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 assigned long term rating of 'ACUITE BBB+' (read as ACUITE triple B plus) on the Rs. 54.50 Cr. bank facilities and short-term rating of 'ACUITE A2' (read as ACUITE A two) on the Rs. 245.50 Cr. bank facilities of T and T projects limited. The outlook is 'Stable'.
Rationale for rating
The rating takes into account benefits derived from the promoters, established Government clientele base, increase in revenues to Rs. 363.72 Cr. in FY 26(Prov) as compared to Rs. 246.85 Cr. in FY 25 along with stable operating profitability. The unexecuted orderbook position amounts to Rs. 542 Cr. as on May 2026 providing revenue visibility in the near term however, the Company’s ability to bag new orders would remain a key monitorable. The financial risk profile of the company is healthy marked by improving networth, low gearing and healthy debt protection metrics. The company has an adequate liquidity position with sufficient net cash accruals, moderate bank limit utilization and free deposits with bank. However, these strengths are partly offset by moderately-intensive working capital cycle and Inherent risks in tender-based construction businesses
About the Company
Incorporated in 2008, Guwahati based, T and T Projects Limited is engaged in executing turnkey projects across the electrical segment which includes power transmission, distribution projects, substations and related works and civil which includes infrastructure projects.The company is executing projects across various states of North-East India, West Bengal, Arunachal Pradesh among others. The operations are managed by Mr. Vaibhav Jalan and Mrs. Darshana Jalan.
Unsupported Rating
Not Applicable
Analytical Approach
Acuite has taken standalone business and financial risk profile of T and T projects Limited to arrive at the rating.
Key Rating Drivers
Strengths
Experienced Promoters
The operations of the company are managed by Mr. Vaibhav Jalan and Mrs. Darshana Jalan who have prior experience in the construction industry. It caters to reputed Government clientele base and is executing projects across various states of North-East India, West Bengal, Arunachal Pradesh among others. Acuite believes that benefits derived from promoters and healthy relationship with the customers will help the company going forward.
Increasing revenues and operating profitability
The revenues have increased to Rs. 363.72 Cr. in FY 26(Prov) as compared to Rs. 246.85 Cr. in FY 25 and Rs.157.62 Cr. in FY 24 on account of execution of orders. The operating profitability has increased to 9.44 percent in FY 26(Prov.) as compared to 9.22 percent in FY 25 and 7.97 percent in FY 24 on account of better absorption of fixed costs. The unexecuted order book of the company stands at around Rs. 542 Cr. as on May 2026. Most of the orders will be completed approximately within 12-24 months providing revenue visibility in near term. The OB/OI stood at 1.50 times. Acuite believes that going forward, the ability of the company to bag new orders and timely execution of the existing orders will remain a key rating monitorable.
Healthy Financial risk profile
The financial risk profile of the company is healthy marked by improving net worth, low gearing and robust debt protection metrics. The financial risk profile is healthy marked by an increase in the net worth to Rs. 123.59 Cr. as on March 31,2026(Prov.) as compared to Rs. 96.07 Cr. as on March 31,2025 due to accretion to reserves. Gearing stood at 0.37 times as on March 31, 2026(Prov.) as against 0.22 times as on March 31,2025. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.03 times as on March 31, 2026(Prov.) as compared to 1.02 times as on March 31,2025. The debt protection metrics is marked by Interest Coverage Ratio at 6.00 times as on March 31, 2026(Prov.) and Debt Service Coverage Ratio at 5.47 times as on March 31, 2026(Prov.). Net Cash Accruals/Total Debt (NCA/TD) stood at 0.62 times as on March 31, 2026(Prov.) as compared to 0.65 times as on March 31,2025. Acuité believes that going forward the financial risk profile will remain healthy over the medium term marked by steady accruals and absence of any major debt funded capex plans.
Weaknesses
Moderately- Intensive working capital cycle
The moderately-intensive working capital cycle is marked by Gross Current Assets (GCA) of 151 days as on March 31, 2026(Prov.) as compared to 187 days as on March 31, 2024. The debtor days stands at 53 days as on March 31,2026(Prov.) as compared to 55 days as on March 31, 2025. The collection period is attributable to milestone-based billing. Furthermore, the inventory days stood at 38 days as on March 31, 2026(Prov.) as compared to 41 days as on March 31,2025. Inventory primarily comprises project materials such as transformers, cables, conductors, poles, and switchgears procured in advance for ongoing project execution. The creditor days stood at 102 days as on March 31, 2026(Prov.) as compared to 111 days as on March 31,2025. The suppliers are majorly paid within 3 months. The company continues to extend credit from established vendors of electrical equipment and project materials. Acuité believes that going forward the working capital operations of the company will remain in similar lines over the medium term.
Inherent risks in tender-based businesses
Intense competition from several players, and exposure to risks arising from dependence on tenders. Growth in revenue and profitability depends on the company's ability to bid successfully and executes order within stipulated time frame.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Revenue growth by 20% along with increase in operating profitability in the near term
OB/OI to increase to 2.5 times in the medium term
Debt/EBITDA to reduce below unity in the near term
Potential triggers (individual or collective) for a downward rating action:
Elongation of working capital cycle
Delay in execution of orderbook position
OB/OI to fall below 1 times in the near term
Liquidity Position
Adequate
The liquidity position is adequate marked by net cash accruals of Rs. 28.40 Cr. as on March 31, 2026(Prov.) as against long term debt repayment of Rs. 0.55 Cr. over the same period. The company also has free deposits with bank of Rs. 12.70 Cr. as of FY 26(Prov). The cash and bank balances stood at Rs. 6.92 Cr. as on March 31, 2026(Prov.) as compared to Rs. 2.49 Cr. as on March 31,2025. The current ratio stood at 1.42 times as on March 31, 2026(Prov.) as compared to 1.63 times as on March 31,2025. The average fund based bank limit utilization stood at 66 percent over the last 12 months ended, April 2026 and non fund based bank limit utilisation for last 5 months ended, April 2026 is 90 percent. Acuité believes that going forward the liquidity position of the company will remain adequate with sufficient net cash accruals against debt obligations and absence of any debt funded capex in the near to medium term.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
363.72
246.85
PAT
Rs. Cr.
27.87
13.62
PAT Margin
(%)
7.66
5.52
Total Debt/Tangible Net Worth
Times
0.37
0.22
PBDIT/Interest
Times
6.00
5.84
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.
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