Press Release June 18, 2026 STRONGBUILT CONSTRUCTIONS PRIVATE LIMITED Rating Assigned and Upgraded

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	7.50	ACUITE BBB- | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	2.50	ACUITE BBB- | Stable | Upgraded	-	RBI
Bank Loan Ratings	0.00	2.50	-	ACUITE A3 | Assigned	RBI
Bank Loan Ratings	0.00	37.50	-	ACUITE A3 | Upgraded	RBI
Total Outstanding	0.00	50.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 upgraded its long term rating to ‘ACUITE BBB-’ (read as ACUITE triple B minus) from ‘ACUITE BB’ (read as ACUITE double B) and its short term rating to ‘ACUITE A3’ (read as ACUITE A three) from ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.40.00 crore bank facilities of Strongbuilt Constructions Private Limited (SCPL). The outlook is ‘Stable’. The company has provided information, leading to a transition from Issuer Not Co-operating (INC since April 2026) to a regular issuer. Acuité has assigned its long term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) and its short term rating of ‘ACUITE A3’ (read as ACUITE A three) on the Rs.10.00 crore bank facilities of Strongbuilt Constructions Private Limited (SCPL). The outlook is ‘Stable’. Rationale for Rating The rating upgrade factors in SCPL’s improving operating and financial performance, as reflected in the growth in operating income to Rs. 145.58 Cr. in FY26 (prov.) from Rs. 101.50 Cr. in FY25. The company’s order book position remains healthy at around Rs. 454.15 Cr. as of March 31, 2026, providing adequate revenue visibility over the medium term. The financial risk profile continues to remain moderate, marked by a moderate net worth, comfortable debt protection metrics, and comfortable gearing levels. However, the rating is constrained by the company’s exposure to the cyclicality inherent in the construction and real estate sector.

About the Company

­Mumbai-based, Strongbuilt Constructions Private Limited (SCPL) was incorporated in 2011. The directors of the company are Mr. Rashmeet Singh Kohli, Mr. Kevin Singh Kohli and Mr. Jagpreet Singh Kohli and the company is engaged in undertaking EPC (engineering, procurement, and construction) contracts of constructing shell and core for real estate industry.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profiles of the SCPL to arrive at this rating.

Key Rating Drivers

Strengths

­Experienced management The promoters, Mr. Rashmeet Singh Kohli and Mr. Kevin Singh Kohli have more than a decade of experience in the construction industry through the sister concern, Skyway RMC Plants Private Limited. The promoters are backed by a team of experienced professionals from the construction industry. Acuité expects SCPL to continue to benefit from the promoters' ability to leverage their relationship with well-established clients. Improvement in scale of operations and profitability The company has witnessed a significant improvement in its scale of operations, with operating income increasing to Rs. 145.58 Cr. in FY26 (prov.) from Rs. 101.50 Cr. in FY25. Further, the company has a healthy unexecuted order book of approximately Rs. 454.15 Cr. as on March 31, 2026, which stands at around 3.12 times of its FY26 (prov.) revenue, thereby providing adequate revenue visibility over the medium term. Going forward, the company’s ability to secure new orders and execute its existing order book in a timely manner will remain a key rating sensitivity. The operating profitability of the company has also improved, with operating margin increasing to 14.20% in FY26 (prov.) from 11.17% in FY25. Additionally, the PAT margin improved to 9.85% in FY26 (prov.) as against 6.29% in FY25. Acuité believes that the company’s operating performance is expected to improve over the medium term, supported by its healthy order book position. Moderate Financial Risk Profile The financial risk profile of the company remains moderate, marked by a moderate net worth, which improved to Rs. 39.27 Cr. as on March 31, 2026 (prov.) from Rs. 24.93 Cr. as on March 31, 2025, on account of accretion to reserves. The capital structure of the company remained comfortable, with gearing improving to 0.22 times as on March 31, 2026 (prov.) as against 0.32 times as on March 31, 2025. The debt protection metrics also remained strong, with Interest Coverage Ratio at 23.35 times in FY2026 (Prov.) as against 16.83 times in FY2025, and Debt Service Coverage Ratio (DSCR) at 7.88 times in FY26 (prov.) as compared to 5.40 times in FY25. Further, the Total Outside Liabilities to Tangible Net Worth (TOL/TNW) improved to 1.34 times as on March 31, 2026 (prov.) from 1.77 times as on March 31, 2025. Acuité believes that the financial risk profile of the company is expected to improve over the medium term, supported by steady accruals and absence of any major debt-funded capex plans. Improvement in working capital operations The working capital operations of the company have shown improvement, as reflected in the Gross Current Assets (GCA) days, which reduced to 97 days as on March 31, 2026 (prov.) from 154 days as on March 31, 2025. The improvement is primarily on account of a reduction in debtor days, which stood at 48 days in FY2026 (prov.) as against 108 days in FY2025. However, the inventory holding period increased slightly, with inventory days at 37 days in FY2026 (prov.) compared to 32 days in FY2025. Acuité believes that the working capital operations of the company are expected to remain moderate over the medium term, given the inherent nature of the business.

