Press Release June 25, 2026 THENPANDIAN ENERGY INNOVATIONS PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	72.00	ACUITE BBB- | Stable | Assigned	-	RBI
Total Outstanding	0.00	72.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 assigned its long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs.72.00 Cr. bank facilities of Thenpandian Energy Innovations Private Limited (TEIPL). The outlook is 'Stable'. Rationale for rating assigned The assigned rating considers extensive experience of the promoters in LPG business, improved operating income with healthy operating margins and moderate financial risk profile. The rating also factors in the presence of power purchase agreement (PPA) of five years with customers for its 21 megawatt -MW solar power plant based in Namakkal, Tamil Nadu and presence of DSRA and ESCROW mechanism for Solar business along with adequate liquidity position of the company. However, the rating is constrained by moderate operational track record of the company, susceptibility of profitability to volatility and market challenges in the crude oil space along with susceptibility of operating performance to climatic risks in solar power.

About the Company

Incorporated in June 2023, Thenpandian Energy Innovations Private Limited (TEIPL) operates seven ALDS (Auto LPG dispensing stations) in Tamil Nadu and six ALDS in Karnataka. The company is also operating a 21MW- AC solar power plant in Namakkal, Tamil Nadu, which has become operational from April 2025. Promoters are Mr. Kaliappan Nallusamy Ranjjith Sellappa and Mr. Vasudevan Kannan. There are 11 customers in the solar division who have a power purchase agreement with TEIPL for five years.

Unsupported Rating

­Not applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profiles of Thenpandian Energy Innovations Private Limited (TEIPL) for arriving at the rating.

Key Rating Drivers

Strengths

E­xperienced management and assured off-take through power purchase agreement (PPA) The company is promoted by Mr. Kaliappan Nallusamy Ranjjith Sellappa and Mr. Vasudevan Kannan. The promoters have extensive experience of operating various businesses in TN over the last 5 decades. They were originally involved in transportation business in early 1980’s. They operated an LPG bottling point in 1990’s and operated another company which was engaged in delivery of LPG cylinders to institutional users in Tamil Nadu. They also have more than 10 years’ experience as a dealer of Propel gas in TN. They started ALDS (Auto LPG dispensing stations) company as a means of forward integrating and capturing the highest margin vertical in the LPG value chain. The company is also operating a 21MW- AC solar power plant in Namakkal, Tamil Nadu, which has become operational from April 2025. There are 11 customers in the solar division who have a power purchase agreementwith TEIPL for five years. Acuité believes that the experienced of management, and moderate counterparty risk is expected to support the business risk profile of the company over the medium term. Steady growth in operating performance The company recorded revenues of Rs. 94.23 Cr. in FY2025, a sharp increase from Rs. 46.80 Cr. in FY2024, driven by a full year of operations in the ALDS business. Operating profit margins stood at 17.71% in FY2025, compared to 18.95% in FY2024. Beginning FY2026, the company has commenced operations of a 21 MW AC solar power plant in Namakkal, Tamil Nadu, which became partially operational (10 MW) from April 2025 and fully operational (21 MW) from September 2025. The average PLF stood at 20.71 percent in FY2026. With this addition, revenues are estimated to reach Rs. 106.71 Cr. in FY2026 (E), with operating margins expected to improve significantly to ~24–25 per cent in FY2026 (Est.) from 17.71 per cent in FY2025. Acuite believes that, the operating performance of the company would remain steady in the near to medium term due to stable demand for solar. Moderate financial risk profile Company’s financial risk profile is moderate, marked by moderate net worth along with high gearing and comfortable debt protection metrics. The net worth of the company stood at Rs.21.61 Cr. as on March 31st, 2025 against Rs.6.64 Cr. as on March 31, 2024, respectively. The improvement is on account of accretion of net profit in the reserves. The gearing of the company stood at 3.78 times as on March 31, 2025, as against 0.00 times as on March 31, 2024. Company’s debt protection metrics is comfortable marked by– Interest coverage ratio and debt service coverage ratio stood at 112.16 times and 102.10 times as on March 31, 2025, respectively as against 287.89 times and 213.21 times as on March 31, 2024. TOL/TNW stood at 3.91 times as on March 31st, 2025, against 0.62 times as on March 31st, 2024 respectively. The debt to EBITDA of the company stood at 4.88 times on as on March 2025 as against 0.00 times in FY2024. Acuite believes, the gearing and debt protection metrics are expected to be improve on account of full scale of operations. Presence of DSRA and ESCROW mechanism The bank facilities availed by TEIPL are backed by a Debt Service Reserve Account (DSRA) in the form of a fixed deposit equivalent to three months debt obligation. In addition, the bank facilities are supported by an escrow account through which all receipts from customers shall be routed. The order regarding the manner in which funds shall be utilized has been clearly laid down by the lender. Furthermore, there is a cash sweep clause that allows the lender to utilize the surplus amount in the escrow account towards the prepayment of the debt undertaken by the company. Acuité derives comfort from the structure envisaged to ensure timely repayment of the bank facilities over the medium term.

