Palika Infratech LLP

Brickwork Ratings assigns the long-term ratings of BWR BBB-/Stable for the Bank Loan Facilities of Rs. 350.00 Crs. of Palika Infratech LLP

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	350.00	Long Term	BWR BBB - /Stable Assignment
Grand Total	350.00	(Rupees Three Hundred Fifty Crores 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 the long-term rating of BWR BBB- / Stable to the bank loan facilities aggregating Rs. 350.00 crore of Palika Infratech LLP.

The rating factors in the extensive experience of the promoters in the real estate sector, the strategic location of the project, the availability of requisite RERA approvals, and the structured payment mechanism through the maintenance of Escrow and DSRA accounts. The rating also derives comfort from the established project implementation framework. However, these strengths are partially offset by the execution risk associated with timely completion of the project, the LLP constitution of the entity, and the inherent cyclicality of the real estate industry. Going forward, the firm's ability to achieve timely project execution, generate sales bookings and customer collections in line with projections, and strengthen its overall financial risk profile will remain the key rating sensitivities.

The Stable outlook reflects Brickwork Ratings' expectation that the entity will maintain its business and financial risk profile over the medium term, supported by the timely execution of the project and achievement of the envisaged sales and collections. The outlook may be revised to Positive if the entity demonstrates sustained improvement in project execution, sales momentum, customer collections, profitability, and overall financial metrics. Conversely, the outlook may be revised to Negative in the event of significant delays in project execution, lower-than-expected sales bookings or customer advances, deterioration in the financial risk profile, weakening liquidity, or any adverse regulatory or operational developments affecting project implementation.

For arriving at the rating, Brickwork Ratings has relied upon the Audited Financial statements of the firm for the last three years up to FY25, projected financials for FY26 to FY33, Monitoring of the project by banks through the designated LIE, publicly available information, and clarifications provided by the management.

KEY RATING DRIVERS

Credit Strengths:

• Maintenance of DSRA Account :

  Project revenues will be directed into a bank-maintained escrow account, with withdrawals governed by a predefined waterfall mechanism that prioritizes debt servicing. The firm is also required to maintain a Debt Service Reserve Account (DSRA) equivalent to three months of interest, which adds an extra layer of financial security.

• Location Advantage :

  The project site is located within a developed area with a mix of residential and commercial establishments and is well connected by road, rail, and airways.

• Experienced Management and Established Track Record of the Promoters :

  Palika Infratech LLP benefits from the established experience and operational discipline of the Plutus Group, which has successfully executed past projects across residential and commercial segments across Jaipur.

Credit Risks:

• Exposure to Inherent Cyclicality in the Real Estate Industry :

  The firm operates solely in Kalyan, Mumbai, making it susceptible to fluctuations in the local real estate market, which is affected by macroeconomic trends. The reliance on a single geographic location adds to this risk.

• Partnership Constitution :

  As a partnership firm, Palika Infratech LLP is exposed to risks associated with capital withdrawal by partners. This could impair financial and operational stability. Additionally, the firm is vulnerable to risks stemming from dissolution or changes in the partnership due to events like death or retirement of partners.

ANALYTICAL APPROACH - Standalone

Standalone - For arriving at its ratings, BWR has considered the standalone performance of Palika Infratech LLP. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Positive Triggers:

The rating may witness a positive action if the firm achieves timely project execution with at least 60% physical progress by the next review, obtains all pending statutory approvals and revised permissions, and records sales bookings and customer collections in line with projections. Sustained improvement in the overall financial risk profile, supported by healthy cash flows, adequate liquidity, and moderation in leverage, will also remain a key positive rating sensitivity.

Negative Triggers:

The rating may face downward pressure in case of material delays in project implementation, cost overruns resulting in weaker project cash flows and debt servicing metrics. Additionally, lower-than-expected sales performance, delays in customer collections, or significant delays in the disbursement of committed funding lines leading to liquidity stress would remain key negative rating sensitivities.

