Press Release February 19, 2026 PALACIO HOSPITALITY PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	40.00	ACUITE BB | Stable | Assigned	-
Total Outstanding	40.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned long term rating of 'ACUITE BB' (read as ACUITE double B) on the Rs. 40 Cr. bank facilities of Palacio Hospitality Private Limited. The outlook is "Stable". Rationale for rating The rating takes into cognizance benefits derived from the promoter's experience in the hospitality industry, locational advantage of the proposed hotel, financial flexibility of the promoters to infuse funds as and when required to support the business. However, the strengths are partly offset by timely execution of the project, any cost or time overrun of the project and stretched liquidity expected in initial stages of operations.

About the Company

Assam based Palacio Hospitality Private Limited was incorporated in 2021. The company is setting up a 4-star hotel with a banquet hall and restaurant cum bar near Paltan bazar, Guwahati. The directors of the company are Mr Anup Poddar, Mr Ankit Poddar and Mrs Richi Poddar.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has taken standalone business and financial risk profile of Palacio Hospitality Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced promoters along with locational advantage The company is headed by Mr. Anup Poddar and Mr Ankit Poddar, who bring about a decade of overall experience in hospitality, real estate and other industries like dealership among others. The promoters have experience in running hotel under the brand Palacio in Guwahati, Assam it is a 3- Star hotel with 50 rooms along with restaurant cum bar and high occupancy. Additionally, they also run a hotel in Alipurduar, West Bengal of about 60 rooms. Provided the experience, the management is setting up the 4-star hotel. The proposed hotel enjoys a significant locational advantage, situated at the centre of Guwahati near Paltan bazar with access to Railways, NH 37 which connects Guwahati to most of the North-Eastern regions.It also has tourist places around the hotel. Acuite believes that the promoters experience and the locational advantage will benefit the company going forward. Project Implementation Risk The project cost for proposed hotel is Rs. 50 Cr. (revised from earlier anticipated Rs. 60 Cr.) to be funded in a mix of term loan of Rs. 40 Cr. (sanctioned with Northeastern Development Finance Corporation Limited) and balance by promoter's contribution. The term loan has been fully disbursed as on date, and the promoters have infused Rs. 20.04 Cr. as interest free unsecured loans in the business till February 2026, that is subordinated to bank loans. As of January 2026, 81% of the project cost has been incurred. The completion date of project is estimated to be April 2026. Acuite believes that the project has minimal funding risk as term loan has been disbursed and promoters’ contribution has also been brought in.

Weaknesses

­Risks related to execution and successful offtake of the ongoing project Any delay in completion may result into cost and time overruns in the project. The successful occupancy and demand for F&B, banquet and others services would remain a key monitorable.

Rating Sensitivities

Successful stabilization of the project Any cost or time overrun

Liquidity Position

Stretched

The liquidity is stretched as the project is expected to be operational in next few months and any cost overrun in final leg of project execution may lead to cash flow mismatch in initial stages of operations. However, the management has flexibility to infuse funds as and when required to support the business as has already been established by infusion of interest free unsecured loans of Rs. 20.04 Cr. as on February 2026. Acuite believes that working capital management in initial stages of operation will remain a key monitorable.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	0.00	0.00
PAT	Rs. Cr.	0.00	0.00
PAT Margin	(%)	0.00	0.00
Total Debt/Tangible Net Worth	Times	1.45	8.88
PBDIT/Interest	Times	(130.21)	(10.14)

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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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating North Eastern Development Finance Corporation Ltd. Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Mar 2037 40.00 Simple ACUITE BB | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti Associate 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.