Press Release August 06, 2026 PERFECT KIM MANDAVI ROAD PROJECT 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	150.00	ACUITE A- | Stable | Assigned	-	RBI
Total Outstanding	0.00	150.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 assigned the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs.150.00 crore bank facilities of Perfect Kim Mandavi Road Project Private Limited (PKMPL). The Outlook is 'Stable'. Rationale for Rating assigned The rating factors in project's stable and fixed annuity-based revenue stream from a strong counterparty Gujarat State Road Development Corporation (GSRDC) and the presence of an escrow account and Debt Service Reserve Account (DSRA) mechanism, which provide additional comfort towards timely debt servicing. Acuite takes note of the receipt of early completion bonus and timely receipt of first annuity for the project. The rating is further supported by the project's comfortable debt coverage metrics post expected refinancing. The rating also factors the moderate sponsor profile of Perfect Infracorp Private Limited (PIPL) who has provided a corporate guarantee and shortfall undertaking for any cost overruns and other expenses. The strengths are, however, constrained by the project's exposure to delay in receipt of annuity receipt, operation and maintenance (O&M) obligations, and interest rate fluctuations, which may affect cash flows and debt servicing ability.

About the Company

PKMPL is a special purpose vehicle (SPV) incorporated in December 2022 and promoted by Mehsana-based Perfect Infracorp Private Limited (PIPL). The company was established to develop, operate and maintain the upgradation and strengthening of Kim-Mandvi Road (SH-65) project in Gujarat, which was awarded by the GSRDC under the Modified Annuity Model (MAM). The project received its appointed date on December 12, 2023, and achieved commercial operations date (COD) on June 13, 2025, well ahead of the scheduled completion timeline of December 11, 2025. The current directors of the company are Mr. Dahyabhai Manchanddas Patel and Mr. Hardikkumar Dahyabhai Patel.

Unsupported Rating

­Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of Perfect Kim Mandavi Road Project Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Strong counter party and annuity-based project limiting revenue risks PKMPL benefits from a strong counterparty-linked revenue profile as the project has been awarded by GSRDC, a Government of Gujarat undertaking responsible for the development of road infrastructure in the state. The project is being executed under an annuity-based model, which insulates the SPV from traffic and toll collection risks. Under the concession agreement, a portion of the project cost was received as construction grant during the execution phase, while the balance is recoverable through 20 semi-annual annuity payments over the concession period. The annuity payment cycle commenced in June 2026, and the SPV has already received all milestone-linked construction payments, along with its first annuity receipt and incentive for early completion of the project. Further, PKMPL is responsible for the operation and maintenance of the project during the concession period. Explicit waterfall mechanism through escrow account coupled with creation of DSRA The SPV is in the process of refinancing its existing debt of Rs. 92.52 crore along with availing a top-up facility, resulting in a total proposed debt sanction of Rs. 150 crore. The additional funding is proposed to be utilised towards repayment of unsecured loans extended by the parent company during the construction phase of the project. As per the current sanctioned terms, the SPV is required to maintain a DSRA equivalent to the next six months' principal and interest obligations, to be created from the first two semi-annual annuity instalments. In the event of any delay in the receipt of annuity payments, debt servicing obligations can be met through the DSRA, which shall subsequently be replenished from future annuity receipts. Any shortfall in the DSRA is proposed to be funded from amounts available in the escrow account, subject to the prescribed waterfall mechanism. Further, all project-related cash flows are routed through an escrow account maintained under a defined cash flow waterfall structure. Annuity receipts from GSRDC, termination payments, insurance proceeds, penalties received from the authority, and other project-related inflows are required to be deposited into the escrow account. Withdrawals are permitted only in accordance with the agreed waterfall mechanism, ensuring priority towards statutory obligations and debt servicing requirements. Acuité believes that the presence of the escrow mechanism and DSRA provides additional comfort by facilitating orderly cash flow management and timely debt servicing. Moderate sponsor profile The project is sponsored by Perfect Infracorp Private Limited (PIPL), which has an established track record in the road construction and civil infrastructure sector. Backed by the experience of its promoters, the company has executed multiple road, bridge and allied infrastructure projects for various government agencies over the years. As of July 2026, PIPL had an unexecuted order book of Rs. 733.09 crore, providing revenue visibility and supporting its ability to undertake project execution commitments. Moreover, PIPL has provided a corporate guarantee and shortfall undertaking for any cost overruns and other expenses, and the same is expected to remain in the proposed new sanction.

Weaknesses

Susceptibility to delay in annuity receipts, O&M and interest rate risks The company remains exposed to risks associated with the timely receipt of fixed semi-annual annuity payments under the concession agreement. Any delay in the receipt of scheduled annuities could adversely impact cash flows and debt servicing ability. Further, the project's borrowings are linked to floating interest rates, exposing cash flows and returns to fluctuations in lending rates. The company is also subject to operation and maintenance (O&M) risks throughout the concession period, as non-adherence to prescribed maintenance standards or delays in undertaking maintenance activities may result in deductions in annuity receipts, thereby affecting project cash flows and profitability.

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)

PKMPL needs to maintain a Debt Service Reserve Account (DSRA) equivalent to one semi-annual instalment plus interest of minimum two quarters along with ESCROW mechanism. Stress case Scenario Acuité believes that, given the presence of DSRA and waterfall payment in ESCROW mechanism, PKMPL will be able to service its debt on time, even in a stress scenario.

Rating Sensitivities

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

Timely receipt of annuities Improvement in financial risk profile thereby improving its coverage indicators leading to average DSCR above 1.75 times.

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

Any delay or major deductions in receipt of annuity or any additional debt availed by the SPV thereby impacting its coverage indicators leading to average DSCR falling below 1.20 times

Liquidity Position

Adequate

PKMPL's liquidity position is adequate, supported by the timely receipt of milestone payments from GSRDC during the construction phase and the commencement of annuity inflows from June 2026. Further, the current debt repayment schedule provides a buffer of more than 30 days vis-à-vis the annuity receipt dates, offering additional financial flexibility and mitigating the risk of delays in annuity receipts. Post refinancing, company is expected to receive annual annuity payments of Rs.42.22 crore against the expected yearly debt servicing obligations of less than Rs.31 crore throughout the loan tenure, resulting in comfortable debt coverage. Acuité expects the company's liquidity position to remain adequate over the medium term, supported by the maintenance of a DSRA equivalent to six months' interest obligations and one principal instalment.  The company's operational cash flows are expected to remain sufficient to meet its debt servicing requirements, reflected in a projected cumulative DSCR above 1 times over the tenure of the rated instrument. Additionally, as on March 31, 2026 (Prov.), PKMPL maintained free fixed deposits of Rs.10.75 crore and cash and bank balances of Rs.13.78 crore, providing further support to its liquidity profile.

Outlook - Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	90.54	73.84
PAT	Rs. Cr.	0.69	0.02
PAT Margin	(%)	0.76	0.02
Total Debt/Tangible Net Worth	Times	170.29	528.01
PBDIT/Interest	Times	1.08	1.01

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 • 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

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Contacts

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

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