|
|
| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Bank Loan Ratings | 0.00 | 9550.00 | ACUITE A | Stable | Reaffirmed | - | RBI |
| Bank Loan Ratings | 0.00 | 450.00 | - | ACUITE A1 | Reaffirmed | RBI |
| Total Outstanding | 0.00 | 10000.00 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |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 |
|
Acuité has reaffirmed the long-term rating of ‘ACUITE A’ (read as ACUITE A) and the short term rating of 'ACUITE A1' (read as ACUITE A one) on the bank loan facilities of Rs.10,00.00 Cr. of Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL). The outlook is 'Stable'.
Rationale for Rating The rating continues to factor in the strategically important role of Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) in the state of Haryana and the ongoing support extended by the Government of Haryana in the form of subsidies and guarantees. The rating also derives comfort from the defined collection structure and cash flow trapping mechanism, which ensures timely servicing of debt obligations and contributes to improved operational efficiency. DHBVNL reported revenue from operations of Rs. 26,821.27 Cr. in FY25 as against Rs. 24,289.46 Cr. in FY24. A majority of the borrowings are backed by guarantees from the Government of Haryana, providing additional credit comfort. Further, the rating takes into account the steady increase in active consumers on a year-on-year basis and the gradual reduction in operational losses (AT&C and T&D) over the years. However, these strengths are partly offset by declining profitability, as reflected in the operating margin, which moderated to 0.96% in FY25 from 3.22% in FY24, along with stretched liquidity and a moderate financial risk profile. |
| About the Company |
|
Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL), incorporated in 1999, is a wholly owned entity of Government of Haryana (As on March 31, 2022, GOH held 96.85% stake in DHBVNL and the balance was held by Haryana Vidyut Prasaran Nigam Limited) and is engaged in distribution of power. DHBVNL purchases power primarily from Central Generating Stations (CGS) and from renewable sources. It is responsible for the distribution and retail supply of electricity in the South zone of Haryana comprising of Hisar, Bhiwani, Sirsa, Faridabad, Fatehabad Gurugram-1, Gurugram-2, Palwal, Rewari, Jind and Narnaul circles with approx. 39 lac consumers (FY22) across all categories. The current Chairperson of the company is Ms. Aashima Brar, and the current directors are Mr. Vikram, Mr. Aditya Dahiya, Mr. Jainder Singh Chhilar, Mr. Rattan Kumar Verma, Mr. Vinod Kumar, Mr. Mukesh Chauhan, Mr. Kapil Gupta and Mr. Yogesh Bidani.
|
| Unsupported Rating |
|
ACUITE BB+/Stable
|
| Analytical Approach |
|
Acuité has considered the standalone business and financial risk profiles of DHBVNL and has also factored in support extended by Government of Haryana (GOH) in the form of an unconditional and irrevocable guarantee.
|
| Key Rating Drivers |
| Strengths |
| Strategically important role of DHBVNL in the state of Haryana
Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL), incorporated in 1999, is a wholly owned entity of Government of Haryana. As on March 31, 2023, GoH held 96.85% stake in DHBVNL and the balance was held by Haryana Vidyut Prasaran Nigam Limited) and is engaged in distribution of power. DHBVNL purchases power primarily from Central Generating Stations (CGS) and they are making efforts to source energy from renewable sources. It is responsible for the distribution and retail supply of electricity in the South zone of Haryana comprising of Hisar, Bhiwani, Sirsa, Faridabad, Fatehabad Gurugram-1, Gurugram-2, Palwal, Rewari, Jind and Narnaul circles. The company has been receiving support from Government of Haryana in the form of subsidy and guarantee extended. Support form GOH is crucial for rating and hence any credit profile of state of Haryana is of key importance. As on March, 2026, the current active consumers is approximately 44.76 lacs. The consumer profile of the discom comprises of industrial, domestic, agriculture and commercial. Sustainable improvement in the AT&C and T&D losses DHBVNL has demonstrated sustained improvement in its Transmission & Distribution (T&D) losses and Aggregate Technical & Commercial (AT&C) losses over the past five years, supported by the implementation of various operational initiatives and continuous capital expenditure towards strengthening transmission infrastructure, including upgrading of lines and installation of substations. The T&D losses improved to 10.26% in FY25 from 16.93% in FY2021, while AT&C losses declined to 9.55% in FY25 from 15.75% in FY21. Further, the company has reported strong collection efficiency, which stood at 100.80% in FY2025. Acuité believes that the sustained reduction in AT&C and T&D losses is likely to continue over the near to medium term, thereby supporting the operating performance of the company. |
| Weaknesses |
| Decline in profitability, albeit improvement in scale of operations
