Press Release

Press Release

June 01, 2026

SWADESHI CIVIL INFRASTRUCTURE PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	40.00	ACUITE BBB+ \| Negative \| Assigned	-	RBI
Bank Loan Ratings	0.00	45.00	ACUITE BBB+ \| Negative \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	20.00	-	ACUITE A2 \| Assigned	RBI
Bank Loan Ratings	0.00	173.00	-	ACUITE A2 \| Reaffirmed	RBI
Total Outstanding	0.00	278.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 the long term rating of “ACUITE BBB+” (read as ACUITE triple B plus) and short term rating of “ACUITE A2” (read as ACUITE A two) for Rs. 218.00 Cr. bank loan facilities of Swadeshi Civil Infrastructure Private Limited. The outlook is revised from "Stable" to "Negative". Further, Acuite has assigned long term rating of “ACUITE BBB+” (read as ACUITE triple B plus) and short term rating of “ACUITE A2” (read as ACUITE A two) on the Rs. 60.00 Cr. bank loan facilities of Swadeshi Civil Infrastructure Private Limited. The outlook is “Negative”.

Rationale for rating
The revision in outlook reflects the deviation between the company’s estimated and actual operational performance during FY2025, with EBITDA and PAT margins remaining low, volatile, and lower than earlier expectations. Additionally, the company has an unexecuted order book of Rs. 704.45 Cr. as on March 31, 2026 (1.29x of FY2025 operating income), which provides limited near-term revenue visibility. The rating further remains constrained by moderately intensive working capital operations, customer concentration risk, tender-based nature of business, and intense competition in the civil construction industry.

However, the rating draws comfort from the growth in operating revenue, which increased to Rs. 547.38 Cr. in FY2025 from Rs. 390.42 Cr. in FY2024, with revenues estimated to remain around Rs. 500 Cr. in FY2026. The rating also factors in the company’s financial risk profile, marked by moderate net worth, gearing below unity, and comfortable debt protection metrics. Furthermore, the liquidity profile also remained adequate, supported by modest net cash accruals, moderate current ratio, and the absence of any debt-funded capex plans in the near to medium term. Going forward, the company’s ability to secure new orders and ensure timely execution of its existing and pipeline orders, along with improvement in profitability margins while scaling up operations, will remain key rating sensitivity factors.

About the Company

New Delhi based, Swadeshi Civil Infrastructure Private Limited (SCIPL), incorporated in 2008, is engaged in civil construction, mainly for institutional buildings. It undertakes projects for construction and expansion of buildings and other related civil works at various locations all over India. The company mainly caters to government agencies, including the Central Public Works Department (CPWD), the Public Works Department (PWD), among others. The directors of the company are Mr. Ram Avtar, Mr. Ankit Goel, and Sunil Yadav.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of Swadeshi Civil Infrastructure Private Limited (SCIPL) to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and Established track record of operations
The company has an established track record of over fifteen years of undertaking projects related to construction and expansion of industrial buildings along with other related civil works at various locations all over India. The company is managed by the present directors ~ Mr. Ram Avtar, Mr. Ankit Goel, and Mr. Sunil Yadav, who have extensive experience in the same line of business. Acuité believes that going forward, growth of the company will be aided by the established track record of operations and the management’s strong understanding of market dynamics.

Comfortable Financial Risk Profile
The financial risk profile of the company is marked by moderate net worth, gearing below unity, and comfortable debt protection metrics. The net worth stood at Rs.161.11 crore as on 31^st March 2025 against Rs.182.33 crore as on 31^st March 2024. The decrease in net worth is on account of the buyback of shares of Rs. 31.16 crore in FY2025. Despite the buyback, the capital structure of the company remained comfortable, marked by gearing ratio, which stood at 0.44 times as on 31^st March 2025 against 0.20 times as on 31^st March 2024. Further, the coverage indicators are reflected by the interest coverage ratio and debt service coverage ratio, which stood at 3.18 times and 2.69 times, respectively, as on 31^st March 2025. The TOL/TNW ratio and DEBT-EBITDA of the company stood at 1.29 times and 2.76 times as on 31^st March 2025. Acuité expects the financial risk profile of the company to remain in a similar range with the absence of any debt-funded capex plans in the near to medium term.

Weaknesses

Low and volatile operating profitability margins, albeit growth in operating revenue
The company’s profitability margins remain low and volatile, primarily driven by the nature of project-based revenues, with margins fluctuating depending on revenue mix and cost structure across different execution stages. The EBITDA margin stood at 3.69% in FY2025 as against 1.47% in FY2024 and 5.91% in FY2023, on the back of a higher share of projects nearing completion. However, PAT margin declined to 1.82% in FY2025 from 3.75% in FY2024 and 4.18% in FY2023, on account of an exceptional expenditure of Rs. 4.67 crore towards taxes on the buyback of shares. However, despite the low margins, the company reported an increase in its scale of operations marked by operating revenue of Rs. 547.38 Cr. in FY2025 against Rs. 390.42 Cr. in FY2024 on the back of execution of orders. Moreover, the revenue from operations is estimated to be around Rs. 500 Cr. in FY2026. Acuite notes that the ability of the company to improve its profitability margins while scaling up its operations in the near to medium term will remain a key rating sensitivity.

