Press Release

Press Release

June 29, 2026

KEAN CONSTRUCTION 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	153.00	ACUITE BBB \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	47.00	-	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Total Withdrawn	0.00	0.00	-	-	-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 long term rating of "ACUITE BBB"(read as ACUITE Triple B) and short term rating of "ACUITE A3+" (read as ACUITE A Three Plus) on Rs.200 crore bank facilities for Kean Construction Private Limited. The Outlook is 'Stable'.

Rationale for Rating:

The rating factors in the group’s established track record and experienced promoters, along with a marginal improvement in scale of operations in FY26 (prov) and healthy unexecuted order book of Rs. 1,860.60 crore, translating into a strong OB/OI ratio of 4.96 times, indicating strong revenue visibility. The rating is also driven by significant improvement in Profitability with EBITDA rising from Rs. 22.71 crore in FY24 to Rs. 50.10 crore in FY26 (Prov.), primarily due to the group securing and executing higher-margin contracts. The financial risk profile is marked moderate, supported by improved net worth, improved gearing, and stable debt protection metrics. Liquidity remains adequate, with net cash accruals (NCA) of Rs. 34.54 crore against long-term debt repayment obligations of Rs. 4.71 crores for the same period and further, NCA is expected to be range of Rs. 35–40 crore against debt repayments of Rs. 9–10 crore in the medium term. However, the rating is constrained by the group’s working-capital-intensive operations; susceptibility to execution delays, as a significant portion of the group’s order book is concentrated in the real estate sector, which is heavily dependent on multiple clearances and approvals; and high geographical concentration, with the entire order book concentrated in Maharashtra, making operations vulnerable to regional risks.
Further, Acuite also notes that as per the order dated 21-04-2026, the National Company Law Tribunal (NCLT) approved the scheme of amalgamation of Kargwal Constructions Private Limited (Transferor) with Kean Construction Private Limited (Transferee). The amalgamation has been undertaken to achieve operational synergies, enhance bidding capacity and strengthen the overall financial position of the merged entity.

About the Company

Maharashtra based Kean Construction Private Limited was initially incorporated as a limited liability partnership in July 2017 and was subsequently converted into a private limited company in May 2024. The company is primarily engaged in executing civil work, finishing work, , and MEP (Mechanical, Electrical, and Plumbing) works for projects related to residential buildings, luxury complexes, commercial building, slum rehabilitation project, and other infrastructure segments for private real estate developers. The Directors of the Company are Mr. Darshan Kanayalkar and Mr. Chirag Mistry.

About the Group

Maharashtra based Kargwal Constructions Private Limited was incorporated in 1^st October 2007 engaged in construction of jetties, fish harbours, port superstructures, piling, and drilling work — with major exposure to Mumbai Port Authority, Vizag Multipurpose Terminal, and Goa State Infrastructure Development Corporation.

Unsupported Rating

Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuite has consolidated the business risk profile and financial risk profile of Kean Construction Private Limited and Kargwal Constructions Private Limited for arriving at the rating, in line with the approved scheme of amalgamation pursuant to the NCLT order dated 21.04.2026.

Key Rating Drivers

Strengths

Benefitted from Experienced Management:
The promoter of the group has possessed expertise in real estate and construction, which has helped them to secure orders from established Private developers. Post amalgamation of the two entities, they will operate under a unified management structure, which is expected to further strengthen the overall business profile. Going forward, Acuite believes that the group will continue to be benefitted from experienced management in the medium term.

Steady scale of operation with improvement in Margin:
The group recorded marginal improvement in revenue of Rs.374.67 crore in FY26 (Prov.) as against Rs.338.62 crore in FY25 was driven by timely execution of orders. Further, As on March 31, 2026, the group’s unexecuted order book stood at Rs.1860.60 crore, translating to a strong OB/OI ratio of 4.96 times, indicating healthy revenue visibility. Further the group has also participated in tender value worth Rs.1400 crore, out of which they are expecting 15-20%. Despite the marginal improvement in revenue, the group’s operating margin improved to 13.37% in FY26 (prov) from 9.99% in FY25 mainly on account of higher-margin contracts taken up and executing the same. Also, many projects were in the execution stage in FY26, whereas in FY25 they were mostly in the initial stage, which had higher setup costs, leading to lower margins earlier. Consequently, The PAT margin also improved to 7.91% in FY26 (Prov.) from 5.81% in FY25. Acuite believes that operating performance is expected to improve in the medium term, supported by healthy unexecuted order book however, the sustainability of profitability will remain a key monitorable.

