Press Release

Press Release

April 02, 2026

BLUEGRASS TECHNOLOGIES PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	12.00	ACUITE BBB- \| Stable \| Assigned	-
Bank Loan Ratings	13.00	-	ACUITE A3 \| Assigned
Total Outstanding	25.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned the long term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B minus) and the short term rating of ‘ACUITE A3’ (read as ACUITE A Three) on the Rs.25.00 Cr. bank facilities of Bluegrass Technologies Private Limited. The outlook is "Stable".

Rationale for Rating
The assigned rating factors in the company’s modest scale of operations, marked by an operating income of Rs.133.04 Cr. till 11M FY2026 against Rs.108.39 Cr. in FY2025 and Rs.121.35 Cr. in FY2024 on the back of the execution of orders by the company. The EBITDA and PAT margin stood at 13.38% and 8.41% respectively in FY2025. Moreover, the company has unexecuted orders in hand of Rs.144.81 Cr. as on December 2025. The rating further takes into account the comfortable financial risk profile of the company as reflected by the gearing ratio at 0.16 times as on 31st March, 2025, the interest coverage ratio and debt service coverage ratio at 34.61 times and 5.08 times, respectively, as on 31st March 2025 as well as the adequate liquidity position backed by sufficient net cash accruals against its debt repayment obligations. The rating also draws comfort from the established market presence and experience of the management in the same line of business, leading to repeat orders from reputed clientele. However, the rating is constrained by the intensive nature of working capital operations, marked by GCA days of 216 days as on 31st March, 2025 against 128 days as on 31st March, 2024. Acuite also notes risks related to the tender-based nature of the business, volatility in raw material prices, and intense competition from other players in the industry.

About the Company

Incorporated in 2007, Delhi-based, Bluegrass Technologies Private Limited is engaged in providing integrated services of feasibility study, design, engineering, services, and installation of pipelines using Horizontal Directional Drilling (HDD) technology for energy and industrial sectors (e.g., gas, oil, water, sewer). The company was established by Sanjeevak Marwaha and Vishal Ummat and forayed into HDD in 2017. BTPL has successfully completed the installation of approximately 100 km of pipeline of various diameters across a number of rivers, highways, rail tracks, etc. in soft and rocky terrain. The company has completed HDD pipeline projects for reputed clientele such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, GAIL India, Gujrat Narmada Valley Fertilisers & Chemicals Limited, among others.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of Bluegrass Technologies Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and Established track record of operations
The company was incorporated in 2007 and forayed into horizontal directional drilling (HDD) operations in 2017. The promoters of the company are Sanjeevak Marwaha and Vishal Ummat, who have extensive experience in the installation of pipelines by HDD for energy and industrial sectors. Mr. Ummat oversees the company’s day-to-day operations and has over 15 years of experience in HDD technology across India and overseas. He is supported by a team of experienced professionals in the HDD field. Acuité believes that the company will continue to derive benefit from its established market presence, extensive experience of the promoters, and successful completion of the past contracts will help to secure fresh orders.

Modest scale of operations
The revenue from operations of the company stood at Rs.108.39 Cr. in FY2025 as against Rs.121.35 Cr in FY2024. The revenue moderated in FY2025 owing to external factors beyond the company's operational control arising from site availability constraints, clientele-end approval pendency, etc. leading to temporary project execution delays. However, there has been a healthy revenue recovery in FY2026 wherein the company has registered Rs.133.04 Cr. till February 2026 on the back of execution of orders. Further, the EBITDA margin of the company stood at 13.38 percent in FY2025 as against 14.05 percent in FY2024 on account of an increase in employee and other operating costs in FY2025 as compared to FY2024. Despite same, the PAT margin stood at 8.41 percent in FY2025 against 7.15 percent in FY2024. The stability in revenue is further backed by an unexecuted order book of Rs.144.81 Crore as on December 2025. The orders are from reputed clientele such as Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, GAIL India Limited, Larsen & Toubro Limited, among others. Acuité believes that the company will continue to sustain its order book position and maintain its business risk profile over the medium term on the back of execution of orders in hand coupled with the incremental order book of the company. However, the ability of the company to bag new orders and timely execution of the existing orders will remain a key rating monitorable.

