Press Release

Press Release

April 10, 2026

PRIYA ENGINEERING PROJECTS PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	25.00	ACUITE BBB+ \| Stable \| Assigned	-
Bank Loan Ratings	20.00	ACUITE BBB+ \| Stable \| Reaffirmed	-
Bank Loan Ratings	65.00	-	ACUITE A2 \| Assigned
Bank Loan Ratings	135.00	-	ACUITE A2 \| Reaffirmed
Total Outstanding	245.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long term rating of ‘ACUITE BBB+’ (read as ACUITE triple B plus) and short term rating of 'ACUITE A2' (read as ACUITE A two) on the Rs.155 Cr. bank facilities of Priya Engineering Projects Private Limited (PEPPL). The Outlook remains ‘Stable’.
Further, Acuite has assigned the long term rating to 'ACUITE BBB+’ (read as ACUITE triple B plus) and short term rating of 'ACUITE A2' (read as ACUITE A two) on Rs.90 Cr. bank facilities of Priya Engineering Projects Private Limited (PEPPL). The outlook is ‘Stable’.

Rationale for Rating
The rating considers increase in scale of operations supported by a 27% revenue growth in FY25. During 10MFY26, the company reported revenues of Rs.280 crore compared with Rs.366.53 crore in 10MFY25, with the decline attributable to pending customer approvals that resulted in unbilled revenue. In addition, the company's profitability showed steady increase with an improvement in EBITDA margin backed by a profitable mix of orders from both public and private entities. The rating also factors in the healthy order book position, which is almost 3 times the revenue of FY25, providing revenue visibility over the medium term. Further, rating also factors in a healthy financial risk profile marked by improving networth, gearing below unity, declined but comfortable debt protection metrics and adequate liquidity position. However, rating is partially constrained by susceptibility to risks inherent in tender-based business and intense competition.

About the Company

The entity was incorporated in the year 1965 by Mr. S. Periyasamy as a proprietorship firm which was later converted into partnership firm and then private limited company, taken over by Mr. P. Sivakumar, who has an experience of 36 years in the Construction Industry. PEPPL is engaged in the execution of various infrastructure projects, including power generation, dairy plants, agro processing plants, sugar plants, and housing projects for private and government entities.
The current directors of the company are Mr. Jeyanthi Sivakumar, Mr. Periyasamy Selambagoundar, Mr. Periyasamy Deivanai and Mr. Periyasamy Sivakumar.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite considers standalone business and financial risk profile of PEPPL for arriving at the rating.

Key Rating Drivers

Strengths

Experienced promotors and established track record of operations
PEPPL's management has more than three decades of experience in the civil construction industry. The long-standing experience of the promoters and long track record of operations has helped them to establish strong relationships with key suppliers and reputed customers. The extensive experience of management has helped company to get tenders on regular basis in Tamil Nadu, Karnataka and Andra Pradesh.
Acuite believes that PEPPL will continue to benefit from its experienced promotors and its long track record of operations over the medium term.

Increase in scale of operations
PEPPL’s revenue has increased by 27% and stood at Rs.422.19 Cr. in FY25 as against Rs.333.36 Cr. in FY24 due to better execution capabilities and on account of a healthy order book position. However, the company has attained revenues of Rs.280 Cr. in 10MFY26 as against Rs.366.53 Cr. in 10MFY25 due to pending customer approvals. The unexecuted order book position stood at Rs.1270 Cr. as on 31^st January 2026. The OB/OI is 3.01 times which provides revenue visibility over the medium term. The company’s established presence has led to securing new orders; however, the timely execution of the existing orders will remain a key monitorable.
The EBITDA margin stood at 11.45% in FY25 as against 10.01% in FY24 driven by company’s selection of projects and profitable mix of orders from both private and government entities. The PAT margins stood at 5.90% in FY25 as against 5.78% in FY24. Further, the EBITDA and PAT margins stood at 11.92% and 5.61% respectively till H1FY26. Acuite believes that the scale of operations of the company may continue to increase with stable profitability backed by strong order flow.