Moderate Financial Risk Profile:
The Financial Risk profile of the group marked moderately by improved net worth, improved gearing and moderate debt protection metrics for FY 26 (Prov). Total net worth improved to Rs.118.10 crore in FY 26 (Prov.) from Rs.88.33 crore in FY 25 driven by internal accruals. Total borrowing increased to Rs. 116.80 crore in FY 26 (Prov.) as compared to Rs.92.57 crore in FY 25 driven by increase in long-term borrowing mainly for purchasing equipment and construction of Warehouse. Despite the increase in borrowings, Gearing has improved to 0.99 times in FY 26 (Prov.) as compared to 1.05 times in FY 25. Debt protection metrics stood comfortable with Interest coverage ratio and Debt service coverage ratio stood at 5.79 times and 2.24 times in FY 26 (Prov.) as compared to 5.38 times and 2.07 times in FY 25. TOL/TNW and Debt/EBITDA ratio also improved to 1.97 times and 2.18 times in FY 26 (Prov.) as compared to 2.45 times and 2.52 times in FY 25. Acuite believes that financial risk profile of the group is expected to remain in line with FY 26 (Prov).

Weaknesses

Intensive Working Capital Management:
The Working capital management remain intensive marked by GCA days stood at 205 days in FY 26 (Prov.) as compared to 198 days in FY 25 on account of high other current assets and debtors’ days. Debtor days improved to 86 days in FY 26 (Prov.) from 102 days in FY 25 mainly driven by year end booking and also around 36% of the revenue has been booked in Q4FY26. The average collection period is 90-120 days. Inventory days stood at 66 days in FY 26 (Prov.) as compared to 61 days in FY 25, their average Inventory holding period is 2-2.5 months. Other current assets increased to Rs. 64.36 crore in FY 26 (Prov.) as compared to Rs. 39.87 crores in FY 25 mainly driven by retention money receivable. Retention money receivable comprises of 5-10% of the project value which will be realized in the due course. Creditor days also improved to 61 days in FY 26 (Prov.) as compared to 70 days in FY 25 indicates better payable management. Acuite believes Working capital cycle remain intensive over medium term due to the inherent nature of their operation.

High Geographical concentration with heavily dependent on Real estate sector:
The group’s business is fully concentrated in Maharashtra, with 100% of revenue generated from this state in FY26, resulting in high geographical concentration risk. This risk is partly mitigated by a steady inflow of orders and timely execution of projects. However, any adverse developments in the region could impact project execution and overall performance. Further, a significant portion of the unexecuted order book is concentrated in the real estate sector, which involves multiple statutory and regulatory approvals; any delay in such clearances may lead to execution delays and impact operations, though the impact is partly mitigated by the presence of cost escalation clauses in contracts.

Rating Sensitivities

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

Improvement in scale of operation to Rs. 500 cr and profitability
Improvement in Financial risk profile

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

Decline in Scale of operation by 20% and in profitability by 3-4 %
Any further elongation in working capital cycle
Any deterioration in financial risk profile
Delay in execution of order books

Liquidity Position

Adequate

The Liquidity of the group remains adequate marked by net cash accruals of Rs. 34.54 crore against the long-term debt repayment of Rs. 4.71 crore in FY 26 (Prov). Further NCA is expected to be in the range of Rs.35-40 crore against debt repayment of Rs.9-10 crore. The Current ratio stood at 1.45 times in FY 26 (Prov). The Bank limit utilization for the group stood at 80-85 % for six months ending Mar’26. The group has maintained cash and bank balance of Rs. 3.67 crore in FY 26 (Prov). Additionally, the group held liquid investments of Rs. 2.25 crore, primarily in the form of mutual funds which further supported the liquidity. Also, the group plans to enhance its working capital limits to Rs. 34 crore over the medium term, which is expected to support the working capital management. The group is expected to incur Rs.25-30 crore of capex in the form of equipment, for that the group has already received sanctions of Rs. 25 crore, of which Rs. 11.94 crore has been disbursed in Mar’26, and the balance is expected to be disbursed shortly. Acuite believes the group’s liquidity to remain adequate over the medium term, backed by steady accruals against long term debt obligations albeit moderate debt funded capex and intensive working capital cycle.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials (Consolidated)

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	374.67	338.62
PAT	Rs. Cr.	29.65	19.68
PAT Margin	(%)	7.91	5.81
Total Debt/Tangible Net Worth	Times	0.99	1.05
PBDIT/Interest	Times	5.79	5.38

*FY2026 financials are based on abridged financial statements

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
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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
Punjab National Bank	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
Union Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE BBB \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	12.00	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.	34.00	Simple	ACUITE BBB \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Short Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	47.00	Simple	ACUITE A3+ \| Assigned
State Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 Nov 2024	Not avl. / Not appl.	30 Nov 2030	7.00	Simple	ACUITE BBB \| Stable \| Assigned
Union Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	13 Mar 2026	Not avl. / Not appl.	31 Jan 2030	25.00	Simple	ACUITE BBB \| Stable \| Assigned

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

Sr. No	Name of the Company
1	Kean Construction Private Limited
2	Kargwal Constructions Private Limited

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Shreya Banerjee
Analyst-Analytical 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.