Press Release

Press Release

November 25, 2025

BRUNDAVANA CONSTRUCTIONS PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	20.00	ACUITE BBB \| Stable \| Assigned	-
Bank Loan Ratings	85.00	-	ACUITE A3+ \| Assigned
Total Outstanding	105.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned long-term rating of ‘ACUITE BBB’ (read as ACUITE Triple B) and short-term rating of 'ACUITE A3+' (read as ACUITE A three plus) on the Rs.105.00 crore bank facilities of Brundavana Constructions Private Limited (BCPL). The outlook is 'Stable'.

Rationale for Rating
The rating assigned factors in the steady growth in revenue as well as profitability of BCPL along with comfortable financial risk profile. The rating also factors in the extensive experience of the promotors in the civil construction industry and established operational track record of the company. However, the rating is constrained due to moderately intensive working capital operations and susceptibility of profitability to volatility in raw material prices amidst tender based nature of operations in a highly competitive industry.

About the Company

Karnataka based, Brundavana Constructions Private Limited (BCPL) was incorporated in 2021. The directors of the company are Mr. Namala Venkatesh Aruna and Mr. Chilakuri Harihara Ravi. The company is primarily engaged in civil construction activities, with a major focus on Lift Irrigation Works.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone financials and risk profile of BCPL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced promoters and established operational track record
Brundavana Constructions Private Limited (BCPL), incorporated in May 2021 in Bengaluru, is promoted by Mr. Chilakuri Harihara Ravi, who brings over two decades of experience in civil construction. Prior to BCPL, he operated as a sole proprietor from 2008 and was associated with Amrutha Constructions Private Limited from 2014 to 2021, focusing on irrigation, urban infrastructure, and water supply projects. Acuité believes that the company will continue to be benefited through the promoter’s extensive industry experience over near to medium term.

Steady growth in revenue and profitability backed by healthy order book position
BCPL has demonstrated steady improvement in revenues of Rs.180.64 crore in FY2025, compared to Rs.171.76 crore in FY2024 and Rs.169.82 crore in FY2023, the improvement is primarily driven by better execution of ongoing projects. In the 5MFY2026, the company has booked Rs.26.00 crore in revenue (against Rs.20 crore in 5MFY2025) and is targeting Rs.200–225 crore for the full year. This is supported by the execution of major projects such as Lift Irrigation Schemes at Hangal, Gurmitkal, Kudligi, and Horti, along with new projects like the Bridge cum Barrage at Chikalparvi. BCPL typically records a significant portion of its revenue in the second half of the financial year, as operational activities are constrained during the monsoon and harvest seasons, limiting pipeline installation etc. in the first half.

Profitability is healthy, with operating margin improving to 12.58 per cent in FY2025 from 11.58 per cent in FY2024 and 11.34 per cent in FY2023 and PAT margins of 7.05 per cent in FY2025 against 7.12 per cent in FY2024 and 6.97 per cent in FY2023. As of September 1, 2025, the company has an unexecuted order book of Rs.814.00 crore, providing revenue visibility for the medium term. Further BCPL has been selected as H1 for a mining lease in which estimated resources is of Rs.1774 crore which is expected to be executed post 2-3 years subject to receipt of certain approvals from the department. Acuite believes that the operating performance of the company would improve in near to medium term on the back of healthy order book position.

Above – Average Financial Risk Profile
The financial risk profile of the company is above average marked by moderate net worth, low gearing and comfortable debt protection metrics. The tangible net worth of the company stood at Rs.53.40 crore as on March 31,2025 as against Rs.40.66 crore as on March 31, 2024. The total debt of the company also declined and stood at Rs.24.92 crores as on March 31, 2025, which include Rs.9.28 crores of long-term debt, Rs.2.96 crores of USL from directors, Rs.11.38 crore of short-term debt and Rs.1.30 Crore of CPLTD. The gearing stood low at 0.47 times as on March 31, 2025, as against 0.88 times as on March 31, 2024. The debt protection metrics stood comfortable with debt service coverage ratio (DSCR) of 2.96 times in FY2025 as against 3.60 times in FY2024, while interest coverage ratio (ICR) stood at 6.58 times in FY2025 against 9.76 times in FY2024. The NCA/TD stood at 0.62 times in FY2025. Acuité believes the financial risk profile of BCPL to improve further on the back of steady cash accruals and absence of any significant debt funded capex.

Weaknesses

Moderately intensive working capital operations
The company’s working capital operations remains moderately intensive, reflected in high Gross Current Asset (GCA) days of 191 days in FY2025, slightly improved from 194 days in FY2024. This is supported by a reduction in debtor days to 120 days in FY2025 from 129 days in FY2024, primarily due to improved billing efficiency during the year. Creditor days increased to 81 days as on March 31, 2025, compared to 67 days in the previous year, while inventory days rose to 14 days in FY2025 from 5 days in FY2024, indicating higher material holding. Bank limit utilisation for the six months ended September 2025 stood at 96.94 per cent for fund-based limits and 81.79 per cent for non-fund-based limits. Acuite believes the working capital management to remain moderately intensive over the medium term due to the nature of the business.

Susceptibility of profitability to volatility in raw material prices amidst tender based nature of operations
Most EPC projects undertaken by the company has a gestation period of 12-36 months, and during this period, profitability remains susceptible to fluctuations in the input prices. However, majority of orders in hand have a built-in inflation index-linked price escalation clause, depending upon the extent of coverage of the actual increase in input prices, which mitigates the risk to an extent. BCPL operates in infrastructural construction industry which is highly competitive with presence of large number small, regional and large players. EPC projects executed by the company are tender based with wins going to, the lowest bidder qualifying the terms and conditions stipulated by the respective agencies floating the bids. Acuité believes, this puts strain on profitability of the company in cases where the bidding gets aggressive.

Rating Sensitivities

Continuous Improvement in scale of operations while maintaining profitability
Further elongation in working capital management
Changes in financial risk profile

Liquidity Position

Adequate

The liquidity position of BCPL is adequate marked by adequate net cash accruals against maturing debt obligations. The net cash accruals (NCA) of the company stood at Rs.15.40 crores against its maturing debt obligation of Rs.2.86 crore. Further the NCA are expected to remain in the range of Rs.19-25 crore during FY2026 and FY2027 against its maturing debt obligation in the range of Rs.1.30-3.65 crore. The company maintains cash and bank balance of Rs.0.95 crore. The current ratio of the company stood at 1.81 times. The fund-based bank limit utilisation stood at 96.94 per cent and non-fund based stood at 81.79 per cent in 6 month ended September 2025.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	180.64	171.76
PAT	Rs. Cr.	12.74	12.22
PAT Margin	(%)	7.05	7.12
Total Debt/Tangible Net Worth	Times	0.47	0.88
PBDIT/Interest	Times	6.58	9.76

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

None

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
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE A3+ \| Assigned
Union Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	40.00	Simple	ACUITE A3+ \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Short Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE A3+ \| Assigned
Union Bank of India	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB \| Stable \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Akshat Shah
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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