­Experienced promotors, demonstrated track record in real estate business
Raichandani group is a Hyderabad based commercial and real estate developer promoted by Mr.Deepak Raichandani, Mr. Prakashlal Raichandani and Mr. Hitesh Raichandani. The group has more than 15 years of experience as real estate developer through various projects executed under the group. The Raichandani group is a well-established brand name in Hyderabad and has completed more than 2.1 million Sq.fts of residential and commercial projects. and has ongoing developments exceeding 21.67 lakh sq.ft. Acuité believes that the promoters have demonstrated good execution capabilities with a reputation for quality and timely completion in the past which would benefit the ongoing projects. 

Moderate implementation and execution risk in ongoing projects
The ongoing portfolio of RC comprises 9 projects with aggregate developer saleable area of 9.25 lakh sq. ft. and total project cost of Rs.527.37 crore, of which Rs.298.94 crore, or around 56.7%, has already been incurred as on Mar-26. The incurred cost has been funded through promoter contribution of Rs.51.19 crore, unsecured loans of Rs.109.72 crore, customer advances of Rs.110.46 crore, and balance from term debt, aggregating to total funding of Rs.306.20 crore, resulting in surplus of Rs.7.26 crore. The balance cost of Rs.228.43 crore is proposed to be funded through promoter contribution, unsecured loans, customer advances and debt. The funding risk remains moderate, as completion of the balance projects depends on timely customer collections, monetisation of unsold inventory of around 6.31 lakh sq. ft., and debt tie-up / drawdown for select projects, particularly Time Square and Akshaya Serenity. However, the risk is partly mitigated by the promoters’ debt-averse approach, demonstrated by EKA One, where around 65% completion has been achieved without project-specific debt, and by closure of the Orion term loan. Implementation risk also remains moderate, as projects are at varying stages of execution. Advanced-stage projects such as Avenue and Orion have achieved over 90% completion, while EKA One and Five Star have progressed meaningfully. However, timely completion of mid-stage projects such as Akshaya Serenity, Time Square, Guru Krupa and Signature Towers remains a key monitorable. Acuite believes that RC’s established execution track record of completing projects, provides comfort; however, any delay in project execution, collections or debt tie-up may impact the credit profile.

High offtake risk albeit adequacy of cashflows
The offtake risk for RC remains high, as the firm has sold 110 units out of 358 developer units, translating into booking of around 30.7%. In terms of area, the firm has sold around 2.94 lakh sq. ft. out of total developer saleable area of 9.25 lakh sq. ft., reflecting area-level absorption of around 31.8%. The balance unsold inventory remains sizeable at around 6.31 lakh sq. ft., with estimated revenue potential of Rs.396.69 crore, making timely monetisation critical for project cash flows. The risk is partly mitigated by improved sales traction in FY26, particularly in Orion, where 34 out of 37 units have been sold, along with fresh bookings in Five Star, Akshaya Serenity, SSRV Towers and Avenue. Further, in projects such as EKA One and Akshaya Serenity, sales are governed by DAGPA-linked milestone restrictions, and hence moderate sales movement should be viewed in the context of contractual sale limits rather than weak demand. Acuité believes that timely booking of unsold units, sustained customer collections, and monetisation of balance inventory will remain key rating monitorable.

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.

Risk of capital withdrawal
Being a partnership firm, RC remains exposed to the risk of capital withdrawal by partners, which may impact its financial flexibility and net worth base. However, the risk is partly mitigated by continued promoter support, demonstrated infusion of funds / unsecured loans, and the promoters’ relatively debt-averse approach. Any sizeable withdrawal of capital or unsecured loans, especially before completion of ongoing projects, will remain a key rating monitorable.