Press Release August 19, 2026 KRL INFRATECH (INDIA) 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	34.80	ACUITE BBB- | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	15.00	-	ACUITE A3 | Assigned	RBI
Total Outstanding	0.00	49.80	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 assigned the long term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B minus) and the short term rating of ‘ACUITE A3’ (read as ACUITE A three) on the Rs. 49.80 crore bank facilities of KRL Infratech (India) Limited (KIIL). The outlook is ‘Stable’. Rationale for rating  The assigned rating factors in the company’s long operational track record, experienced management team and established relationships with reputed customers, which continue to support its business risk profile. The rating also derives comfort from the gradual improvement in the scale of operations, coupled with healthy profitability margins, as well as the company’s moderate financial risk profile and adequate liquidity position. However, the rating remains constrained by the moderately intensive working capital nature of operations and the company’s exposure to risks associated with its tender-based business model, wherein timely procurement of new orders and efficient execution of existing contracts remain critical to sustaining business performance.

About the Company

KRL Infratech (India) Limited (KIIL), incorporated in 2007 and headquartered in Kolkata, West Bengal, is engaged in providing steel mill services to iron and steel manufacturers across India. The company offers a range of services, including slag handling and processing, metal recovery, scrap processing, skull handling, and in-plant material movement, catering to the operational requirements of blast furnace and steel melt shop environments. In addition to its core slag management and metal recovery operations, KIIL has diversified into mining and municipal solid waste management activities. The company is owned and managed by Mr. Piyush Lakhotia and Mr. Manish Lakhotia.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profiles of the KIIL to arrive at this rating.

Key Rating Drivers

Strengths

Experienced management with established customer relationships The company is led by its directors, Mr. Manish Kumar Lakhotia and Mr. Piyush Kumar Lakhotia, who possess over three decades of industry experience. Their leadership, industry expertise, and strong understanding of market dynamics have been instrumental in driving KIIL's operational performance and business growth. Over last two decades, the company has developed long-standing relationships with reputed customers. Going forward, KIIL is expected to continue benefiting from its experienced management team, established market presence, and strong relationships with key customers and other stakeholders. Gradual improvement in scale of operations while maintaining healthy profitability margins KIIL has reported a gradual improvement in its scale of operations over the past few years, with operating income increasing to Rs. 104.99 crore in FY2026 (Prov.) from Rs. 82.88 crore in FY2025 and Rs. 72.30 crore in FY2024 due to healthy execution of orders. Further, the company reported revenue of ~Rs. 25 crores in Q1FY2027 and is expected to achieve revenues of ~Rs. 130 crores in FY2027, indicating continued growth momentum. Furthermore, the company has an unexecuted order book value of ~Rs.348.83 Cr. providing healthy revenue visibility over the medium term. The company's profitability also is comfortable, with the EBITDA margin improving to 26.68 percent in FY2026 (Prov.) from 21.32 percent in FY2025. The improvement was primarily driven by capital expenditure undertaken towards the deployment of owned machinery, resulting in enhanced operational efficiencies and better cost control. Despite an increase in depreciation and interest expenses arising from the recently completed capex and the associated rise in debt levels, the company's profitability remained resilient. Consequently, the PAT margin improved to 6.61 percent in FY2026 (Prov.) from 4.97 percent in FY2025. Going forward, the company's ability to sustain its revenue growth while maintaining healthy profitability margins will remain a key rating monitorable. Moderate financial risk profile The financial risk profile of KIIL is moderate, marked by modest net worth, high gearing, and comfortable debt protection metrics. The company's net worth improved to Rs. 36.54 crore as on March 31, 2026(Prov.), from Rs. 29.60 crore as on March 31, 2025, aided by healthy accretion of profits to reserves. Further, the gearing (Debt to Equity) stood at 2.22 times as on March 31, 2026 (Prov.), as against 2.66 times as on March 31, 2025. The total debt stood at Rs. 81.10 crore as on March 31, 2026 (Prov.), comprising long-term bank borrowings of Rs. 45.07 crore, short-term borrowings of Rs. 19.65 crore and current maturities of long-term debt of Rs. 16.39 crore, as compared to Rs. 78.82 crore as on March 31, 2025. The debt protection indicators are comfortable with the interest coverage ratio (ICR) at 3.31 times in FY2026 (Prov.) against 3.17 times in FY2025 and the debt service coverage ratio (DSCR) at 1.90 times against 1.49 times, respectively. Further, the debt-to-EBITDA ratio improved and stood at 2.86 times in FY2026(Prov.) compared to 4.33 times in FY2025 and Total Outside Liabilities/Tangible Net Worth (TOL/TNW) ratio improved to 2.65 times from 3.15 times over the same period.  Going forward, the company may undertake additional debt funded capital expenditure of ~Rs. 15 Cr. for the acquisition of machinery to support business growth and operational requirements, the benefits from this capex and subsequent impact on financial risk profile would remain as a key monitorable. Acuite believes that the financial risk profile of KIIL is expected to remain moderate over the near to medium term on the back modest net worth base.

