Press Release

Press Release

July 29, 2026

K2 INFRAGEN 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	127.00	ACUITE BBB- \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	73.00	-	ACUITE A3 \| Assigned	RBI
Total Outstanding	0.00	200.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 the long-term rating of 'ACUITE BBB-'(read as ACUITE triple B minus) and short term rating of 'ACUITE A3' (read as ACUITE A Three) on the Rs. 200 Cr. bank facilities of K2 Infragen Limited. The outlook is 'Stable'.

Rationale for Rating
The rating reflects K2 Infragen Limited's established presence in the infrastructure EPC sector, diversified execution capabilities across water supply, railways, roads & bridges, power transmission and renewable energy segments, and the extensive experience of its management team. The rating also factors in the company's improving scale of operations, with revenue increasing to Rs. 184.68 crore in FY2026 from Rs. 146.61 crore in FY2025, supported by diversification of revenue streams beyond the Water supply projects. The company's operating profitability remained stable, supported by the presence of escalation clauses in most contracts that mitigate input cost volatility. The rating further derives comfort from the healthy order book position of approx Rs. 1,003.22 crore as of May 2026, providing strong revenue visibility over the medium term. The rating also takes into account the company's above-average financial risk profile, marked by an improving tangible net worth, moderate leverage levels, and healthy debt protection metrics. Liquidity remains adequate, supported by sufficient cash accruals, comfortable current ratio and adequate cash balances against debt repayment obligations though it may witness some moderation over the medium term on account of sizeable scheduled debt repayments in the upcoming years, However, the above strengths are partly offset by the company's working capital-intensive operations, reflected in elevated receivable levels, and a stretched operating cycle. The rating is further constrained by the company's exposure to execution and funding risks inherent in infrastructure projects.

About the Company

K2 Infragen Limited, headquartered in Gurugram, Haryana, was incorporated in 2015 and is engaged in the execution of EPC infrastructure projects across water supply, civil infrastructure, railways, power and renewable energy sectors. Mr. Pankaj Sharma, Managing Director of the company, along with an experienced management team, oversees its operations. The company was listed on the NSE Emerge platform in April 2024 and has executed over 50 projects across multiple states in India.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has taken standalone business and financial risk profile of K2 Infragen Limited (K2IL) Limited to arrive at the rating.

Key Rating Drivers

Strengths

Established Operational Track Record Driven by Experienced Promoter and Diversified Infrastructure Expertise
K2 Infragen Limited (K2IL), incorporated in 2015, is promoted by Mr. Pankaj Sharma, the Managing Director and Founder, who possesses more than two decades of experience in the infrastructure and EPC sector. Since its incorporation in 2015, the company has built execution capabilities across diverse infrastructure segments, including railways, power transmission & distribution, roads, water supply, civil construction and renewable energy. Acuité believes that K2IL's established operational track record, diversified infrastructure presence and the extensive experience of its promoter support its business growth prospects and revenue visibility.

Healthy Scale of Operations with moderate margins

K2 Infragen Limited witnessed healthy growth in its scale of operations, with revenue increasing to Rs. 184.68 crore in FY2026 from Rs. 146.61 crore in FY2025. The revenue growth was primarily driven by the diversification of its business profile, marked by a gradual reduction in its dependence on water supply projects and increased contribution from other infrastructure segments.
The operating margin stood at 12.36% in FY2026 as against 12.71% in FY2025. While profitability remained healthy, margins moderated marginally owing to a shift in the company's revenue mix. Earlier, a significant portion of revenues was generated from Water Supply Projects (WSP); however, with the diversification of its project portfolio across multiple infrastructure verticals, the associated execution and operational expenses widened, impacting profitability. Consequently, the PAT margin stood at 7.22% in FY2026 as against 7.94% in FY2025. Acuité believes that the company's scale of operations is expected to show steady growth over the near to medium term, supported by its diversified revenue profile and healthy order book.

