For arriving at this rating, Acuité has consolidated the business and financial risk profiles of the entities forming the Primus Group, given the presence of common promoters, a unified ‘Primus’ brand, and centralized management. Accordingly, the group displays economic unity and high integration, justifying assessment on a consolidated basis. The company’s considered in consolidation are given in Annexure 2.

­Experienced management
Primus Lifestyle Private Limited (Erstwhile Ameliorate Realtors Private Limited) (ARPL), based in Bangalore, is promoted by Mr. Adarsh Narahari and Mr. K. Manjunath, who bring extensive experience in real estate and hospitality services. The promoter group has successfully delivered multiple residential and plotted developments, including Primus Reflection, Courtyard Phases 1–5, KNS Carica, and Hara North One, aggregating over 1.35 million sq. ft. The promotors of the group has extensive experience in real estate and hospitality services for many years. The strong brand positioning of ‘Primus’ in the senior living segment has enabled the company to maintain existing senior relationships and a positive market image. The established track record, coupled with brand equity and promoter expertise, supports the company’s ability to execute larger residential projects under the Primus brand.

Locational advantage supported by brand positioning
"Primus Samarpan" in Devanahali benefits from immediate proximity to Kempegowda International airport, offering strong global connectivity for businesses. This region enjoys robust infrastructure with highways and upcoming metro links ensuring smooth city access. Presence of top schools, reputed hospitals and lifestyle amenities further enhances its residential and commercial appeal. The “Primus” brand enhances this locational strength through its strong positioning in senior-living and integrated lifestyle communities, known for quality construction and professional community management services. The brand’s proven track record across completed and ongoing projects has driven healthy customer acceptance and consistent sales traction. Acuité believes that the promoters have demonstrated good execution capabilities with a reputation for quality and timely completion. Promoters' industry experience is expected to support the successful sale of units in ongoing and upcoming projects.

Above-average financial risk profile
The group’s financial risk profile is above average, supported by a significantly improving net worth base and comfortable gearing levels. The group’s tangible net worth increased to Rs.295.86 crore in FY2025 from Rs.112.26 crore in FY2024 (Rs.97.49 crore in FY2023), driven by strong profit accretion and capital infusion. Total debt stood at Rs 77.20 crore in FY2025 (comprising long-term borrowings of Rs.10.90 crore, short-term debt of Rs.66.30 crore), as against Rs.66.67 crore in FY2024 and Rs.33.38 crore in FY2023. Consequently, gearing improved to 0.26x in FY2025 from 0.59x in FY2024 and 0.34x in FY2023, supported by the substantial rise in net worth. The TOL/TNW ratio similarly improved from 0.50 times in FY2023 and 0.69 times in FY2024 to 0.37 times in FY2025, indicating strengthened solvency levels.  Debt protection indicators remained strong, with the group reporting an Interest Coverage Ratio (ICR) of 39.00x in FY2023, 20.18x in FY2024, and 42.96x in FY2025, supported by robust operating profitability and relatively low finance costs. The DSCR remained comfortable across periods at 38.63x in FY2023, 14.60x in FY2024, and 27.94x in FY2025, underscoring healthy cash flow adequacy to meet debt obligations. Leverage indicators also strengthened, with Debt to EBITDA standing at ~1.17x in FY2023, increasing temporarily to ~3.22x in FY2024 due to lower profitability, and subsequently improving to ~1.00x in FY2025. The improvement in FY25 reflects enhanced cash flow visibility and better financial flexibility at the consolidated level.

­High Project implementation, funding and offtake Risk in Primus Samarpan
The ongoing project “Primus Samarpan” has a proposed saleable area of 7,60,990 sq. ft. with an estimated cost of Rs.401.05 Cr. The project is proposed to be funded through promoter contribution of Rs.43.95 Cr, a proposed term loan facility of Rs.100.00 Cr, and the balance from customer advances. The project commenced in April 2025, as of November 30, 2025, Rs.22.90 Cr. (around 5.71% of the total cost) has been incurred, funded entirely through promoter contribution. Construction remains at a nascent stage with no customer advances received to date. The project faces inherent implementation and funding risks, given its early stage and dependence on customer collections alongside pending lender tie-ups. The project is yet to be launched for bookings, with RERA approvals pending. Cash flow visibility remains contingent on a successful launch and timely financial closure, indicating significant off-take risk. However, these risks are partially mitigated by the group’s established track record of timely project execution. The presence of high-net-worth promoters, backing from reputed investors and the group’s debt-averse approach provide partial comfort against funding risks.

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.