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 B' (read as ACUITE B) on the Rs. 30.00 Cr. bank facilities of Trigon Transit Private Limited (TTPL). The outlook is ‘Stable’.
Rationale for Rating
The rating reaffirmation reflects improving but low scale of operations, below average financial risk profile with low DSCR and continuous requirement of debt funded capex on account of vehicle purchase and replenishments. However, the established track record and tie up with reputed school brand of VIBGYOR provides visibility for revenue growth in future.
About the Company
Incorporated in 2009, Trigon Transit Private Limited is a part of Ampersand Group with registered office in Mumbai, Maharashtra. The company is engaged in business of purchasing vehicle and using the same for transportation of students and staff of VIBGYOR schools through third party outsourced vendors. The directors include Mr. Rustom Pesi Kerawalla and Ms. Kavita Rustom Kerawalla. The company has a fleet of 927 Buses and 89 LMVs.
Unsupported Rating
Not Applicable.
Analytical Approach
Acuite has considered the standalone business and financial risk profile of Trigon Transit Private Limited (TTPL) to arrive at the rating.
Key Rating Drivers
Strengths
Experienced promoter group:
TTTPL benefits from a decade-long track record and the extensive expertise of its promoters, Mr. Rustom Pesi Kerawalla and Ms. Kavita Rustom Kerawalla, who possess over 20 years of industry experience. Mr. Kerawalla holds a 99% stake in the company, with the remaining 1% owned by Eduspark International Private Limited (EIPL), the holding entity of the VIBGYOR Group of Schools. Since founding the first VIBGYOR school in Goregaon, Mumbai in 2004, the network has expanded into a professionally managed system of around 40 schools serving over 59,000 students across India. TTPL provides transportation services exclusively to the VIBGYOR Group. Acuité believes the company will continue to benefit from its experienced promoter group and tie up with a reputed school.
Weaknesses
Improving, but low operating performance:
During FY26 (Prov.), the company reported a revenue of approximately Rs. 35.02 Cr. as compared to Rs. 27.07 Cr. in FY 25 and Rs. 23.23 Cr. in FY24. The growth is driven by higher student enrolment opting for bus facilities and the addition of a new school to its portfolio. However, scale remains low. The company operating margin improved to 71.87% in FY26 (Prov.) and to 63.07% in FY 25, up from 62.97% in FY24, primarily driven by better absorption of fixed costs. However, the company incurred loss during the FY2026 (Prov.) due to increased finance cost and depreciation costs on the vehicles.
Below average financial risk profile:
The company’s financial risk profile is below average, characterized by a low net worth, high gearing, and weak debt protection metrics. Net worth deteriorated sharply to Rs. 5.93 Cr. In FY26 (Prov.) from Rs. 13.44 Cr. In FY25 and Rs. 11.83 Cr. in FY24, following losses driven by increased finance costs and higher depreciation. Also, leverage escalated significantly with debt taken for procurement of additional vehicles, leading to rise in gearing to 27.18 times in FY26 (Prov.) from 8.73 times in FY25 and 3.42 times in FY24. Debt protection metrics weakened with interest coverage ratio (ICR) dropping from 3.74 times in FY24 to 2.77 times in FY25, and further to 1.80 times in FY26 (Prov.). Also, the debt service coverage ratio (DSCR) remained weak at 0.79 times in FY26 (Prov.) And 0.75 times in FY25.
Asset aging and recurring capex requirements:
The company exhibits a significant aging fleet, with over 578 vehicles exceeding 5 years of age. This will necessitate continuous vehicle replacements in the near future which is expected to further drive up the debt
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Improvement in financial risk profile with DSCR remaining above unity.
Significant improvement in operating performance.
Potential triggers (individual or collective) for a downward rating action:
Any further increase in debt levels, leading to higher leverage and stretch on liquidity.
Decline in operating performance, adversely impacting net cash accruals falling below Rs. 10.00 Cr.
Liquidity Position
Stretched
The company faces persistent liquidity stress due to a shortfall in cash accruals against heavy debt obligations, which is being bridged using additional debt infusions. The Net cash accruals of the company stood at Rs.13.71 crore in FY2026 (Prov.) as against a repayment debt obligation of Rs.20.94 Cr. during the same period. This deficit will persist over the medium term, with projected NCA of Rs.25–30 Cr. falling short of maturing repayments of Rs.55-60 Cr. over FY27-FY28 respectively. Reflecting this mounting pressure, the current ratio deteriorated sharply from 0.91 times in FY 24 to 0.78 times in FY 25, and further to 0.40 times in FY 26 (Prov.). The company had an unencumbered cash and bank balance of Rs. 2.95 Cr. as on March 31, 2026 (Prov.).
Outlook
Stable
Other Factors affecting Rating
None.
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
35.02
27.07
PAT
Rs. Cr.
(7.51)
1.61
PAT Margin
(%)
(21.43)
5.94
Total Debt/Tangible Net Worth
Times
27.18
8.73
PBDIT/Interest
Times
1.80
2.77
Status of non-cooperation with previous CRA (if applicable)
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.
Contacts
List of instruments and names of regulators of the instruments
