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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 2.00 | ACUITE BB+ | Stable | Assigned | - |
| Bank Loan Ratings | 3.97 | ACUITE BB+ | Stable | Reaffirmed | - |
| Bank Loan Ratings | 17.50 | - | ACUITE A4+ | Assigned |
| Bank Loan Ratings | 54.50 | - | ACUITE A4+ | Reaffirmed |
| Total Outstanding | 77.97 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) and the short-term rating of ‘ACUITE A4+' (read as ACUITE A four plus) on the Rs.58.47 Cr. bank facilities of Damodhartech International Private Limited (DIPL). The outlook is 'Stable'.
Further, Acuité has assigned the long-term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) on the Rs.2.00 Cr. bank facilities and the short-term rating of 'ACUITE A4+' (read as ACUITE A four plus) on the Rs.17.50 Cr. bank facilities of DIPL. The outlook is 'Stable'. Rationale for rating The rating reaffirmation is driven by healthy financial risk profile with minimal dependence on debt. Further, the rating also considers healthy order book position of ~Rs.248 Cr. as of December 2025 (4.19 times of FY25 revenue), experienced management and adequate liquidity. However, rating remains constrained by the modest scale of operations owing to slow execution of orders whilst operating profitability continues to improve. Further, rating factors the intensive working capital operations and presence in a highly competitive and fragmented industry, hence the ability of the company to scale up its operations backed by timely execution of its order book while maintaining its profitability margins will remain a key rating monitorable. |
| About the Company |
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Incorporated in 1978, Mumbai based Damodhartech International Private Limited (DIPL) is engaged in providing turn-key contracting solutions and services in mechanical, electrical, instrumentation, civil and structural works. Additionally, the company is diversified into electromechanical engineering catering to sectors ranging from oil & gas, power generation and distribution to industrial and commercial setups. The company is managed by Mr. Ashwani Bhat.
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| Unsupported Rating |
| Not applicable. |
| Analytical Approach |
| Acuité has considered standalone business and financial risk profile of DIPL to arrive at the rating. |
| Key Rating Drivers |
| Strengths |
| Experienced management and long track record of operations
DIPL is managed by Mr. Ashwani Bhat, having more than two decades of experience in the EPC business. The company has established a strong market position and maintained longstanding relations with its reputed clientele across power generation, distribution, oil and gas, etc. The long track record and experienced management has helped the company attain a healthy outstanding order book of ~Rs.248 Cr. (as on December 31, 2025). Healthy financial risk profile The financial risk profile of DIPL stood healthy marked by moderate net worth, low gearing and comfortable debt protection metrics. The tangible net worth stood improved at Rs.35.47 Cr. as on 31st March 2025 (Rs.31.56 Cr. as on 31st March 2024) owing to profit accretions. Further, company has minimal reliance of debt, therefore, the gearing (debt-equity) stood below unity at 0.09 times as on 31st March 2025 (0.07 times as on 31st March 2024). The debt protection metrics also stood comfortable with interest coverage ratio of 8.24 times in FY25 (8.87 times for FY24) and debt service coverage ratio of 3.70 times in FY25 (7.13 times for FY24). |
| Weaknesses |
| Modest scale of operations owing to slow execution
The revenue of DIPL in FY25 stood similar to FY24 at Rs.59.26 Cr. against Rs.60.57 Cr. and Rs.80.58 Cr. in FY23. Additionally, 9MFY26 revenue stood at ~Rs.30 Cr. The revenue growth is restricted by delays in designing and execution on account of site unavailability as the orders are public sector projects. The current orderbook as of December 2025 stands at ~Rs.248 Cr. out of which orders of ~Rs.50 Cr. is expected to be executed by March 2026. Also, of the outstanding order book; it includes orders worth ~ Rs.31.20 Cr. which pertains to those received before FY25. Hence, despite new receipt of orders in FY25; the execution for the same remains a monitorable. However, the operating margin stood improved in FY25 to 9.49% from 8.92% in FY24. The improvement in margins is basis lowering of input costs due to slower executions. Intensive working capital operations The working capital operations though improved remains intensive marked by gross current asset days of 204 days in FY25 (224 days in FY24). This is primarily due to elevated collection cycle of 101 days in FY25 (80 days in FY24). The inventory days stood at 30 days in FY25 (22 days in FY24). However, the creditor days stood increased at 141 days in FY25 (119 days as on FY24). Competitive and fragmented industry DIPL operates in the civil construction sector, which is highly competitive and fragmented, with several mid-to-large players. The company faces intense competition from other players in the industry. The risk is further amplified as tender awards are often based on the lowest bid pricing. However, this risk is partially mitigated by the management’s long-standing experience of over four decades in this operating environment. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The company’s liquidity position is adequate marked by sufficient net cash accruals which stood improved at Rs.4.64 Cr. in FY25 (Rs.4.27 Cr. in FY24) with maturing debt obligations of Rs.0.65 Cr. in the same tenure. In addition, it is expected to generate a sufficient cash accrual in the range of Rs.4.00-5.00 Cr. against maturing debt obligations of Rs.0.22 Cr. over the medium term. The company maintains unencumbered cash and bank balances of Rs.0.59 Cr. as on 31st March 2025. Further, the current ratio for FY25 stood comfortable at 1.41 times. The average bank limit utilization for fund-based limits stood low at ~8 percent and for non-fund-based limits, the BG utilisation stood at ~64 percent for the last 06 months ended December 2025.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 59.26 | 60.57 |
| PAT | Rs. Cr. | 3.91 | 3.52 |
| PAT Margin | (%) | 6.59 | 5.81 |
| Total Debt/Tangible Net Worth | Times | 0.09 | 0.07 |
| PBDIT/Interest | Times | 8.24 | 8.87 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable. |
| Any other information |
| None. |
| Applicable Criteria |
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• 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 |
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