MAHENDRA HOMES PRIVATE LIMITED

Brickwork Ratings assigns the long-term ratings of BWR BBB+/Stable for the Bank Loan Facilities of Rs. 287.58 Crs. of MAHENDRA HOMES PRIVATE LIMITED

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	287.58	Long Term	BWR BBB + /Stable Assignment	RBI
Grand Total	287.58	(Rupees Two Hundred Eighty Seven Crores and Fifty Eight lakhs Only)

Note:
1. Please refer to BWR website www.brickworkratings.com for the definition of the ratings
2. Refer to Annexures I, II, and III for details of rated bank loan facilities, debt instruments, and the List of Entities Consolidated RATING ACTION / OUTLOOK

Brickwork Ratings has assigned the long-term ratings of "BWR BBB+/Stable" for the bank loan facilities of Mahendra Homes Private Limited.

The rating has factored, inter alia, the favorable location of the project and moderate financial performance of the company. However, the rating is constrained by the project execution and market risk and the risk associated with cyclicality in the real estate industry. However, Going forward, the ability of the company to improve its financial risk profile, timely completion of project and timely receipt of customer advances would be the key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that the Mahendra Homes Private Limited. business risk profile will be maintained over the medium term. The 'Stable'' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Positive' in case of timely completion of the project, an increase in advance bookings and the rating outlook may be revised to 'Negative' if any delay in the execution of the project and less than expected bookings.

KEY RATING DRIVERS

Credit Strengths:

• Favourable location of the projects :

  Their projects are heavily situated in Bangalore, including the completed M5 Ecity Mall and Mahendra Aarya (Phase-1), as well as their ongoing project, Mahendra Solterra Aarya (Phase-2). These developments focus heavily on Electronic City (Phases 1 & 2), giving the builder strong regional insight into the needs of tech professionals working nearby. Furthermore, their properties are strategically positioned close to major IT hubs, schools, and retail centers like M5 Ecity Mall.

• Moderate financial performance :

  The company demonstrates a strong financial profile characterized by consistent revenue growth expanding operating profitability and a robust capital structure. Total Operating Income grew to Rs. 165.22 Cr in FY 25-26 (Provisional) from Rs. 145.92 Cr in FY 23-24 accompanied by a continuous expansion in operating profit (OPBDIT) which surged from Rs. 37.84 Cr to Rs. 52.20 Cr over the same period while maintaining healthy operating margins above 31.60%. The business exhibits a conservative leverage stance with a comfortable Total Debt to Tangible Net Worth (TNW) ratio of 0.74x on an enriched net worth base of Rs. 275.02 Cr. Furthermore, strong debt-servicing visibility is evidenced by a robust Debt Service Coverage Ratio (DSCR) of 2.70x an Interest Service Coverage Ratio (ISCR) of 4.38x and a current ratio of 3.12x reflecting strong liquidity and substantial financial flexibility to meet debt obligations.

Credit Risks:

• Exposed to cyclicality in the real estate business :

  The real estate sector is marked by volatile prices and a highly fragmented market structure because of many regional players. In addition, being a cyclical industry, the real estate sector is highly dependent on macro-economic factors that render the firms sales vulnerable to any downturn in demand. Any new specific approvals on environment, social, regulatory is expected to hit the project as the project duration is four years. However the real estate industry is already covered under RERA act and the act in on place from 2016 onwards. company has already obtained RERA approvals for the project and does not see major regulatory challenges.

• Exposed to execution and market risks :

  The rating is constrained by the companys exposure to elevated execution risk and moderate market risk associated with the ongoing project. As of Jul2026 construction remains at an early stage with only 1% of the total project cost incurred. Timely completion and the successful sale of the remaining units are critical as customer advances are expected to partially finance the balance project costs. These risks are partially mitigated by the company's track record of timely project execution and satisfactory sales performance.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Mahendra Homes Private Limited.

RATING SENSITIVITIES

Positive :

• Timely collection of customer advances of Rs.500.00cr and above for the period Aug2026 to Apr2027 from Mahendra Aarya Phase 2 project.
• Completion of  sub structure flooring work (Parkign floor, more than one floor below general ground level) by Oct027.
• Improvement in revenue and profitability margins as per company projections.  
• Sustenance of debt coverage indicators i.e. ISCR and DSCR above 4.00x and 2.00x and Total Debt/TNW below 2.00x.

Negative :

• Any decline in revenue below current level. 
• Significant delay in disbursement of committed line of funding.
• Delay in project completion and cost overrun.

