ACUITE BBB- | Reaffirmed | Rating Watch with Developing Implications
-
RBI
Bank Loan Ratings
0.00
60.00
-
ACUITE A3 | Reaffirmed | Rating Watch with Developing Implications
RBI
Total Outstanding
0.00
100.00
-
-
-
Total Withdrawn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 reaffirmed 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 Rs.100 crore facilities of Lanarsy Infra Limited (LIL). The ratings have been placed under 'Rating watch with Developing Implications’.
Rationale for Rating:
The rating watch with developing implications factors in the publicly available information on Lanarsy Infra Limited (LIL) wherein the company has been admitted into the Corporate Insolvency Resolution Process (CIRP) petition filed by Agrawal Infracab Private Limited (operational creditor) against Lanarsy Infra Limited for an outstanding claim of Rs. 4.46 Cr, and an Interim Resolution Professional (IRP) has been appointed as per order dated 19-05-2026. Also, the management is going to file an appeal against the same to NCLAT or high court. Thus, any uncertainty or any adverse effect on LILs operations arising out of IRP appointment will remain a key monitorable.
Further, the rating reaffirmation factors in the company’s stable operating performance, supported by estimated revenue of Rs.236 crore in FY26 and an outstanding order book of around Rs.600 crore, providing medium-term revenue visibility. The rating also factors in the experienced management and long operational track record of the company. However, the rating remains constrained due to intensive working capital operations, concentrated order book and tender based operations.
About the Company
Lanarsy Infra Limited (LIL), headquartered in Bangalore and incorporated in 2011, is a specialized EPC contractor in the civil infrastructure domain of the electrical sector. Founded and promoted by Mr. B Padmaja, who serves as the CEO, the company focuses exclusively on government projects, offering comprehensive end-to-end solutions for power distribution and transmission sector.
Unsupported Rating
Not Applicable
Analytical Approach
Acuite has considered the standalone approach on the basis operational and financial risk profile of Lanarsy Infra Limited (LIL).
Key Rating Drivers
Strengths
Experienced management and established track record of operations The company has a long track record of over a decade in the electrical infrastructure with an established trackrecord of project execution. Currently the company is managed by Mr. Padmaja Bayyavarapu, Mr. Vasubabu Maddisetty and Mr. Maddisetty Naga Dhana Lakshmi, who has been associated with this industry for over a decade.Acuite believes that the experience of the promoters over the years have helped the Company in building healthyrelationship with customers and suppliers which reflects in the healthy order book and timely execution of the same.
Improvement in Operating Performance: LIL has recorded improvement in operational and financial performance in FY 2025, with revenue increasing by 40.70% to Rs.171.46 crore from Rs.121.86 crore in FY 2024, primarily driven by timely execution of orders across key states such as Uttar Pradesh, Jharkhand, Bihar, and Chhattisgarh. As of August 31, 2025, LIL has already recorded Rs.70.46 crore in turnover and holds an outstanding order book of Rs.784.41 crore, translating to a healthy OB/OI ratio of 4.57x, which ensures strong revenue visibility. Despite operating in a competitive environment that necessitates low-margin bidding to secure orders, LIL managed to improve its EBITDA margin to 6.04% in FY 2025 from 5.40% in FY 2024. Further, PAT margin, which rose to 3.63% in FY 2025 from 1.96% in FY 2024, largely due to the absence of prior period tax liabilities that had adversely impacted profitability in the previous fiscal year. The Company has recorded around Rs.236 crore of revenue in FY 26 (Est.) and their net margin is estimated between 5-6% for FY 26. LIL has outstanding order book of Rs.600 crore and order in pipeline around Rs.200 crore further provides revenue visibility. Acuité believes that LIL’s operating performance will continue to strengthen, backed by the outstanding order pipeline.
Moderate Financial Risk Profile: The financial risk profile of the company is moderate marked by net-worth of Rs. 73.80 crore as on 31st March’2025 as compared to Rs.67.57 Crore as on 31st March 2024. The increase in the net-worth is on an account of internal accruals. The Total Debt of the Company increased to Rs.48.56 crore in FY 2025 from Rs.32.15 crore in FY 2024 driven by increase in short term debt. The debt structure comprises of interest free USL from directors of Rs. 28.94 crore, Short term debt of Rs. 19.62 crore in FY 2025. Despite increase in total borrowing their gearing stood stable at 0.66 times in FY 2025 as compared to 0.48 times in FY 2024. . Further, the coverage indicators of the company reflected by interest coverage ratio and debt service coverage ratio which stood at 4.42 times and 3,58 times in FY2025 as against 5.61 times and 3.18 times respectively in FY 2024. The TOL/TNW ratio of the company 1.64 times as on 31st March 2024 as compared to 1.37 times in FY 2024. NCA/TD ratio stood at 0.13 times in FY 2025 as against 0.08 times in FY 2024. Debt to EBITDA stood at 4.41 times as on 31st March’2025. Acuite believes that financial risk profile of the company is expected to remain in the same range in near to medium term in the absence of any long-term debt.
