Press Release June 29, 2026 YASH CONSTRUCTION CO Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	40.00	ACUITE BBB | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	96.20	ACUITE BBB | Stable | Reaffirmed	-	RBI
Bank Loan Ratings	0.00	163.80	-	ACUITE A3+ | Reaffirmed	RBI
Total Outstanding	0.00	300.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 reaffirmed its long-term rating of 'ACUITE BBB' (read as ACUITE Triple B) and short-term rating of 'ACUITE A3+' (read as ACUITE A Three plus) on the Rs. 260.00 Cr. bank facilities of Yash Construction Co. (YCC). The outlook is 'Stable'. ­Acuite has assigned its long-term rating of 'ACUITE BBB' (read as ACUITE Triple B) on the Rs. 40.00 Cr. bank facilities of Yash Construction Co. (YCC). The outlook is 'Stable'. Rationale for Rating: The rating reaffirmation factors in the stable operating performance and improvement in the profitability margins. The rating also derives strength from the healthy order book position which gives revenue visibility for the medium term, healthy financial risk profile and extensive experience of the promoters in the industry. However, these strengths are offset by moderate working capital nature of operations, geographic concentration of projects, susceptibility of profitability to volatility in input prices, labour charges in a highly competitive and tender based nature of business.

About the Company

­­Established in 2008, Yash Construction Co is engaged in civil construction work and develops roads and bridges. The day-to-day operations are managed by Mrs. Anita Pradeep Thombre and Mr. Pradeep Madhukarrao Thombre. The registered office is located at Ajinkya City, Ambajogai Road Latur -413 512.

Unsupported Rating

­Not Applicable

Analytical Approach

­­Acuité has considered the standalone business and financial risk profiles of Yash Construction Co (YCC) to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced management along with established track record of operations YCC is an EPC contractor engaged in construction of road and building, urban infrastructure, commercial, residential as well as sports facilities. Established in 2008, the firm has gained extensive experience in the construction sector. It is currently focused on civil construction for Public Works Department (PWD) of Maharashtra and National Highway Authority of India (NHAI). Team believes that the firm will continue to derive benefit from its partner’s experience, and established relations with its customers and suppliers. Stable operating performance with healthy order book position provides revenue visibility for the medium term The operating income of the firm moderated to Rs. 562.18 Cr. in FY2026(Prov.) compared to Rs. 620.50 Cr. in FY2025 and Rs. 491.25 Cr in FY2024, primarily driven by execution slowdown and elongated receivable cycles. The moderation is attributable to delays in payments from government authorities, which impacted both project execution pace and working capital availability. The civil contracting segment, being highly dependent on timely certification and release of funds from state departments, continues to expose the firm to counterparty and liquidity risks. Notwithstanding the moderation in revenues, the operating margins improved to 12.51 percent in FY2026(Prov.) from 10.60 percent in FY2025, primarily supported by a reduction in freight charges during the year. The PAT margin of the firm stood at 7.31 percent in FY2026(Prov.) against 7.42 percent in FY2025. The firm having an unexecuted order book position of Rs. 1543.19 Cr. as on June 11, 2026 provides medium to long term revenue visibility. Acuite believes that the operating performance of the firm would remain steady on the back of healthy order book position. Moderate Financial Risk Profile The firm’s financial risk profile is moderate marked by modest net worth, gearing and comfortable debt protection metrics. The tangible net worth of the firm increased to Rs. 83.06 Cr. as on 31st March 2026 (prov.) from Rs. 74.76 Cr. as on 31st March 2025 on account of accretion of profits to reserves. Gearing of the firm stood at 1.59 times as on 31st March 2026 (prov.) as against 1.46 times as on 31st March 2025. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood high at 3.21 times as on 31st March 2026 (prov.) as compared to 3.64 times as on 31st March 2025. However, the debt protection metrics of the firm remained comfortable marked by Interest Coverage Ratio (ICR) and Debt Service Coverage Ratio (DSCR) stood at 5.57 times and 2.40 times as on 31st March 2026 (prov.) as compared to 7.73 times and 2.64 times as on 31st March 2025 respectively. The Net Cash Accruals/Total Debt (NCA/TD) stood low at 0.46 times as on 31st March 2026 (prov.) and 0.57 times as on 31st March, 2025. Acuite believes, the financial risk profile of the firm would remain moderate; however, any significant withdrawal of capital by partners or debt funded capex may impact the capital structure of the firm.

