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 the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs. 417.50 Cr. bank facilities of PRA Maa Ugratara Highway Private Limited (PRA PMUHPL). The outlook is ‘Stable’.
Rationale for Rating
The rating derives comfort from the financial and operational support from Barbrik Project Limited and PRA India Private limited, referred as Barbrik group (rated at Acuité A /Stable/A1) to the company. The Barbrik Group benefits from strong execution capabilities, supported by nearly four decades of experience in undertaking road projects, particularly in Chhattisgarh. The project is exposed to relatively low funding and implementation risk, given the tie-up with Union Bank of India for project financing. Further, the project carries low counterparty risk as the National Highways Authority of India (NHAI) serves as the concessioning authority, ensuring timely annuity-based inflows. The receipt of the appointed date on January 11, 2026, with a Scheduled Commercial Operation Date (SCOD) of January 10, 2028, provides visibility on execution timelines and reinforces overall project stability. However, the rating is constrained by inherent execution risks at the early to moderate stage of implementation, exposure to interest rate fluctuations, and O&M and major maintenance risks during the operational phase. Any delays or cost overruns may affect cash flows, though this is partly mitigated by parent support.
About the Company
Raipur – Based, Pra Maa Ugratara Highway Private Limited was incorporated in 2024. The company entered into HAM agreement with National Highways Authority of India (NHAI) for the construction of four laning between Existing Km 55.000/ Design Km 59.000 (Kuru) to Existing Km 96.470/ Design km 97.600 (Udaipura) on NH-75 (New NH-39) Sec-I in the state of Jharkhand on HAM mode.
The directors of the company are Mr. Rajesh Kumar Agrawal and Mr. Ayush Agrawal.
Unsupported Rating
ACUITE BB-/Stable
Analytical Approach
Acuité has considered the standalone business and financial risk profile of PRA Maa Ugratara Highway Private Limited and notched up the standalone rating by factoring in the financial and operational linkages with Barbrik Project Limited (rated at ACUITE A/Stable/A1) and PRA India Private Limited (rated at ACUITE A/Stable/A1).
Key Rating Drivers
Strengths
Low Revenue Risk
PRA PMUHPL has signed an agreement with NHAI for contractual payment in form of grants and annuities. The project cost is Rs. 913.40 Cr. (including GST) which is funded through Rs. 113.58 Cr. from promoters contribution, Rs. 324 Cr. as Grant from Authority, Rs. 58.32 Cr. as GST on grant and Rs. 417.50 Cr. term loan (tied up with Union Bank Of India) . The company will receive 40 percent of project cost in form of grants during the construction period. The remaining 60% of project cost shall be payable in the form of 30 semi-annuities spread over a period of 15 years post achievement of commercial operation date (COD). The project has an escalation clause which helps the company to mitigate the material fluctuation risk. The annuities will also include interest on remaining completion cost. The interest will be calculated on average MCLR rate plus 1.25 percent.
Benefits derived from the parent
Barbrik Project Limited is the lead sponsor and PRA India Private Limited is the EPC Contractor for PRA PMUHPL. PRA Group is a reputed EPC player in Chhattisgarh and has almost three decades of experience in construction of roads and highways. The group has executed similar kinds of road projects in EPC mode. Moreover, the group has strong financial flexibility as reflected from its healthy financial risk profile and adequate liquidity profile.
Weaknesses
Moderate Implementation Risk
The project remains exposed to implementation risk, given its early stage of execution; however, key uncertainties observed earlier have largely been mitigated. The appointed date has been received on January 11, 2026, and the project has achieved 100% right of way, significantly reducing land acquisition-related risks. The company has commenced construction and has achieved around 5% physical progress, with payment is already received as on 27th May 2026. An additional 5% milestone is likely to be achieved by the end of May 2026, with billing expected in the first week of June. Nevertheless, timely achievement of construction milestones, availability of funds, and adherence to execution timelines remain critical. Any delays in execution or cost overruns could impact project cash flows, although this risk is partly mitigated by the presence of experienced sponsors and established funding tie-ups.
Susceptibility to risks related to the tender-based nature of operations and competition
PMUPL remains exposed to inherent cyclicality in the construction industry and volatility in profits . Though industry prospects seem healthy over the medium term with increased central government focus on the infrastructure sector (especially roads and highways), most of the projects are tender-based and players face intense competition and bid aggressively for contracts.
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)
Acuite takes into consideration the benefit derived by PMUHPL from the 100% ownership of Barbrik Group.
Stress Case Scenario
While the rating has been derived on the standalone business and financial risk profile of PMUHPL, Acuite believes given the 100% holding of Barbrik Group, in case of any stress case scenario, the required support would come from the Barbrik Group.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
• Timely completion of project as per scheduled timelines with no cost or time overruns
• Improvement in financial risk profile with adequate liquidity buffer
• Stable operational performance with timely receipt of annuity from NHAI
Potential triggers (individual or collective) for a downward rating action:
• Delay in project execution beyond SCOD or cost overruns
• Deterioration in liquidity position or funding support from sponsors
Liquidity Position
Adequate
As the project is at a nascent stage, the company maintains an adequate liquidity profile, supported by strong resource mobilization from its parent entity. The project also carries low implementation risk. Additionally, in FY2026, Rs 7.63 crore has already been infused in the form of unsecured loans by promoters.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
0.00
0.00
PAT
Rs. Cr.
(0.06)
0.00
PAT Margin
(%)
0.00
0.00
Total Debt/Tangible Net Worth
Times
(64.34)
0.00
PBDIT/Interest
Times
(3.08)
0.00
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.
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)
Sr No.
Company Name
1
PRA Maa Ugratara Highway Private Limited
2
Barbrik Project Limited
3
PRA India Private Limited
Contacts
List of instruments and names of regulators of the instruments