Comfortable Financial Risk Profile
The financial risk profile of the company is marked by moderate net worth, gearing below unity, and comfortable debt protection metrics. The net worth stood at Rs.48.21 Crore as on 31^st March 2025 against Rs.39.17 Crore as on 31^st March 2024. The increase in net worth is on account of the accretion of profits into reserves. The capital structure of the company is comfortable, marked by the gearing ratio at 0.16 times as on 31^st March 2025 against 0.17 times as on 31^st March 2024. Further, the coverage indicators of the company improved, as reflected by the interest coverage ratio and debt service coverage ratio, which stood at 34.61 times and 5.08 times respectively as on 31^st March 2025 against 20.80 times and 2.75 times respectively as on 31^st March 2024. The TOL/TNW ratio of the company stood at 0.75 times as on 31^st March 2025 against 0.62 times as on 31^st March 2024 and the DEBT-EBITDA stood at 0.43 times as on 31^st March 2025 against 0.38 times as on 31^st March 2024. Acuité expects the financial risk profile of the company to remain comfortable in the near to medium term, supported by steady cash accruals and no major debt-funded capex plans.

Weaknesses

Intensive Working Capital operations
The working capital operations of the company are intensive, marked by GCA days which stood at 216 days as on 31^st March 2025 as against 128 days as on 31^st March 2024. The company’s operations retain a naturally elevated working capital intensity, attributed to prolonged project execution timelines and the payments tied to project milestones. Accordingly, the debtor days of the company stood at 143 days as on 31^st March 2025 against 53 days as on 31^st March 2024 on account of significant billing undertaken in February and March 2025. Further, the inventory holding stood at 13 days as on 31^st March 2025 against 17 days as on 31^st March 2024 and the creditor days stood at 92 days as on 31^st March 2025 against 42 days as on 31^st March 2024. Acuité expects working capital operations of the company to remain at similar levels in the near to medium term owing to the nature of operations.

Presence in highly competitive nature of industry and Susceptibility of margins to fluctuation in input costs
BTPL operates in a tender-based contracting environment, which is characterized by competition from other players and limited flexibility in passing on cost escalations. The company incurs significant costs related to manpower deployment, logistics, and certain consumables and tooling required for execution. These input costs are subject to volatility, and any significant increase in the same can exert pressure on profitability levels. The company’s ability to bid prudently, manage costs, and scale up its operations while maintaining margin stability will remain a key monitorable.

Rating Sensitivities

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

Growth in operating income by more than 50% supported by healthy order accretion
Significant improvement in the profitability position.
Sustained capital structure with comfortable debt protection metrics.

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

Decline in revenue y-o-y and/or operating profitability margins below 10%.
Stretch in the working capital cycle.
Any delay in execution of orders in hand.

Liquidity Position

Adequate

The liquidity profile of the company is adequate, marked by net cash accruals of Rs.13.41 Crore as on 31^st March 2025 against debt repayment obligation of Rs.2.22 Crore over the same period. Additionally, the unencumbered cash and bank balance available with the company stood at Rs.2.48 Crore as on 31^st March 2025. The current ratio of the company stood at 2.11 times as on 31^st March 2025 as against 2.07 times as on 31^st March 2024. Further, the fund based and non-fund based working capital limits of the company stood utilized at an average of 48.52% and 77.65% respectively for the last six months ended December 2025. Acuité expects the liquidity profile of the company to remain adequate in the near to medium term, supported by adequate accruals to repayment obligations and cash and cash equivalents available with the company.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	108.39	121.35
PAT	Rs. Cr.	9.12	8.67
PAT Margin	(%)	8.41	7.15
Total Debt/Tangible Net Worth	Times	0.16	0.17
PBDIT/Interest	Times	34.61	20.80

Status of non-cooperation with previous CRA (if applicable)

ICRA, vide its press release dated September 8th, 2025 had denoted the rating of Bluegrass Technologies Private Limited as ICRA BB+/ Stable 'Reaffirmed and Issuer not co-operating’.

Any other information

None

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

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History :

Not Applicable

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
AXIS BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	13.00	Simple	ACUITE A3 \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	12.00	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Archita Sharma
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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