Narnarayan Infrastructure Private Limited

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 87.25 Crs. of Narnarayan Infrastructure Private Limited

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	7.25	Long Term	BWR BBB - /Stable Assignment
Non Fund Based	80.00	Short Term	BWR A3 Assignment
Grand Total	87.25	(Rupees Eighty Seven Crores and Twenty Five lakhs Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK

Brickwork Ratings has assigned a long-term rating of BWR BBB-/Stable and a short-term rating of "A3" to the bank loan facilities of Narnarayan Infrastructure Private Limited, totaling Rs 87.25 crore. These ratings reflect the company's experienced management, established client relationships, revenue growth and visibility, stable profitability, and healthy financial risk profile. Furthermore, the ratings consider the company’s efficient working capital management and adequate liquidity position. However, the ratings are constrained by high customer and geographic concentration risk, execution-related challenges, and vulnerability to government policy and spending cycles and moderate margins owing to intense competition.

The “Stable” outlook is anticipated to persist in the medium term, attributed to its experienced management, strong order book, and government expenditure aimed at improving infrastructure.

KEY RATING DRIVERS

Credit Strengths:

Experienced Promoter with Strong Market Understanding :
The promoter’s experience of over two decades in the civil infrastructure industry, particularly in road construction for municipal bodies, provides the company with a solid foundation. The promoter has a deep understanding of local market dynamics and long-standing relationships with clients, suppliers, and other stakeholders that support business continuity and operational efficiency. This is reflected in the unexecuted order book of Rs. 251.31 crore as of September 2025, offering strong revenue visibility over the medium term. The repeat orders from government bodies, particularly the Ahmedabad Municipal Corporation, indicate a healthy client relationship and execution track record.
Comfortable Credit Profile: :

The company has a comfortable credit profile supported by the Tangible Net Worth of Rs 33.83 crores as of March 31, 2025. Further, the company is moderately leveraged, as can be seen from the gearing of 0.54x. The net cash accrual to adjusted debt ratio stood at 0.30 times. Debt protection metrics for FY25 were healthy, with an interest coverage ratio of 4.47 times

Credit Risks:

High Geographical and Segmental Concentration :
The company’s operations are primarily concentrated in Gujarat, with a significant portion of its order book derived from the Ahmedabad Municipal Corporation and the state government’s Roads & Buildings (R&B) Division. This reliance on a single region and government clients limits geographic diversification and exposes the business to region-specific policy or funding risks. Additionally, the company’s revenue is largely concentrated in road-related projects—such as widening, resurfacing, and allied civil works—while lacking presence in more diversified infrastructure segments like power transmission, water supply, and irrigation.This narrow project focus heightens sector-specific risks compared to peers with broader execution capabilities. Expanding its client base, geographic footprint, and project portfolio will be crucial to mitigating these concentration risks over the medium term.
Intense Competition and Moderate scale of operations :

The peripheral road construction industry is highly fragmented and characterized by intense competition on account of low barriers to entry. Although the company has demonstrated growth in its revenues over the year, the scale remains moderate with revenues of Rs 90.27 crore in FY’25. The company has, in the past, demonstrated timely execution and has won multiple orders from AMC, providing reasonable merit for the company to grow its scale. Further availability of the unexecuted order book of ~Rs. 250 cr as of September’25 provides revenue visibility of 2.70x basis FY’25 revenue.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone approach for the Company. BWR has applied its rating methodology as detailed in the rating criteria detailed link mentioned below (Hyperlinks provided at the end of this rationale)

RATING SENSITIVITIES

Positive Sensitives

Revenue scaling up beyond Rs. 150cr while maintaining or improving current profitability and credit profile reflected in TOL /TNW of less than 1.00x and DSCR of more than 1.30x might be positive for the ratings.

Negative Sensitivities

Inability to scale up revenues or maintain the margins as projected, or deterioration of TOL/TNW to more than 1.50x, might lead to a negative rating action.

LIQUIDITY INDICATORS - Adequate

The company has adequate liquidity supported by the availability of unencumbered FDR of Rs. 3.57cr as on 14-10-2025. Additionally, the company is expected to generate cash accrual of Rs. 6.00-7.00cr in the current year. The company has scheduled debt repayment of Rs. 6.07cr, which can be adequately serviced from the available cash streams. Further additional cushion is also available in the form of unutilized OD limits of Rs. 7.00 Crs which had average utilization of 25-30% during the last 12months. The company has current ratio of 2.06x in FY’25 depicting prudent working capital management. The promoters are also resourceful and have demonstrated funds infusion by way of unsecured loans in the past thereby providing additional liquidity buffer in case of any adverse conditions.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Industrials	Construction	Construction	Civil Construction

Narnarayan Infrastructure Private Limited, promoted by Mr. Jagdishchandra Chimanlal Patel, is a Gandhinagar-based company established as a partnership firm in 1997 and later reconstituted as a private limited company in 2007. The company is a Class AA contractor and is engaged in the construction of roads, including widening, resurfacing, repairing, as well as the construction of allied bridges, civil work ancillary to road projects, and bridges.

The company gets most of the road construction projects from the Gujarat Government R&B Division and works mainly for the Ahmedabad Municipal Corporation.

KEY FINANCIAL INDICATORS

Standalone Financial Indicators (in ₹ crore)	Units	FY 22 - 23 (A)	FY 23 - 24 (A)	FY 24 - 25 (A)
Operating Revenue	Rs.Crs.	64.36	79.43	90.27
EBITDA	Rs.Crs.	5.46	7.44	8.06
PAT	Rs.Crs.	3.15	3.78	3.73
Tangible Net Worth	Rs.Crs.	26.28	30.09	33.83
Total Debt / Tangible Net Worth	Times	0.44	0.43	0.54
Current Ratio	Times	2.59	2.69	2.06
* A:Audited UA:Unaudited P:Provisional PROJ:Projected
Note: These are latest available financial results. All ratios as per BWR's calculations; Amount in ₹ crore

KEY COVENANTS OF THE FACILITY RATED

The terms of the sanction includes standard covenants typically required for such facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating (2025)			2024		2023		2022
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	7.25	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	80.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		87.25	(Rupees Eighty Seven Crores and Twenty Five lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Anjali Singh Senior Rating Analyst anjali.s@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

Narnarayan Infrastructure Private Limited

ANNEXURE-I

Details of Bank Facilities rated by BWR

SL.No.	Name of the Bank/Lender	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)	Complexity of the Instrument
1	Punjab National Bank	Over Draft - Sanctioned	7.00	_	7.00	Simple##
2	Punjab National Bank	Bank Guarantee - Sanctioned	_	80.00	80.00	Simple##
3	Punjab National Bank	GECL 1.0 - Sanctioned	0.25	_	0.25	Simple##
Total			7.25	80.00	87.25
TOTAL (Rupees Eighty Seven Crores and Twenty Five lakhs Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.

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