Press Release

Press Release

November 13, 2025

SKY POWER SOLAR INDIA PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	185.00	ACUITE A \| Stable \| Assigned	-
Total Outstanding	185.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned its long-term rating of 'ACUITE A' (read as ACUITE A) on the Rs.185.00 Cr. of bank loan facilities Sky Power Solar India Private Limited (SPSIPL). The Outlook is 'Stable'.

Rationale for Rating
Acuite derives benefit for SPSIPL from being part of INOXGFL group (post the change in management) given its high significance to the future growth plans of the group in renewable energy space. The rating also factors the healthy financial flexibility of the promoter group entities to lend need-based support to the company and its future projects. This is based on the healthy market value of investments made by flagship entities of the group. The INOXGFL group is of primarily two flagship business entities including Gujarat Fluorochemicals Limited (GFL) and Inox Wind Limited (IWL) having combined market capitalization Rs. 65,275 Cr. as on date.

SPSIPL is successfully operating a 50 MW (AC) / 57.5 MW (DC) solar power plant asset located in the Khandwa district of Madhya Pradesh since 2017. The rating gets additional comfort with low offtake risk as long term (25 years) PPA (Power Purchase Agreement) tied up for full capacity at a fixed tariff rate, presence of DSRA for one quarter of debt obligation, escrow account and outflows will be based on waterfall mechanism.

However, rating is constrained due to moderate earning profile, leveraged capital structure and vulnerability of cash flows due to weather conditions.

About the Company

Delhi based, Sky Power Solar India Private Limited was incorporated in 2015. The Company has been established to develop, manage, finance and owns a 50 MWAC solar power plant in the state of Madhya Pradesh. Currently the directors of the company are Mr. Rajesh Kumar Goel and Mr. Bharat Nareshkumar Saxena.

Unsupported Rating

Not Applicable.

Analytical Approach

Acuite has considered the standalone business and financial risk profile of Sky Power Solar India Private Limited (SPSIPL). Acuité has also factored strong operational and financial benefits derived from being part of INOXGFL group.

Key Rating Drivers

Strengths

Strong group benefits by virtue of being a part of INOXGFL group
The Group has an established presence in the wind segment and speciality chemicals through its flagship companies Inox Wind Limited (Acuite AA- | Stable | A1+) and Gujarat Fluorochemicals Limited (GFL), respectively. The group is promoted by Jain family who holds a significant stake in the group companies, either directly or through its investment holding company Inox Leasing and Finance Limited (ILFL). Acuite believes that the vast experience of the promoters will help the company in medium to long term.

Low off-take risk due to presence of long term PPAs
The company had signed long term PPA (Power Purchase Agreement) for 25 years with MP Power Management Company Limited (100% subsidiary of Government of Madhya Pradesh) for full capacity indicating the low offtake risk for the project at a specified tariff. Acuite believes that the lock in period of 25 year reduces the demand risk in longer term.

Presence of DSRA, Escrow Account with Waterfall mechanism
The company is required to maintain DSRA equivalent to three months of debt servicing (principle & interest) has been created and to be maintained throughout the tenor of the facilities. In addition to that, all the cash inflows will route through the escrow account and payment will be utilized as per the waterfall mechanism. Acuite believes that such structured mechanism allows the company to have better control over its cash flows and debt servicing abilities.

Weaknesses

Moderate Earning Profile
The operating margin & net margin of the company declined from 46.90% & 30.02% in FY 2024 to 29.17% and 6.23% in FY 2025 respectively. Acuite believes earning profile of the company will improve in near to medium term on the account of change in the management.

Leveraged Capital Structure
INOXGFL acquired SPSIPL for Rs. 275 cr. in June 2025 which has been funded by Rs. 185 cr. Term loan in the books of Sky Power Solar India Private Limited, Rs. 40 cr. as Term Loan in the books of INOX Neo Energies Limited and balance Rs. 50 cr. as sponsor/promoter contribution. In addition to that, Sponsor i.e. INOX Clean Energy Limited has extended its support in form of undertaking stating to the lender indicating that further infusion will be made for meeting any shortfall towards the payment of the debt obligations. Rs. 185 cr. of term loan in the books of Sky Power Solar India Private Limited has to be repaid in 12 quarterly instalments having bullet payment of 73% in the last quarter. The bullet payment in the last quarter will be paid though re-financing of the debt from another lender. Acuite believes that re-financing of debt in medium term will be key monitorable.

Cash flows vulnerable to variation in weather conditions
The project's cash flow is highly vulnerable to unfavourable weather conditions. Since tariffs are fixed, the company could see reduced revenue if power generation drops due to weather or equipment issues, negatively impacting its cash flow and ability to service debt. This generation risk is amplified by the geographical concentration of assets.

Rating Sensitivities

Significant movement in credit profile of entities within the group
Change in ownership structure
Movement in PLF and its impact on its cash accruals.
Timely Re-financing of debt

Liquidity Position

Adequate

The liquidity position of the company is adequate marked by healthy cash inflows routed through escrow account & waterfall mechanism and presence of DSRA for three months of debt obligation resulted into additional cushion. The average projected DSCR from FY 26 to FY 35 is 1.23 times. Acuite believes that the company will be able to pay debt obligations timely from their cash flows as the project got commenced and capacity is fully tied up with long term PPA.

Outlook - Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	48.61	50.13
PAT	Rs. Cr.	3.03	15.05
PAT Margin	(%)	6.23	30.02
Total Debt/Tangible Net Worth	Times	0.33	0.35
PBDIT/Interest	Times	459.39	986.30

Key Financials :

*Interest in the above table includes bank charges.

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.

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Standard Chartered Bank	Not avl. / Not appl.	Term Loan	15 Oct 2025	Not avl. / Not appl.	30 Jun 2028	185.00	Simple	ACUITE A \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kartik Arora
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.

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