Press Release September 24, 2026 NEWEN SYSTEMS PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	75.00	ACUITE BBB+ | Stable | Reaffirmed	-	RBI
Bank Loan Ratings	0.00	25.00	-	ACUITE A2 | Reaffirmed	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Total Withdrawn	0.00	0.00	-	-	-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

Acuité has reaffirmed its long-term rating of ‘ACUITÉ BBB+' (read as ACUITE Triple B plus) and short-term rating of ‘ACUITÉ A2’ (read as ACUITE A two) on the Rs. 100.00 Cr. bank facilities of Newen Systems Private Limited. The outlook is ‘Stable’. Rationale for rating reaffirmation The rating reaffirmation reflects NSPL’s modest scale albeit sustained improvement in its revenues along with healthy order book position and moderate financial risk profile marked by modest net worth, high gearing and moderate coverage indicators. The rating also factors in the strong backing of the Fourth Partner Energy Group which brings a well- established operational track record of over a decade, along with its expected ongoing support to strengthen the business and financial risk profile of Newen Systems Private Limited (NSPL). These strengths are however, constrained by moderately intensive working capital management and its exposure to execution and stabilisation risks associated with ongoing debt funded capex and susceptibility of profitability to input price volatility in an intensely competitive industry.

About the Company

Newen Systems Private Limited (NSPL), incorporated in 2020 and based in Baroda, Gujarat, is an Indian clean energy technology company specializing in Battery Energy Storage Systems (BESS), green hydrogen infrastructure and electric mobility solutions. NSPL provides end-to-end energy solutions, including system design, modelling, simulation, and integration-catering to both "Front of the Meter" and "Behind the Meter" applications. NSPL’s manufacturing facility manufactures bi-directional inverters and DC-DC converters and is India’s first 1 GW PCS manufacturing facility which is has now expanded its production capacity to 4GW annually. The company is ISO 9001 and UL certified, ensuring adherence to international quality standards. NSPL is a wholly owned subsidiary of Fourth Partner Energy Private Limited (FPEPL). The present directors of the company are Mr. Nitin Sharma, Mr. Nitesh Dwarkaprasad Bhutada, Mr. Karan Chadha and Mr. Akhil Katara.

About the Group

Incorporated in 2010, Fourth Partner Energy Private Limited (FPEPL) is engaged in the evaluation, design, planning, procurement, construction, and operation & maintenance of renewable power plants. It is primarily an EPC company at the standalone level, undertaking construction and installation activities for renewable power projects. Further, FPEPL is developing renewable power assets under its SPVs through the opex model. The company is headquartered in Hyderabad and maintains offices in Indian cities, including Pune, Gurgaon, Mumbai, Bengaluru, and Chennai. Since 2021, FPEG has expanded internationally with a presence in South and Southeast Asia, including Indonesia, Vietnam, Sri Lanka, and Bangladesh.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of Newen Systems Private Limited (NSPL). The rating has been notched up by considering support from its parent Fourth Partner Energy Private Limited (FPEPL) in the form of corporate guarantee and unsecured loans provided for its working capital funding and capital expenditure.

Key Rating Drivers

Strengths

Strong Parentage and Continued Support from Fourth Partner Energy NSPL derives significant strength from its parent, Fourth Partner Energy Private Limited (FPEPL), a leading renewable energy solutions provider with a strong institutional investor base and an established presence in the clean energy sector. FPEPL has demonstrated its commitment towards NSPL through regular financial and operational support, including the extension of corporate guarantees and loans for meeting the company's working capital, operational, and capital expenditure requirements. Acuite believes that NSPL will continue to benefit from FPEPL's financial flexibility, managerial support, which is expected to support NSPL's business and financial risk profiles over the medium term. Sustained improvement in revenues with healthy order book position NSPL’s operating scale remained modest with improvement in operating income to Rs. 185.61 crore in FY2026 from Rs. 100.14 crore in FY2025, driven by strong demand for its products and healthy order execution. The company reported revenue of approximately Rs. 52 crore in Q1 FY2027. Revenue growth is supported by a healthy order book of approximately Rs. 870 crore as on June 2026(Previous year order book-Rs. 93.72 Cr.), providing healthy revenue visibility over the near to medium term. Further, NSPL is undertaking a capacity expansion project by shifting to a significantly larger manufacturing facility, which is expected to support its growth prospects over the medium term. The company’s operating profitability moderated, with EBITDA margin declining to 11.18% in FY2026 from 15.94% in FY2025, primarily due to elevated raw material prices, particularly for copper, aluminium, and steel, which are the company's key inputs. The increase in input costs outpaced the company's ability to pass on the higher costs to customers, leading to a contraction in operating margins during FY2026. Further, PAT margin stood at 4.48% in FY2026 as against 6.92 % in FY2025. Acuite believes that the company’s ability to improve its revenue and profitability margins consistently will remain a key rating monitorable.

