Press Release September 01, 2026 HARYANA VIDYUT PRASARAN NIGAM LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	700.00	ACUITE AA- | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	997.50	ACUITE AA- | Stable | Reaffirmed	-	RBI
Bank Loan Ratings	0.00	50.00	-	ACUITE A1+ | Reaffirmed	RBI
Total Outstanding	0.00	1747.50	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 reaffirmed its long-term rating of 'ACUITE AA-' (read as ACUITE double A minus) and short-term rating of ‘ACUITE A1+’ (read as ACUITE A one plus)  to Rs.1047.50 crore bank facilities of Haryana Vidyut Prasaran Nigam Limited (HVPNL). The outlook is ‘Stable’. Acuité has assigned its long-term rating of 'ACUITE AA-' (read as ACUITE double A minus) to Rs.700.00 crore bank facilities of Haryana Vidyut Prasaran Nigam Limited (HVPNL). The outlook is ‘Stable’. Rationale for Rating The rating reaffirmation factors in HVPNL's improvement in scale of operations, marked by an increase in operating income to Rs. 2,886.17 Cr. in FY26 from Rs. 2,386.04 Cr. in FY25, supported by higher electricity transmission volumes and a marginal increase in transmission charges. The operating profitability also witnessed a slight improvement, with the EBITDA margin increasing to 49.23% in FY26 from 48.69% in FY25. However, the profitability at the net level moderated, with the PAT margin declining to 12.59% in FY26 from 16.33% in FY25, primarily on account of higher depreciation and finance costs arising from ongoing capital expenditure and debt servicing requirements. The rating continues to derive strength from the company's healthy financial risk profile, characterized by a healthy tangible net worth, low gearing levels, and comfortable debt protection metrics. The rating also factors in HVPNL's strong liquidity position, supported by healthy unencumbered cash and bank balances, adequate net cash accruals against debt repayment obligations, and sufficient financial flexibility to support its planned capital expenditure plans. However, the rating remains constrained by the decline in net profitability during FY26 and the company's sizeable capital expenditure plans, which could exert pressure on its financial metrics over the medium term.

About the Company

­Haryana Vidyut Prasaran Nigam Limited (HVPNL) is a State Government of Haryana undertaking and was incorporated in1997. The company is engaged in transmission company power and is licensed by Haryana Electricity Regulatory Commission (HERC) for transmission and bulk supply of power in Haryana. HVPNL receives power from generation companies, predominantly from Haryana Power Generation Corporation Limited (HPGCL), which is further transmitted through its transmission network consisting of high-tension lines and sub-stations to the distribution companies (discoms) namely: Uttar Haryana Bijli Vitran Nigam Limited and Dakshin Haryana Bijli Vitran Nigam Limited. The major portion of transmission is done to UHBVNL and DHBVNL; ~99% as on date. In addition to this, the company also supplies power to NTPC, CRPCL, Indian Railways etc.

Unsupported Rating

Not Applicable

Analytical Approach

­Acuité has adopted the standalone approach while assessing the business and financial risk profile of HVPNL and has notched up the rating on the back of benefits emanating from the ownership by Government of Haryana (GoH). GoH holds ~99% equity ownership in HVPNL besides regular managerial and financial support to HVPNL.

Key Rating Drivers

Strengths

­Support from State Government of Haryana Haryana Vidyut Prasaran Nigam Limited (HVPNL) is a state Government undertaking with Government of Haryana having 99% stake in the company. The company is a strategically important entity and forms the backbone of the power sector infrastructure of state. The company is a sole bulk power transmission company in Haryana. The company is a licensed entity for transmission and bulk supply of power in Haryana and primarily provides transmission services to the state utilities such as Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) and Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL). Apart from this, the company also transmits power to other entities such as NTPC, Indian Railways and Tata Power Trading Company Limited (TPTCL). Further, state Government of Haryana has also extended guarantee for the bank facilities of the company. Improvement in scale of operations HVPNL's revenue profile remains supported by the regulated nature of its operations, wherein the Haryana Electricity Regulatory Commission (HERC) determines transmission tariffs, wheeling charges, and State Load Dispatch Centre (SLDC) charges based on various parameters, including cost structure and permissible returns on capital employed. The company reported a total operating income of Rs. 2,886.17 Cr. in FY26 as against Rs. 2,386.04 Cr. in FY25, registering a growth of 20.96%. Revenue continues to be predominantly derived from the transmission segment, which contributed 86.36% of total operating income in FY26, compared with 84.67% in FY25 and 86.84% in FY24. The company's operating profitability improved marginally, with the EBITDA margin increasing to 49.23% in FY26 from 48.69% in FY25, supported by the growth in revenue. However, the PAT margin declined to 12.59% in FY26 from 16.33% in FY25, primarily on account of higher depreciation and finance costs. Further, the company reported an operating income of Rs. 756.42 Cr. in Q1 FY27, indicating continued stability in its revenue profile. Acuité believes that HVPNL's scale of operations will continue to remain healthy, supported by its strategic role as the state transmission utility, regulated revenue framework, and ongoing investments in strengthening and expanding its transmission infrastructure. Healthy Financial risk profile The financial risk profile of HVPNL remains healthy, supported by its strong net worth base and moderate leverage levels. The company's tangible net worth improved to Rs. 6,025.52 Cr. as on March 31, 2026 from Rs. 5,681.44 Cr. as on March 31, 2025, driven by accretion of profits to reserves. The debt-to-equity ratio moderated slightly to 0.91 times as on March 31, 2026 from 0.87 times as on March 31, 2025, primarily on account of debt-funded capital expenditure undertaken towards the addition and strengthening of transmission lines and substations. The debt protection metrics remained comfortable, albeit with a marginal moderation. The interest coverage ratio stood at 3.34 times in FY26 against 3.41 times in FY25, while the DSCR stood at 1.62 times in FY26 as compared to 1.73 times in FY25. Going forward, the company intends to fund a significant portion of its planned capital expenditure through internal accruals and cash surpluses, thereby limiting its reliance on external borrowings. Acuité believes that HVPNL's financial risk profile will remain healthy over the medium term, supported by its strong net worth, comfortable debt protection metrics, regulated revenue profile, and prudent funding strategy for its planned capital expenditure program.