DHBVNL reported an increase in its revenue from operations to Rs. 26,821.27 Cr. in FY25 as against Rs. 24,289.46 Cr. in FY24, reflecting improvement in its scale of operations. However, the company’s profitability witnessed moderation, with operating margin declining to 0.96% in FY25 from 3.22% in FY24 and net margin declining to 0.39% in FY25 from 0.84% in FY24. The deterioration in profitability is primarily attributable to lower revenue from Fuel Surcharge Adjustment (FSA) charged to consumers. Nevertheless, the company has witnessed growth in the number of active consumers and improvement in power sales within and outside the state. Further, DHBVNL reported revenue of Rs. 19,749.90 crore up to December 2025, with an EBITDA loss of Rs. 1,049.71 crore and a net loss of Rs. 1,335.06 crore. Acuité believes that the company’s profitability remains susceptible to regulatory factors; however, its operating performance is expected to benefit over the near to medium term, supported by tariff revisions approved by the Haryana Electricity Regulatory Commission (HERC) for FY2025–26, effective April 1, 2025. Moderate financial risk profile The financial risk profile of DHBVNL remains moderate, marked by a leveraged capital structure and modest debt protection metrics. The gearing ratio stood at 2.75 times as on March 31, 2025, as against 2.48 times as on March 31, 2024. The net worth of the company improved to Rs. 4,406.36 Cr. as on March 31, 2025 from Rs. 4,018.51 Cr. as on March 31, 2024, supported by accretion of profits to reserves, equity infusion, and continued financial support from the Government of Haryana (GoH) in the form of capital subsidies and grants. The majority of borrowings undertaken by DHBVNL are backed by guarantees from GoH, providing credit comfort. However, the total outside liabilities to tangible net worth (TOL/TNW) remained elevated at 4.82 times as on March 31, 2025 as against 4.47 times in the previous year. Further, the debt protection metrics have moderated, with interest service coverage ratio (ISCR) at 1.73 times in FY2025 as compared to 2.05 times in FY2024, and debt service coverage ratio (DSCR) at 0.86 times in FY2025 as against 1.23 times in FY2024. Acuité believes that the financial risk profile is likely to remain moderate over the medium term, on account of the company’s ongoing capital expenditure plans of Rs. 1,000–2,000 Cr. annually towards strengthening distribution infrastructure, catering to load growth and reducing AT&C losses. Susceptibility of performance to changes in the regulatory framework. DHBVNL’s revenues are influenced by the regulatory framework governing the power sector. Revenues of state distribution utilities like DHBVNL are determined by state electricity regulatory commissions. The Haryana Electricity Regulatory Commission (HERC) considers key parameters like the cost structure and expected to return on equity to arrive at distribution tariffs, wheeling & distribution, and retail supply under MYT Framework (Multi Year Tariff). Acuite believes that significant changes in the regulatory environment will impinge on the credit profile of the company. |
| 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) |
|
Acuite takes into consideration the benefit derived by DHBVNL from the 100% ownership of Government of Haryana, either directly or indirectly.
Stress Case Scenario |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
|
| Potential triggers (individual or collective) for a downward rating action: |
|
| Liquidity Position |
| Stretched |
|
The liquidity profile of DHBVNL remains stretched, marked by negative net cash accruals of Rs. 679.65 Cr. (excluding exceptional items) against debt obligations of Rs. 1,017.05 Cr. for the same period. Nevertheless, the company has been able to service its debt obligations in a timely manner, supported by subsidies and grants received from the Government of Haryana (GoH), along with access to short-term working capital borrowings. The borrowings are further supported by irrevocable guarantees extended by GoH, providing additional liquidity comfort. The company maintained unencumbered cash and bank balances of Rs. 63.70 Cr. as on March 31, 2025, while the current ratio stood at 1.29 times as on the same date. Liquidity is also supported by moderate utilisation of bank limits, with average fund-based limit utilisation at 67.62% and non-fund-based limit utilisation at 46.35% over the nine months ended April 2026. The company continues to undertake capital expenditure for various ongoing projects, funded through a mix of debt, grants and equity support. Acuité believes that the company’s liquidity profile is expected to remain stretched over the medium term.
|
| Outlook: Stable |
| |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 26821.27 | 24289.46 |
| PAT | Rs. Cr. | 104.54 | 204.34 |
| PAT Margin | (%) | 0.39 | 0.84 |
| Total Debt/Tangible Net Worth | Times | 2.75 | 2.48 |
| PBDIT/Interest | Times | 1.73 | 2.05 |
| 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 • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm • State Government Ratings : https://www.acuite.in/view-rating-criteria-26.htm |
| Note on complexity levels of the rated instrument |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| 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. |
| |
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||
|
|
||||||
|
Contacts |
List of instruments and names of regulators of the instruments |
