| Experienced management leading to strong growth in operating performance supported by a healthy outstanding orderbook
BA Prerna group was founded in April 2022 by Mr. Ashish Mithani, who possesses long standing experience in the renewable sector, land related activities and has previously co-founded KP Energy Limited in 2010. The group’s strong execution capabilities, backed by experienced management team, have enabled it to secure large-scale renewable orders from reputed client in the industry. In 2022, the group signed a Memorandum of Understanding (MoU) with Torrent Saurya Urja 2 Pvt Ltd (a wholly owned subsidiary of Torrent Power Limited) to develop a 5 GW renewable energy (RE) park in Gujarat. Under this agreement, the group has secured its first order of 2.2 GW and the group has an outstanding order value of Rs. 780 Cr. as of September 2025 (6.29 times revenue of FY25). Hence, with the timely phased execution of this order, the group reported a revenue of Rs. 124.24 Cr. in FY25 compared to Rs. 26.53 Cr. in FY24. Further, the operating margin of the group stood improved at 17.71 percent in FY25 (12.88 percent in FY24) on account of cost optimization and increasing contribution from land aggregation services that yields the highest margins. Subsequently, the PAT margin of the group stood improved at 11.43 percent in FY25 (5.62 percent in FY24). Furthermore, the group clocked a revenue of Rs. 143.24 Cr. in H1FY26 (Rs. 12.25 Cr. in H1FY25). Additionally, the group has executed another MoU with a large, reputed renewable power producer, for developing an additional 3-4 GW of RE park in Gujarat. Therefore, considering the remaining capacity under the Torrent arrangement and the incremental scale from the newly signed MoU, the group anticipates healthy order inflow in the near term, further reinforcing order book strength and sound revenue visibility over the medium term.
Going forward, the timely execution and receipt of new orders shall remain a key rating monitorable for the continued growth momentum of the group.
Healthy capital structure
The financial risk profile of the group stood healthy marked by growing net worth, low gearing and healthy debt protection metrics. The tangible net worth of the group stood increased at Rs. 90.28 Cr. in FY25 against Rs. 13.29 Cr. in FY24, owing to accretion of profits to reserves (Rs. 14.21 Cr.) and equity funds raised by the parent company to the tune of Rs. 62.78 Cr. Further, in FY25, the group’s debt stood reduced at Rs. 2.59 Cr. (comprises unsecured loan from promoter and vehicle loan) as compared to Rs. 12.44 Cr. owing to which the gearing (debt-equity) stood negligible at 0.03 times in FY25 as against 0.94 times in FY24. The debt protection metrics stood healthy with interest coverage ratio of 84.70 times in FY25 (17.05 times in FY24) and debt service coverage ratio of 15.49 times in FY25 (4.90 times in FY24).
Going forward, the financial risk profile of the group is expected to be in similar levels on account of steady cash accruals, potential equity raise in FY27 and no major debt funded capex plans.
Robust growth prospects for the renewables industry
The Ministry of New & Renewable Energy (MNRE) is actively working towards achieving 500 GW of installed electricity capacity from non-fossil fuel sources by 2030 as committed in COP26 out of which 350 GW is expected to come from solar and 140 GW from wind sources. As of Sept 2025, India has already achieved 256.09 GW from non-fossil fuel sources (127.33 GW from solar and 53.12 GW from wind). Additionally, schemes such as PM-KUSUM support solar pumps for farmers, while production-linked incentives and PM SuryaGhar Muft Bijli Yojana encourage domestic manufacturing of high-efficiency solar PV modules along with viability gap funding (VGF) scheme for offshore wind energy projects.
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| Limited track of operations with significant customer concentration risk
Established in April 2022, the group has limited track record of operations with their first order being received in December 2022 from Torrent Saurya Urja 2 Pvt Ltd (a wholly owned subsidiary of Torrent Power Limited). The group primarily serves major IPPs and government entities, wherein contracts are high-value and involve prolonged decision-making and finalization stages. This necessitates building strong relationships with these stakeholders. The group currently relies on a single client, resulting in significant customer concentration risk. Additionally, the group receives mandates from their client in phases, and the continuity of these mandates shall remain a key monitorable for the future growth. However, to mitigate these risks, the group has identified several potential clients and is actively engaged in discussions with the leading players in the industry who are undertaking significant capacity expansion through large-scale capex, creating further opportunities for the group.
Working capital intensive operations
The working capital operations of the group are intensive marked by gross current assets (GCA) of 375 days in FY25 (426 days in FY24) that are majorly driven by debtor levels and other current assets. The debtor days stood elevated at 160 days in FY25 (205 days in FY24) primarily due to increased billing in the last quarter of the financial year (~48% of FY25 revenue executed in last two months). However, on a normalised basis, the group typically realises payments within 30-45 days from invoicing. Furthermore, the other current assets majorly consist of the token money paid to procure the land parcels along with loans and advances extended to their group companies, of which majority have been recovered in H1FY26. Further, the trade payables majorly consist of dues payable to the labour contractors that stood higher at the year end on account of higher billing, however, in general the group receives a credit period of 30-45 days from the contractors and suppliers. Overall, while the business model carries intrinsic working capital intensity, the risk is mitigated by efficient collections and back-to-back funding arrangements with customers for land aggregation.
Order execution risks
The group remains exposed to execution-related risks inherent in balance of plant (BOP) and EPC contracts for renewable energy projects, given the typically large project sizes and the dependence on timely regulatory approvals, land readiness, skilled manpower availability, and on-schedule delivery of critical components. However, these risks are mitigated to a significant extent by the promoters’ extensive experience of over three decades in land aggregation and pre-development activities, having successfully aggregated more than 9,500 acres to date. Furthermore, owing to long gestation period of the orders, there may be several operational challenges including securing power grid connectivity, laying evacuation approach, social and environmental factors which can affect the operations of the group and shall remain key rating monitorable.
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