­Experienced and resourceful management
SVEPL operates two commercial towers, namely the IT Building and SEZ Building, located in Mohali, Punjab, with a total leasable area of approximately 5.11 lakh sq. ft. which is 100% occupied as on date. The company was acquired by the Dhanuka Group in FY2023 from Shapoorji Pallonji. The Dhanuka Group has an established presence in organized retail and retail infrastructure management through entities such as Mayur Sales Private Limited and PFH Mall & Retail Management Private Limited. The company is managed by Mr. Sanjay Dhanuka and Mr. Mayyank Dhanuka, who have been associated with SVEPL since November 2022. Acuité derives comfort from the promoters' industry experience and expects the company to continue benefiting from their management expertise and established track record over the medium term.

Improved operating performance with healthy occupancy levels
The company's business profile is supported by stable and growing rental income from its leased-out towers. Revenue increased to Rs. 27.78 Cr. in FY2026 (Prov.) from Rs. 25.53 Cr. in FY2025, driven by contractual rental escalations under existing lease agreements. The company benefits from the maintenance of 100% occupancy levels and long-standing relationships with the tenants. Acuite expects the strong occupancy levels and presence of periodic rent escalation clauses to support steady improvement in operating performance and debt servicing capability over the medium term.

Below Average Financial Risk Profile
The tangible net worth of the company improved albeit remained negative at Rs. 30.53 Cr. in FY2026 (Prov.) as against Rs. 40.62 Cr. in FY2025. The improvement is on account of accretion of profits into reserves. The total debt of the company stood at Rs. 135.48 Cr. as on March 31, 2026 (Prov.) as against Rs. 149.28 Cr. as on 31^st March 2025. The debt majorly comprises of term loans (LRD Loan) and Optionally Convertible Debentures (OCDs) wherein the company had availed term loan for the development of the property ~ IT tower and SEZ building. The interest coverage ratio and debt service coverage ratio stood at 2.36 times and 1.03 times, respectively, as on 31st March 2026 (Prov.) as against 1.73 times as on 31st March 2025. Further, Debt-EBITDA also improved to 5.79 times as on 31st March 2026 (Prov.) as against 6.20 times as on 31st March 2025. Acuite expects the financial risk profile to improve over the medium term backed by steady accruals and gradual repayment of term loans. However, the same will remain a key monitorable factor.

­Tenant Concentration Risk
The company's revenue profile remains exposed to tenant concentration risk, as the entire occupied area in the IT Building and a significant portion of the occupied area in the SEZ Building are leased to a single tenant. Consequently, a substantial proportion of the company's rental income is derived from one tenant, making cash flows susceptible to any adverse changes in the tenant's business profile, space requirements, or lease renewal decisions. Acuité believes that the company's ability to diversify its tenant base and reduce concentration in rental income sources will remain a key monitorable factor.

Renewal risk of lease contracts and susceptibility to lower occupancy due to economic downturns
The company’s ability to meet its repayment obligations will depend on the continued and timely flow of rentals as per the agreed terms. Events such as increase in interest rates, delays in receipt of rentals, early exits, or renegotiations by lessees due to lower-than-expected business performance may disrupt cash flow streams, thereby affecting the entity’s debt-servicing ability. Moreover, the occupancy levels for the entity are highly dependent on timely renewal of lease agreements, which shall remain a key rating monitorable. Nevertheless, Acuité derives comfort from the company's long-standing relationships with its tenants and the demonstrated continuity of lease arrangements beyond the contractual lock-in period, which provides comfort to some extent.

• Sustained increase in rental income leading to improvement in cash accruals and debt coverage metrics.
• Improvement in DSCR and liquidity beyond expectations on a sustained basis.
• Maintenance of occupancy levels above 95%-100% for a sustained period.

•  Sharp decline in rental income owing to lease termination or non-renewal of lease agreements.
• Vacancy levels exceeding 15%, thereby adversely impacting rental cash flows and liquidity.
• Average DSCR remains below unity on a sustained basis.