Moderate and Concentrated order book position
Revenue visibility of the company remains moderate, with an order book of Rs. 704.45 crore (1.29x of the company's FY2025 revenue), providing limited near-term visibility. These orders are from government departments / public sector undertakings and are secured through direct tendering processes. The unexecuted order book is concentrated with around 85.00% towards contracts from NBCC (India) Limited and Central Public Works Department (CPWD). Thus, the company is exposed to the risk of unfavorable changes in policies for awarding new contracts by these organizations. The company also has orders in the pipeline of Rs.1806.35 Cr. as on 31^st March 2026, for which the results are expected in the near term. Going forward, the company’s ability to diversify its clientele base, bag new orders, and timely execute the existing orders will remain key rating monitorable factors.

Moderately Intensive Working Capital operations
The working capital operations of the company remained moderately intensive, marked by GCA days which stood at 157 days as on 31^st March 2025. The GCA days are high primarily on account of the high outstanding balance in the form of receivables. The debtor days stood at 75 days as on 31^st March 2025 as against 90 days as on 31^st March 2024 owing to the nature of the EPC business, where the receivable cycle is usually skewed towards year-end. Further, the inventory holding stood at 25 days as on 31^st March 2025 against 39 days as on 31^st March 2024, and the creditor days stood at 59 days as on 31^st March 2025 against 64 days as on 31^st March 2024. The EPC business retains a naturally elevated working capital intensity, attributed to prolonged project execution timelines, payments tied to project milestones, and the release of retention money. Acuité expects the working capital operations of the company to remain at similar levels in the near to medium term owing to the nature of operations.

Presence in highly competitive nature of industry and susceptibility of margins to fluctuation in raw material prices
The civil construction sector is highly fragmented, marked by the presence of several mid to big size players given the low entry barriers. The company faces competition from other players in the industry, which may hence require it to bid aggressively to get contracts. The company's revenue is driven by its ability to successfully bid and secure the floated tenders. However, this risk is mitigated to an extent on account of the experience of the management. Additionally, given the cyclicality inherent in the civil construction industry, the operating margins of the company are susceptible to volatility in raw material prices. The ability of the company to maintain its profitability margin through operating efficiency becomes critical.

Rating Sensitivities

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

Growth in operating income by more than 30%, supported by healthy order accretion.
Operating profitability margins above 6% on a sustained basis.
Improvement in capital structure and debt protection metrics.

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

Decline in revenue y-o-y and/or operating profitability margins below 1.3%.
Stretch in the working capital cycle.
Any delay in the execution of orders in hand.
Major deviation in the actual vis-à-vis estimated operational performance of the company in FY2026.

Liquidity Position

Adequate

The liquidity profile of the company is adequate, marked by net cash accruals of Rs.13.71 crore as on 31^st March 2025 against nil debt repayment obligation over the same period. The company has unencumbered bank deposits of Rs.4.02 Cr. coupled with a cash and bank balance of Rs.3.55 crore as on 31^st March 2025. Further, the fund based and non-fund based working capital limits of the company stood utilized at an average of 82.47% and 87.62%, respectively, for the last six months ended March 2026. The current ratio of the company stood at 1.44 times as on 31^st March 2025. Acuité expects the liquidity profile of the company to remain adequate in the near to medium term, supported by adequate net cash accruals against nil repayment obligations, a moderate current ratio, and the absence of any debt-funded capex plans.

Outlook: Negative

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	547.38	390.42
PAT	Rs. Cr.	9.94	14.64
PAT Margin	(%)	1.82	3.75
Total Debt/Tangible Net Worth	Times	0.44	0.20
PBDIT/Interest	Times	3.18	4.27

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
04 Mar 2025	Bank Guarantee (BLR)	Short Term	45.00	ACUITE A2 (Assigned)
	Bank Guarantee (BLR)	Short Term	128.00	ACUITE A2 (Assigned)
	Cash Credit	Long Term	20.00	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	20.00	ACUITE BBB+ \| Stable (Assigned)
	Proposed Long Term Bank Facility	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
AXIS BANK LIMITED	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 A2 \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	128.00	Simple	ACUITE A2 \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE A2 \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE BBB+ \| Negative \| Reaffirmed \| Stable to Negative
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE BBB+ \| Negative \| Reaffirmed \| Stable to Negative
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB+ \| Negative \| Reaffirmed \| Stable to Negative
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	40.00	Simple	ACUITE BBB+ \| Negative \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Archita Sharma
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	SEBI
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	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
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	SEBI
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)	RBI
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.

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 ⁶	Not applicable

⁶ 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.