Press Release April 16, 2026 NXTGEN CLOUD TECHNOLOGIES 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	30.00	ACUITE BBB | Stable | Assigned	-	RBI
Total Outstanding	0.00	30.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 BBB' (read as ACUITE triple B) on Rs. 30.00 Cr. bank facilities of NxtGen Cloud Technologies Private Limited (NCTPL). The outlook is 'Stable'. Ratioanle for rating: The assigned rating considers promoters’ extensive experience in IT sector for over two decades and established operational track record of the company. The rating also factors moderate growth in operating revenue which is expected to continue in near to medium term on the back of the long-term relationships with reputed clients across industries, such as Bharat Sanchar Nigam Limited, Toyota, Godrej, TTK Prestige. The rating is, however, constrained on account of moderate financial risk profile marked by relatively high gearing and moderate coverage indicators. The rating also constrained on account of working capital-intensive operations and company’s presence in a highly competitive industry.

About the Company

Incorporated in 2012, NxtGen Cloud Technologies Private Limited (NCTPL) is an Indian IT infrastructure and cloud services company that provides data center colocation, cloud computing, managed services, and AI cloud solutions to enterprises and government organizations. The company is  located in Bengaluru, Karnataka, with a registered office in Bidadi. The current directors of the company are Mr. Viral Bakulesh Thakkar, Mr. Srinivas Rajgopal Anasapurapu, Mr. Ritesh Khandelwal, and Mr. Sadashivappa Rudra Prasad.

Unsupported Rating

­Not applicable

Analytical Approach

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

Key Rating Drivers

Strengths

­Established track record of operations and experienced management NCTPL, incorporated in 2012, has an operational track record of over two decades in IT industry. Mr. Viral Bakulesh Thakkar, Mr. Srinivas Rajgopal Anasapurapu, Mr. Ritesh Khandelwal, and Mr. Sadashivappa Rudra Prasad has an extensive experience in the field of Business Information Technology, Software Development and Services. The directors of the company have experience of over two decades in this line of business. The long-track record of operations and experience of the management have helped the company develop healthy relationships with its reputed customers and suppliers. Acuité believes that NCTPL will sustain its existing business profile on the back of an established track record of operations and experienced managment. Stable operating performance with reputed clientele  The company has recorded moderate growth in revenues, with Rs. 243.71 Cr. reported in FY2025 as against Rs. 224.19 Cr. in FY2024 and Rs. 198.44 Cr. in FY2023. The revenue has remained stable on account of consistent orders from existing as well as new customers. NCTPL caters to reputed clientele such as Bharat Sanchar Nigam Limited, Godrej & Boyce Mfg. Co. Ltd., Toyota Kirloskar Motor Private Limited, BSNL (ITPC North Data Center) etc. The company has registered revenues of Rs.258.24 Cr. in 11MFY2025-26. The EBITDA margins of the company are range bound which stood at 29.58 percent in FY2025 as compared to 28.75 percent in FY2024 and 26.25 percent in FY2023. The company has reported PAT of Rs. 54.16 Cr. in FY2025 as compared to Rs. 2.71 Cr. in FY2024. The PAT of FY2025 was supported mainly by profit on sale of asset of Rs.36.63 Cr. Acuité believes that NCTPL’s operating performance would improve steadily in the medium term on account of reputed clientele base and repeat orders.

Weaknesses

Moderate financial risk profile Company’s financial risk profile is moderate, marked by modest net worth, high gearing and moderate debt protection metrics. The tangible net worth of the company stood at Rs.39.41 Cr. as on March 31st, 2025, against Rs. (15.60) Cr. as on March 31, 2024, and Rs. (34.65) Cr. as on March 31st, 2023, respectively. The net worth improved on account of accretion of profits in FY2025. The company reported accumulated losses till March 31, 2024 which contributed to the erosion of net worth. The gearing (debt to equity ratio) of the company stood high at 4.40 times as on March 31, 2025. The total debt of Rs. 173.36 Cr. includes NCD’s of Rs. 42.86 Cr, finance lease obligations of Rs. 127.03 Cr. and other long term debt of Rs. 3.47 Cr. as on March 31, 2025, excluding lease liability the gearing would be at  – 1.18 times as on March 31, 2025. Company’s debt protection metrics is moderate marked by– Interest coverage ratio (ICR) and debt service coverage ratio (DSCR) at 4.41 times and 2.09 times as on March 31, 2025, as against 2.19 times and 1.19 times as on March 31, 2024 respectively. TOL/TNW stood high at 8.68 times as on March 31st, 2025. It is expected that TOL/TNW would be at 5.30 times in FY2026. The debt to EBITDA of the company stood at 1.58 times in March 2025 as against 2.21 times in FY2024 and 3.53 times in FY2023. Acuité believes that the financial risk profile will remain moderate over the medium term on account of steady improvement in net cash accruals. Intensive working capital operations Company's working capital operations are intensive in nature as reflected through the gross current assets (GCA) of 204 days in FY2025 against 183 days in FY2024 and 206 days in FY2023. GCA days also includes other current assets of Rs. 68.28 Cr. (Unbilled revenue, security deposits, Advance tax paid). Debtor days stood at 135 days in FY2025 against 124 days in FY2024 and 142 days in FY2023. In FY25, collection days remained high, primarily due to company is extending credit periods to its customers for better margins. The reliance on working capital limits is high with 99.95 percent utilization of the fund-based limits used over the past 1 months ending in February 2026. Acuite believes, the working capital operations are expected to remain intensive given the nature of business. Exposure to intense competition in the IT sector With rapid evolution of the Indian digital enabled services sector, competition is intensifying as more companies vie for a share of the customer’s wallet. NCTPL has to compete with multiple players in most of the verticals within the digital services business. Intense competition in the digital services industry may continue to constrain scalability, pricing power and profitability.

Rating Sensitivities

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

Consistent growth in revenues and profitability Improvement in financial risk profile with overall gearing below 1.5 times and DSCR above 2 times Improvement in working capital cycle

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

Lower than expected revenues and profitability Any large debt funded capex, impacting the financial risk profile with adjusted gearing above 4 times Elongation in working capital cycle leading to higher reliance on working capital limit

Liquidity Position

Adequate

Company’s liquidity is adequate with net cash accruals (NCAs) of Rs.85.09 Cr. in FY2025, as against debt obligations of Rs. 27.77 Cr. during the same period. Going forward, the company is expected to generate cash accruals in the range of Rs. 50-59 Cr. net cash accruals against its repayment obligations of Rs. 50-33 Cr. The company has maintained unencumbered cash and bank balances Rs. 1.54 Cr. and the current ratio stood below unity at 0.88 times as on March 31, 2025. The fund-based bank utilization of NCTPL is high at 99.95 percent for fund based for the past one month ended Feb 2026.

Outlook: Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	243.71	224.19
PAT	Rs. Cr.	54.16	2.71
PAT Margin	(%)	22.22	1.21
Total Debt/Tangible Net Worth	Times	4.40	(10.64)
PBDIT/Interest	Times	4.41	2.19

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.

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Contacts

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

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