Above average financial risk profile
The financial risk profile of the company is above average marked by improving net worth, moderate gearing and healthy debt protection metrices. The tangible net worth of the company stood at Rs. 89.51 Cr. as on March 31, 2026 as compared to Rs. 76.21 Cr. as on March 31, 2025 due to accretion to reserves. The gearing of the company stood at 1.17 times as on March 31, 2026 as compared to 0.75 times as on March 31, 2025. Acuite notes that the company has taken bank guarantee from one of the bank for Rs. 28 Cr. of which term loan of Rs. 25 cr. is a sub limit (disbursed) to be repayable in next 24 months. This was taken to meet working capital requirements of the company. Going forward, the company's gearing levels are expected to improve, supported by the absence of any major debt-funded capex plans and steady accretion to net worth through retention of profits. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.54 times as on March 31, 2026 as compared to 1.39 times as on March 31, 2025. The debt protection metrices of the company remain healthy marked by Interest Coverage ratio (ICR) of 3.56 times as on March 31, 2026 and debt service coverage ratio (DSCR) of 2.39 times for March 31, 2026. The net cash accruals to total debt (NCA/TD) stood at 0.15 times as on March 31, 2026 as compared to 0.24 times as on March 31, 2025. Acuité believes that the financial risk profile is expected to improve over the medium term, with steady cash accruals.

Weaknesses

Intensive Working Capital Cycle
The company’s working capital cycle is intensive, as reflected by Gross Current Assets (GCA) of 321 days as on March 31, 2026 and 347 days in March 31, 2025. The GCA days remain elevated due to high receivables and significant balances under other current assets of around Rs. 17 crore in FY2026 , primarily comprising advances to suppliers and balances with revenue authorities. The debtor stood at 274 days in FY2026 from 323 days in FY2025, with the relatively high level mainly attributable to revenue concentration in the last quarter. Creditor days stood at 77 days in FY2026 compared to 161 days in FY2025. Acuité believes that the company’s working capital cycle is expected to improve over the medium term, supported by better collection efficiency and streamlined working capital management.

Susceptibility to tender-based operations
The revenue and profitability for tendering based operations depends entirely on the ability to win tenders wherein entities face intense competition, thus requiring them to bid aggressively to procure contracts and restrict the operating margin to a moderate level. Also, given the cyclicality inherent in the construction industry, the ability to maintain profitability margin through operating efficiency becomes critical.

Rating Sensitivities

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

Revenue growth above Rs. 300 crore while maintaining healthy profitability margins.
Improvement in financial risk profile with moderation in gearing levels.
Improvement in working capital cycle .

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

Decline in operating margins below 10%.
Further elongation in working capital cycle impacting liquidity position.
Significant delays in execution or cancellation of major orders affecting revenue visibility and cash flows

Liquidity Position

Adequate

The company has adequate liquidity marked by net cash accruals of Rs 16.26 Cr. as on FY2026 as against Rs. 2.36 Cr. long-term debt repayment over the same period. The repayments for the next two financial years is expected to be around Rs. 22.86 Cr. and Rs. 23.94 Cr. for FY 27 and FY 28 respectively. The cash and bank balance stood at Rs. 6.28 Cr. as on March 31, 2026 and Rs. 1.99 Cr. as on March 31, 2025. The average bank fund based utilization for 6 months ended May 2026 is ~89 percent and for non-fund based it was 16.85 %. The current ratio of the company stood at 1.43 times as on March 31, 2026 as compared to 1.35 times as on March 31, 2025. Acuité believes that the company's liquidity position is likely to remain adequate, albeit susceptible to some pressure in the medium term due to scheduled debt repayments and incremental working capital requirements arising from the execution of its healthy order book.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials :

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	184.68	146.61
PAT	Rs. Cr.	13.33	11.65
PAT Margin	(%)	7.22	7.94
Total Debt/Tangible Net Worth	Times	1.17	0.75
PBDIT/Interest	Times	3.56	6.34

FY2026 financials are based on abridged financial statements

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

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
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	28.00	Simple	ACUITE A3 \| Assigned
ICICI BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A3 \| Assigned
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.	30.00	Simple	ACUITE A3 \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Bills Discounting	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	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.	5.00	Simple	ACUITE BBB- \| Stable \| Assigned
ICICI BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE BBB- \| Stable \| Assigned
Union Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE BBB- \| Stable \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Dropline Overdraft	Unlisted	RBI	17 Mar 2026	Not avl. / Not appl.	17 Mar 2031	5.00	Simple	ACUITE BBB- \| Stable \| Assigned
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.	52.00	Simple	ACUITE BBB- \| Stable \| Assigned
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Secured Overdraft	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE BBB- \| Stable \| Assigned
Vivriti Capital Limited	Not avl. / Not appl.	Working Capital Term Loan	Unlisted	RBI	27 Mar 2026	Not avl. / Not appl.	26 Mar 2029	18.00	Simple	ACUITE BBB- \| Stable \| Assigned

* Includes Sublimit of Rs 25 Crore as Term Loan within the Bank Guarantee facility of Kotak Mahindra Bank.

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Prashant Dey
Associate 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.

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.