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterized by sufficient cushion in accruals vis-a-vis repayment obligations and moderate cash balance of Rs. 2.27cr in Prov FY26. The company reported net cash accruals of Rs.49.37cr in Prov FY26 up from Rs.37.69cr in FY25 against the CPLTD of Rs. 11.24cr in Prov FY26 and Rs.10.80cr in FY25. Going forward, the company projected net cash accruals of Rs. 70.11cr in FY27 against approximately adjusted term loan repayments of Rs. 8.29cr in FY27 ensuring sufficient coverage for debt servicing. Further, the scheduled repayment obligations are expected to be met through projected internal cash accruals. The OPBDIT of Rs. 52.20cr in Prov FY26 was sufficient to cover the finance charges of Rs. 11.91cr in Prov FY26. The current ratio of the company stood at 3.12x in Prov FY26 compared to 1.28x in FY25. Further, the company is projected to maintain sufficient level of inflow and it is expected to grow steadily with an increase in bookings. Additionally, availability of escrow mechanism along with DSRA account will ensure the smooth repayments and the company is to benefit from the resourcefulness of the partner group. Hence, The overall liquidity position is expected to be at adequate level.

ABOUT THE ENTITY

Established in 2011, Mahendra Homes Private Limited operates as the premium real estate and infrastructure flagship of the Bengaluru-headquartered M5 Mahendra Group. The company leverages the Group’s extensive 35-year regional legacy to deliver high-quality residential spaces across South India.  The company specializes in developing eco-friendly, premium apartments and villas engineered for optimal functionality and modern individualism specifically targeting the middle-to-high-income consumer segments. Mahendra Homes has established strong brand equity in Bengaluru’s high-growth micro-markets. Its signature residential landmarks include Mahendra Aarya Electronic City’s premier low-density sports-themed community utilizing advanced MIVAN construction and Mahendra Arto Helix. 

 

ESG Profile

The company demonstrates a Adequate ESG profile based on its environmental, social, and governance practices.

Environmental: The company’s environmental performance is assessed through green building certifications, energy efficiency measures, and adoption of renewable energy sources like solar panels or green power are provided at all the projects as per the norms in all the previous completed projects. Water management and waste reduction practices, including rainwater harvesting, wastewater recycling, and recycling/reuse of construction waste are also provided as per the norms, and our company is fully compliant with these norms.  Climate risk exposure and resilience measures, such as flood protection or heat-resistant materials, are evaluated. Compliance with environmental regulations and any history of violations or penalties never imposed on our company in past as we comply with all the required laws. provide additional insights.

Social: Social considerations focus on workforce health and safety for both permanent and contractor staff, adherence to labor laws are fully compliant, safety performance, and training or human capital development programs. Diversity and inclusion (gender: 78% male and 22% female)  and community engagement initiatives, including local community programs, affordable housing, or livelihood support doing lot of social activities like, adopted a Government higher school at Bommasandra and constructed entire new class rooms, providing every year to all the students uniform, shoes, note books etc. constructed parking facility, rest rooms and police chowki at Chandapura circle, constructed  3 storied yoga center at Bommasandra village, making fee payment school/college for economically and deserving students for more than 30 to 40 students every year,  provided RO plant at Bommasandra village & we spend for these activities for a year more than two to three crores regularly. Like this we do regular social activities for students and at villages regularly reflect the company’s commitment to social responsibility.

Governance: Governance assessment considers board composition, risk management, and compliance. Key factors include the board diversity  of 40% to 60% (2 male & 3 female directors), separation of chairman and CEO roles, conflict-of-interest management (None), strength of risk management and internal control systems (Strong), regulatory compliance (Compliant), internal policies for monitoring compliance and related-party transactions, and inclusion of ESG or ethical clauses in leases and contracts.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)	FY 25 - 26 (Provisional - Annual)
Operating Revenue	Rs.Crs.	145.92	142.88	165.22
EBITDA	Rs.Crs.	37.84	45.33	52.20
PAT	Rs.Crs.	31.47	27.27	30.28
Tangible Net Worth	Rs.Crs.	217.47	244.75	275.02
Total Debt / Tangible Net Worth	Times	0.26	0.22	0.74
Current Ratio	Times	3.95	1.28	3.12

KEY COVENANTS OF THE FACILITY RATED

The terms of the sanction include standard covenants normally stipulated 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  (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	287.58	BWR BBB+/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		287.58	(Rupees Two Hundred Eighty Seven Crores and Fifty Eight lakhs Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Harish R Ratings Analyst harish.r@brickworkratings.com	Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@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	Karnataka Bank Ltd	Term Loan - Sanctioned	75.00	_	75.00	Simple##
2	Karnataka Bank Ltd	Over Draft - Sanctioned	60.00	_	60.00	Simple##
3	Karnataka Bank Ltd	Lease Rental Discounting - Out-standing	103.04	_	103.04	Simple##
4	Karnataka Bank Ltd	Lease Rental Discounting - Out-standing	24.59	_	24.59	Simple##
5	Karnataka Bank Ltd	Lease Rental Discounting - Out-standing	24.95	_	24.95	Simple##
Total			287.58	0.00	287.58
TOTAL (Rupees Two Hundred Eighty Seven Crores and Fifty Eight 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.