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 assigned long term rating of 'Acuite BB-' (Read as Acuite Double B Minus) on Rs.15 crores bank facilities of Dazzle Housing and Realty LLP. The Outlook is 'Stable'.
Rationale for Rating:
The rating derives comfort from the partners demonstrated experience in real estate development and their association, in their individual capacities as landowners, with established real estate developers for project execution. The project also benefits from a favourable location near Kolkata Airport and enjoys good connectivity through Jessore Road and Madhyamgram Railway Station, which is expected to support demand and marketability. However, the project is currently at a nascent stage, with expected to launch by end-July 2026 upon receipt of the requisite RERA approval, thereby exposing it to execution-related risks. The project is proposed to be largely funded through customer advances; however, booking and collection levels are yet to be established and remain susceptible to prevailing market conditions. Any shortfall in funding may require support from the partners through unsecured loans. Further, the LLP proposes to avail a term loan of Rs. 15 crores for the project, and any delay in its sanction or disbursement could impact the project implementation timeline. The rating also factors in the cyclical nature of the real estate industry, which exposes the project to risks arising from fluctuations in demand, property prices, and interest rates.
About the Company
Dazzle Housing and Realty LLP is a Kolkata-based real estate development firm incorporated on 29 May 2025 by Mr. Mahesh Kumar Singhania, Mr. Saarthak Srimal, and Mr. Abhishek Roongta. The LLP is engaged in the development and construction of residential and commercial properties in West Bengal.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profile of Dazzle Housing & Realty LLP to arrive at the rating.
Key Rating Drivers
Strengths
GettingBenefitedfromPartnersexperience:
The partners possess prior experience in the real estate development sector and maintain a healthy land bank. In their individual capacities as landowners, they are also associated with developers for project execution. Further, management has indicated that any funding shortfall during project execution will be supported by the partners through unsecured loans. Acuité believes that the partners' industry experience and their demonstrated financial support, which are expected to support the project execution over the medium term.
LocationalAdvantageoftheprojectexpectedtogeneratedemand:
Innara Vista is a proposed residential and commercial real estate project located at Madhyamgram, West Bengal. The project comprises 156 residential units (2 BHK, 2.5 BHK and 3 BHK apartments) and 4 commercial units spread across 2 residential blocks and 1 commercial building. The residential saleable area is approximately 1.98 lakh sq. ft., while the commercial area is around 11,310 sq. ft. Further, the project also benefits from a favourable location near Kolkata Airport and enjoys good connectivity through Jessore Road and Madhyamgram Railway Station, which is expected to support demand generation and enhance the project's marketability.
Weaknesses
ProjectImplementationRisk:
The project is currently at a nascent stage, with RERA registration pending and launch expected by end-July 2026 upon receipt of the requisite approvals. Consequently, project execution remains a key risk factor. Further, the lender tie-up is yet to be finalized, bookings have not commenced, and the promoter has infused Rs. 1.64 crore toward the project cost so far. Acuite believes that any delay in mobilizing the required funding could adversely impact on the project timeline and lead to cost overruns.
ExposuretotherisksintheRealEstateIndustry:
The LLP is exposed to the inherently cyclical nature of the real estate industry, which remains susceptible to fluctuations in economic conditions. Consequently, risks such as a slowdown in demand, correction in property prices, changes in interest rates, and adverse regulatory developments may impact sales velocity, cash flow generation, and overall project performance.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
If the advance from booking exceeds 25% in FY 27.
Timely execution of project
Potential triggers (individual or collective) for a downward rating action:
Delay in registration in RERA which ultimately lead to delay in launching the project
If larger than expected borrowings are taken
Cost and time overrun
Liquidity Position
Stretched
The liquidity position of the company is stretched, primarily due to the project being at an initial stage of implementation and pending tie-up of the project funding. Nevertheless, the liquidity profile derives comfort from the promoters demonstrated financial commitment, reflected in the infusion of approximately Rs. 1.64 crore in FY 26 and further expected infusion towards project and shortfall funding, if any. The promoters are expected to continue providing financial support, if required, towards meeting any project cost overruns and ensuring timely completion of the project. Further, the company's debt protection metrics are expected to remain stable, with an estimated average DSCR of 1.45 times during FY2027–FY2030. the debt repayment is expected to begin in FY 28 at about Rs. 4-5 Cr with expected cash surpluses of about Rs.6-7 cr. Going forward, Acuité believes that the liquidity profile may improve with timely booking, timely sanction and disbursement of the proposed debt facilities, enabling smooth project execution and supporting cash flow generation.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Actual)
FY 25 (Actual)
Operating Income
Rs. Cr.
0.00
0.00
PAT
Rs. Cr.
0.00
0.00
PAT Margin
(%)
0.00
0.00
Total Debt/Tangible Net Worth
Times
4.50
0.00
PBDIT/Interest
Times
0.00
0.00
Status of non-cooperation with previous CRA (if applicable)
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.
Contacts
List of instruments and names of regulators of the instruments