Weaknesses

Susceptibility of profitability to volatility and market challenges in the crude oil space Profitability in the company’s operations remains closely tied to volatility and market challenges in the crude oil sector. Fluctuations in global crude prices, supply chain disruptions, and regulatory pressures can directly impact input costs and margins, particularly in the Auto LPG dispensing stations (ALDS) business. While the addition of renewable energy through the Namakkal solar plant provides a more stable and predictable revenue stream, the company’s overall performance will continue to be influenced by the inherent uncertainties of the crude oil market. Susceptibility of operating performance to climatic risks The performance of the solar plant is highly dependent on favorable climatic conditions, including solar radiation levels, which have a direct impact on the plant load factor (PLF). These risks include variations in solar irradiance, extreme weather conditions, and natural disasters. The entire capacity is already commissioned, and the project has an operational track record of more than one year.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

­TEIPL maintains a Debt Service Reserve Account (DSRA) for three months’ worth repayment obligation along with the ESCROW mechanism. Stress case Scenario Acuite believes that, given the presence of DSRA mechanism TEIPL will be able to service its debt on time, even in a stress scenario

Rating Sensitivities

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

­Growth in revenues of over 20 percent aiding to expansion in scale of operations while maintaining healthy profitability Substantial improvement in PLF while maintaining profitability margins over the medium term.

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

Significant decline in revenues and profitability Lower-than-expected PLF or non renewal of PPAs Any significant delays in receipt of payments from counterparty, thereby impacting the liquidity position of the company.

Liquidity Position:

Adequate

Company’s Liquidity is adequate with net cash accruals of Rs.15.06 Cr. during FY2025, while it’s maturing debt obligations are Nil during the same period. TEIPL is expected to generate net cash accruals in the range of Rs. 17.00 – 20.00 Cr. as against the debt obligation of Rs.12.00 Cr. in FY2027-28. The company has an unencumbered cash and bank balance of Rs. 11.34  Cr. as on March 31, 2025 and Rs. 11.91 Cr. as on March 31, 2026(Estimated). The current ratio stood at 1.89 times as on March 31, 2025. The liquidity position of the company is comfortable on account of presence of secured payment mechanism with Trust and retention account to monitor the cash flows generated from the solar projects, presence of waterfall mechanism, presence of 3-month Debt Service Reserve Account (DSRA) in the form of a fixed deposit for interest and principal repayment obligation coupled with healthy average DSCR of ~ 2.46 times expected until FY2032 for solar debt. Acuité believes that the liquidity of the firm is likely to improve over the medium term on account of stable cash flow generation from solar plants. However, timely collection of payment from counter parties and company’s ability to sustain the plant operating performance at favorable level will be key monitorable es over the medium term.

Outlook: Stable

­

Other Factors affecting Rating

­none

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	94.23	46.80
PAT	Rs. Cr.	14.96	6.54
PAT Margin	(%)	15.88	13.98
Total Debt/Tangible Net Worth	Times	3.78	0.00
PBDIT/Interest	Times	112.16	287.69

Status of non-cooperation with previous CRA (if applicable)

Other credit rating agency, vide its press release dated April 08th, 2026 had denoted the rating of Thenpandian Energy Innovations Private Limited as  BB+/Negative/ A4+ 'Reaffirmed & Issuer Not Cooperating ’.

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 :

­Not applicable

Contacts

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

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