Press Release

Press Release

May 26, 2026

G SQUARE REALTORS 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	100.00	ACUITE BBB \| Stable \| Assigned	-	RBI
Total Outstanding	0.00	100.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 assigned its long-term rating of 'ACUITE BBB' (read as ACUITE triple B) on Rs.100.00 Cr. bank facilities of G Square Realtors Private Limited (GSRPL). The outlook is 'Stable'.

Rationale for rating:
The assigned rating reflects G Square Group’s established track record and strong execution capabilities in plotted residential developments, supported by experienced promoters and a scalable business model across multiple cities. The rating favourably factors in the advanced stage of ongoing projects (~80% cost incurred) and healthy estimated project profitability. Further support is drawn from adequate consolidated cash flow visibility, with sizeable receivables and monetisation potential. However, the rating is constrained by the high dependence on future sales and collections, with a significant portion of inventory (~67%) yet to be sold. The company also faces elevated leverage and rising finance costs due to significant debt funded projects with moderate sales velocity in a competitive and cyclical real estate sector.

About the Company

G Square Realtors Private Limited (GSRPL), incorporated on December 12, 2012, is a Chennai-based real estate developer engaged in plotted residential development with a presence across South India. The company initially operated as a B2B land aggregator catering to institutional clients but transitioned in 2020 to a B2C model focused on gated plotted developments. Since then, it has expanded its footprint to over 14 plus cities across key states including Tamil Nadu and Andhra Pradesh. The company is promoted and managed by Mr. Ramajayam and Mrs. Sreekala, supported by an experienced management team.

About the Group

GSquare Ground Private Limited (GSGPL), incorporated on April 9, 2026, is a wholly owned subsidiary of G Square Realtors Private Limited (GSRPL), which was incorporated on December 12, 2012. Together with its associated entities, they are collectively referred to as the “G Square Group”. The G Square group operates as an established real estate platform with a strong brand presence in the plotted development segment across South India. The group follows a scalable business model focused on land aggregation, development, and direct-to-customer sales of residential plots, with a diversified portfolio spanning completed, ongoing, and upcoming projects across multiple cities. It is promoted and managed by Mr. Ramajayam and Mrs. Sreekala, supported by an experienced management team, benefiting from strong execution capabilities, a large land bank, and an expanding geographic footprint.

Unsupported Rating

Not applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuite has consolidated the financial and business risk profiles of G Square Realtors Private Limited (GSRPL) and GSquare Ground Private Limited (GSGPL) on account of their common management, brand name and same line of business. GSGPL is a wholly owned subsidiary of GSRPL and given corporate guarantee to GSGPL.

Key Rating Drivers

Strengths

Established market position
G Square Realtors Private Limited (GSRPL) is a Chennai-based real estate developer promoted by Mr. Ramajayam and Mrs. Sreekala having more than a decade experience, with a strong track record in plotted residential developments across South India. The group has established itself as a leading player in the organised plotted segment, with presence across 14+ cities. G Square has successfully delivered 90 projects, with over ~1.35 crore sq. ft. of saleable area sold, reflecting its strong sales capability and market acceptance. The group benefits from strong land aggregation capabilities, a scalable direct-to-customer model, and experienced promoters, enabling efficient execution and monetisation of large-scale plotted developments. Overall, its established market position and consistent sales traction support its competitive strength across key South Indian markets.

Operating performance and profitability
The group’s ’s operating performance exhibited volatility over FY2023–FY2026(Est.), typical of the project driven real estate sector, with revenue improving significantly to Rs.1,584.63 crore in FY2026(Est.) from Rs.648.01 crore in FY2025, driven by recovery in execution and sales momentum following receipt of pending RERA approvals. Operating profitability strengthened with EBITDA increasing to Rs.327.01 crore in FY2026(Est.) as against Rs .163.95 crore in FY2025, while margins remained healthy in the range of 15.62%–25.30%, reflecting adequate operating efficiency. However, PAT margins remained moderate due to a sharp increase in finance costs, with interest expenses rising to Rs.302.17 crore in FY2026(Est.) from Rs.39.68 crore in FY2023, owing to higher borrowings for land acquisition and project expansion. Acuite believes that the company’s revenue profile is expected to improve over the medium term, supported by strong project pipeline and sales traction; however, profitability will continue to remain exposed to high finance costs and timing mismatch between revenue recognition from ongoing projects and interest burden on borrowings for upcoming projects.