Weaknesses

Moderately intensive working capital operations KIIL’s working capital operations are moderately intensive marked by Gross Current Asset (GCA) of 170 days for FY2026(Prov.) as against 208 days for FY2025. The receivable days improved and stood at 118 days for FY2026(Prov.) as against 140 days for FY2025. The improvement in receivable days is majorly on account of improved collection efficiency. The inventory days stood at 18 days in FY2026(Prov.) as compared to 42 days in FY2025. Further, the fund-based limit utilization stood at ~90.88 per cent and non-fund-based limit utilization stood at ~68.77 per cent for five months ended April 2026. Acuite believes that the operations of the company would continue to remain moderately intensive considering the nature of the business. Risks inherent in tender-based business KIIL's revenue profile remains dependent on its ability to secure and execute contracts through a competitive tendering process. Consequently, the company's business performance is subject to its success in winning new tenders and maintaining a steady order inflow. However, the presence of price escalation clauses in most of its contracts provides a degree of protection, thereby supporting profitability. Going forward, the company's ability to consistently secure new contracts, maintain a healthy order book, and execute it in a timely and efficient manner will remain key rating monitorable.

Rating Sensitivities

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

-Consistent Improvement in scale of operations with over 25 percent while maintaining profitability margins -Improvement in working capital cycle -Improvement in financial risk profile

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

-Significant decline revenues and profitability -Deterioration in financial risk profile on the back of unexpected debt funded capex or working capital borrowings with debt to equity above 2.5 times consistently -Elongation in working capital cycle

Liquidity Position

Adequate

­The company’s liquidity is adequate marked by sufficient net cash accruals against its repayment debt obligations. The net cash accruals stood at Rs. 18.28 Cr. in FY2026 (Prov.) as against long term debt repayment of Rs. 5.57 Cr. during the same period. Further, the company is expected to generate net cash accruals of ~Rs. 21-25 Cr. against its maturing debt obligation of Rs.16.39-15.80 during FY27-28. Further, the fund-based limit utilization stood at ~90.88 per cent and non-fund-based limit utilization stood at ~68.77 per cent for Five months ended April 2026. The current ratio stood at 1.10 times as on March 31, 2026 (Prov.). The cash and bank balances of the company stood at Rs. 5.14 Cr. as on March 31, 2026 (Prov.). Acuite believes that going forward the liquidity position of the company will remain adequate owing to steady cash accruals.

Outlook: Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	104.99	82.88
PAT	Rs. Cr.	6.94	4.12
PAT Margin	(%)	6.61	4.97
Total Debt/Tangible Net Worth	Times	2.22	2.66
PBDIT/Interest	Times	3.31	3.17

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

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Nidhi Gala 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 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   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. 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.