Press Release

September 18, 2026

UMSL LIMITED
Rating Downgraded

Product	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	95.00	ACUITE BB+ \| Stable \| Downgraded	-	RBI
Bank Loan Ratings	278.00	-	ACUITE A4+ \| Downgraded	RBI
Total Outstanding	373.00	-	-	-
Total Withdrawn	0.00	-	-	-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 downgraded its long-term rating to 'ACUITE BB+' (read as ACUITE double B plus) from 'ACUITE BBB-' (read as ACUITE triple B minus) and a short-term rating to 'ACUITE A4+' (read as ACUITE A four plus) from 'ACUITE A3+' (read as ACUITE A three plus) on the Rs.373.00 Cr. bank facilities of UMSL Limited. The outlook revised to 'Stable' from 'Negative'.

Rationale for Downgrade
The rating action reflects the significant decline in the company's scale of operations, with operating income moderating to Rs. 191.86 Cr. in FY26 (prov.) from Rs. 363.17 Cr. in FY25, primarily due to delays in the execution of ongoing projects arising from departmental approval issues and delays in the release of funds by government authorities. The company had an unexecuted order book of approximately Rs. 571.56 Cr. as on March 31, 2026. However, the company secured only two new orders during FY26, which were awarded in May 2025 and March 2026. The company currently has L1 orders aggregating approximately Rs. 532.89 Cr., which are expected to strengthen the order book upon conversion into confirmed contracts, and the same will be monitorable. Despite the moderation in revenue, the company's operating profitability improved, with the EBITDA margin increasing to 15.24% in FY26 (prov.) from 7.68% in FY25, primarily due to lower construction costs during the year, as a substantial portion of project-related costs had already been incurred in previous financial years. Consequently, the PAT margin improved marginally to 0.56% in FY26 (prov.) from 0.51% in FY25. The rating also factors in the company's intensive working capital operations, marked by elevated receivable levels and high unbilled revenue, which continue to exert pressure on liquidity. The rating, however, derives comfort from the company's healthy financial risk profile, characterized by a comfortable net worth and moderate capital structure, as well as the extensive experience of the promoters in the infrastructure sector spanning several decades. The company's established track record in executing road, bridge, irrigation, and other infrastructure projects also supports the rating.

About the Company

Incorporated in 1990, UMSL Limited is engaged in infrastructure development like construction of road, highways, bridges, pipelines, etc with its geographical span extending to Odisha, Jharkhand, Chhattisgarh and Maharashtra. The company was initially involved in providing specialised logistics solutions to various companies, however, since 2012, the company diversified into infrastructure construction segment which has been contributing a large share of the revenues over the past few years. The company also provides logistics services, which contributes a miniscule percentage of the total revenue, majorly to its group companies. Present directors of the company are Mr. Gaurang Bipinchandra Desai, Ms. Braja Kishore Mishra, Ms. Paramita Panda, Mr. Debi Prosad Mohapatra, Mr. Prafulla Kumar Dash, Mr Mukesh Agarwal and Mr. Sukanta Kumar Biswal.

Unsupported Rating

Not applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of UMSL Limited to arrive at the rating.

Key Rating Drivers

Strengths

Long track record of operations and experienced management
UMSL Limited has an established track record of operations in the infrastructure and logistics segments, with experience in executing EPC projects such as roads, bridges, buildings, canals, and other civil construction works, along with transportation of minerals and metal products. The company has developed execution capabilities through its presence across various infrastructure projects over the years. The company's operations are supported by an experienced management team, led by its directors and senior professionals, who possess extensive industry experience. Acuité believes that the company's established operational track record and experienced management team are expected to support its business risk profile and aid in the execution of its existing and upcoming projects.

