Press Release June 01, 2026 INDIA COMMERCIAL SERVICES Rating Upgraded, Reaffirmed & Withdrawn

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	14.00	ACUITE BB+ | Upgraded & Withdrawn	-	RBI
Bank Loan Ratings	0.00	50.00	-	ACUITE A4+ | Reaffirmed & Withdrawn	RBI
Total Outstanding	0.00	0.00	-	-	-
Total Withdrawn	0.00	64.00	-	-	-

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­­Acuité has upgraded and withdrawn the long-term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from ‘ACUITE BB-’ (read as ACUITE Double B minus) and reaffirmed and withdrawn the short-term rating of ‘ACUITE A4+’ (read as ACUITE A Four plus) on Rs. 64.00 Cr. bank facilities of India Commercial Services (ICS). The rating has been withdrawn on account of the request received from the issuer along with No objection certificate (NOC) received from the bank. The withdrawal is in accordance with Acuite's policy on withdrawal of rating as applicable to the respective facility / instrument. Rationale for Upgrade: The rating upgrade considers the migration from 'Issuer Non-Cooperating' status. The rating also draws comfort from management’s experience and established track in same line of business, moderate financial risk profile categorized by moderate net worth, comfortable gearing, comfortable debt protection metrics, along with adequate liquidity. The rating reflects the company’s strong revenue growth supported by increased order book position and expectation of sustenance of similar revenue growth in current year. However, these strengths are partially offset by firm’s high working capital operations, highly competitive industry marked by tender based nature of business and capital withdrawal risk associated with partnership firm.

About the Company

­India Commercial Services (ICS), a Jaipur-based partnership firm incorporated in 1978, has an established operational track record of over four decades in the engineering services segment. The firm is currently managed by its partners, Mr. Rakesh Bargoti and Mr. Shubham Bargoti, who oversee day-to-day operations. ICS is engaged in providing a diversified range of infrastructure-related services, including commissioning and testing of electrical lines, underground cabling works, substation execution, laying of underground steel gas pipelines, and installation of grid-connected solar photovoltaic (PV) systems.

Unsupported Rating

­Not Applicable

Analytical Approach

­­Acuité has considered the standalone business and financial risk profile of India Commercial Services (ICS) to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced partners with established track record in same line of business India Commercial Services (ICS) is a Jaipur-based partnership firm established in 1978 by Mr. Hari Narayan Bargoti. The firm was subsequently joined by late Mr. Mohan Lal Bargoti and Mr. Rakesh Bargoti. At present, the firm is managed by Mr. Rakesh Bargoti and Mr. Shubham Bargoti as partners. Mr. Rakesh Bargoti brings over four decades of experience in the line of business, while Mr. Shubham Bargoti has around 10 years of relevant experience. The firm benefits from the extensive industry experience of its partners, which has supported its steady growth over the years. Acuite believes that ICS’s moderate order book position along with the experience of management and operational track record, will continue to support the business of the firm. Improving operating performance on account of growing execution and moderate order book The firm reported an operating revenue of Rs. 190.33 Cr. in FY26(Prov.), marking a significant increase of ~10.85 percent y-o-y from Rs. 171.70 Cr. in FY25. This growth is attributable to the higher execution of the contracts. Further, the moderate outstanding order book of ~Rs. 1567.75 Cr. as on May 12th, 2026, to be executed over the next 3-4 fiscals provides sustained revenue visibility over the medium term. Of the current order book, around 44% of the orders came from higher value projects. The firm’s operating margin increased to 8.31 per cent in FY2026(Prov.) from 8.10 per cent in FY2025. The PAT margin of the firm stood at 6.28 percent in the FY2026(Prov.) as against 6.18 percent in the FY25. as in the FY2026(Prov.) there was capital gain on sale of script of mutual funds of Rs. 1.10 Crore. However, in absolute terms PAT increased which stood at Rs 11.94 crore in FY2026(Prov.)  as against Rs. 10.60 crore in FY25. Management expects its own execution capabilities to improve over the medium term, which is likely to drive an increase in operating profitability in the near to medium term. Acuite believes that while firm’s operating performance will remain supported by its unexecuted order book, improvement in profitability and timely execution will remain key monitorable going forward.

