Press Release July 06, 2026 SIDDARTHA CIVIL WORKS PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	27.00	ACUITE BBB- | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	103.00	-	ACUITE A3 | Assigned	RBI
Total Outstanding	0.00	130.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

­Acuité has assigned its long-term rating of 'ACUITE BBB-' (read as ACUITE triple B 'minus') on the Rs.27.00 Cr. and short- term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 103.00 Cr.  bank facilities of Siddartha Civil Works Private Limited (SCWPL) . The outlook is 'Stable'. Rationale for rating assigned The rating assigned considers long operational track record of the company and extensive experience of the promoters over two decades in civil construction and infrastructure sector. The rating also considers steady improvement in revenues with healthy operating margins backed by moderate orderbook position. The rating also draws comfort from company’s healthy financial risk profile coupled with low gearing and moderate debt protection metrics and adequate liquidity position. However, the rating is constrained by working capital intensive nature of operations and exposure to execution-related risks and tender-driven nature of the business.

About the Company

Bangalore based, Siddartha Civil Works Private Limited (SCWPL), was Incorporated in 1998. The company operates entirely within the infrastructure and construction sector. It is primarily engaged in EPC contract works, specializing in government infrastructure projects, including irrigation systems, roads, and railway bridges. The current directors of the company are Mrs. Indira Paritala, Mr. Sudhakar Paritala and Mr. Paritala Siddartha.

Unsupported Rating

­Not applicable.

Analytical Approach

­Acuité has considered the standalone business and financial risk profiles of Siddartha Civil Works Private Limited (SCWPL) for arriving at the rating.

Key Rating Drivers

Strengths

Experienced management and established track record of operations SCWPL benefits from a strong promoter group, led by Mrs. Indira Paritala, Mr. Sudhakar Paritala and Mr. Paritala Siddartha who together have nearly two decades of experience in the civil construction and infrastructure sector. The promoters remain actively involved in day-to-day operations and are supported by an experienced management team with established technical capabilities in executing EPC projects. Over the years, the company has built longstanding relationships with various government departments in karnataka Andhra Pradesh and Kerala, enabling a stable flow of irrigation, roads, and railway bridges projects. Acuité believes that the SCWPL will continue to benefit from its long operational track record, promoter’s extensive industry experience and regional presence will continue to support SCWPL’s business profile over the medium term. Improved operating revenue, healthy profitability coupled with moderate order book position The company's operating performance has improved marked by YOY growth of 20.40 percent in FY 2026(Prov), which stood at Rs. 221.05 Cr. in FY 2026(Prov) as against Rs. 183.60 Cr. in FY 2025 and Rs. 147.47 Cr. in FY2024. The improvement in revenues is on account of ramp up in the order-book and the timely completion of the orders. The company achieved an operating margin of 12.17 percent in FY2026(Prov.) as against 12.75 percent in FY2025 and 12.89 percent in FY2024. Stable margins on account of efficient utilization of the resources and control over the pricing. The company has an unexecuted order book of Rs.655.53 Cr. as on April 01,2026. The outstanding order book is 2.96x of the FY2026(Prov) revenue. Acuité believes that, the company’s operating performance would improve steadily on the back of moderate order book position over the medium term. Healthy financial risk profile SCWPL’s financial risk profile is healthy, marked by healthy net worth, low gearing and moderate debt protection metrics. The net worth of the company stood at Rs.99.28 Cr. March 31, 2026(Prov.) as against Rs.55.99 Cr. March 31, 2025. The improvement in net worth is due to accretion of reserves and quasi equity and USL of Rs. 30.40 Cr. which has been treated as quasi equity. The gearing of the company stood at 0.44 times as on March 31, 2026(Prov.), against 0.98 times as on March 31, 2025, and 0.65 times as on March 31, 2024. Company’s debt protection metrics is moderate marked by– Interest coverage ratio (ICR) and debt service coverage ratio (DSCR) stood at 3.49 times and 1.89 times as on March 31, 2026(Prov), respectively as against 3.50 times and 2.09 times as on March 31, 2025, and 3.50 times and 2.11 times as on March 31, 2024. TOL/TNW stood at 1.00 times as on March 31st, 2026(Prov), against 1.89 times as on March 31st , 2025 and 2.18 times as on March 31st, 2024, respectively. The debt to EBITDA of the company stood at 1.55 times in March 2026(Prov) as against 2.27 times in FY2025 and 1.51 times in FY2024. Acuité believes that the financial risk profile will remain healthy over the medium term due to steady accruals and no major debt funded capex.

Weaknesses

Working capital intensive operations The company’s operations are working capital intensive, with high gross current assets (GCA) which stood at 214 days in FY2026 (Prov.) as against 221 days in FY2025 and 225 days in FY2024. The high GCA days are mainly on account of inventory days. Inventory days stood at 118 days in FY2026(Prov.) as against 142 days in FY2025 and 137 days in FY2024. The entire inventory pertains to work in process inventory. This is mainly due to nature of business since the company operates in EPC sector where last quarter the inventory is on a higher side. Debtor days stood at 62 days in FY2026(Prov) as against 38 days in FY2025 and 57 days in FY2024. Furthermore, the average utilization for fund-based limits remained almost fully utilised over the last six months ending March 2026. Acuité believes SCWPL’s ability to improve its working capital cycle will remain a key monitorable. Exposure to execution-related risks, tender-driven nature of the business Intense competition from several players, and exposure to risks arising from dependence on tenders and geographical presence restricted to Karnataka, AP and Kerala. Growth in revenue and profitability depends on the company's ability to bid successfully and executes orders within stipulated time frame. Company remains exposed to execution risks inherent in EPC contracting, where delays in site access, departmental clearances and monsoon-related disruptions can affect project timelines.

Rating Sensitivities

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

Significant growth in revenues while maintaining healthy profitability Timely execution of existing orders while securing substantial new work orders Improvement in working capital cycle with GCA below 150 days on a sustained basis

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

Significant decline in revenues and profitability Deterioration in financial risk profile due to additional in debt or weakening of coverage indicators with DSCR below 1.10 times. Elongation in working capital cycle exerting pressure on liquidity

Liquidity Position:

Adequate

Company’s liquidity is adequate with net cash accruals of Rs.15.56 Cr. in FY2026(Prov), while its maturing debt obligations were Rs. 4.49 Cr. during the same period. Going forward the company is expected to generate net cash accruals of Rs. 18.81- 22.68 Cr. in FY 2027-28 against Rs.2.01-3.79 Cr. debt obligations. The current ratio stood at 1.37 times as on March 31, 2026(Prov), and the limits remains utilized at 93 percent for fund based and 98 percent for Non-Fund based over the 6 months ended March 2026. The company maintains unencumbered cash and bank balances of Rs.2.83 Cr. as on March 31, 2026(Prov). Acuité believes, the liquidity is expected to remain adequate, supported by adequate accrual generation in the near term.

Outlook: Stable

­

Other Factors affecting Rating

­None.

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	221.05	183.60
PAT	Rs. Cr.	12.90	10.72
PAT Margin	(%)	5.84	5.84
Total Debt/Tangible Net Worth	Times	0.44	0.98
PBDIT/Interest	Times	3.49	3.50

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

­None.

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 :

­Not applicable.

Contacts

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

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