Weaknesses

Geographical ­Concentration risk The company’s operations are geographically concentrated, with the majority of its projects being executed in Maharashtra since inception. Furthermore, the current order book is also entirely concentrated in Maharashtra, thereby exposing the company to high geographical concentration risk. Acuité believes that the company’s profitability and growth prospects remain susceptible to region-specific risks, including changes in the regulatory environment and overall demand dynamics in the construction sector within the state. ­Exposed to cyclicality in the construction and real estate industry SCPL derives its entire revenue by undertaking construction projects for various real estate developers, making it exposed to vagaries in the construction and real estate industries. Acuité believes that any slowdown in the industry could have an impact on the revenue and profitability of the company.

Rating Sensitivities

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

Growth in the scale of operations by 40% with improving profitability margins. Timely execution of order book and bagging new orders. Improvement in networth.

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

Reduction in OB/OI below 1.5 times Any elongation in working capital management

Liquidity Position

Adequate

The company has an adequate liquidity position, marked by net cash accruals of Rs. 16.24 Cr. in FY26 (prov.) against relatively lower maturing debt obligations of Rs. 1.24 Cr. over the same period. The liquidity is further supported by cash and bank balances of Rs. 0.10 Cr. and unencumbered investments of Rs. 10.05 Cr. as on March 31, 2026 (prov.). The current ratio stood low at 1.03 times as on March 31, 2026 (prov.). Additionally, the average utilisation of fund-based working capital limits remained moderate at around 41.91% over the 12-month period ended March 2026. Acuité believes that the liquidity position of the company is expected to remain adequate over the medium term, supported by steady accruals and the absence of any major debt-funded capex plans.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	145.58	101.50
PAT	Rs. Cr.	14.34	6.38
PAT Margin	(%)	9.85	6.29
Total Debt/Tangible Net Worth	Times	0.22	0.32
PBDIT/Interest	Times	23.35	16.83

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 Apr 2026 Bank Guarantee/Letter of Guarantee Short Term 7.50 ACUITE A4+ (Reaffirmed & Issuer not co-operating*) Letter of Credit Short Term 5.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*) Proposed Short Term Bank Facility Short Term 25.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*) Secured Overdraft Long Term 2.50 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ | Stable) 27 Jan 2025 Bank Guarantee/Letter of Guarantee Short Term 7.50 ACUITE A4+ (Reaffirmed) Proposed Short Term Bank Facility Short Term 25.00 ACUITE A4+ (Reaffirmed) Letter of Credit Short Term 5.00 ACUITE A4+ (Reaffirmed) Secured Overdraft Long Term 2.50 ACUITE BB+ | Stable (Reaffirmed) 30 Oct 2023 Bank Guarantee/Letter of Guarantee Short Term 7.50 ACUITE A4+ (Reaffirmed) Proposed Short Term Bank Facility Short Term 30.00 ACUITE A4+ (Reaffirmed) Cash Credit Long Term 2.50 ACUITE BB+ | Stable (Reaffirmed)

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Contacts

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

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