Weaknesses
Intensive Working Capital Management LIL’s working capital operations remain intensive but show signs of improvement, as evidenced by a reduction in Gross Current Asset (GCA) days to 379 days in FY2025 from 466 day in FY 2024, primarily driven by better management of debtors and inventory. Debtor days, though still stretched, improved significantly to 145 days in FY 2025 from 218 days in FY 2024, influenced by customer payment terms and a high concentration of year-end sales. 49% of annual revenue was booked in Q4, with 25% in March 2025 alone. The proportion of debtors over 180 days dropped from 20% as on March 31, 2025, to 7% by August 31, 2025, reflecting improving receivable management. Inventory days also improved to 99 days in FY2025 from 105 days in FY2024. Subsequently, creditor days also improved to 185 days in FY 2025 from 367 days in FY 2024 mainly on account of better collection efficiency in FY 2025 and thus the payment to their suppliers. However, other current assets rose to Rs.62.36 crore in FY 2025 from Rs.48.92 crore in FY 2024, contributing to stretched GCA days, largely due to mainly an increase in retention money receivables. Acuite believes that with continued focus on inventory and receivable monitoring, LIL’s working capital cycle is expected to improve further over the near to medium term.
Order related NCLT: NCLT has admitted Corporate Insolvency Resolution Process petition filed by Agrawal Infracab Private Limited against Lanarsy Infra Limited, and an Interim Resolution Professional (IRP) has been appointed as per order dated 19-05-2026. The claim amount is of Rs. 4.46 Cr. Any uncertainty or any adverse effect on their operations arising out IRP appointment will remain key monitorable. Also, the management is going to file the appeal against the same to NCLAT or high court any unfavourable outcome further will remain key monitorable.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Consistent improvement in revenues and profitability with EBITDA above 8%
Improvement in Working capital cycle
Potential triggers (individual or collective) for a downward rating action:
Decline in scale of operation by 50% due to execution delay
Deterioration in financial risk profile
Any further elongation in working capital cycle
Any significant adverse impact on the operations or credit risk profile arising out of the NCLT
Liquidity Position
Adequate
The company's liquidity position remains adequate, supported by healthy net cash accruals of Rs.6.43 crore as on March 31, 2025, against negligible debt repayment obligations, reflecting a debt-free capital structure in the near to medium term. Although the current ratio moderated to 2.06x in FY25 from 2.80x in FY24, it still indicates a comfortable level of short-term solvency. The average bank limit utilization for the fund based stood at 89% for six months, ending as on Aug’25 and for non-fund base stood at 67% for six months ending as on Mar’25. Additionally, promoter support remains strong, with unsecured loans amounting to Rs.28.94 crore as of March 31, 2025. Acuité expects LIL’s liquidity to remain stable over the medium term, backed by steady cash accruals, continued promoted support, and the absence of major long-term debt obligations.
Outlook:Not Applicable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
171.46
121.86
PAT
Rs. Cr.
6.23
2.38
PAT Margin
(%)
3.63
1.96
Total Debt/Tangible Net Worth
Times
0.66
0.48
PBDIT/Interest
Times
4.42
5.61
Status of non-cooperation with previous CRA (if applicable)
ACUITE A3 | Reaffirmed | Rating Watch with Developing Implications
Canara Bank
Not avl. / Not appl.
Bank Guarantee (BLR)
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
12.00
Simple
ACUITE A3 | Reaffirmed | Rating Watch with Developing Implications
Union Bank of India
Not avl. / Not appl.
Bank Guarantee/Letter of Guarantee
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
15.00
Simple
ACUITE A3 | Reaffirmed | Rating Watch with Developing Implications
Union Bank of India
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
10.00
Simple
ACUITE BBB- | Reaffirmed | Rating Watch with Developing Implications
Canara Bank
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
10.00
Simple
ACUITE BBB- | Reaffirmed | Rating Watch with Developing Implications
Canara Bank
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
10.00
Simple
ACUITE BBB- | Reaffirmed | Rating Watch with Developing Implications
Not Applicable
Not avl. / Not appl.
Proposed Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
10.00
Simple
ACUITE BBB- | Reaffirmed | Rating Watch with Developing Implications
Not Applicable
Not avl. / Not appl.
Proposed Letter of Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
15.00
Simple
ACUITE A3 | Reaffirmed | Rating Watch with Developing Implications
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.
Contacts
List of instruments and names of regulators of the instruments
