Press Release September 10, 2026 FABLAB ENGINEERING INDIA PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	60.00	ACUITE BBB- | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	10.00	-	ACUITE A3 | Assigned	RBI
Total Outstanding	0.00	70.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 assigned the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) and a short-term rating of ‘ACUITÉ A3’ (read as ACUITE A three) on the Rs.70.00 crore bank facilities of Fablab Engineering India Private Limited (FEIPL). The Outlook is 'Stable'. Rationale for rating assigned The assigned rating reflects the company's experienced management team and its established presence in the EPC industry for more than a decade. The rating also factors in the significant growth in the company's scale of operations over the years, additionally supported by a presence of healthy unexecuted order book, providing strong revenue visibility in the near to medium term. Further, the rating draws comfort from the company's moderate financial risk profile and adequate liquidity position, characterized by healthy profitability and comfortable debt protection metrics. However, these strengths are partially offset by the company's intensive working capital operations, as reflected in its elevated receivables and inventory levels. The rating remains constrained by intense industry competition, exposure to export market, foreign exchange and customer collection risks.

About the Company

Incorporated in June 2013, FEIPL is a Maharashtra-based engineering, procurement and construction (EPC) company engaged in providing integrated turnkey solutions for industrial and infrastructure projects. The company operates under the Fablab group and has established capabilities across project design, engineering, procurement, installation, commissioning and validation. Over the years, FEIPL has evolved catering to a diversified clientele across India and overseas markets in majorly pharmaceutical sector. The current directors of the company are Mr. John Nadar, Mr. Sajeev Tangaswami Nadar and Mr. Mohsin Shabbir Kanadia.

Unsupported Rating

Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profile of FEIPL to arrive at the rating.

Key Rating Drivers

Strengths

Established track record and experience management FEIPL benefits from an established operational track record of over a decade in the EPC and MEP contracting industry. Since its incorporation in 2013, the company has expanded its presence from serving pharmaceutical projects to various other sectors such as healthcare, semiconductors, data centres, food processing, and industrial infrastructure. Over the years, the company has successfully executed projects across domestic and international markets, supporting business growth and customer diversification. The company is led by an experienced management team with industry expertise in project design, engineering, procurement, installation, and commissioning of industrial facilities. Their established industry relationships and execution capabilities have enabled FEIPL to secure repeat orders from reputed clients. The current orderbook as on August 2026 stood at Rs.801.05 crore. Improving scale of operations The company has demonstrated a significant improvement in its scale of operations over the last three years. Operating income increased substantially to Rs. 159.31 crore in FY26 (Prov.) from Rs. 102.34 crore in FY25 and Rs. 65.40 crore in FY24, driven by a healthy order inflows along with improved execution capabilities. Additionally, the presence of significant unexecuted orders (5x of FY26 revenue) provides strong revenue visibility ahead. Further, the company's operating profitability remained stable, with EBITDA margins of 10.99% in FY26 (Prov.), compared with 10.47% in FY25 and 10.71% in FY24. Going forward, management expects profitability to improve as a significant portion of the order book comprises higher-margin export projects. Moderate financial risk profile The company's net worth improved to Rs. 35.00 crore as on March 31, 2026 (Prov.) from Rs. 20.01 crore as on March 31, 2025, supported by an equity infusion of Rs. 4.30 crore and accretion of profits to reserves. Total borrowings increased to Rs. 45.24 crore from Rs. 20.94 crore in the previous year, primarily due to higher working capital utilization and the availing of term loans for the acquisition of commercial property. Consequently, gearing moderated to 1.29x as on March 31, 2026 (Prov.), compared to 1.05x a year earlier. Nevertheless, debt protection metrics remained healthy, with DSCR and interest coverage improving to 5.98x and 7.43x, respectively, in FY26 (Prov.) as against 5.32x and 6.79x in FY25. However, the capital structure remained stretched as reflected by the relatively high TOL/TNW of 4.54x as on March 31, 2026 (Prov.) (3.47x as on March 31, 2025). Despite the increase in leverage and working capital requirements, the company's financial risk profile is expected to remain moderate, supported by healthy profitability and debt coverage indicators.

Weaknesses

Intensive working capital operations The company's working capital operations remain intensive, as reflected by its high gross current asset (GCA) cycle of 312 days in FY26 (Prov.), compared to 235 days in FY25. The elongated GCA cycle is primarily driven by high debtor levels and inventory holding, with debtor days increasing to 232 days in FY26 (Prov.) as against 170 days in FY25. Year-end receivables remained elevated due to a significant portion of revenue being booked towards the year end, as well as extended transit periods for export orders during FY26 on account of the West Asia crisis. Inventory holding remained moderate at 69 days in FY26 (Prov.), as against 70 days in FY25. The company generally procures materials in advance and dispatches a substantial portion of the order value in a single lot, leading to inventory accumulation during the execution phase. On the liabilities side, the company benefits from strong supplier relationships and enjoys a relatively elongated creditor cycle, with creditor days standing at 161 days in FY26 (Prov.). The extended payable period provides partial support to the company's working capital requirements. Nevertheless, overall working capital requirements remain high, as reflected in the company's average working capital limit utilisation of approximately 85.86% during the six-month period ended July 2026. Inherent business risk The company operates in a highly fragmented EPC industry characterized by the presence of numerous regional and national players, resulting in intense competition for project awards. The tender-based nature of operations requires participants to bid competitively to secure contracts, which may exert pressure on margins. The company also remains exposed to foreign exchange and export-related risks, with export orders contributing around 50% of total outstanding orderbook. At present, the company does not have any formal hedging mechanism in place to mitigate foreign currency risk. Accordingly, any adverse movement in exchange rates, counter party related collections risk or geopolitical disruptions in key export markets could adversely impact the company's profitability and cash flows. Going forward, the company's ability to sustain order inflows, execute projects in a timely manner, and maintain profitability amidst intense competition will remain a key rating monitorable.

Rating Sensitivities

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

Growth in operating performance with timely project execution leading to higher than expected generation of net cash accruals. Improvement in working capital intensity with reduction in GCA days below 150 days.

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

Delay in order execution or slowdown in orderbook growth leading to generation of net cash accruals below Rs 20 Cr. Significant increase in debt levels impacting the financial risk profile Any further elongation in working capital intensity

Liquidity Position

Adequate

The company's liquidity profile remains adequate, supported by healthy net cash accruals of Rs. 11.82 crore in FY26 (Prov.) against relatively lower long-term debt repayments during the same period. Going forward also, net cash accruals are expected to remain sufficient in the range of Rs. 20-30 crore over the next two years, providing comfortable coverage against scheduled repayment obligations of below Rs. 1 crore. Further, it maintained free cash and cash equivalents of Rs. 7.85 crore at the end of FY26 (Prov.). However, the company's current ratio stood low at 0.95 times as on March 31, 2026 (Prov.). Additionally, its fund-based working capital limits remained highly utilized, with average utilization of 85.86% during the six-month period ended July 2026, reflecting the working capital-intensive nature of operations. However, to support the growing scale of business, company is planning to avail enhancement in its fund based working capital limits from present Rs.35 crore to Rs.60 crore.

Outlook - Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	159.39	103.55
PAT	Rs. Cr.	10.69	6.02
PAT Margin	(%)	6.71	5.81
Total Debt/Tangible Net Worth	Times	1.29	1.05
PBDIT/Interest	Times	7.43	6.79

Status of non-cooperation with previous CRA (if applicable)

­None

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 :

­Not Applicable

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Parth Patel Senior Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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