Weaknesses

Moderate financial risk profile and exposure to execution risk on the back of debt funded capex The financial risk profile of the company remained moderate marked by modest net worth, high gearing (debt-equity) and comfortable debt protection metrics. The tangible net worth improved to Rs. 35.86 crore as on March 31, 2026, from Rs. 7.98 crore as on March 31, 2025, primarily on account of loans from Fourth Partner Energy Private Limited aggregating Rs. 23.27 crore, which have been considered as quasi-equity, along with equity infusion of Rs. 0.50 crore and accretion of profits to reserves. The total debt of the company stood at Rs. 42.82 Cr. which includes long term loan of Rs. 4.40 Crore, and short-term debt of Rs. 37.43 Crore and CPTLD of Rs. 0.99 Crore as on 31 March 2026 as against total debt of Rs. 55.64 Core as on 31 March 2025. The gearing (debt-equity) ratio improved to 1.19 times as on March 31, 2026, from 6.97 times as on March 31, 2025, primarily owing to the treatment of loans extended by the parent company, Fourth Partner Energy Private Limited, as quasi-equity from FY2026 onwards. The debt protection metrics remained comfortable, with Interest Coverage Ratio (ICR) at 3.19 times for FY2026 as against 3.36 times for FY2025 and the debt service coverage ratio (DSCR) at 1.28 times for FY2026 as against 2.86 times for FY2025. Further, the Total Outside Liabilities to Tangible Net Worth (TOL/TNW) ratio stood high at 3.01 times as on March 31, 2026, and Debt/EBITDA stood at 1.94 times in FY2026 as against 3.29 times in FY2025. The company is undertaking a capex of Rs. 140 crore to expand its Battery Energy Storage System (BESS) manufacturing and assembly capacity to 20 GW. The project commenced in June 2026 and is expected to be completed by January 2027, with commercial operations scheduled to begin by September 2027. The capex will primarily be utilized for plant and machinery, infrastructure development, and R&D/testing facilities. The project is being funded through a Rs. 120 crore term loan and Rs. 20 crore through internal accruals. Additional debt availed in FY2027 for capex is expected to elevate gearing levels to above 3 times and moderate coverage indicators to an extent in FY2027 and FY2028. Further Timely implementation of the project within the envisaged cost and schedule, without any material cost overruns, remains a key rating monitorable. Moderately Intensive Working Capital Management The working capital management of the company remained moderately intensive marked by gross current asset (GCA)  of 238 days in FY2026 as against 278 days in FY2025. The GCA days are high on the account of other current assets mainly comprising of balance with government authority (GST Receivables). Further. the inventory days stood at 106 days in FY2026 as against 76 days in FY2025 and the debtor’s collection period stood at 98 days in FY2026 as against 89 days for FY2025. Further, the company's fund-based working capital limits remained moderately utilized, with average utilization of approximately 70.14 percent during the Six-month period ending August 2026. The creditors’ days stood at 142 days in FY2026 as against 109 days in FY2025. Acuite believes, NSPL’s working capital operations are expected to remain in similar range owing to nature of business operations. Exposure to execution risks, input price volatility and intense industry competition NSPL remains exposed to execution risks associated with project-based orders and timely ramp-up of its ongoing capacity expansion. The company is also vulnerable to fluctuations in prices of key raw materials such as copper, aluminium and steel, which can exert pressure on profitability, particularly in a competitive market environment where cost increases may not be fully passed on to customers. Further, the clean energy solutions industry is characterized by intense competition from both domestic and global players, along with technological advancements and evolving customer requirements, necessitating continuous investments in innovation and product development.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

­Newen System Private Limited is receiving financial support from Fourth Partner Energy Private Limited. Stress Scenario Acuité believes that, given the support from Fourth Partner Energy Private Limited, Newen System Private Limited will be able to service its proposed debt on time, even in a stress scenario.

Rating Sensitivities

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

Significant growth in revenues surpassing Rs. 500 Cr. while improving profitability margins Improvement in working capital cycle Improvement in financial risk profile Growth in order book and timely execution of existing orders

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

Significant decline revenues and profitability Deterioration in financial risk profile on the back of additional borrowings for capex or working capital with gearing above 4 times on sustained basis Elongation in working capital cycle ­Any changes in support from Fourth Partner Energy Private Limited

Liquidity Position

Adequate

The company’s liquidity is adequate marked by sufficient net cash accruals against its repayment debt obligations. The company generated cash accruals of Rs. 12.48 Cr. in FY2026, while its maturing debt obligations stood at Rs. 8.20 Crore during the same period. The company is expected to generate adequate net cash accruals of ~Rs. 28-49 crore against maturing repayment obligations of ~Rs. 1-3 Crore in FY2027-2028. The company's working capital operations are moderately intensive, marked by GCA days of 238 days in FY2026 as against 278 days in FY2025. Further, the company's fund-based working capital limits remained moderately utilized, with average utilization of approximately 70.14 percent during the Six-month period ending August 2026. The unencumbered cash and bank balances stood at Rs. 2.12 Cr. and the current ratio at 1.16 times as on March 31, 2026. Acuite believes that the liquidity position of the company will remain adequate due to steady cash accruals and buffer available from unutilized working capital limits.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	185.61	100.14
PAT	Rs. Cr.	8.31	6.93
PAT Margin	(%)	4.48	6.92
Total Debt/Tangible Net Worth	Times	1.19	6.97
PBDIT/Interest	Times	3.19	3.36

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

­Not Applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 27 Jun 2025 Letter of Credit Short Term 25.00 ACUITE A2 (Assigned) Cash Credit Long Term 50.00 ACUITE BBB+ | Stable (Assigned) Term Loan Long Term 17.00 ACUITE BBB+ | Stable (Assigned) Derivative Exposure Long Term 2.00 ACUITE BBB+ | Stable (Assigned) Proposed Long Term Bank Facility Long Term 6.00 ACUITE BBB+ | Stable (Assigned)

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

­ Sr. No Company Name 1 Newen Systems Private Limited 2 Fourth Partner Energy Private Limited

Contacts

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

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