Press Release

Press Release

August 24, 2026

H R SQUARE 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	23.18	ACUITE BBB- \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	8.00	-	ACUITE A3 \| Assigned	RBI
Total Outstanding	0.00	31.18	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 minus) on Rs.23.18 Cr. bank loan facilities and short-term rating of 'ACUITE A3’ (read as ACUITE A three) on Rs.8.00 Cr. bank loan facilities of H R Square Private Limited (HRSPL). The outlook is 'Stable'.

Rationale for rating assigned
The assigned rating factors in HRSPL's established track record in manpower outsourcing, warehouse handling and municipal solid waste management (MSWM), supported by experienced promoters and long-standing relationships with customers. The rating derives comfort from the company's stable operating performance, improving profitability, recurring revenue profile and revenue visibility supported by long-tenure MSWM contracts and established customer relationships. The rating is further supported by a moderate financial risk profile characterized by modest net worth, comfortable capital structure and adequate debt protection metrics. However, the rating remains constrained by the moderately intensive working capital operations and dependence on timely collections from government and municipal authorities. The rating is also exposed to timely execution of projects, conversion of the tender pipeline into executable orders and the tender-based nature of the MSWM business.

About the Company

H R Square Private Limited (HRSPL), incorporated in 2011 and headquartered in Hyderabad, Telangana, is engaged in municipal solid waste management (MSWM), manpower outsourcing, warehouse handling, haulage and housekeeping services. The company was converted from HR Square LLP to HR Square Private Limited on May 08, 2024. Over the years, HRSPL has diversified from manpower outsourcing into long-term waste management projects and logistics support services for reputed clients such as Flipkart and Indian Oil Corporation Limited (IOCL). The company is promoted by Mr. Dantuluri Vijay Kumar Raju and Mrs. Dantuluri Parvathi Devi, who possess over two decades of experience in manpower management, waste management and project execution, and continue to actively oversee the company's operations and strategic growth.

Unsupported Rating

Not applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of H R Square Private Limited (HRSPL) while arriving at the rating.

Key Rating Drivers

Strengths

Established track record along with experienced promoters
H R Square Private Limited (HRSPL), incorporated in 2011 and converted from an LLP to a private limited company on May 08, 2024, is engaged in municipal solid waste management (MSWM), manpower outsourcing, warehouse handling, haulage and housekeeping services. Over the years, the company has diversified from manpower outsourcing into long-term waste management projects and logistics support services for reputed clients such as Flipkart and Indian Oil Corporation Limited (IOCL). HRSPL currently executes integrated waste management projects for government authorities including LAD Puducherry, PUDA Yanam and IIT Kharagpur. The company is promoted by Mr. Dantuluri Vijay Kumar Raju and Mrs. Dantuluri Parvathi Devi, who possess over two decades of experience in manpower management, waste management and project execution. Acuite believes that HRSPL's established operating track record, experienced management team, long-term government contracts and diversified service portfolio will continue to support its business profile and growth prospects over the medium term.

Modest scale of operations with improving profitability
HRSPL's operating performance remained stable during FY24-FY26 (Prov.), with operating income improving to Rs.116.00 crore in FY26 (Prov.) from Rs.107.25 crore in FY25 and Rs.106.73 crore in FY24, supported by growth in MSWM activities and recurring service contracts. The contribution from the MSWM segment increased to Rs.47.28 crore in FY26 from Rs.34.42 crore in FY25 and Rs.30.82 crore in FY24, improving revenue diversification.Profitability improved steadily, with EBITDA increasing to Rs.15.63 crore (13.48%) in FY26 (Prov.) from Rs.14.24 crore (13.28%) in FY25 and Rs.11.92 crore (11.17%) in FY24, supported by a favourable business mix and operating leverage. Consequently, PAT improved to Rs.6.70 crore (5.77%) in FY26 (Prov.) from Rs.6.14 crore (5.72%) in FY25 and Rs.5.65 crore (5.29%) in FY24. Further, the company reported revenue of Rs.33.71 crore in Q1 FY27. Acuite believes HRSPL's stable operating profile, improving profitability, recurring revenue streams and long-term MSWM contracts will continue to support its operating performance over the medium term.