Weaknesses

­Moderate financial risk profile The firm’s financial risk profile is marked by moderate net worth, comfortable gearing and comfortable debt protection metrics. The adjusted tangible net worth of the firm stood at Rs. 33.89 crore as on March 31, 2026 (Prov.) from Rs. 30.04 crore as on March 31, 2025 due to accretion of profit and infusion of funds by partners in form of capital. Gearing of the firm increased and stood at 1.54 times as on March 31,2026 (Prov.) as against 0.66 times as on March 31, 2025 due to increase in debt obligation in the form of vehicle loan. However, gearing is expected to improve in near to medium term as firm has no large capex plan. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood high at 3.18 times as on March 31, 2026(Prov.) as against 2.94 times as on March 31, 2025. The moderate debt protection metrics of the firm stood by interest coverage ratio at 3.61 times as on March 31, 2026 (Prov.) and debt service coverage ratio at 3.02 times as on March 31, 2026 (Prov.) as against 4.56 times and 3.75 times as on March 31, 2025 respectively mainly on account of increase in finance cost. Net Cash Accruals/Total Debt (NCA/TD) stood at 0.24 times as on March 31, 2026(Prov.) as against 0.56 times as on March 31, 2025. Acuite believes that going forward the financial risk profile of the firm will improve and remain comfortable over the medium term on the absence of any large capex plan in medium term.   Working capital intensive operations The firm’s operations remained working capital intensive as reflected in gross current asset (GCA) days of 249 days as on March 31, 2026 (Prov.) as against 222 days as on March 31, 2025. The GCA days is high primarily on account of high inventory days and other receivables in form of various deposits (including lien marked Fixed deposit), advances to related parties. The inventory days stood at 34 days as on March 31, 2026 (Prov.) as against 21 days as on March 31, 2025. The debtor days stood at 186 days as on March 31, 2026 (Prov.) as against 60 days as on March 31, 2025. Debtor cycle generally depends on projects. In agricultural projects, debtors’ cycle is elongated, whereas in Revamped Distribution Sector Scheme (RDSS), receivable cycle is 10 days from the date of invoice.  The creditor days stood 164 days as on March 31, 2026 (Prov.) as against 96 days as on March 31, 2025. The fund-based limit remained utilized at ~86.15 per cent and non-fund-based limit remained utilized at ~88.45 percent over the six months ended April, 2026. Acuite believes that the working capital operations of the firm will remain at same level as evident from movement in the inventory period, other receivables and advances to related parties will remain a key monitorable. Capital withdrawal risk associated with partnership firm Being a partnership firm, firm is exposed to the capital withdrawal risk. Any significant withdrawal from the partner’s capital will have a negative bearing on the financial risk profile of the firm. Highly competitive industry marked by tender based nature of business The firm’s performance is susceptible to the tender based nature of business, where the business depends on the ability to bid for contracts successfully. Risk become more pronounced as tendering is based on minimum amount of biding of contracts.

Rating Sensitivities

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

­Not Applicable

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

­Not Applicable

Liquidity Position

Adequate

­The firm has an adequate liquidity position marked by net cash accruals (NCA) against the maturing debt obligations. The firm generated cash accruals of Rs. 12.48 crore in FY26 (Prov.) as against Rs. 0.94 Cr. maturing debt obligations over the same period. The firm is estimated to generate cash accruals of Rs. 12.00- 15.00 crore over the period of 2027- 2028 against Rs. 1.00- 2.00 Cr. maturing debt obligations over the same period. The firm maintains unencumbered cash and bank balance of Rs. 0.43 crore as on March 31, 2026 (Prov.). The current ratio is comfortable at 1.48 times as on March 31, 2026 (Prov.). The fund-based limit remained utilized at ~86.15 per cent and non-fund-based limit remained utilized at ~88.45 percent over the six months ended April, 2026. Moreover, the working capital cycle of the firm is moderate marked by Gross Current Asset (GCA) of 249 days in FY2026 (Prov.) as compared to 222 days in FY2025. Acuite believes that going forward the firm will continue to maintain adequate liquidity on account of adequate net cash accruals against its matured repayment obligations.

Outlook

­Not Applicable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	190.33	171.70
PAT	Rs. Cr.	11.94	10.60
PAT Margin	(%)	6.28	6.18
Total Debt/Tangible Net Worth	Times	1.54	0.66
PBDIT/Interest	Times	3.61	4.56

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

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 23 Jan 2026 Bank Guarantee (BLR) Short Term 17.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*) Bank Guarantee (BLR) Short Term 33.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*) Secured Overdraft Long Term 5.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable) Secured Overdraft Long Term 4.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable) Secured Overdraft Long Term 5.00 ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB | Stable) 04 Nov 2024 Bank Guarantee (BLR) Short Term 33.00 ACUITE A4+ (Assigned) Bank Guarantee (BLR) Short Term 17.00 ACUITE A4+ (Reaffirmed) Secured Overdraft Long Term 4.00 ACUITE BB | Stable (Reaffirmed) Secured Overdraft Long Term 5.00 ACUITE BB | Stable (Reaffirmed) Secured Overdraft Long Term 5.00 ACUITE BB | Stable (Assigned) 30 Jan 2024 Bank Guarantee (BLR) Short Term 17.00 ACUITE A4+ (Reaffirmed) Secured Overdraft Long Term 4.00 ACUITE BB | Stable (Upgraded from ACUITE BB- | Stable) Secured Overdraft Long Term 5.00 ACUITE BB | Stable (Assigned)

­

­

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Ritika Lalwani 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   1 Includes 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. 3 The 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. 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.