Healthy financial risk profile, albeit with a decline in debt protection metrics
The financial risk profile of the company remained healthy, albeit marked by moderation in its debt protection metrics. The tangible net worth of the company stood at Rs. 376.89 Cr. as on March 31, 2026 (prov.), as against Rs. 375.82 Cr. as on March 31, 2025, with the marginal increase driven by accretion of profits to reserves. The company's total debt increased to Rs. 188.60 Cr. as on March 31, 2026 (prov.) from Rs. 146.71 Cr. as on March 31, 2025. The increase in debt was primarily on account of the infusion of Rs. 33.78 Cr. in the form of unsecured loans from promoters and the availing of a term loan of approximately Rs. 5-6 Cr. against land collateral to support the company's working capital requirements. Nevertheless, the capital structure remained comfortable, with the gearing ratio moderating to 0.50 times as on March 31, 2026 (Prov.) from 0.39 times as on March 31, 2025. The debt protection metrics remained subdued, as reflected by the interest coverage ratio and debt service coverage ratio (DSCR) of 1.27 times and 0.95 times, respectively, in FY26 (prov.), compared to 1.33 times and 0.97 times, respectively, in FY25. Going forward, the company's ability to improve its scale of operations, strengthen profitability, and reduce reliance on external borrowings will remain key rating sensitivities.

Weaknesses

Decline in scale of operations, albeit improvement in profitability
The company's scale of operations moderated significantly, with operating income declining to Rs. 191.86 Cr. in FY26 (prov.) from Rs. 363.17 Cr. in FY25, primarily on account of delays in the execution of ongoing projects due to departmental approval issues, delays in fund disbursements by government authorities, and project-specific execution challenges. Further, the company received only two new orders during the year, awarded in May 2025 and March 2026, respectively. As on March 31, 2026, the company had an unexecuted order book of approximately Rs. 571.56 Cr., providing moderate revenue visibility over the near to medium term. In addition, the company has L1 orders aggregating approximately Rs. 532.89 Cr., which are expected to strengthen the order book upon conversion into firm contracts. Going forward, the company's ability to secure fresh orders and execute its existing order book in a timely manner will remain a key rating sensitivity. Despite the moderation in revenue, the company's operating profitability improved, with the EBITDA margin rising to 15.24% in FY26 (prov.) from 7.68% in FY25, primarily due to lower construction costs during the year as a substantial portion of project-related expenses had already been incurred in earlier periods. Consequently, the PAT margin improved marginally to 0.56% in FY26 (prov.) from 0.51% in FY25. However, the company's profitability remains susceptible to volatility in raw material prices, delays in project execution, and changes in project cost estimates.

Intensive Working Capital Operations

The company’s working capital operations remained intensive, as reflected by its Gross Current Assets (GCA) days of 591 days in FY26 (prov.), as compared to 314 days in FY25. The elevated working capital intensity is primarily attributable to high receivable levels. Debtor days increased significantly to 509 days in FY26 (prov.) from 251 days in FY25, mainly due to delays in the release of funds by various government departments. Consequently, the company's unbilled revenue increased to Rs. 213.80 Cr. in FY26 (prov.) from Rs. 189.33 Cr. in FY25, reflecting delays in certification and billing of completed work. Further, the inventory holding period increased to 48 days in FY26 (Prov.) from 31 days in FY25. The higher working capital requirements were partially mitigated by elongated creditor support, with creditor days increasing to 221 days in FY26 (prov.) from 178 days in FY25. Going forward, the company's ability to improve collections, reduce unbilled revenue, and efficiently manage its working capital cycle will remain a key rating monitorable.

Susceptibility to tender-based operations
Revenue and profitability entirely depend on the ability of civil construction companies to win tenders. Also, intense competition among civil contractors prompts players to bid aggressively to bag contracts and thus, restricts the operating margin. Amidst cyclicality inherent in the construction industry, ability to maintain the margin through operating efficiency becomes critical.

Rating Sensitivities

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

Growth in the scale of operations by 40% with improving profitability margins.
Timely execution of order book and bagging new orders.

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

Any delays or bad debts in collection from customers.
The company’s failure to secure new orders in FY27 and further delays in execution of the existing order book.

