Press Release

Press Release

January 22, 2026

SRI SRINIVASA CONSTRUCTIONS INDIA PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	12.00	ACUITE A- \| Stable \| Assigned	-
Bank Loan Ratings	53.00	ACUITE A- \| Stable \| Reaffirmed	-
Bank Loan Ratings	12.50	-	ACUITE A2+ \| Assigned
Bank Loan Ratings	357.50	-	ACUITE A2+ \| Reaffirmed
Total Outstanding	435.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) and the short-term rating of ‘ACUITE A2+’ (read as ACUITE A two Plus) on the Rs.410.50 Cr. bank facilities of Sri Srinivasa Constructions India Private Limited (SSCIPL). The outlook is 'Stable'.

Acuite has assigned its long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) and the short-term rating of ‘ACUITE A2+’ (read as ACUITE A two Plus) on the Rs.24.50 Cr. bank facilities of Sri Srinivasa Constructions India Private Limited (SSCIPL). The outlook is 'Stable'.

Rationale for Rating
The rating reaffirmation factors in the stability in the operating performance and improvement in the profitability margins. The rating also derives strength from healthy financial risk profile and extensive experience of the promoters in the industry. Further rating also factors in the strong liquidity position of the company. However, these strengths are offset by moderate working capital nature of operations, geographic concentration of projects, susceptibility of operating margin to volatility in input prices, labour charges in a highly competitive tender based nature of business.

About the Company

The Karnataka based, Sri Srinivasa Constructions (SSC) was established in 1992 as a partnership firm by Mr. Y. Pitcheswara Rao and Mr. Y.V.S. Rama Krishna. In the year 2009, Sri Srinivasa Constructions India Private Limited (SSCIPL) was incorporated to take over the running operations of SSC. The company undertakes civil construction works including water supply projects, buildings, irrigation projects, industrial projects, road projects and power transmission projects in Karnataka, Andhra Pradesh, Tamil Nadu, Meghalaya and Telangana.

SSCIPL is a registered Class 1 contractor for various departments including Public Work Departments (PWD), Panchayat Raj Engineering Department (PRED), Public Health Engineering Department (PHED) among others. The present directors of the company are Mr. Yaralagadda Pitcheswara Rao and Mr. Yarlagadda Ramakrishna Venkatashiva.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone financials and risk profile of SSCIPL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced promoters and established nature of operations
The company promoted by Mr. Y. Pitcheswara Rao and Mr. Y.V.S. Rama Krishna with their work experience closer to three decades, are engaged in undertaking civil construction works including water supply projects, buildings, irrigation projects, industrial projects, road projects and power transmission projects in Karnataka, Andhra Pradesh, Tamil Nadu, Meghalaya and Telangana. SSCIPL is a registered Class 1 contractor for various departments including Public Work Departments (PWD), Panchayat Raj Engineering Department (PRED), Public Health Engineering Department (PHED) etc. The company is also a Category 1 contractor for various divisions of water authority of the state of Karnataka. The promoters experience helped the company in establishing long-term relations with its customers, contractors and suppliers.

Stable operating performance backed by healthy order book position
The revenue of the company stood in the similar range at Rs.767.66 crore in FY2025 as against Rs.755.64 crore in FY2024. Further as of December 2025 the company has booked a revenue of Rs.505 crore and are expecting to close the year in the range of, Rs.770-790 crore. The stability in the revenue is on the account to better execution of orders in hand and sufficient order book position. The operating profit margin stood at 7.29 per cent in FY2025 as against 7.71 per cent in FY2024, the moderation in the profitability is due to volatility in the raw materials cost since lower reliance on sub-contracting. However, the PAT margin of the company has shown a consistent improvement in last 3 years with PAT margin of 4.82 per cent in FY2025 as against 4.66 per cent in FY2024 and 4.64 per cent in FY2023. Further the PAT margins are going to improve on account of low interest cost due to almost no debt. Additionally, the company has an unexecuted order book of Rs.1763.29 crore as of Oct 2025 which gives a significate revenue visibility going ahead for the company. Out of the total order book, the company has obtained new orders worth Rs.306.33 crore in hand. Also, the company is the L1 bidder for orders worth Rs.305.92 crore. The company also has some tender participated orders worth Rs.1240.01 crore which are expected to win during FY27.

