Press Release

Press Release

December 22, 2025

SHAHPUR ROAD PROJECT PRIVATE LIMITED
Rating Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	49.50	ACUITE A- \| Stable \| Upgraded	-
Total Outstanding	49.50	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has upgraded its long-term rating to ‘ACUITE A-’ (read as ACUITE A minus) from 'ACUITE BBB+' (read as ACUITE triple B plus) on the Rs.49.50 crore bank facilities of Shahpur Road Project Private Limited (SRPPL). The outlook is 'Stable'.

Rationale for upgradation
The rating upgrade reflects the timely completion of the project and receipt of all milestone payments from Maharashtra PWD, along with regular bi-annual annuity payments to date. SRPPL has successfully received nine annuity payments for September 2021, April 2022, October 2022, March 2023, September 2023, March 2024, September 2024, March 2025 and September 2025. Annuity inflows, interest, and O&M receipts have strengthened liquidity and enhanced cash flow visibility. Additionally, the rating considers the company’s adequate liquidity position, supported by a DSRA equivalent to two half-yearly instalments, six months’ interest coverage, and an escrow mechanism. The rating also factors experienced profile of sponsors. However, the rating remains constrained on account of susceptibility to risks related to delay in receipt of annuity and changes in operational cost & interest rate.

About the Company

Incorporated in the year 2018, SRPPL is wholly-owned Special Purpose Vehicle (SPV) sponsored by Anish Infracon India Private Limited (Anish) for construction, improvement and widening of (a) Shahpur Shenwa Dolkhambh Chonda Sangamner Shegaon nanded Dharmabad Raod SH-50 and, (b) Kambare Piwali NH-3 to Washind Road MDR-57 District Thane, state of Maharashtra. The project covering a length of 58.650 KM. The project has been awarded by Public Work Department, Government of Maharashtra (GoM) for concession period of 11.08 years including a construction period of 1.5 years. The project is to be executed on Design, Build, Operate and Transfer (DBOT), Hybrid Annuity Model basis i.e. post completion of construction, SPV will benefit from 20 bi-annual annuities of 40 per cent of completion cost in addition to O&M expenses and interest cost (adjusted for price inflation index). SRPPL signed the concession agreement with PWD, GoM on August 22, 2018. The appointed date was obtained in January 2019 and the revised scheduled commercial operation date (COD) was March 31, 2021. The construction was completed on time and the company has received final completion certificate. Current directors of the company are Mr. Samrathdan Zula, Mr. Reezwan Iliyas Vijapura and Mr. Alpeshbhai Girishbhai Patel.

Unsupported Rating

Not applicable

Analytical Approach

For arriving at the rating, Acuité has considered the standalone credit profile of Shahpur Road Project Private Limited (SRPPL).

Key Rating Drivers

Strengths

Benefits derived from the annuity-based revenue model

The project being developed has an annuity-based revenue model. Under this model, the PWD, Maharashtra, makes bi-annual payments over the concession period to the concessionaire. The company does not bear any traffic risk as it recovers the whole of the capital cost through annuity. Further, biannual operational and maintenance expense and interest cost reimbursement to the extent of bank rate +3 percent is given to the concessionaire during the concession phase. The company has achieved a 100 percent construction stage, against which it has received 10 percent mobilization advances and all milestone payments from the authority.The company has received nine Annuities wherein September 2025 annuity has been delayed and received on 9^th December 2025 due to operational delays from Maharashtra PWD. However, the debt repayment was made timely with the support of sponsors.

Waterfall mechanism in ESCROW account

SRPPL has an escrow mechanism through which cash flows from Authority are routed and used for payment as per the defined payment waterfall. Only surplus cash flow after meeting operating expenses, debt servicing obligations, and provision for major maintenance expenses can be utilized as per the borrower's discretion during the concession period.

Weaknesses

Susceptibility to risks related to delay in receipt of annuity and changes in operational cost & interest rate
As per the concession agreement, the company is expected to receive a semi-annual annuity. Any delay in timely receipt of the annuity could adversely impact debt-servicing ability. Along with fixed annuities, the project will receive interest payments on the balance annuities that are linked to the prevailing bank rate. The bank rate has reduced significantly in the past couple of years, which has impacted the project inflow as a large proportion of the cash inflow is from the interest on balance annuities. However, this risk is partially offset as the interest rate on debt is floating and is also expected to follow the trend in bank rates, thus keeping DSCR in check. Further, the company is exposed to risks related to maintenance of the project. If the prescribed standards are not met, annuity payments may be reduced. Any significant delay and deduction in annuities could impact the debt servicing ability of the company. However, the strong track record of the sponsor, who is also the O&M contractor, is expected to mitigate this risk.

Rating Sensitivities

Any delays in receipts of annuity leading to cash flow mismatches
Timely repayment of debt

Liquidity Position

Adequate

SRPPL’s liquidity position is adequate, marked by the timely receipt of milestone payments from PWD while executing the project. The project was completed as per schedule time, and the company has received 9 annuity payments till date. Acuité expects the liquidity of SRPPL is likely to remain adequate, backed by consistent support from government receivable in terms of annuity payments and also DSRA maintained by the company equivalent to 2HY instalments and six months of interest.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	15.49	8.21
PAT	Rs. Cr.	0.40	(0.05)
PAT Margin	(%)	2.56	(0.63)
Total Debt/Tangible Net Worth	Times	3.19	3.84
PBDIT/Interest	Times	1.09	0.99

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
23 Sep 2024	Term Loan	Long Term	49.50	ACUITE BBB+ \| Stable (Reaffirmed)
04 Jul 2023	Term Loan	Long Term	49.50	ACUITE BBB+ \| Stable (Reaffirmed)
17 Jun 2022	Term Loan	Long Term	35.08	ACUITE BBB+ \| Positive (Reaffirmed)
17 Jun 2022	Proposed Long Term Loan	Long Term	14.42	ACUITE BBB+ \| Positive (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Oct 2029	49.50	Simple	ACUITE A- \| Stable \| Upgraded ( from ACUITE BBB+ )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Dharmavarapu Sai Kiran
Senior 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.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.