LIQUIDITY INDICATORS - Adequate

The firm's liquidity is expected to remain adequate, supported by cash and cash equivalents of ₹3.00 crore and fixed deposits of ₹4.00 crore as on FY25. The current ratio stood strong at 22.14x, primarily owing to the project being at a nascent stage. Repayment of the proposed ₹350.00 crore term loan is scheduled to commence from March 2030, providing a sufficient moratorium during the construction phase. The liquidity profile derives further comfort from the maintenance of a DSRA equivalent to three months' interest, the escrow mechanism with a defined waterfall structure for routing project collections, and the financial flexibility of the promoter group. Further, the projected average DSCR of 1.80x, with debt service coverage remaining above unity throughout the loan tenure, is expected to support the timely servicing of debt obligations

ABOUT THE ENTITY

Palika Infratech LLP, incorporated in December 2016, is undertaking the development of a residential and commercial project at Kalyan, Thane (Mumbai). The firm is promoted by Ramesh Keshubhai Siyani and Arpit Khandelwal, both of whom have substantial experience in the real estate sector. The total estimated cost of the project is Rs. 769.70 crore, which is proposed to be funded through a sanctioned term loan of Rs. 350 crore and a promoters' contribution of Rs. 200 crore, with the balance Rs. 219.70 crore coming from booking money.

The project is spread over a 6.08-acre site owned by the firm and will feature 9 towers comprising 924 units of 2BHK and 3BHK configurations. The structures will consist of G/Stilt + 1st to 3rd podium + 29 upper floors (UF), along with offices and shops, making up a total saleable area of 31.83 acres. All major approvals have been obtained, including MahaRERA. Site work commenced on April 25, and financial closure was achieved in February 2026. The project is expected to be completed within 8 years, with the DCCO anticipated to be achieved by June 2033.

ESG Profile

The firm demonstrates an Evolving ESG profile backed by the institutional frameworks of the parent Plutus Group:

• Environmental: Environmental compliance is Compliant with zero history of violations or penalties. The project incorporates sustainable design plans, including rainwater harvesting and wastewater recycling, with climate resilience measures being monitored as construction progresses.

• Social: Adherence to labor laws is Compliant, prioritizing workforce health and safety. Diversity metrics are currently evolving given the unlisted LLP structure, and local community engagement programs are Planned as the project scales.

• Governance: Corporate governance is anchored by the parent group. Separation of Chairman and CEO roles is active (Yes); conflict-of-interest management is Adequate; regulatory compliance is Compliant; and risk management systems are Strong. Dedicated ESG committees are currently Not Available given the early entity lifecycle.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited - Annual)	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)
Operating Revenue	Rs.Crs.	Not Available	Not Available	Not Available
EBITDA	Rs.Crs.	-0.03	-0.15	-0.23
PAT	Rs.Crs.	0.47	0.15	12.26
Tangible Net Worth	Rs.Crs.	126.02	159.75	161.67
Total Debt / Tangible Net Worth	Times	Not Available	Not Available	Not Available
Current Ratio	Times	165.75	74.88	22.14

KEY COVENANTS OF THE FACILITY RATED

The key covenants stipulate that all scheduled project receivables, along with any other receivables, shall be deposited exclusively into the designated RERA account. The borrower is required to maintain a Debt Service Reserve Account (DSRA) equivalent to three months' interest, with the stipulated amount to be transferred upfront to the DSRA account. Further, the partners shall retain their capital contribution and unsecured loans in the LLP until the entire outstanding dues under the sanctioned facilities have been repaid. In addition, the borrower shall comply with all other standard terms and conditions as stipulated in the sanction letter.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Not Applicable

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

Facilities	Current Rating  (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	350.00	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		350.00	(Rupees Three Hundred Fifty Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Rating Criteria - Rating of Real Estate - Residential Projects
• Commercial Real Estate Rating Methodology
• Real Estate-Residential

Analytical Contacts
Mukul Singh Sahu Ratings Analyst mukulsingh.s@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@brickworkratings.com
Media Contact | media@brickworkratings.com	Client Support | clientsupport@brickworkratings.com

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	ICICI Bank	Term Loan - Sanctioned	350.00	_	350.00	Simple##
Total			350.00	0.00	350.00
TOTAL (Rupees Three Hundred Fifty Crores 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.