRA of Rs. ~18.56 Cr. on July 31, 2026). The project’s cash flows of ~Rs. 35.91 Cr. in FY2027-FY2028are expected to be marginally sufficient to meet its debt servicing obligations of ~Rs. 34.66 Cr. in FY2027-2028, with an average DSCR of around 1.06 times over the tenure of the rated instrument. The company had a cash and bank balance of Rs. 13.13 Cr. as on March 31, 2026 (Prov.).
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
37.23
36.56
PAT
Rs. Cr.
6.13
3.34
PAT Margin
(%)
16.46
9.13
Total Debt/Tangible Net Worth
Times
1.47
1.90
PBDIT/Interest
Times
3.07
2.41
Status of non-cooperation with previous CRA (if applicable)
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.
Contacts
List of instruments and names of regulators of the instruments
