Press Release

Press Release

September 28, 2026

DWELLINGS STAR DEVELOPERS PRIVATE LIMITED
Rating Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	184.10	ACUITE A- \| Stable \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	22.90	Not Applicable \| Withdrawn	-	RBI
Total Outstanding	0.00	184.10	-	-	-
Total Withdrawn	0.00	22.90	-	-	-

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 A-' (read as ACUITE A minus) on Rs.184.10 crore bank facilities of Dwellings Star Developers Private Limited . The outlook remain 'Stable'.
Acuite has also withdrawn the long-term facility of Rs.22.90 Crore without assigning any rating as it is a proposed bank facility of Dwellings Star Developers Private Limited. The rating has been withdrawn on account of the request received from the issuer. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.

Rationale for Rating:
The rating reaffirmation factors in the revenue visibility arising out of property's full occupancy leading to growth in rental income, locational advantage strong tenant profile. The rating also derives comfort from the company's ability to onboard new tenants at higher rentals through improved space utilization efficiency and higher rental realizations per sq. ft. Additional comfort is drawn from the presence of a three-month DSRA, routing of lease rentals through an escrow account, and the structured waterfall mechanism for utilization of rental receipts. However, the rating remains constrained by tenant renewal risk, particularly with respect to lease tenure and rental renewals, which will continue to be a key rating sensitivity factor.

About the Company

Uttar Pradesh based; Dwellings Star Developers Private Limited is a SPV (Special Purpose Vehicle) incorporated in the year 2016. The Directors of the company are Mr. Nishit Khandelwal, Mr. Neeraj Kumar Singla and Mr. Vijay Kumar. The company is engaged in the business of carrying out real estate activities and owns a Commercial Project having a total leasable area of approximately 7.25 lakh sq.ft. The commercial project is completely leased out as on date.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered standalone business and financial risk profile of Dwellings Star Developers Private Limited to arrive at this rating.

Key Rating Drivers

Strengths

Long Track of Operations
The company is now managed by Singla family as key promoters and had been the part of multiple project based SPV's for lease rental discounting under the brand name of SkymarkOne mainly in Delhi-NCR region. Currently, Tower-E, SkymarkOne, Sector 98, Noida, Uttar Pradesh is fully leased out with total leasable area of 7.25 lakh sq. ft. The project has a locational advantage of prime with a connectively of Yamuna Expressway, Noida-Greater Noida Expressway and Delhi Noda Direct (DND) Flyway. The project is close to Delhi Metro stations nearby as Botanical Garden (Blue line) and Okhla Bird Sanctury (Magenta Line).

Increase in rental income with strong tenant profile:
DSDPL’s operating income increased to Rs. 51.06 crore in FY26 (Prov.) from Rs. 48.09 crore in FY25, driven by higher rental income. Going forward, the company is expected to further improve its rental earnings through onboarding of new tenants at higher rentals by enhancing space utilization efficiency, which increases the rentable area, along with increase in higher rental realizations per sq. ft. The property benefits from a diversified tenant profile. However, the top five tenants collectively account for approximately 68% of the total rentable area and around 65% of the total rental income, indicating moderate tenant concentration. Nevertheless, the concentration risk is mitigated by the strong credit profile of these key tenants, which supports stable occupancy levels and timely rental collections.

Presence of DSRA, Escrow Account with Waterfall mechanism
The company is required to maintain DSRA equivalent to three months of debt servicing (principle & interest) to be maintained throughout the tenor of the facilities. In addition to that, all the lease rentals will be routed through the escrow account and payment will be utilized as per the waterfall mechanism. Acuite believes that such structured mechanism allows a Company to have better control over its cash flows and debt servicing abilities.

Weaknesses

Presence in highly competitive and fragmented nature of industry
The real estate industry in India is highly fragmented, with most of the real estate developers having a city or region-specific presence. The risks associated with the real estate industry are cyclical in nature (drop in property prices) and interest rate risk, among others, which could affect operations. The company is exposed to lease renewal risk, i.e., while renewing the lease agreements, any significant renegotiations by the lessees can adversely impact the cash flows.

Rating Sensitivities

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

Avg DSCR stood at 2.20 times or more
Increase in rental income

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

If the rental income reduced by 20% subject to vacancy and delay in renewal

Liquidity Position

Adequate

The liquidity profile of the company is adequate marked by healthy lease rentals routed through escrow mechanism and presence of DSRA for three months of interest and principal resulting into additional cushion. Further, Net cash accruals are expected to be in the range Rs. 30-34 crore during FY27-FY28 against debt repayments of Rs. 20.70 crore in the same period. As of Aug’26 the company has created DSRA of Rs.9.15 crore. The estimated DSCR for the tenure of the loan between FY27 to FY35 is estimated at 1.91x, which is comfortable. Going forward, that liquidity profile of the company is expected to improve in near to medium term following by the comfortable DSCR.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	51.06	48.09
PAT	Rs. Cr.	17.24	12.94
PAT Margin	(%)	33.76	26.91
Total Debt/Tangible Net Worth	Times	2.06	2.53
PBDIT/Interest	Times	2.19	1.86

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
• Service Sector: https://www.acuite.in/view-rating-criteria-50.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Lease Rental Discounting : https://www.acuite.in/view-rating-criteria-106.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
03 Jul 2025	Lease Rental Discounting	Long Term	207.00	ACUITE A- \| Stable (Assigned)

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
Bank Of Baroda	Not avl. / Not appl.	Lease Rental Discounting	Unlisted	RBI	25 Mar 2025	Not avl. / Not appl.	16 Mar 2035	184.10	Simple	ACUITE A- \| Stable \| 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.	22.90	Simple	ACUITE Not Applicable \| Withdrawn

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Shreya Banerjee
Analyst-Analytical 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.

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