Healthy Financial Risk Profile
The financial risk profile of the company remains healthy marked by improving net worth, gearing below unity, and healthy debt protection metrics. The company's tangible net worth improved to Rs.76.72 Cr. as on 31^st March 2025 as against Rs. 52.28 crore as on March 31st, 2024, due to accretion of reserves. The gearing stood at 0.46 times as on 31^st March 2025 as against 0.80 times as on 31^st March 2024. The TOL/TNW stood at 1.31 times as on 31^st March 2025. Further, debt protection metrics declined but remained healthy with ICR and DSCR at 6.89 times and 3.46 times, respectively, as on March 31st, 2025, as against 11.43 times and 9.21 times, respectively, as on March 31st, 2024. Acuite believes that the financial risk profile of the company is likely to remain on similar levels over the medium term.

Efficient working capital cycle
The working capital cycle of the company is efficient as reflected by its gross current asset (GCA) days of 80 days in FY2025 as against 123 days in FY2024. The improvement in GCA days is because of inventory and debtor days. The debtor days stood at 66 days in FY25 as against 81 days in FY24 due to better realization cycle from private players. The inventory days stood at 8 days in FY25 as against 25 days in FY24 due to projects being at the closure stage. The creditor days stood at 49 days in FY25 as against 116 days in FY24 as linked with their collection efficiency system. Acuite believes that working capital operations of the company may continue to remain on similar levels over the medium term due to the realization cycle and inherent nature of the business.

Weaknesses

Volatility in raw material prices and tender based nature of operations impacting profitability
Most EPC projects undertaken by the company have a gestation period of 12–24 months, and during this time period, profitability remains susceptible to fluctuations in the input prices. PEPPL operates in power generation, dairy plants, agro processing plants, sugar plants, and housing projects segments, which are highly competitive with the presence of a large number of small, regional, and large players. EPC projects executed by the company are tender based, with wins going to the lowest bidder qualifying the terms and conditions stipulated by the respective agencies floating the bids. This puts strain on the profitability of the company where the bidding can get aggressive.

Rating Sensitivities

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

Sustained increase in revenue above Rs 550 crore and improved operating margin, leading to high cash accrual
Improvement in working capital cycle
Timely execution of existing orders

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

Operating margin fall below 8%
Continued high utilization of working capital limits or stretch in working capital cycle

Liquidity Position

Adequate

PEPPL’s liquidity is adequate, marked by sufficient net cash accruals of Rs.34.58 Cr. as on 31^st March 2025 as against debt obligations of Rs.4.75 Cr. over the same period. The current ratio of the company stood at 1.12 times in FY25. The cash and bank balances stood at Rs. 2.29 Cr. in FY25. The average bank limit utilization stood at 75 percent for fund based and 66% for non-fund based over last 12 months ended November 2025. Acuite believes that the liquidity of the company is likely to remain adequate over the medium term on account of sufficient cash accruals against debt repayments, moderate current ratio and moderate bank limit utilization

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	422.19	333.36
PAT	Rs. Cr.	24.90	19.28
PAT Margin	(%)	5.90	5.78
Total Debt/Tangible Net Worth	Times	0.46	0.80
PBDIT/Interest	Times	6.89	11.43

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

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

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
17 Feb 2026	Bank Guarantee (BLR)	Short Term	55.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	75.00	ACUITE A2 (Reaffirmed)
	Letter of Credit	Short Term	5.00	ACUITE A2 (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	15.00	ACUITE BBB+ \| Stable (Reaffirmed)
19 Nov 2024	Bank Guarantee (BLR)	Short Term	75.00	ACUITE A2 (Assigned)
	Letter of Credit	Short Term	5.00	ACUITE A2 (Assigned)
	Bank Guarantee (BLR)	Short Term	55.00	ACUITE A2 (Assigned)
	Cash Credit	Long Term	15.00	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	5.00	ACUITE BBB+ \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Union Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	75.00	Simple	ACUITE A2 \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	55.00	Simple	ACUITE A2 \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	40.00	Simple	ACUITE A2 \| Assigned
Union Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE A2 \| Assigned
Union Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB+ \| Stable \| Assigned
Union Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB+ \| Stable \| Assigned
Union Bank of India	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A2 \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 May 2031	5.00	Simple	ACUITE BBB+ \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Manvi Khaitan
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.

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