Moderate financial risk profile
HRSPL's financial risk profile is moderate, supported by modest net worth, comfortable capital structure and adequate debt protection metrics. The company’s net worth improved to Rs.20.90 crore in FY26 (Prov.) from Rs.17.33 crore in FY25 and Rs.13.86 crore in FY24, supported by profit retention and continued promoter support through quasi-equity of Rs.4.20 crore as on March 31, 2026 (Prov.). Total debt remained at a manageable level of Rs.23.91 crore in FY26 (Prov.), comprising of long-term borrowings of Rs.7.80 crore, and short-term borrowings of Rs.16.11 crore, as against Rs.22.33 crore in FY25 and Rs.23.24 crore in FY24. The capital structure remained comfortable, with gearing improving to 1.14x in FY26 (Prov.) from 1.29x in FY25 and 1.68x in FY24, while TOL/TNW improved to 1.47x from 1.60x and 2.56x, respectively. Debt protection metrics remained adequate, with interest coverage ratio (ICR) improving to 5.65x in FY26 (Prov.) from 4.87x in FY25 and 4.69x in FY24. Further, debt service coverage ratio (DSCR) improved to 2.62x in FY26 (Prov.) from 1.11x in FY25 and 3.83x in FY24, while Debt/EBITDA moderated to 1.53x from 1.69x and 1.93x, respectively. Acuite believes HRSPL's financial risk profile would remain moderate over the medium term on the back of modest net worth base.

Weaknesses

Moderately intensive working capital operations
HRSPL's working capital operations are moderately intensive, reflected by gross current asset (GCA) of 97 days in FY26 (Prov.), as against 74 days in FY25 and 96 days in FY24, driven primarily by higher receivables and other current assets. Debtor days stood at 54 days in FY26 (Prov.), as against 21 days in FY25 and 60 days in FY24. Nevertheless, receivable collection periods generally remain within 30-60 days, indicating a manageable collection cycle despite the company's exposure to government and municipal authorities. Average utilisation of fund-based bank facilities remained moderate at 78.19% during the six months ended April 2026, while non-fund-based utilisation stood at 66.19%. Acuite believes the working capital profile is likely to remain moderate, supported by the company's recurring revenue base and established collection track record, although timely realization of receivables from government counterparties and efficient management of advances will remain key monitorables.?

Exposure to regulatory risk and tender-based nature of business
The company derives a significant portion of its business through competitive tenders floated by municipal corporations and government authorities. Accordingly, business growth remains dependent on timely award and renewal of contracts, regulatory compliance and government spending on waste management initiatives. However, the risk is mitigated by HRSPL's established execution track record, healthy order book of Rs.406.68 crore, long-tenure MSWM contracts with escalation and extension clauses, and long-standing relationships with government authorities and reputed customers.

Rating Sensitivities

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

Significant growth in scale of operations with operating income exceeding Rs.200 crore while maintaining EBITDA margins above 13% on a sustained basis
Strengthening in financial risk profile
Improvement in working capital management

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

Significant decline in revenues and profitability with net cash accruals below Rs. 6 Cr
Deterioration in financial risk profile
Further elongation in working capital cycle

Liquidity Position:

Adequate

The liquidity position of HRSPL remains adequate, supported by net cash accruals of Rs.10.78 crore in FY26 (Prov.) against debt repayment obligations of Rs.2.41 crore. Further, net cash accruals are expected to remain in the range of Rs.11.50 crore-Rs.13.40 crore during FY27-FY28, comfortably covering annual debt obligations of around Rs.1.60 crore-Rs.1.65 crore. Liquidity is, however, moderated by the working capital requirements of the business, reflected in GCA days of 97 days in FY26 (Prov.) and dependence on timely realizations from government and institutional customers. As on March 31, 2026 (Prov.), the company maintained cash and bank balances of Rs.1.11 crore, while the current ratio stood at 1.22x. The average utilisation of fund-based working capital facilities remained moderate at 78.19% during the six months ended April 2026, while non-fund-based utilisation stood at 66.19%. Acuite believes HRSPL's liquidity profile will remain adequate, supported by healthy cash accruals, a stable revenue base and a healthy executable order book; however, timely realization of receivables and efficient working capital management will remain key monitorables.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	116.00	107.25
PAT	Rs. Cr.	6.70	6.14
PAT Margin	(%)	5.77	5.72
Total Debt/Tangible Net Worth	Times	1.14	1.29
PBDIT/Interest	Times	5.65	4.87

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
• 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

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
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.	8.00	Simple	ACUITE A3 \| Assigned
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.	9.50	Simple	ACUITE BBB- \| Stable \| Assigned
A U Small Finance Bank	Not avl. / Not appl.	Secured Overdraft	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.74	Simple	ACUITE BBB- \| Stable \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	01 Jul 2024	Not avl. / Not appl.	07 Jul 2030	0.84	Simple	ACUITE BBB- \| Stable \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	09 Jul 2024	Not avl. / Not appl.	07 Aug 2031	3.62	Simple	ACUITE BBB- \| Stable \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	01 Jul 2024	Not avl. / Not appl.	07 Jul 2029	1.48	Simple	ACUITE BBB- \| Stable \| Assigned

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 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.