Healthy Financial Risk Profile
The financial risk profile of the company is healthy marked by comfortable net worth, healthy gearing and comfortable debt protection metrics. The tangible net worth of the company stood at Rs.194.89 crore as on March 31,2025 as against Rs.157.85 crore as on March 31, 2024. The total debt of the company also declined and stood at Rs.4.00 crore as on March 31, 2025 as against Rs.8.67 crore as on March 31, 2024. The gearing (debt to equity ratio) remained healthy at 0.02 times as on March 31,2024 as against 0.05 times as on March 31, 2024. The debt protection metrics also improved as debt service coverage ratio (DSCR) stood at 4.29 times in FY2025 as against 3.64 times in FY2024, while interest coverage ratio (ICR) stood at 6.28 times in FY2025 as against 4.94 times in FY2024. The NCA/TD also stood improved at 10.22 times in FY2025 as against 4.47 times in FY2024. Acuite believes, the financial risk profile would remain healthy on the back of absence of any major debt funded capex.

Efficient Working Capital Management
The working capital management of the company is efficient marked by gross current asset (GCA) of 78 days in FY2025 as against 82 days of FY2024. The debtor days stood low at 19 days in FY2025 and 17 days in FY2024. The low debtor days are due to improved billing in FY2025. The debtor days are expected to increase in near to medium terms. The creditor days stood at 117 days as on March 31, 2025, as against 120 days as on March 31, 2024. The inventory days stood at 6 days in FY2025 as against 33 days in FY2024. The fund based bank limits utilisation for 12 month ended September 2025 stood at 60% and non-fund based stood at 64 per cent for last 6 months ended September 2025.

Weaknesses

Geographic concentration of projects
Majority of the projects executed by the company are based out of Karnataka which is responsible for a large portion of the revenue in FY25 resulting in exposure to significant geographical and political risk. The company also have diversified to some extend picking up projects in Andhra Pradesh, Tamil Nadu, Meghalaya and Telangana.

Susceptibility of operating margin to volatility in input prices, labour charges in a highly competitive tender based nature of business
The company’s operating margin remains susceptible to volatility in key input materials and labour costs, especially given the tender-based nature of its business. Prices of major construction inputs such as steel, cement and aggregates are inherently volatile, though the presence of price-escalation clauses in most government contracts provides partial protection. Despite its longstanding industry presence, the company’s revenue visibility depends on its ability to competitively secure tenders in a highly fragmented and competitive market.

Rating Sensitivities

Continuous Improvement in scale of operations while maintaining profitability
Changes in working capital management
Changes in financial risk profile

Liquidity Position

Strong

The liquidity position of SSCIPL is strong marked by sufficient net cash accruals against maturing debt obligations. The NCA of the company stood at Rs.40.88 crore in FY2025 as against its maturing debt obligation of Rs.1.65 crore during the same period. Further the NCA is expected to remain in the range of Rs.42-49 crore against maturing debt obligation of Rs.0.60-1.60 crore in FY2026-FY2027. The company maintains cash and bank balance of Rs.29.07 crore which includes an additional balance available in the OD/CC accounts of Rs.28.87 crore. The current ratio of the company stood at 2.20 times in FY25. The average fund-based bank limits utilisation for 12 month ended September 2025 stood at 60% and non-fund based stood at 64 per cent for last 6 months ended September 2025.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	767.66	755.64
PAT	Rs. Cr.	37.04	35.21
PAT Margin	(%)	4.82	4.66
Total Debt/Tangible Net Worth	Times	0.02	0.05
PBDIT/Interest	Times	6.28	4.94

