| Experienced management and assured off-take through long-term power purchase agreement:
The Refex group is involved in the business of refrigerant gases, renewable energy utility-grade EPC projects, O&M of solar power plants, solar IPP businesses, ash disposal management, power trading, and coal trading. Refex group has commissioned 1 GW of projects under differing conditions in Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Andhra Pradesh, and Rajasthan. SRSSFPL has entered a 25-year PPA with South East Central Railways (SECR) started from FY2023 till FY2048, at a fixed tariff of Rs. 2.91 per unit (kWh) of power supplied. This substantially mitigates the demand and price risk associated with the project. Refex Renewables and Infrastructure Limited (Erstwhile SunEdison Infrastructure Limited), part of the Refex Group, will manage the O&M activity and EPC part of the solar plant, which will ensure efficient operational metrics of the company. Acuité believes that strong management, a long-term PPA, and strong counterparty receivable risk keeps the business risk profile moderate and stable over the medium term.
Strong counter-party profile:
The rating derives strength from the company's long-term power purchase arrangement with Southeast Central Railway (SECR), a key zone of Indian Railways, under a 25-year PPA at a fixed tariff of Rs.2.91 per unit. SECR plays an important role in the transportation of bulk commodities such as coal, iron ore, steel, cement and fertilizers, underscoring its strategic significance within the Indian Railways network. The entire power generated from the company's 50 MW (AC) solar project is supplied to SECR, providing stable demand visibility and predictable cash flows. Further, the company has maintained a satisfactory billing and collection track record, with no material delays in receipt of payments from the offtaker. Acuité believes that the presence of a strong counterparty profile mitigates receivable risk and keeps the business risk profile stable over the medium term.
Presence of Escrow mechanism and maintenance of DSRA:
The bank facilities availed by SRSSFPL are backed by a Debt Service Reserve Account (DSRA) in the form of a fixed deposit, equivalent to 1 quarters’ interest and principal for servicing the debt obligation. The company has currently created full DSRA of Rs.5.75Cr. In addition, the bank facilities are supported by a Trust and Retention account (TRA) through which all receipts from SECR shall be escrowed with priority for debt repayment. Further, the sponsor company Refex Holdings Private Limited (Erstwhile, Sherisha Technology Private Limited) has offered corporate guarantee for SRSSFPL. Acuité believes that the lender derives comfort from the escrow mechanism in place, which facilitates timely repayment of the debt obligations over the medium term.
Improved operational performance:
SRSSFPL's operational performance improved during FY2026, with gross power generation increasing to 94.24 MU from 92.89 MU in FY2025. The average PLF also improved to 21.52 percent in FY2026 from 21.25 percent in FY2025, supported by stable plant operations and the increase in installed DC capacity. The operational performance strengthened further during 4MFY2027, with gross generation increasing to 32.62 MU from 29.78 MU in the corresponding period of the previous year. Consequently, the average PLF improved to 28.7 percent during 4MFY2027 from 25.8 percent during 4MFY2026. The improvement was driven by favourable solar resource availability and enhanced operating efficiency following the increase in installed DC capacity to 75.57 MW. Acuité notes that the improvement in generation levels has strengthened the operational profile of the project; however, the ability to sustain generation and PLF at the current levels will remain a key monitorable.
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