Moderate project execution and funding risk
The 49 ongoing projects of plotted developments of GSRPL, as on March 31, 2026, with an aggregate project cost of ~Rs.2,824 crore, have achieved ~80% cost incurrence (Rs.2,256 crore), with ~95% of land cost already incurred, indicating moderate implementation risk. The company funding risk remains relatively low, supported by adequate bank tie-ups (which is expected to be refinanced by low cost debt) and strong promoter support, providing financial flexibility, thus lowering project execution risk in an ongoing project. However, the group has ~ 90 upcoming projects (including 6 upcoming projects in GSGPL), these projects are at nascent stages (aggregating ~101 acres with an estimated project value of ~Rs.1,351 crore), thus exposing to relatively higher project execution risk, however the risk is mitigated to a larger extent given the proven execution track record of the G Square group in the land plotting and development.

Weaknesses

High offtake Risk in ongoing projects
The group is exposed to elevated offtake risk in its ongoing projects, with a sizeable portion of saleable area (~66.7%) is unsold in 49 projects while 6 projects in GSGPL are yet to be sold. Against total expected realization of ~Rs.6,892 crore, only ~Rs.1,024 crore has been received, while ~Rs.5,868 crore remains receivable, reflecting significant reliance on future sales and collections. While the projects benefit from demonstrated execution track record, strong sales momentum, and adequate funding tie-ups with low finance cost, cash flow stability would remain as a key rating sensitivity.

Susceptibility to Real Estate Cyclicality and Regulatory Risks
The real estate industry in India is highly fragmented with most of the real estate developers, having a city specific or region-specific presence. The risks associated with real estate industry are cyclical in nature and directly linked to drop in property prices and interest rate risks, which could affect the operations. Given the high level of financial leverage, the high cost of borrowing prevents the real estate's developers' from significantly reducing prices to boost sales growth. Moreover, the industry is also exposed to certain regulatory risks linked to stamp duty and registration tax directly impacting the demand and thus the operating growth of real estate players.

ESG Factors Relevant for Rating

G Square group demonstrates a strong commitment to ESG principles, with a focus on sustainable development, social impact, and robust governance practices. The group integrates environmental measures such as solar infrastructure, extensive tree plantation, and EV-based operations to reduce its carbon footprint. Its social initiatives are centered on education, disaster relief, and community development, supported by a structured CSR framework. Additionally, strong governance practices, regulatory compliance, and transparent monitoring mechanisms underpin its ESG approach.

Rating Sensitivities

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

Faster ramp-up in GSGPL projects, with at least 40–50% inventory pre-sales achieved within 12–18 months of launch, improving cash flow visibility
Sustained improvement in sales velocity and collections, with overall sales absorption increasing to >65% (from ~33%) across 49 ongoing projects in next 12-15 months.

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

Delays in project execution or weaker demand environment in both GSRPL and GSGPL
Weakening in debt servicing metrics, with DSCR falling below ~2.5x
Delays in approvals or execution, especially in GSGPL projects, leading to cost overruns of >10–15% or cash flow mismatches.

Liquidity Position

Adequate

The liquidity position of the G Square Group remains adequate, supported by expected cash flow visibility from its large portfolio of ongoing projects (GSRPL), which have achieved significant progress in execution and initial sales traction. Liquidity is further aided by ring-fenced project cash flows and 8-month moratorium on debt servicing, allowing cash build-up during the initial period. As on 31 March 2026, it maintained cash and bank balances of ~Rs.24.32 crore and fixed deposits of ~Rs.3.96 crore. Nevertheless, liquidity remains largely reliant on timely customer collections, with a significant portion of receivables yet to be realized, and repayments aligned to project cash flows. The group’s debt servicing ability remains comfortable, with average project DSCR at ~3.5x, though it remains exposed to risks from delays in collections and moderation in sales across ongoing and upcoming projects.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	648.01	1077.96
PAT	Rs. Cr.	(0.16)	72.30
PAT Margin	(%)	(0.02)	6.71
Total Debt/Tangible Net Worth	Times	9.35	8.34
PBDIT/Interest	Times	1.10	1.84

GSquare Ground Private Limited (GSGPL) was incorporated on April 9, 2026 and does not have any financial statements available as on March 2026, the financials in the table above are of G Square Realtors Private Limited (GSRPL)

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

None

Any Other Information

None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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

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
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.	100.00	Simple	ACUITE BBB \| Stable \| Assigned

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr.no	Name of the entities
1	G Square Realtors Private Limited
2	GSquare Ground Private Limited

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Dharmavarapu Sai Kiran
Senior 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	SEBI
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	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
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	SEBI
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)	RBI
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.

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 ⁶	Not applicable

⁶ 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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