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
27 Dec 2024	Cash Credit	Long Term	10.00	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	5.00	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	10.00	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Proposed Long Term Bank Facility	Long Term	15.40	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Working Capital Demand Loan (WCDL)	Long Term	20.00	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	8.00	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	20.00	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Bank Guarantee/Letter of Guarantee	Short Term	80.00	ACUITE A2+ (Upgraded from ACUITE A4+)
	Bank Guarantee (BLR)	Short Term	50.00	ACUITE A2+ (Upgraded from ACUITE A4+)
	Bank Guarantee (BLR)	Short Term	62.10	ACUITE A2+ (Upgraded from ACUITE A4+)
	Letter of Credit	Short Term	30.00	ACUITE A2+ (Upgraded from ACUITE A4+)
	Bank Guarantee (BLR)	Short Term	40.00	ACUITE A2+ (Upgraded from ACUITE A4+)
	Bank Guarantee (BLR)	Short Term	60.00	ACUITE A2+ (Upgraded from ACUITE A4+)
24 Oct 2024	Bank Guarantee/Letter of Guarantee	Short Term	50.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
	Bank Guarantee/Letter of Guarantee	Short Term	60.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
	Bank Guarantee (BLR)	Short Term	30.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
	Bank Guarantee (BLR)	Short Term	20.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
	Bank Guarantee (BLR)	Short Term	71.60	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
	Letter of Credit	Short Term	30.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
	Bank Guarantee (BLR)	Short Term	25.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
	Bank Guarantee (BLR)	Short Term	50.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
	Proposed Bank Guarantee	Short Term	13.40	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
	Cash Credit	Long Term	20.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ \| Stable)
	Cash Credit	Long Term	5.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ \| Stable)
	Cash Credit	Long Term	5.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ \| Stable)
	Cash Credit	Long Term	10.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ \| Stable)
	Proposed Long Term Bank Facility	Long Term	0.50	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ \| Stable)
	Cash Credit	Long Term	20.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ \| Stable)
04 Aug 2023	Bank Guarantee/Letter of Guarantee	Short Term	50.00	ACUITE A2 (Upgraded from ACUITE A4+)
	Bank Guarantee/Letter of Guarantee	Short Term	60.00	ACUITE A2 (Upgraded from ACUITE A4+)
	Bank Guarantee (BLR)	Short Term	30.00	ACUITE A2 (Upgraded from ACUITE A4+)
	Bank Guarantee (BLR)	Short Term	20.00	ACUITE A2 (Assigned)
	Bank Guarantee (BLR)	Short Term	71.60	ACUITE A2 (Assigned)
	Letter of Credit	Short Term	30.00	ACUITE A2 (Assigned)
	Bank Guarantee (BLR)	Short Term	25.00	ACUITE A2 (Assigned)
	Bank Guarantee (BLR)	Short Term	50.00	ACUITE A2 (Assigned)
	Proposed Bank Guarantee	Short Term	13.40	ACUITE A2 (Assigned)
	Cash Credit	Long Term	20.00	ACUITE BBB+ \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	5.00	ACUITE BBB+ \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	5.00	ACUITE BBB+ \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	10.00	ACUITE BBB+ \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	0.50	ACUITE BBB+ \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	20.00	ACUITE BBB+ \| Stable (Assigned)
30 May 2023	Bank Guarantee/Letter of Guarantee	Short Term	50.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2+)
	Bank Guarantee/Letter of Guarantee	Short Term	60.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2+)
	Bank Guarantee (BLR)	Short Term	30.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2+)
	Cash Credit	Long Term	20.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- \| Stable)
	Cash Credit	Long Term	5.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- \| Stable)
	Cash Credit	Long Term	5.50	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- \| Stable)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE A2+ \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	40.00	Simple	ACUITE A2+ \| Reaffirmed
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE A2+ \| Reaffirmed
INDUSIND BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE A2+ \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	167.50	Simple	ACUITE A2+ \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	12.50	Simple	ACUITE A2+ \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A- \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A- \| Stable \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A- \| Stable \| Reaffirmed
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	8.00	Simple	ACUITE A- \| Stable \| Reaffirmed
INDUSIND BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE A- \| Stable \| Reaffirmed
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	12.00	Simple	ACUITE A- \| Stable \| Assigned

* Note: Kotak Mahindra Bank has sanctioned a Cash Credit limit of Rs.20 crore and a Bank Guarantee limit of Rs.60 crore. However, the overall bank exposure is capped at Rs.70 crore.

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Akshat Shah
Associate 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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