Press Release March 05, 2026 TRADING ENGINEERS Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	33.00	ACUITE BBB | Stable | Assigned	-
Bank Loan Ratings	53.00	-	ACUITE A3+ | Assigned
Total Outstanding	86.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned long term rating of 'ACUITE BBB' (read as ACUITE Triple B) on the Rs. 33 Cr. bank facilities and short-term rating of 'ACUITE A3+' (read as ACUITE A three plus) on the Rs. 53 Cr. bank facilities of Trading Engineers. The outlook is 'Stable'. Rationale for rating The rationale takes into cognizance the benefits derived from the promoters, long track record of operations, increase in revenues albeit slight moderation in operating profitability in FY 25, orderbook position showing revenue visibility in the near to medium term. The financial risk profile is healthy characterised by improving networth, low gearing and comfortable debt protection metrices, moderate working capital cycle and adequate liquidity. However, these strengths are partly offset by geographical concentration risk and intense competition in the construction industry.

About the Company

Trading Engineers (TE) was established in 1975, the firm is into construction of buildings of schools, colleges, and hostels for Government customers like PWD, Uttar Pradesh Jal Nigam, Madhya Pradesh Building Development Corporation limited among others. The firm mainly executes orders in Uttar Pradesh, Madhya Pradesh and Uttarakhand. The partners of the firm are Mr. Satish Sharan Agarwal, Mr. Saurabh Agarwal and Mr. Gaurav Agarwal.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has taken a standalone approach of Trading Engineers business and financial risk profile for arriving at the rating.

Key Rating Drivers

Strengths

Long track record of operations and Experienced promoters The operations of the firm are managed by Mr. Satish Sharan Agarwal, Mr. Saurabh Agarwal and Mr. Gaurav Agarwal. The firm is into civil construction business for more than 50 years and works for Government companies like PWD, Uttar Pradesh Jal Nigam, Madhya Pradesh Building Development Corporation Limited among others.  Acuite believes that the firm will continue to be benefitted by long-track record of operations and experienced management along with the healthy relationship with customers. Increase in Revenues albeit slight decline in operating profitability The revenues have increased to Rs. 174.77 Cr. as on March 31, 2025 as compared to Rs. 160.10 Cr. as on March 31, 2024 on account of execution of orders. The firm has achieved revenues of approximately Rs. 208 Cr. as on February 2026. The operating profitability stands at 6.58 percent as on March 31, 2025 as compared to 7.52 percent as on March 31, 2024. The unexecuted order book of the firm stands at Rs. 368.85 Cr. as on December 2025. Most of the orders will be completed approximately within 12-24 months. The OB/OI stood at 2.11 times. Acuite believes that going forward the revenues will improve over the medium term with the ability of the firm to bag new orders and timely execution of the existing orders. Healthy Financial risk profile albeit small net worth The financial risk profile is healthy marked by low yet improving networth, low gearing and comfortable debt protection metrices. The tangible net worth improved to Rs. 31.82 Cr. as on March 31,2025 as compared to Rs. 23.77 Cr. as on March 31,2024 due to infusion of capital and accretion to reserves. Gearing stood at 0.85 times as on March 31, 2025 as against 0.50 times as on March 31,2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.09 times as on March 31, 2025 as compared to 1.15 times as on March 31,2024. The debt protection metrics is comfortable marked by Interest Coverage Ratio at 7.66 times as on March 31, 2025 and Debt Service Coverage Ratio at 4.25 times as on March 31, 2025. Net Cash Accruals/Total Debt (NCA/TD) stood at 0.29 times as on March 31, 2025 as compared to 0.68 times as on March 31,2023. Acuité believes that going forward the financial risk profile is expected to remain healthy over the medium term. Moderate working capital cycle The moderate working capital cycle is marked by Gross Current Assets (GCA) of 103 days as on March 31, 2025 as compared to 88 days as on March 31, 2024. The debtor days stands at 25 days as on March 31,2025 as compared to 28 days as on March 31, 2023. Furthermore, the inventory days stood at 6 days as on March 31, 2024 as compared to 1 days as on March 31,2023. The other current assets amount to Rs. 31.28 Cr. as on March 31, 2025 as compared to Rs. 22.72 Cr. as on March 31, 2024 majorly comprising of Earnest Money Deposits (EMD). The creditor days stood at 18 days as on March 31, 2025 as compared to 41 days as on March 31,2024. Acuité believes that going forward the working capital operations of the firm is expected to remain moderate over the medium term.

Weaknesses

Geographical concentration risk and intense competition in the industry Intense competition from several players, and exposure to risks arising from dependence on tenders. Growth in revenue and profitability depends on the firm's ability to bid successfully and execute order within stipulated time frame. Further, the firm major executes orders in Madhya Pradesh and Uttar Pradesh, thereby leading to geographical concentration risk.

Rating Sensitivities

­Movement in revenues and operating profitability Working capital cycle Timely execution of the work orders

Liquidity Position

Adequate

The liquidity position is adequate marked by net cash accruals of Rs. 7.86 Cr. as on March 31, 2025 as against long term debt repayment of Rs. 0.52 Cr. over the same period. The cash and bank balances stood at Rs. 1.42 Cr. as on March 31, 2025 as compared to Rs. 0.94 Cr. as on March 31,2024. The current ratio stood at 1.50 times as on March 31, 2025 as compared to 1.72 times as on March 31,2024. The average bank limit utilization stood at 74 percent over the last eight months ended, December 2025. The company also incurs about Rs 5 Cr. annually for the purchase of equipments for order execution. Acuité believes that going forward the liquidity position of the firm will remain adequate in the near to medium term on account of steady cash accruals, moderate current ratio and bank limit utilisation.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	174.77	160.10
PAT	Rs. Cr.	7.28	7.58
PAT Margin	(%)	4.17	4.73
Total Debt/Tangible Net Worth	Times	0.85	0.50
PBDIT/Interest	Times	7.66	13.34

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

­CRISIL, vide its press release dated September 17th, 2025 had denoted the rating of Trading Engineers as 'CRISIL BB+/Stable/A4+; REAFFIRMED AND ISSUER NOT CO-OPERATING’

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

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Punjab National Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 35.00 Simple ACUITE A3+ | Assigned ICICI BANK LIMITED Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 18.00 Simple ACUITE A3+ | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.00 Simple ACUITE BBB | Stable | Assigned Punjab National Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE BBB | Stable | Assigned ICICI BANK LIMITED Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE BBB | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti 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. 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.