Press Release

Press Release

September 11, 2026

NATIONAL INFRA PROJECTS 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	18.00	ACUITE BB+ \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	22.00	-	ACUITE A4+ \| Assigned	RBI
Total Outstanding	0.00	40.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 its long-term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) on the Rs.18.00 Cr. bank loan facilities and short-term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 22.00 Cr. bank loan facilities of National Infra Projects Private Limited (NIPPL). The outlook is 'Stable'.

Rationale for rating assigned
The rating factors in NIPPL's established track record in executing road, highway and urban infrastructure projects, experienced promoters, moderate order book providing medium-term revenue visibility and moderate financial risk profile characterized by comfortable leverage, healthy debt protection metrics and adequate liquidity position. The rating is, however, constrained by the geographically concentrated nature of operations and order book in Karnataka, intensive working capital operations. The rating is further moderated by sizeable loans extended to directors, which constrain the company's effective net worth position, along with the inherent risks associated with the tender-based and competitive nature of the EPC construction industry.

About the Company

National Infra Projects Private Limited (NIPPL), incorporated on March 18, 2023, is a Karnataka-based EPC contractor engaged in the execution of road, highway, bridge, urban infrastructure and irrigation projects. The company was formed pursuant to the conversion of the erstwhile proprietorship concern, M/s. Abdul Kalam Azad (established in 2001), into a private limited company. NIPPL primarily undertakes projects for government authorities such as the National Highways Authority of India (NHAI), Bruhat Bengaluru Mahanagara Palike (BBMP), Karnataka PWD, The Karnataka Road Development Corporation Limited (KRDCL) and other municipal administration bodies. Over the years, the company has established an execution track record across Karnataka and maintains longstanding relationships with various government departments. The company is promoted by Mr. Abdul Kalam Azad and Mr. D.S. Abdul Rahiman, who possess over three decades of experience in the infrastructure construction sector and continue to actively oversee the company's operations and growth strategy.

Unsupported Rating

Not applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of National Infra Projects Private Limited (NIPPL) while arriving at the rating.

Key Rating Drivers

Strengths

Established track record along with experienced promoters
National Infra Projects Private Limited (NIPPL), incorporated in March 2023 pursuant to the conversion of the erstwhile proprietorship concern M/s. Abdul Kalam Azad (established in 2001), is engaged in the execution of road, highway, bridge, urban infrastructure and irrigation projects. The company primarily undertakes EPC contracts for government authorities such as NHAI, BBMP, Karnataka PWD and KRDCL. NIPPL is promoted by Mr. Abdul Kalam Azad and Mr. D.S. Abdul Rahiman, who possess over three decades of experience in the infrastructure construction sector. Acuite believes that the company's established execution track record, experienced promoters and longstanding relationships with government authorities will continue to support its business profile over the medium term.

Moderate scale of operations albeit volatility in profitability and healthy order pipeline
The company's operating income improved to Rs.108.55 crore in FY26 (Prov.) from Rs.84.19 crore in FY25, after declining from Rs.129.30 crore in FY24 due to lower infrastructure spending following the Karnataka government transition. EBITDA stood at Rs.11.93 crore (10.99%) in FY26 (Prov.), compared with Rs.10.28 crore (12.21%) in FY25 and Rs.10.22 crore (7.90%) in FY24, while PAT stood at Rs.5.40 crore (4.97%) in FY26 (Prov.) , as against Rs.3.84 crore (4.56%) in FY25 and Rs.6.64 crore (5.13%) in FY24, respectively. The company reported revenues of Rs.21.95 crore during Q1FY27. As on June, 2026, the company had an unexecuted order book of approximately Rs.200 crore and bids under evaluation aggregating Rs.359.90 crore, providing medium-term revenue visibility. Acuite believes that NIPPL will continue to benefit from its established execution track record, moderate order book position and relationships with government authorities.??????

Weaknesses

Moderate financial risk profile
The financial risk profile of the company remains moderate, supported by improving net worth, comfortable leverage and adequate debt protection metrics. Net worth improved to Rs.24.13 crore in FY26 (Prov.) from Rs.12.73 crore in FY25, aided by profit accretion and infusion of Rs.6.00 crore of subordinated unsecured loans treated as quasi-equity. Total debt stood at Rs.21.26 crore as on March 31, 2026 (Prov.), compared with Rs.18.57 crore in FY25, primarily to support higher working capital requirements. Consequently, gearing improved to 0.88x in FY26 (Prov.) from 1.46x in FY25, while TOL/TNW improved to 2.11x in FY26 (Prov.) from 3.77x in FY25 over the same period. Debt protection metrics remained healthy, with ICR of 4.46x and DSCR of 1.79x in FY26 (Prov.). Acuite notes that, after adjusting for director advances of Rs.11.65 crore, adjusted gearing and adjusted TOL/TNW stood at 1.70x in FY26 (Prov.) and 4.08x in FY26 (Prov.) , respectively. Acuite believes the company's financial risk profile will remain supported by steady accrual generation, while recovery of director advances will remain key monitorables.

