Press Release

Press Release

September 11, 2026

DHARAMRAJ CONTRACTS INDIA 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	28.00	ACUITE C \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	117.00	-	ACUITE A4 \| Reaffirmed	RBI
Total Outstanding	0.00	145.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuite has reaffirmed its long-term rating of ‘ACUITE C’ (read as ACUITE C) and short-term rating of 'ACUITE A4' (read as ACUITE A four) on bank facilities of Rs.145.00 crore of Dharamraj Contracts India Private Limited (DCIPL).

Rationale for reaffirmation
The reaffirmation is on account of delays observed in servicing the debt obligations up to June 26 as per the CIC report.
Further, the company reported a significant increase in the scale of operations during FY26 (Prov.), supported by revenue growth and improved profitability. Revenue visibility remains adequate over the medium term, supported by a healthy unexecuted order book of Rs.302.20 crore as of July 2026, translating into an order book-to-operating income (OB/OI) ratio of 1.98 times. The financial risk profile is above average, backed by an increase in net worth and a comfortable capital structure. However, the liquidity position remains constrained due to delays in servicing debt obligations and an intensive working capital cycle.

About the Company

Incorporated in 2010 by Mr. Raj Singh and Mr. Chaman Singh, Dharamraj Contracts India Private Limited (DCIPL) is a Delhi-based, construction company engaged in the execution of roads, bridges, underpasses, hostels, and other civil infrastructure projects primarily for government entities. The company has a strong operational presence across Uttarakhand and Jammu & Kashmir. The company is currently managed by Mr. Chaman Singh, Mr. Singhraj Singh, and Mrs. Varsha Chaudhary.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered standalone business and financial risk profile of DCIPL

Key Rating Drivers

Strengths

Increase in scale of operations

The operating income stood at Rs.152.47 Cr. in FY26 (Prov.) as against Rs.91.22 Cr. in FY25 due to higher execution of order book during the year. Further, the company has achieved revenues of Rs.33.99 Cr. till July 26. The unexecuted order book stood at Rs.302.00 Cr. as on 31^st July 2026, translating into an OB/OI ratio of 1.98 times which provides revenue visibility over the near to medium term.
The EBITDA margin stood steady at 14.50 percent in FY26 (Prov.) as against 14.41 percent in FY25 with better absorption of fixed costs during the year. The PAT margin stood at 6.01 percent in FY26 (Prov.) as against 4.15 percent in FY25 due to increase in the scale of operations. Going forward, the ability of the company to bag new orders and timely execution of the existing orders will remain a key rating monitorable.

Above Average Financial Risk Profile

The financial risk profile of the company is above average marked by tangible net-worth of Rs. 70.07 Crore as on 31st March 2026 (Prov.) as against Rs. 60.85 Crore as on 31st March 2025 due to accretion to reserves. The capital structure of the company is comfortable marked by gearing which stood at 0.47 times as on 31st March 2026 (Prov.) against 0.75 times as on 31st March 2025. Further, the debt protection metrics of the company reflected by interest coverage ratio (ICR) and debt service coverage ratio (DSCR) stood at 2.66 times and 2.08 times respectively as on 31st March 2026 (Prov.) as against 2.22 times and 0.99 times respectively as on 31st March 2025. The TOL/TNW ratio of the company stood at 1.52 times as on 31st March 2026 (Prov.) as against 1.63 times as on 31st March 2025. Acuite believes that going forward the financial risk profile of the company will remain above average in near to medium term due to absence of debt funded capex plans.

Weaknesses

Intensive ?Working Capital Cycle

The company has intensive working capital cycle as evident from gross current assets (GCA) of 315 days in FY2026 (Prov.) as compared to 438 days in FY2025. Debtor days stood at 106 days in FY2026 (Prov.) as against 210 days in FY2025. Debtor days remained elevated at year-end primarily due to retention money receivables, which account for 30% of contract value and are released in stages upon achieving specified project milestones. Inventory days stood at 98 days in FY26 (Prov.) as against 168 days in FY25. In FY26 (Prov.), other current assets majorly include security deposit from department (like retention, withheld, royalty and others) of Rs.18.30 Cr, statutory deposits of Rs.20.22 Cr and others.
The creditor days stood at 198 days in FY2026 (Prov.) as against 128 days in FY2025 as payments to suppliers are largely aligned with the receipt of proceeds from customers.
Acuite believes that the working capital cycle of the company will remain at same level due to inherent nature of the business.

Highly competitive industry marked by tender based nature of business

The company’s performance is susceptible to the tender based nature of business, where the business depends on the ability to bid for contracts successfully. Risk become more pronounced as tendering is based on minimum amount of biding of contracts. Intense competition from several players, and exposure to risks arising from dependence on tenders. Growth in revenue and profitability depends on the company's ability to bid successfully and executes order within stipulated time frame.

Rating Sensitivities

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

Timely servicing of debt obligations

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

Delays in servicing debt obligations

Liquidity Position

Poor

The liquidity is poor, on account of delays observed in servicing the debt obligations upto June 26 as witnessed in CIC report. However, the net cash accruals remain sufficient at Rs. 13.73 Cr. in FY26 (Prov.) against debt repayment obligation of Rs. 1.68 Cr. for the same period. The company maintains cash & bank balances of Rs. 4.75 Cr. and current ratio stood moderate at 1.31 times for FY26 (Prov.). The average fund-based bank limit utilization stood high at ~93% for the last six months ended August 26. Acuite expects that the company will maintain liquidity position at similar levels due to sufficient net cash accruals against debt repayments and flexibility to infuse funds albeit high bank limit utilization. However, the company needs to repay its debt obligations on time and that will be a key monitorable.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	152.47	91.22
PAT	Rs. Cr.	9.17	3.79
PAT Margin	(%)	6.01	4.15
Total Debt/Tangible Net Worth	Times	0.47	0.75
PBDIT/Interest	Times	2.66	2.22

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 Jun 2025	Bank Guarantee (BLR)	Short Term	34.00	ACUITE A4 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	68.00	ACUITE A4 (Reaffirmed)
	Proposed Short Term Bank Facility	Short Term	18.00	ACUITE A4 (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE C (Reaffirmed)
	Cash Credit	Long Term	19.00	ACUITE C (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	1.00	ACUITE C (Reaffirmed)
06 Sep 2024	Bank Guarantee (BLR)	Short Term	71.00	ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	34.00	ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A3)
	Proposed Short Term Bank Facility	Short Term	15.00	ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A3)
	Cash Credit	Long Term	19.00	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	5.00	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Proposed Long Term Bank Facility	Long Term	1.00	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
08 Sep 2023	Bank Guarantee (BLR)	Short Term	71.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	34.00	ACUITE A3 (Reaffirmed)
	Proposed Short Term Bank Facility	Short Term	15.00	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	19.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	1.00	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
Punjab National Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	68.00	Simple	ACUITE A4 \| 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.	34.00	Simple	ACUITE A4 \| 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.	5.00	Simple	ACUITE C \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	19.00	Simple	ACUITE C \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.00	Simple	ACUITE C \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Short Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE A4 \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Manvi Khaitan
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.