Press Release February 20, 2026 Magnolia Infrastructure Development Limited Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	83.00	ACUITE BBB- | Stable | Assigned	-
Total Outstanding	83.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has assigned its long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the bank facilities of Rs.83.00 Crore of Magnolia Infrastructure Development Limited (MIDL). The outlook is 'Stable'. Rationale for Rating The assigned rating is primarily reflected by the company’s steady growth in collections, efficient management of project-related risks, and significant improvement in financial flexibility, a l of which strengthen its overall creditworthiness. The company’s diversified residential real estate portfolio, which includes affordable housing, LIG, MIG, and luxury apartments, helps reduce risks associated with relying on a single income segment. As of March 31, 2025, over 71% of the inventory for under-construction projects has been sold, compared to 68.29% physical completion. The rating drives additional comfort with the company’s strong brand presence in Kolkata since 2010, backed by moderate bookings and customer advances for ongoing projects. The company is expected to maintain a favourable debt-service coverage ratio (DSCR) from FY26 to FY30, supported by secured project funding with an escrow mechanism. However, timely collection of payments from tied up sales & unsold inventory and efficient use of funds will remain key factors to monitor. These strengths are partially offset by the exposure to execution risk and the cyclical nature of the real estate market.

About the Company

Kolkata based, Magnolia Infrastructure Development Limited was incorporated in 2010. The company is engaged in construction & development of residential real estate. As on 31st March 2025, the company has already completed 32 projects and delivered more than 5,000 units. The company is currently managed by Mr. Swapan Poddar, Mr. Milan Poddar, Mr. Vivek Poddar, Mr. Abhishek Poddar, Mr. Abhijit Majumdar and Mrs. Minu Tulsian as directors.

Unsupported Rating

­Not Applicable.

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of Magnolia Infrastructure Development Limited (MIDL) to arrive at this rating.

Key Rating Drivers

Strengths

­Experienced management The company is managed by Poddar family having over a decade of experience in real estate sector. In addition, the company has highly skilled and professionalized team who ensures the highest standards in quality and customer satisfaction and their extended market presence has aided the business in building strong client relationships. The company has completed four projects up to Q2 FY 26, receiving Completion Certificates (CC) for two of them. The remaining two are expected to receive their certificates by March 2026. Additionally, the company plans to launch three new projects i.e. Atlantis, Sundae, and Sports City Phase 5 in the near to medium term. The total projected investment for these projects is Rs. 241 cr., with anticipated cash inflows of Rs. 296 cr. Acuite believes going forward, the company will able to execute upcoming projects timely with efficient collections along with its debt repayments. Healthy booking progress and customer advances in project The company's sales velocity is strong in the under-construction projects, with 71% of the total saleable units already sold. This demonstrates sustained visibility of cash flow. The company is expected to receive healthy receivables out of customer advances from both tied up and future sales which will support the remaining construction of ongoing projects. ?

Weaknesses

­Exposure to Execution Risk The company is currently constructing residential projects, with 68% of the physical work completed as of March 31, 2025, and the remaining portion still under construction, exposing it to implementation risk. Funding risk is somewhat mitigated by liquidity from completed projects and secured loans for ongoing projects. However, any delays or slow progress could affect the timely completion of these projects. Susceptibility to Real Estate Cyclicality and Regulatory Risks The real estate industry in India is highly fragmented with most of the real estate developers, having a city specific or region-specific presence. The risks associated with real estate industry are cyclical in nature and directly linked to drop in property prices and interest rate risks, which could affect the operations. Given the high level of financial leverage, the high cost of borrowing prevents the real estate's developers' from significantly reducing prices to boost sales growth. Moreover, the industry is also exposed to certain regulatory risks linked to stamp duty and registration tax directly impacting the demand and thus the operating growth of real estate players.

Rating Sensitivities

­Movement in cash inflows, supported by healthy bookings. Movement in DSCR Any delays in completion of the ongoing projects

Liquidity Position

Adequate

­The company's liquidity profile is adequate marked by healthy sales velocity and healthy receipt of customer advances from its ongoing projects. Furthermore, the expected DSCR of the company stood in the range of 1.5x to 2x times from FY 26 to FY 30. Acuite believes going forward, the company will be able to generate healthy sales velocity from ongoing & upcoming projects in near to medium term which will be comfortable to pay debt obligation timely.?

Outlook - Stable

­

Other Factors affecting Rating

­None.

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	176.47	172.90
PAT	Rs. Cr.	4.36	3.06
PAT Margin	(%)	2.47	1.77
Total Debt/Tangible Net Worth	Times	4.52	6.17
PBDIT/Interest	Times	1.60	1.55

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 • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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 Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.94 Simple ACUITE BBB- | Stable | Assigned IDBI Bank Ltd. Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.50 Simple ACUITE BBB- | Stable | Assigned ICICI BANK LIMITED Not avl. / Not appl. Term Loan 01 Jul 2023 Not avl. / Not appl. 01 Jul 2033 2.37 Simple ACUITE BBB- | Stable | Assigned SBM Bank (India) Ltd. Not avl. / Not appl. Term Loan 30 Nov 2024 Not avl. / Not appl. 31 Oct 2026 16.19 Simple ACUITE BBB- | Stable | Assigned SBM Bank (India) Ltd. Not avl. / Not appl. Term Loan 05 Apr 2025 Not avl. / Not appl. 01 Oct 2026 18.00 Simple ACUITE BBB- | Stable | Assigned SBM Bank (India) Ltd. Not avl. / Not appl. Term Loan 19 Aug 2025 Not avl. / Not appl. 18 Feb 2029 27.00 Simple ACUITE BBB- | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Kartik Arora Senior Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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.