Weaknesses

Intensive Working capital operations The working capital operations of HVPNL remain intensive, although certain parameters witnessed improvement in FY26. The Gross Current Assets (GCA) days improved to 248 days in FY26 from 309 days in FY25, primarily driven by better collection efficiency. The debtor days improved to 76 days in FY2026 from 81 days in FY2025, while the inventory holding period remained largely stable at 47 days in FY26 as against 45 days in FY25. The company's receivables are largely concentrated towards state-owned distribution companies, namely UHBVNL and DHBVNL, resulting in relatively elongated receivable cycles. Acuité believes that the working capital operations of the company are likely to remain intensive over the medium term owing to the inherent nature of the power transmission business and the dependence on timely collections from state distribution utilities. However, the established relationship with the state-owned counterparties mitigates the associated counterparty credit risk to some extent.

Rating Sensitivities

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

Growth in the scale of operations by 30% with improving profitability margins. Improvement in working capital management.

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

Revenue falling by 20-25 percent and steep decline in profitability. Any elongation in working capital management

Liquidity Position

Strong

The liquidity profile of HVPNL remains strong, marked by adequate cash accruals and a comfortable liquidity buffer. The company generated net cash accruals of Rs. 986.10 Cr. in FY26 against maturing debt obligations of Rs. 429.03 Cr., resulting in sufficient coverage of its repayment commitments. Further, the company's current ratio stood healthy at 2.21 times as on March 31, 2026, reflecting its comfortable short-term liquidity position. The liquidity profile is further supported by unencumbered cash and bank balances of Rs. 426.74 Cr. and fixed deposits of Rs. 830.76 Cr. as on March 31, 2026. Additionally, the fund-based working capital limits remained largely unutilized, with average utilization at approximately 1.74 percent during the nine months ended June 2026, providing significant financial flexibility. Acuité believes that HVPNL's liquidity position will remain strong over the medium term, supported by healthy cash accruals, substantial liquid investments, low reliance on working capital borrowings, and adequate financial flexibility to meet its debt repayment and capital expenditure requirements.

Outlook: Stable

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Other Factors affecting Rating

None­

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	2886.17	2386.04
PAT	Rs. Cr.	363.42	389.66
PAT Margin	(%)	12.59	16.33
Total Debt/Tangible Net Worth	Times	0.91	0.87
PBDIT/Interest	Times	3.34	3.41

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 • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm • State Government Ratings : https://www.acuite.in/view-rating-criteria-26.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 26 Aug 2025 Letter of Credit Short Term 50.00 ACUITE A1+ (Reaffirmed) Cash Credit Long Term 100.00 ACUITE AA- | Stable (Reaffirmed) Cash Credit Long Term 100.00 ACUITE AA- | Stable (Reaffirmed) Term Loan Long Term 517.50 ACUITE AA- | Stable (Reaffirmed) Cash Credit Long Term 80.00 ACUITE AA- | Stable (Reaffirmed) Cash Credit Long Term 200.00 ACUITE AA- | Stable (Reaffirmed) 28 May 2024 Letter of Credit Short Term 50.00 ACUITE A1+ (Upgraded from ACUITE A1) Cash Credit Long Term 80.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Cash Credit Long Term 100.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Cash Credit Long Term 200.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Term Loan Long Term 400.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Term Loan Long Term 117.50 ACUITE AA- | Stable (Assigned) Cash Credit Long Term 100.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) 28 Feb 2023 Cash Credit Long Term 80.00 ACUITE A+ | Stable (Reaffirmed) Cash Credit Long Term 100.00 ACUITE A+ | Stable (Reaffirmed) Cash Credit Long Term 200.00 ACUITE A+ | Stable (Reaffirmed) Cash Credit Long Term 200.00 ACUITE A+ | Stable (Reaffirmed) Cash Credit Long Term 100.00 ACUITE A+ | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 200.00 ACUITE A+ | Stable (Reaffirmed) Letter of Credit Short Term 50.00 ACUITE A1 (Reaffirmed)

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

­ Sr. No. Company Name 1 Government of Haryana 2 Haryana Vidyut Prasaran Nigam Limited

Contacts

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

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