Press Release June 23, 2026 SCS CONSTRUCTIONS INDIA PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	14.00	ACUITE BBB- | Stable | Reaffirmed	-	RBI
Bank Loan Ratings	0.00	50.00	-	ACUITE A3 | Reaffirmed	RBI
Total Outstanding	0.00	64.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

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 reaffirmed the long term rating of 'ACUITE BBB-' (Read as Acuite Triple B Minus) and short-term rating of 'ACUITE A3' (Read as Acuite A Three) on Rs. 64.00 crore of bank facilities of SCS Constructions India Private Limited (SCIPL). The outlook is ‘Stable’.   Rationale for rating Reaffirmation The rating reaffirmation is on account of stable operating performance marked by marginal growth in revenues and sustenance of healthy profitability along with moderate order book position and moderate financial risk profile. The rating continues to draw comfort from the management’s extensive experience and its longstanding relationships with clients. Additionally, the rating factors in the company’s adequate liquidity position. However, the rating remains constrained by the modest scale of operations, moderately intensive nature of working capital operations and competitive and fragmented nature of industry coupled with tender based business.

About the Company

­Incorporated in 2016, SCS Constructions India Private Limited (SCIPL) is primarily engaged in the construction of roads, bridges and irrigation projects in Odisha. It is registered as a Super Class Contractor with the government of Odisha having its registered office in Bhubaneshwar. The company also operates a fuel station near Puri in Odisha. The present directors of the company are Mr. Suresh Sahoo Chandra and Ms. Smruti Smaranika Sahoo.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profiles of SCS Constructions India Private Limited (SCIPL) to arrive at the rating.

Key Rating Drivers

Strengths

Experienced Management supported by established track record of operations The company is promoted by Mr. Suresh Chandra Sahoo, who has been involved in the civil construction business since more than two decades. Long experience of promoters and its established track record of operations strengthen the operational risk profile of the company. Furthermore, the company undertakes work contracts mainly for the various departments of Government of Odisha and few reputed private players which reduces the counter party risk to a large extent. Acuite derives comfort from the vast experience of the management and believes this will benefit the company going forward, resulting in steady growth in the scale of operations. Moderate improvement in revenues while maintaining profitability margins; supported by moderate order book position The operating scale of the company remained modest, however improved to Rs.130.65 Cr in FY2026(Prov.) as against Rs. 126.91 Cr in FY2025. The moderate improvement in operating income is backed by moderate order book position with unexecuted order in hand to the tune of Rs. 236.80 Cr as on 31st May 2026, which shall be executed in next 1-2 year thereby providing moderate revenue visibility in the near  term. Additionally, company has received L1 orders worth Rs. 77.10 crores for construction of road. The orders for infrastructure projects are primarily from government organisation. All its projects are on the direct tendering basis. The EBITDA margin of the company remained stable and stood at 10.54 per cent in FY2026(Prov.) as against 10.35 per cent in FY2025 and the PAT margin of the company improved moderately and stood at 5.56 per cent in FY2026(Prov.) against 5.22 per cent in FY2025.  The margins remain susceptible to the type of work or sub-contracting and time period of execution. Acuite believes that the company will continue to sustain its operating performance on the back of moderate order book position. Moderate financial risk profile The company’s financial risk profile remained moderate marked by average net worth, moderate gearing and comfortable debt protection metrics. The net-worth of the company improved and stood at Rs. 68.05 crore in FY2026(Prov.) as against Rs. 60.78 crore in FY2025 due to accretion of profits into reserves. The net worth for FY26(Prov.) and FY25 includes unsecured loans from directors of Rs. 27.79 Cr. which are treated as quasi equity as per the undertaking received from the management. SCIPL has invested in group companies to the tune of Rs. 25.43 Cr. in FY25 which is ~37.37 per cent of total tangible net worth. The gearing (Debt-to-Equity ratio) of the Company improved and stood at 0.30 times as on March 31, 2026(Prov.), as against 0.47 times as on March 31, 2025. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 0.55 times as on March 31, 2026(Prov.), as against 0.79 times as on March 31, 2025. The debt protection metrics remained comfortable marked by Interest Coverage Ratio (ICR) at 4.70 times as on March 31, 2026(Prov.), as against 3.80 times as on March 31, 2025, while Debt Service Coverage Ratio (DSCR) of the company stood at 1.76 times as on March 31, 2026(Prov.) as against 1.83 times as on March 31, 2025. The Net Cash Accruals/Total Debt (NCA/TD) stood at 0.43 times as on March 31, 2026(Prov.). Acuite believes that the financial risk profile of the company would improve over the medium term on account of steady cash accruals and absence of major debt funded capex plans.

