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 minus) on the Rs. 250.00 Cr. bank loan facilities of Poulomi Estates Private Limited (PEPL). The outlook is 'Stable'.
Rationale for rating assigned: The assigned rating reflects PEPL's established track record in the Hyderabad real estate market, experienced promoter group and successful execution of residential and commercial projects. The rating draws comfort from the healthy sales absorption of ~62.67% achieved across its ongoing projects, Poulomi Palazzo and Poulomi Infinity, as on May 31, 2026. The rating is further supported by adequate funding visibility through customer collections, the advanced stage of completion of Poulomi Infinity, and the in-principle sanctioned construction finance facility for Poulomi Palazzo. However, the rating is constrained by moderate project execution with ~45.26% of the aggregate project cost yet to be incurred, offtake and funding risk. Further, the company's operations remain susceptible to the inherent cyclicality and demand fluctuations associated with the real estate industry.
About the Company
M/s Poulomi Estates Private Limited (PEPL) is a Hyderabad-based real estate developer incorporated on 16 October 2003, engaged in the development of premium residential, commercial and infrastructure projects. The company has established a strong presence in Hyderabad through the successful execution of luxury villas, high-rise residential apartments and Grade-A commercial developments. PEPL is promoted and managed by the Juvvadi family, led by Mr. Sujit Rao Juvvadi, Mrs. Sujatha Juvvadi and Mr. Chandra Shekar Rao Juvvadi, who possess over two decades of experience in the real estate and construction industry. The company is currently developing Poulomi Palazzo and Poulomi Infinity in Kokapet, Hyderabad, while also having a future development pipeline through the Poulomi Florique residential project in Bengaluru.
Unsupported Rating
Not applicable
Analytical Approach
For arriving at the rating, Acuite has considered the standalone credit profile of Poulomi Estates Private Limited (PEPL).
Key Rating Drivers
Strengths
Established track record of operations
PEPL is a Hyderabad-based real estate developer incorporated on 16 October 2003, with over two decades of experience in developing premium residential and commercial real estate projects. The company has established a strong track record through the development of luxury villas, ultra-luxury residential apartments and Grade-A commercial developments across Hyderabad. PEPL has successfully completed projects aggregating approximately 16.90 lakh sq. ft. and is currently developing Poulomi Palazzo, an ultra-luxury residential project, and Poulomi Infinity, a Grade-A commercial development, with an aggregate developer saleable area of 17.44 lakh sq. ft. Supported by its experienced promoter group and established execution capabilities, the company continues to strengthen its presence in Hyderabad's premium real estate market.
Locational advantage of the project
Poulomi Palazzo and Poulomi Infinity are strategically located at Kokapet, Hyderabad, one of the city's premier residential and commercial micro-markets, with close proximity to the Financial District, Gachibowli and HITEC City. The projects benefit from strong connectivity through the Outer Ring Road (ORR), established social infrastructure and sustained demand from IT/ITeS professionals and corporate occupiers. Further, the Kokapet micro-market has witnessed significant residential and commercial development in recent years, supporting the projects' long-term sales and monetisation prospects.
Weaknesses
Moderate project execution, funding and offtake risk
PEPL's project execution risk is assessed as moderate, with its two ongoing projects aggregating a project cost of ~Rs.1,198 crore, of which ~54.74% has been incurred as on May 31, 2026. While Poulomi Infinity is at an advanced stage of completion (~80.52%), Poulomi Palazzo remains under active execution with ~42.47% completion. Execution risk is partly mitigated by PEPL's established track record of delivering ~16.9 lakh sq. ft. of residential and commercial developments and the in-principle sanctioned construction finance facility of Rs.250 crore for Poulomi Palazzo. Funding and offtake risks are also moderate, with sales achieved for ~62.67% of the aggregate saleable area. Against total expected realizations of ~Rs.1,568.53 crore, collections stand at ~Rs.514.09 crore (32.78%), while ~67.22% remains to be realised through receivables of ~Rs.298.97 crore and monetisation of the balance unsold inventory valued at ~Rs.755.9 crore. Acuité notes that timely monetization of the balance inventory, realization of customer receivables, and conversion of the proposed construction finance facility into actual drawdowns will remain key monitorables for supporting project completion, liquidity, and debt servicing.
Susceptibility to Real Estate Cyclicality and Regulatory Risks
The real estate industry in India is highly fragmented with most of the real estate developers, having a city specific or region-specific presence. The risks associated with real estate industry are cyclical in nature and directly linked to drop in property prices and interest rate risks, which could affect the operations. Given the high level of financial leverage, the high cost of borrowing prevents the real estate's developers' from significantly reducing prices to boost sales growth. Moreover, the industry is also exposed to certain regulatory risks linked to stamp duty and registration tax directly impacting the demand and thus the operating growth of real estate players.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Sustained improvement in sales velocity, resulting in overall project sales exceeding 75%-80% of the aggregate saleable area over the next 12-18 months, along with faster monetisation of the balance unsold inventory and reduction in receivables.
Improvement in collections and liquidity profile, resulting in reduction of receivables and strengthening of project cash flows
Potential triggers (individual or collective) for a downward rating action:
Delays in project execution or weaker demand environment
Weakening in debt servicing metrics, with DSCR falling below ~1.9x
Liquidity Position
Adequate
The liquidity profile of Poulomi Estates Private Limited (PEPL) is adequate, supported by customer collections of Rs.514.09 crore, promoter contribution of Rs.125.85 crore, and receivables of Rs.298.91 crore from sold inventory as on May 31, 2026. The ongoing projects also have an estimated realization potential of ~Rs.755.53 crore from the balance unsold inventory of 6.51 lakh sq. ft. Further, against the aggregate sanctioned project debt of Rs.325 crore, only Rs.75 crore has been drawn, leaving an undrawn funding headroom of Rs.250 crore available for project execution. PEPL is expected to register cash surplus of Rs 90-150 Cr against the debt obligation of Rs. 35 - 75 Cr in FY27-28. The cash and bank balance stood at Rs. 3.73 Cr as on March 31, 2026. The projected average DSCR of ~1.9x indicates adequate debt servicing capability. Acuite expects the liquidity profile to remain adequate over the medium term, supported by collections from sold inventory, monetisation of balance inventory, availability of undrawn construction finance, and continued promoter support.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
240.68
185.09
PAT
Rs. Cr.
44.22
8.21
PAT Margin
(%)
18.37
4.43
Total Debt/Tangible Net Worth
Times
2.09
3.42
PBDIT/Interest
Times
5.14
1.64
Status of non-cooperation with previous CRA (if applicable)
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.
Contacts
List of instruments and names of regulators of the instruments
