Press Release

Press Release

October 13, 2026

CHANDRA NIRMAN PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	10.00	ACUITE BBB \| Stable \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	55.25	-	ACUITE A3+ \| Reaffirmed	RBI
Total Outstanding	0.00	65.25	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

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) and the short term rating of ‘ACUITE A3+’ (read as ACUITE A Three Plus) on the Rs.65.25 Crore bank loan facilities of Chandra Nirman Private Limited (CNPL). The outlook is ‘Stable’.

Rationale for Rating

The reaffirmation of the rating of Chandra Nirman Private Limited (CNPL) reflects the company's established track record in executing infrastructure projects for government and semi-government entities, healthy order book of Rs. 449.57 crore as on August 2026 providing revenue visibility over the medium term, and its comfortable financial risk profile. The financial risk profile is supported by improvement in net worth to Rs. 68.39 crore as on March 31, 2026 (Prov.), low gearing of 0.06 times, and comfortable debt protection metrics with ICR and DSCR of 11.16 times and 5.58 times, respectively in same period. The rating also derives comfort from the company's adequate liquidity position, marked by healthy net cash accruals against modest repayment obligations, moderate bank limit utilisation and comfortable cash balances.
The rating, however, remains constrained by the company's intensive working capital operations, reflected in GCA days of 191 days as on March 31, 2026 (Prov.), on account of sizeable funds blocked in retention money, security deposits and balances with government authorities. The rating is further tempered by exposure to execution risks inherent in the EPC business, dependence on timely payments from government agencies and susceptibility to raw material price fluctuations in the absence of adequate price escalation clauses in a majority of contracts. Going forward, timely execution of its healthy order book, efficient working capital management and sustenance of its comfortable financial risk profile will remain key rating monitorables.

About the Company

Kolkata based, Chandra Nirman Private Limited (CNPL) was incorporated in 2005. The company undertakes infrastructure development projects related to water supply, sewerage, buildings dams and roads for government and semi-government entities. Present directors of the company are Mr. Sameer Agrawal and Mrs. Sonu Agrawal.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of the CNPL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and long track record of operation
CNPL undertakes different types of civil constructions projects like water supply, sewerage, buildings, dams and roads for government and semi-government entities. CNPL is being promoted by the second line of management, comprising Mr. Sameer Agrawal and Mrs. Sonu Agrawal. The promoters possess experience of more two decades in the infrastructure sector. Acuité believes its long-established market presence, extensive experience of the promoters and successful completion of the past contracts will help to secure fresh orders going forward.

Improved profitability amid moderation in revenue

The company witnessed a marginal moderation in its scale of operations, with operating income declining to Rs. 174.30 crore in FY2026 (Prov.) from Rs. 182.88 crore in FY2025. Revenue moderated in FY2026 due to delays in obtaining project completion certifications from government authorities, resulting in deferment of billing and recognition of executed work worth around Rs. 10-15 crore, which was subsequently billed in the following period. Despite the moderation in revenue, the company demonstrated improved profitability, with its EBITDA margin increasing to 11.31% in FY2026 (Prov.) from 10.70% in FY2025, while the PAT margin improved to 7.74% from 7.49% over the same period. The healthy profitability profile continues to be supported by the company's prudent procurement practices, wherein key raw materials, particularly DI pipes, are sourced upfront through established vendor tie-ups following design approvals. Furthermore, the company incorporates anticipated input cost variations into its tender pricing at the bidding stage, mitigating the impact of the absence of price-escalation clauses in most contracts and supporting margin resilience.

Comfortable Financial Risk Profile

The company continues to maintain a comfortable financial risk profile, supported by a healthy net worth, low leverage, and strong debt protection metrics. Net worth improved to Rs. 68.39 crore as on March 31, 2026 (Prov.) from Rs. 54.90 crore as on March 31, 2025, owing to sustained accretion of profits to reserves. The capital structure remained comfortable, with gearing at 0.06 times as on March 31, 2026 (Prov.). Debt coverage indicators also remained strong, with interest coverage and DSCR at 11.16 times and 5.58 times. Further, the company's financial flexibility is reflected in its TOL/TNW of 0.71 times and Debt/EBITDA of 0.20 times as on March 31, 2026 (Prov.). Acuité expects the company's financial risk profile to remain comfortable over the medium term, supported by healthy internal accruals and the absence of any major debt-funded capital expenditure plans.