Liquidity Position

Stretched

The liquidity profile of the company remained stretched, marked by modest cash accruals vis-à-vis its debt repayment obligations and high utilization of working capital limits. The company generated net cash accruals of Rs. 5.82 Cr. in FY26 (prov.) against debt repayment obligations of Rs. 7.21 Cr. during the same period. The shortfall in debt servicing requirements was supported through the infusion of funds by promoters in the form of unsecured loans. The company has a cash and bank balance of Rs. 0.81 Cr. as on March 31, 2026 (prov.), while its current ratio stood at 1.62 times. However, the liquidity position remains constrained by the intensive working capital requirements of the business. The average utilization of fund-based working capital limits remained high at around 95.15 per cent, while non-fund-based limits were utilized to the extent of around 87.93 per cent during the 12-month period ended March 2026. Going forward, the company's ability to improve collections, reduce working capital intensity, and generate adequate cash accruals to meet its debt obligations will remain key rating monitorable.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	191.86	363.17
PAT	Rs. Cr.	1.08	1.83
PAT Margin	(%)	0.56	0.51
Total Debt/Tangible Net Worth	Times	0.50	0.39
PBDIT/Interest	Times	1.27	1.33

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
20 Jun 2025	Bank Guarantee (BLR)	Short Term	40.00	ACUITE A3+ (Downgraded from ACUITE A2)
	Proposed Bank Guarantee	Short Term	25.00	ACUITE A3+ (Assigned)
	Proposed Bank Guarantee	Short Term	75.00	ACUITE A3+ (Assigned)
	Bank Guarantee (BLR)	Short Term	63.00	ACUITE A3+ (Downgraded from ACUITE A2)
	Bank Guarantee (BLR)	Short Term	40.00	ACUITE A3+ (Downgraded from ACUITE A2)
	Bank Guarantee (BLR)	Short Term	35.00	ACUITE A3+ (Downgraded from ACUITE A2)
	Cash Credit	Long Term	30.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Cash Credit	Long Term	18.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Working Capital Demand Loan (WCDL)	Long Term	2.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Cash Credit	Long Term	15.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Cash Credit	Long Term	30.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
22 Mar 2024	Bank Guarantee (BLR)	Short Term	63.00	ACUITE A2 (Assigned)
	Bank Guarantee (BLR)	Short Term	40.00	ACUITE A2 (Assigned)
	Bank Guarantee (BLR)	Short Term	40.00	ACUITE A2 (Assigned)
	Bank Guarantee (BLR)	Short Term	35.00	ACUITE A2 (Assigned)
	Cash Credit	Long Term	30.00	ACUITE BBB \| Stable (Assigned)
	Cash Credit	Long Term	30.00	ACUITE BBB \| Stable (Assigned)
	Cash Credit	Long Term	20.00	ACUITE BBB \| Stable (Assigned)
	Cash Credit	Long Term	15.00	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
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.	63.00	Simple	ACUITE A4+ \| Downgraded ( from ACUITE A3+ )
IDBI Bank Ltd.	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	40.00	Simple	ACUITE A4+ \| Downgraded ( from ACUITE A3+ )
State Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	40.00	Simple	ACUITE A4+ \| Downgraded ( from ACUITE A3+ )
Indian Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	35.00	Simple	ACUITE A4+ \| Downgraded ( from ACUITE A3+ )
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.	30.00	Simple	ACUITE BB+ \| Stable \| Downgraded \| Negative to Stable ( from ACUITE BBB- )
IDBI Bank Ltd.	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	18.00	Simple	ACUITE BB+ \| Stable \| Downgraded \| Negative to Stable ( from ACUITE BBB- )
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE BB+ \| Stable \| Downgraded \| Negative to Stable ( from ACUITE BBB- )
Indian Bank	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BB+ \| Stable \| Downgraded \| Negative to Stable ( from ACUITE BBB- )
Not Applicable	Not avl. / Not appl.	Proposed Bank Guarantee	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE A4+ \| Downgraded ( from ACUITE A3+ )
Not Applicable	Not avl. / Not appl.	Proposed Bank Guarantee	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	75.00	Simple	ACUITE A4+ \| Downgraded ( from ACUITE A3+ )
IDBI Bank Ltd.	Not avl. / Not appl.	Working Capital Demand Loan (WCDL)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE BB+ \| Stable \| Downgraded \| Negative to Stable ( from ACUITE BBB- )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Siddharth Garg
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 ⁶	RBI
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 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
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 ⁶	RBI
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) ⁷	+
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.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

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 ⁸	Not applicable

⁸ 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.