Intensive working capital operations
The company's working capital operations remained intensive, with GCA days of 159 days in FY26 (Prov.) as against 155 days in FY25 and 117 days in FY24, driven by higher inventory and WIP levels arising from changes in billing practices. Inventory days increased to 71 days in FY26 (Prov.) from 32 days in FY25, while debtor days improved to 11 days in FY26 (Prov.) from 41 in FY25 days due to billing being undertaken upon actual release of payments by government authorities. The company continued to benefit from healthy supplier support, reflected in creditor days of 100 days in FY26. Further, . The average utilization of fund-based limits remained high at around 86.2% during the six-month period ended June 2026 and while the average utilisation of the non-fund-based limits stood at around 61.7% over the same period, respectively, indicating continued dependence on bank funding for working capital requirements. Acuite believes the company's working capital operations are likely to remain intensive given the project-based nature of its business and dependence on government payment cycles.

Inherent risks in tender-based businesses and intense competition in the industry
The company operates in a highly competitive EPC and civil construction industry, wherein order inflows are primarily dependent upon successful bid conversion through competitive tendering processes. Consequently, growth in revenue and profitability remains contingent upon timely order wins and efficient execution of projects within stipulated timelines. Further, the company's operations and order book are predominantly concentrated in Karnataka, exposing it to geographical concentration risk

Geographical concentration risk
The company derives majority of revenue from government projects limited to Karnataka thereby reflecting higher geographic concentration. Moreover, the majority of unexecuted order book of the company is also geographically limited to state of Karnataka only. Consequently, any slowdown in project awards or delays in fund releases within the state could have a bearing on the company's revenue growth and cash flow profile.

Rating Sensitivities

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

Steady growth in scale of operations with timely execution of existing orders and growth in order book resulting in revenues above Rs 160.00 Cr. coupled with sustaining profitability margin
Improvement in working capital management with GCA below 100 days.
Improvement in financial risk profile

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

Significant decline in revenues and profitability
Deterioration in financial risk profile.
Further elongation in working capital cycle beyond 200 days

Liquidity Position

Adequate

The company's liquidity remains adequate, supported by net cash accruals of Rs.7.55 crore in FY26 (Prov.) against long-term debt repayments of Rs.3.02 crore. As on March 31, 2026 (Prov.), the company maintained cash and bank balances of Rs.1.98 crore, while the current ratio stood at 1.09x. Liquidity, however, remains constrained by the working-capital-intensive nature of operations, reflected in GCA days of 159 days and negative operating cash flows. Acuite believes the company's liquidity is likely to remain adequate over the medium term, supported by stable cash accruals, a healthy order book and moderate debt levels. The average utilization of fund-based limits remained high at around 86.2% during the six-month period ended June 2026 and while the average utilisation of the non-fund-based limits stood at around 61.7% over the same period. Acuite believes the company's liquidity will remain adequate over the medium term, supported by stable accrual generation, a healthy order book and moderate debt levels; however, efficient working capital management and recovery of director advances will remain key monitorables.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	108.55	84.19
PAT	Rs. Cr.	5.40	3.84
PAT Margin	(%)	4.97	4.56
Total Debt/Tangible Net Worth	Times	0.88	1.46
PBDIT/Interest	Times	4.46	4.90

Status of non-cooperation with previous CRA (if applicable)

Other Credit Rating Agency, vide its press release dated June 19, 2026 had denoted the rating of National Infra Projects Private Limited as B/ Stable/A4, Dowgraded and Issuer not co-operating’.

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
Canara Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE A4+ \| Assigned
Canara Bank	Not avl. / Not appl.	Line of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE A4+ \| 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.	3.00	Simple	ACUITE BB+ \| Stable \| Assigned
Canara Bank	Not avl. / Not appl.	Secured Overdraft	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BB+ \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Dharmavarapu Sai Kiran
Senior 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

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.
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.

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