Weaknesses

Intensive working capital operations
The company's working capital operations remained intensive, as reflected in GCA days of 191 days as on March 31, 2026 (Prov.), compared to 172 days in the previous year. The elevated GCA cycle is primarily attributable to high other current assets, comprising security deposits, retention money, and balances with government authorities. Inventory holding stood at 45 days as on 31^st March 2026 (Prov.) against 61 days as on 31^st March 2025. The creditor days stood at 28 days as on 31^st March 2026 (Prov.) against 68 days as on 31^st March 2025. Further, the debtor days of the company stood at 3 days as on 31st March 2026 (Prov.) as against 7 days as on 31st March 2025. Acuité expects that the working capital operations of the company will remain at similar levels over the medium term and ability of the company to manage its working capital operations efficiently will remain a key rating sensitivity.

Competitive and fragmented industry with tender based operations
CNPL is engaged as an EPC contractor and the company faces intense competition from the presence of several mid to large sized players in the said industry. The risk becomes more pronounced as tendering is based on minimum amount of bidding on contracts and susceptibility to inherent cyclicality in the industry. However, in face of such competitive pressures, this risk is mitigated to an extent considering the extensive experience of the management along with healthy orderbook. Further, the company remains exposed to geographical concentration risk as CNPL majorly caters to Water Resources Department of Madhya Pradesh (MPWRD) and Municipal Corporation of Madhya Pradesh and Chhattisgarh. Acuité believes that diversification of the customer base will remain a key rating sensitivity.

Rating Sensitivities

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

Higher revenue above Rs 250 Cr and profitability.
Improved working capital cycle.
Sustained low debt levels.
Stronger liquidity position.

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

Decline in revenue or margins below 8%.
Elongation in working capital cycle.
Increase in debt levels.
Weakening liquidity profile.

Liquidity Position

Adequate

The company’s liquidity profile remains adequate, supported by healthy cash accruals against modest debt repayment obligations. The company generated net cash accruals of Rs. 14.36 crore in FY2026 (Prov.) against scheduled debt repayments of Rs. 1.03 crore during the same period. Going forward, accruals are expected to remain sufficient to meet repayment obligations, with projected net cash accruals in the range of Rs. 13.50-15.50 crore against annual debt repayments of less than Rs. 0.75 crore. Liquidity is further supported by moderate bank limit utilisation, with average fund-based and non-fund-based utilisation at 65.17% and 65.86%, respectively, during the six months ended July 2026. The company's current ratio improved to 1.89 times as on March 31, 2026 (Prov.) from 1.64 times a year earlier. Acuité expects the liquidity profile to remain adequate over the medium term, supported by healthy accruals, moderate bank limit utilisation, and the absence of any major debt-funded capex plans, despite intensive working capital requirements.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	174.30	182.88
PAT	Rs. Cr.	13.49	13.69
PAT Margin	(%)	7.74	7.49
Total Debt/Tangible Net Worth	Times	0.06	0.03
PBDIT/Interest	Times	11.16	13.98

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

Not Applicable

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

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
16 Jul 2025	Bank Guarantee (BLR)	Short Term	23.75	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	8.50	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	18.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Cash Credit	Long Term	3.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	7.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Proposed Long Term Bank Facility	Long Term	5.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
17 Apr 2024	Bank Guarantee (BLR)	Short Term	18.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	16.25	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	7.50	ACUITE A3 (Assigned)
	Bank Guarantee (BLR)	Short Term	8.50	ACUITE A3 (Assigned)
	Cash Credit	Long Term	7.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	3.00	ACUITE BBB- \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	1.30	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	3.70	ACUITE BBB- \| Stable (Assigned)
14 Mar 2023	Bank Guarantee/Letter of Guarantee	Short Term	18.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	16.25	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	7.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	3.00	ACUITE BBB- \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Union Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	18.00	Simple	ACUITE A3+ \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	23.75	Simple	ACUITE A3+ \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	8.50	Simple	ACUITE A3+ \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A3+ \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE BBB \| Stable \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.00	Simple	ACUITE BBB \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Prashant Dey
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

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

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.