Weaknesses

Moderately intensive Working Capital Operations The working Capital operations of the company remained moderately intensive marked by Gross Current Assets (GCA) of 173 days in FY2026(Prov.) as against 201 days in FY2025. The high GCA days is mainly on account of significant security deposits, margin money and retentions kept with the tendering authorities. The inventory period stood at 8 days in FY2026(Prov.) and FY2025. Debtor days stood at 60 days in FY2026(Prov.) as against 67 days in FY2025. The creditor days stood at 88 days as on March 31, 2026(Prov.), as against 86 days as on March 31, 2025. The average fund-based bank limit utilization stood at 69.03 percent and non-fund-based limits stood at 44.66 percent for twelve months ended May 2026. Acuite believes working capital intensity will persist given the nature of operations.   Competitive and fragmented nature of industry coupled with tender based business The company is engaged as a civil contractor, and the sector is marked by the presence of several mid to big size players. The company faces intense competition from the other players in the sectors. Risk becomes more pronounced as tendering is based on a minimum amount of bidding of contracts and hence the company must make bid for such tenders on competitive prices, which may affect the profitability of the company. However, this risk is mitigated to an extent due to the extensive experience of the management of over two decades in the construction industry.

Rating Sensitivities

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

Significant improvement in revenues and profitability Improvement in working capital management with GCA below 120 days on sustained basis

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

Significant decline in revenue and profitability Any further elongation in working capital cycle, deteriorating the liquidity profile of the company. Delay in order execution or failing to secure new orders thus constraining business risk profile Deterioration in financial risk profile due to addition of debt

Liquidity Position

Adequate

The company’s liquidity is adequate marked by net cash accruals of Rs. 8.82 Cr. as on March 31, 2026 (Prov.), against debt obligation of Rs. 3.70 Cr. over the same period. The cash accruals of the company are estimated to be in the range of around Rs. 10.00 Cr. to Rs. 12.00 Cr. during 2027-2028 as against repayment obligation in the range of Rs.1.00 Cr – Rs. 2.00 Cr. for the same period. The cash and bank balances stood at Rs. 1.12 Cr. as on March 31, 2026(Prov.). The current ratio of the company stood at 2.15 times as on March 31, 2026(Prov.). The average fund-based bank limit utilization stood at 69.03 percent and non-fund-based limits stood at 44.66 percent for twelve months ended May 2026. Acuite believes that going forward the company will maintain adequate liquidity position due to steady accruals.

Outlook

­Stable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	130.65	126.91
PAT	Rs. Cr.	7.27	6.62
PAT Margin	(%)	5.56	5.22
Total Debt/Tangible Net Worth	Times	0.30	0.47
PBDIT/Interest	Times	4.70	3.80

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 25 Mar 2025 Bank Guarantee (BLR) Short Term 36.00 ACUITE A3 (Upgraded from ACUITE A4+) Bank Guarantee (BLR) Short Term 14.00 ACUITE A3 (Assigned) Cash Credit Long Term 12.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Covid Emergency Line. Long Term 1.18 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Term Loan Long Term 0.17 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Proposed Long Term Bank Facility Long Term 0.65 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) 05 Jan 2024 Secured Overdraft Short Term 0.80 ACUITE A4+ (Assigned) Bank Guarantee (BLR) Short Term 35.00 ACUITE A4+ (Assigned) Proposed Bank Guarantee Short Term 1.70 ACUITE A4+ (Assigned) Term Loan Long Term 0.63 ACUITE BB+ | Stable (Assigned) Cash Credit Long Term 7.00 ACUITE BB+ | Stable (Assigned) Proposed Cash Credit Long Term 3.00 ACUITE BB+ | Stable (Assigned) Covid Emergency Line. Long Term 1.87 ACUITE BB+ | Stable (Assigned)

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Ritika Lalwani Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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