Press Release

Press Release

September 04, 2026

SLR INFRASTRUCTURE 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	11.50	ACUITE BBB \| Stable \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	93.50	-	ACUITE A3+ \| Reaffirmed	RBI
Total Outstanding	0.00	105.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 its long-term rating of 'ACUITE BBB' (read as ACUITE Triple B) on the Rs.11.50 Cr. bank facilities and short-term rating of 'ACUITE A3+' (read as ACUITE A three Plus) on the Rs.93.50 Cr. bank facilities of SLR Infrastructure Private Limited (SIPL). The outlook is 'Stable'.

Rationale for rating
SIPL’s rating reaffirmation reflects its stable operating performance marked by steady revenues and profitability margins. The rating also considers the healthy order book position thereby providing revenue visibility over the medium term. The rating also factors in the company’s comfortable financial risk profile, characterized by low gearing levels, healthy debt protection measures and a moderate net worth base. Further, the rating derives comfort from SIPL’s established track record in the civil construction sector, strong execution capabilities, long-standing relationships with departments and the extensive experience of its promoters. However, the rating remains constrained by the working capital intensive nature of operations and intense competition inherent in the tender-based infrastructure contracting business.

About the Company

Incorporated in 2005 and based in Hyderabad, SLR Infrastructure Private Limited (SIPL) was originally a partnership firm (erstwhile known as Vijaya Construction Company) formed in 1989. Prior to that, the business was carried on by the main promoter, Mr. Lakshma Reddy, as a proprietary concern since 1974. During 2005-06, the firm was converted into a private limited company under the name “SLR Infrastructure Private Limited”. The company undertakes civil construction activities, primarily irrigation contracts, road works, and earthworks, mainly in Andhra Pradesh, Telangana, and Maharashtra. Currently, the company is managed by Mr. Sandeep Reddy Seelam, Ms. Jaya Lakshmi Seelam, Mr. Dinesh Reddy Seelam, Mr. Lakshma Reddy Seelam, and Mr. Seelam Vijay Kumar Reddy.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of SIPL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and established track record in civil construction
SIPL benefits from the extensive industry experience of its promoters, with the business lineage tracing back to 1974. The promoters possess significant expertise in executing civil construction projects across irrigation, road, and earthwork segments. The company has established a proven track record of project execution and maintains long-standing relationships with various government departments in Telangana, Andhra Pradesh, and Maharashtra. Its experience and execution capabilities have enabled it to successfully bid for and execute infrastructure projects, supporting business stability and growth.

Acuité believes that the company's experienced management and established operational track record will continue to support its business risk profile over the medium term.

Healthy order book providing revenue visibility
SIPL has a healthy unexecuted order book of approximately Rs.689.43 Cr, as on March 31, 2026, equivalent to around 4.55 times its FY2026 provisional revenue, providing strong revenue visibility over the medium term. The order book is well diversified across irrigation, road and other infrastructure projects and is expected to be executed over the medium term. Further, the company has additional L1 orders of around Rs.402.38 Cr, which are expected to strengthen its order pipeline.

Acuité believes that the healthy order book position coupled with the company's execution capabilities is likely to support revenue growth over the medium term.

Comfortable financial risk profile
The financial risk profile of SIPL remains above average, marked by a robust capital structure and debt protection metrics. The company's net worth improved and stood at Rs.74.03 Cr. as on March 31, 2026 (Prov.) against Rs.64.79 Cr. as on March 31, 2025, supported by accretion of profits to reserves during the year. The gearing ratio stood below unity at 0.29 times as on March 31, 2026 (Prov.) against 0.22 times as on March 31, 2025. The debt coverage indicators stood comfortable; interest coverage ratio stood at 6.99 times in FY2026 (Prov.) against 8.15 times in FY2025 and debt service coverage ratio stood at 3.24 times in FY2026 (Prov.) against 2.03 times in FY2025. Further, Debt-to-EBITDA stood at 1.29 times in FY2026 (Prov.). The TOL/TNW ratio also increased to 1.63 times as on March 31, 2026 (Prov.) against 1.05 times as on March 31, 2025. Nonetheless, the overall financial risk profile continues to derive comfort from moderate leverage levels and comfortable profitability levels.

