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) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs.13.00 Cr bank facilities and its short-term rating to ‘ACUITE A4+’ (read as ACUITE A four plus) from ‘ACUITE A3’ (read as ACUITE A three) on the Rs.50.00 Cr. bank facilities of Vishvaraj Infrastructure Private Limited (VIPL) (Erstwhile Vishvaraj Infrastructure Limited). The outlook is revised from ‘Stable' to ‘Negative'.
Rationale for rating
The rating downgrade and revision in outlook factors in the discontinuation of group notch-up support due to limited operational and financial linkages and support between VIPL & its group entities and significant weakening in VIPL's business risk profile during FY2026 (Prov.), as evidenced by a sharp decline in operating income owing to limited EPC execution. The downgrade further reflects the company's modest order book position of Rs.70 Cr, which provides limited revenue visibility over the medium term. Acuité also notes the absence of fresh order inflows, lack of bidding activity and non-availability of L1 orders, which considerably constrain the company's growth prospects.
While the rating continues to derive support from VIPL's experienced management, established track record in the infrastructure sector, comfortable financial risk profile and adequate liquidity position, these strengths are offset by the deterioration in operating performance, lack of orders in order pipeline, and intensive working capital requirements. Consequently, the overall credit profile has weakened.
About the Company
Incorporated in 1992 and based in Nagpur, Maharashtra ,Vishvaraj Infrastructure Private Limited (Erstwhile Vishvaraj Infrastructure Limited) is engaged in the development, execution, and management of infrastructure projects across India. The company undertakes construction and infrastructure development activities such as roads, bridges, flyovers, culverts, water supply systems, sewage and wastewater management projects, and other public utility infrastructure works for government and private sector clients. It also provides construction contract services and supplies infrastructure-related materials and solutions. The present directors are Mr. Arun Hanumandas Lakhani, Mr. Rajesh Balllabhdas Kalani & Mr. Chandramohan Sitaram Agrawal.
Unsupported Rating
Not Applicable
Analytical Approach
Acuite has considered standalone business and financial risk profile of VIPL and has discontinued the notch up of the standalone rating of VIPL due to limited operational and financial linkages and support between VIPL and its group entities.
Key Rating Drivers
Strengths
Experienced management and long track record of operations
Incorporated in 1992, VIPL is managed by Mr. Arun Lakhani along with a team of well qualified and experienced professionals. The team lead by Mr. Arun Lakhani has been in the construction industry for more than two decades. VIPL is a part of Vishvaraj Group, which is primarily engaged in the infrastructure development business under Public Private Partnership (“PPP”) model in Road and Highways, Water & Waste Water sectors. The Group is owned by Mr. Arun Lakhani and his family vide their holding arm Premier Financial Services Limited (PFSL).
Comfortable financial risk profile The financial risk profile of VIPL remains comfortable, supported by a comfortable capital structure and low reliance on external borrowings. The company's net worth continued to remain healthy at Rs.191.88 Cr as on 31st March 2026 (Prov.) against Rs.181.53 Cr as on 31st March 2025, supported by profit retention over the years.
The gearing stood healthy at 0.04 times as on 31st March 2026 (Prov.). Debt protection metrics improved despite lower revenues, supported by healthy operating profitability. The interest coverage ratio improved to 20.19 times in FY2026 (Prov.) from 14.59 times in FY2025 and the debt service coverage ratio improved to 15.15 times in FY2026 (Prov.) against 11.11 times in FY2025. However, the overall financial flexibility further moderated by support extended towards group entities in the form of loans and advances. As on March 31, 2026 (Prov.), loans and advances of around Rs.176.54 Cr as on 31st March 2026 (Prov.) (i.e., ~92% of the net worth). Further, TOL/TNW increased to 0.96 times as on March 31, 2026 (Prov.) from 0.75 times as on March 31, 2025, indicating a relatively higher dependence on external liabilities.
Going forward, the financial risk profile is expected to remain comfortable, supported by comfortable leverage and healthy debt protection metrics. However, continued exposure towards group entities through loans and advances and the company's ability to maintain adequate accruals from its existing order book will remain key monitorable.
Weaknesses
Decline in operating performance along with modest order book position
VIPL’s operating income declined to Rs.41.80 Cr in FY2026 (Prov.) from Rs.78.44 Cr in FY2025 due to lower execution of EPC activities, with revenues largely driven by road maintenance and O&M activities. The company has a modest order book of Rs.70 Cr as on March 31, 2026, comprising a single road maintenance and O&M contract, executable over the next three years, with no fresh order inflows or bids under consideration, limiting growth visibility. Further, profitability moderated with EBITDA margin declining to 31.93% from 36.92% and PAT margin to 24.75% from 25.56% during the same period. Going forward, profitability is expected to normalize to around 10-13%, while the scale of operations is likely to remain moderate in the absence of significant new order additions.
Intensive working capital operations The working capital operations remained intensive during FY2026 (Prov.). The gross current asset days increased to 360 days in FY2026 (Prov.) from 253 days in FY2025. The deterioration is primarily attributable to elevated receivables and significant higher statutory deposits during the year end. The debtor days stood at 234 days in FY2026 (Prov.) against 203 days in FY2025. The average utilization of bank limits stood moderate for fund based limits at ~48.84% for the last 06 months ending July 2026.
Going forward, efficient management of receivables and working capital requirements will remain a key monitorable.
Tender based nature of operations and competitive industry VIIL is engaged in bidding for tenders in the infrastructure segment, which is marked by the presence of several mid- to large-sized players; hence, the company faces intense competition from other players in the sector. The risk becomes more pronounced as tendering is based on a minimum amount of bidding for contracts. The company acquires tenders at competitive prices, which may affect its profitability. There are uncertainties attached to the allotment of tenders
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Improvement in the operating performance with revenues reaching above ~Rs.80 Cr along with improvement in the profitability margins.
Inflow of new orders along with timely execution of new order book position.
Improvement in the working capital cycle.
Potential triggers (individual or collective) for a downward rating action:
Deterioration in operating performance with revenues falling below ~Rs.40 Cr or decline in profitability margins.
Further elongation in working capital cycle or increased reliance on working capital borrowings, leading to deterioration in the financial risk profile.
Liquidity Position
Adequate
VIIPL’s liquidity position is adequate, marked by net cash accruals of Rs.10.73 Cr in FY2026 (Prov.) against nil repayment obligation during the same period. Going forward, the cash accruals are expected to be around ~Rs.4 Cr in FY27 & FY28 against nil minimal repayment obligation during the same period. The reliance on bank limits stood moderate for fund based limits at ~48.84% for the last 06 months ending July 2026. The current ratio stood moderate at 1.82 times as on March 31, 2026 (Prov.) and the cash and bank balances stood at Rs.0.78 Cr as on 31st March 2026 (Prov.).
Outlook: Negative
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
41.80
78.44
PAT
Rs. Cr.
10.35
20.05
PAT Margin
(%)
24.75
25.56
Total Debt/Tangible Net Worth
Times
0.04
0.04
PBDIT/Interest
Times
20.19
14.59
Status of non-cooperation with previous CRA (if applicable)
ACUITE BB | Negative | Downgraded | Stable to Negative ( from ACUITE BBB- )
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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