Weaknesses

Moderate working capital operations The working capital operations of the firm remain moderate in nature. The gross current asset (GCA) stood at 105 days in FY2026 (Prov.) as against 107 days in FY2025. Inventory days stood at 11 days in FY26 (Prov.) from 6days in FY25. Debtor days improved to 64 days in FY26 (Prov.) from 70 days in FY25, reflecting better collection efficiency. The average fund-based bank limit utilization stood at ~71.78 percent and non-fund-based limits stood at 73.20 percent for six months ended May 2026. Acuite believes, that working capital operations of the firm may continue to remain moderate considering the nature of business. ­Risk of capital withdrawal Yash Construction Co was established as a partnership firm in 2008. Any substantial withdrawal of capital by the partners is likely to have an adverse impact on the capital structure of the firm. Susceptibility of profitability to volatility in input prices, labour charges in a highly competitive and tender based nature of business The engineering, procurement and construction industry is highly fragmented, with the presence of several large pan-India players, where subcontracting and project-specific partnerships for technical or financial reasons are common. The firm faces stiff competition from its competitors in procuring orders through bidding, and intense competition for tenders leads to very competitive pricing, which in turn stresses profit margins. Further, fluctuations in raw material pricing make profit margins vulnerable to significant price changes. However, the presence of price escalation clauses helps mitigate exposure to raw material price fluctuations to some extent. The promoters' vast experience and the firm's long track record of operations gives it an edge in securing large ticket orders. Acuite believes that the firm’s business and financial risk profile could be adversely impacted due to stiff competition and inherent risks in tender-based operations. Geographical concentration in revenue The firm bids for tenders only in the state of Maharashtra. Heavy dependence on a few customers limits the bargaining power and exposes the firm to risks relating to any change in their purchasing patterns. Any delay in payment could also stretch the working capital cycle. While this risk is mitigated by long standing relationships established with the customers, sustained reduction in dependence on a few customers, through new customer additions, remains a key rating sensitivity factor for the medium term. The firm’s profitability remains susceptible to sharp volatility in key input prices. Long-term contracts generally cover price escalation costs for steel and cement, but the pass through happens with a lag. Moreover, revenue and profitability depend entirely on the ability to win tenders amid intense competition from large, national-level players as well as local players.

Rating Sensitivities

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

­• Significant improvement in revenue and profitability • Improvement in working capital management with GCA below 50 days on a sustained basis • Improvement in financial risk profile

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

­• Significant decline in revenues and profitability • Deterioration in financial risk profile with DSCR below 1.50 times. • Elongation of working capital cycle exerting pressure on liquidity

Liquidity Position

Adequate

­The liquidity of the firm marked adequately supported by net cash accruals (NCA) of Rs. 60.82 crore in FY2026 (Prov.) against long term debt repayment of Rs. 17.52 crore for the same period. The net cash accruals (NCA) is expected to remain in the range of ~Rs. 64.00 Cr. to Rs. 74.00 Cr.  for FY27-FY28 against the debt repayment obligation of ~Rs. 21.00 Cr. to Rs. 22.00 Cr. during the same period. The Current ratio stood moderate at 0.82 times in FY2026 (Prov.) as compared to 0.89 times in FY2025. The firm’s operations remained moderately working capital, as reflected in Gross Current Asset (GCA) of 105 days in FY2026 (prov.) as compared to 107 days in FY2025. The average fund-based bank limit utilization stood at 71.78 percent and non-fund-based limits stood at 73.20 percent for six months ended May 2026. The firm has cash and bank balance of Rs. 2.17 crore as on March 31, 2026(Prov.), along with unencumbered fixed deposits of Rs. 40.35 crore.

Outlook

­Stable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	562.18	620.50
PAT	Rs. Cr.	41.12	46.03
PAT Margin	(%)	7.31	7.42
Total Debt/Tangible Net Worth	Times	1.59	1.46
PBDIT/Interest	Times	5.57	7.73

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 31 Mar 2025 Bank Guarantee (BLR) Short Term 103.00 ACUITE A3+ (Assigned) Bank Guarantee (BLR) Short Term 30.00 ACUITE A3+ (Assigned) Proposed Short Term Bank Facility Short Term 47.70 ACUITE A3+ (Assigned) Cash Credit Long Term 47.00 ACUITE BBB | Stable (Assigned) Proposed Long Term Bank Facility Long Term 25.00 ACUITE BBB | Stable (Assigned) Cash Credit Long Term 3.00 ACUITE BBB | Stable (Assigned) Covid Emergency Line. Long Term 4.30 ACUITE BBB | Stable (Assigned)

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­Note:- The Firm has an interchangeable cash credit (CC) and bank guarantee (BG) facility of Rs. 30.00 crore with Janata Sahakari Bank Limited (Pune)

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Ritika Lalwani Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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