Weaknesses

Working capital intensive nature of operations
The working capital operations remain intensive in nature, inherent to the infrastructure contracting business. The gross current asset (GCA) days increased significantly to 407 days in FY2026 (Prov.) from 303 days in FY2025. The elongation in the working capital cycle was primarily driven by a stretch in receivables pertained to bills raised towards the end of March 2026, with substantial collections subsequently realized during April and May 2026 after processing by the concerned government authorities. Accordingly, the debtor days increased to 159 days in FY2026 (Prov.) from 16 days in FY2025. The inventory holding period stood at 44 days in FY2026 (Prov.) against 78 days in FY2025. Further, the creditor days increased to 227 days in FY2026 (Prov.) from 119 days in FY2025. The average bank limit utilisation stood moderate at around 40.61% for fund-based limits and 68.37% for non-fund-based limits during the last 12 months ended August 17, 2026, providing adequate headroom to support incremental working capital requirements.

Tender-based nature of operations and intense competition
SIPL operates in a highly competitive infrastructure contracting industry characterized by the presence of several organized players competing for government contracts. The company's ability to secure new orders remains dependent on successful participation in competitive bidding processes and timely award of tenders by government authorities. Moreover, aggressive bidding may exert pressure on margins, while delays in tender issuance or project awards can affect order inflows and revenue growth. Hence, the company's business profile remains susceptible to risks associated with tender-based operations and industry competition.

Rating Sensitivities

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

Improvement in operating performance with revenues reaching above ~Rs.300 Cr along with improvement in the profitability margins.
Sustaining order book position along with timely execution.
Improvement in the working capital cycle.

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

Deterioration in operating performance with revenues falling below ~Rs.130 Cr or decline in profitability margins.
Further elongation in working capital cycle or increased reliance on working capital borrowings, leading to deterioration in the financial risk profile.

Liquidity Position

Adequate

SIPL’s liquidity position is adequate, marked by net cash accruals of Rs.10.94 Cr in FY2026 (Prov.) against minimal repayment obligation of Rs.1.75 Cr during the same period. Going forward, the cash accruals are expected to be in the range of ~Rs.12-14 Cr in FY27 & FY28 against very minimal repayment obligation of ~Rs.1.34-1.48 Cr during the same period. The reliance on bank limits stood moderate; for fund based limits at ~40.61% and ~68.37% for non-fund based limits for the last 12 months ending 17th August 2026. The current ratio stood moderate at 1.59 times as on March 31, 2026 (Prov.) and the unencumbered cash and bank balances stood at Rs.0.33 Cr as on 31st March 2026 (Prov.).

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	151.47	132.09
PAT	Rs. Cr.	9.24	8.04
PAT Margin	(%)	6.10	6.08
Total Debt/Tangible Net Worth	Times	0.29	0.22
PBDIT/Interest	Times	6.99	8.15

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
13 Jun 2025	Bank Guarantee (BLR)	Short Term	45.00	ACUITE A3+ (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	36.00	ACUITE A3+ (Reaffirmed)
	Proposed Bank Guarantee	Short Term	12.50	ACUITE A3+ (Reaffirmed)
	Cash Credit	Long Term	3.50	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	3.00	ACUITE BBB \| Stable (Reaffirmed)
	Proposed Cash Credit	Long Term	5.00	ACUITE BBB \| Stable (Reaffirmed)
15 Mar 2024	Bank Guarantee (BLR)	Short Term	45.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	36.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Proposed Bank Guarantee	Short Term	12.50	ACUITE A3+ (Upgraded from ACUITE A3)
	Cash Credit	Long Term	3.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	3.50	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Proposed Cash Credit	Long Term	5.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
05 Jan 2023	Bank Guarantee (BLR)	Short Term	17.00	ACUITE A3 (Assigned)
	Bank Guarantee (BLR)	Short Term	13.80	ACUITE A3 (Assigned)
	Proposed Bank Guarantee	Short Term	62.70	ACUITE A3 (Assigned)
	Cash Credit	Long Term	3.00	ACUITE BBB- \| Stable (Assigned)
	Cash Credit	Long Term	3.50	ACUITE BBB- \| Stable (Assigned)
	Proposed Cash Credit	Long Term	5.00	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	36.00	Simple	ACUITE A3+ \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	45.00	Simple	ACUITE A3+ \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.50	Simple	ACUITE BBB \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Bank Guarantee	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	12.50	Simple	ACUITE A3+ \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.80	Simple	ACUITE BBB \| Stable \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Secured Overdraft	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE BBB \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 May 2026	Not avl. / Not appl.	31 May 2031	0.62	Simple	ACUITE BBB \| Stable \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Working Capital Term Loan	Unlisted	RBI	01 Jun 2026	Not avl. / Not appl.	30 Jun 2031	0.58	Simple	ACUITE BBB \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Sanidhya Jain
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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.