Logipark Patna Pvt. Ltd.

Brickwork Ratings assigns the rating of BWR A (Stable)for the Bank Loan Facilities of Rs. 94.07 Crs. of Logipark Patna Pvt. Ltd.

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	94.07	Long Term	BWR A /Stable Assignment	RBI
Grand Total	94.07	(Rupees Ninety Four Crores and Seven 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

BWR has assigned the rating of BWR A (Stable) for the Bank Loan facilities of Rs 94.07 Crs. of  Logipark Patna Private Limited.  The assigned ratings factor in rating strengths such as an experienced promoter group, expected stable cash flow on account of marquee tenants with long lease tenure and Location advantage, Healthy financial risk profile, substantial scale & track record, Business model & cash flow stability, exposure to project implementation risk, exposure to tenant concentration risk, susceptibility to volatility in occupancy and interest rates  

Outlook-Stable: The stable outlook is assigned to the long-term ratings as the company is expected to benefit from the timely receipt of Lease rentals  from Counterparty  as well as the operational and financial strength of the Promoter Group, which is Oswal and Nahar Group

KEY RATING DRIVERS

Credit Strengths:

• Experienced Promoter Group :

  Logipark Patna Private Limited (LPPL) benefits from the Oswal Group's 30+ years of domain experience in textiles and  Further diversification into real estate (e.g., OWM Logipark Varanasi LLP), providing strong market reputation and key client relationships. Development and leasing advisory in Group companies are supported by leading global consultants, including CBRE, Cushman & Wakefield, JLL, and Knight Frank.

• Expected stable cash flow on account of marquee tenants with long lease tenure and Location advantage :

  The portfolio benefits from marquee e-commerce and logistics tenants bound by long-term 9-year lease agreements with a 6-year lock-in period, ensuring reliable and steady rental yields. The company has a warehouse in Patna, Bihar, which is an established warehousing and logistics hub catering to e-commerce and consumer durables. Vaishali district is a district in Bihar. The district is connected via the NH-77 and NH-322 highways, Gandhi Setu, and Jay Prakash Setu ( JP Setu) Bridges over the  Ganga River, which connects the state capital Patna, the division headquarters Muzaffarpur, and the eastern district Samastipur Prime highway access paired with modern infrastructure positions these facilities to maintain high occupancy and seamlessly support upcoming warehouse expansions.  

  The Group also has the Varanasi facility in Uttar Pradesh through Group entity OWM Logipark Varanasi LLP, which leverages proximity to the trade-heavy NH-19 (Agra–Kolkata) corridor. Together, these strategic locations and superior asset quality position the firm for strong tenant demand and future leasing growth.

   

   

• Healthy financial risk profile :

  The financial risk profile is healthy, with average DSCR expected to remain comfortably above 1.29 times for FY 26-29. Debt protection metrics also derive comfort from the maintenance of a debt service reserve account (DSRA) equivalent to three months/One Quarter of debt obligations. BWR also notes that  average DSCR over FY26-37 is expected to be ~1.61 x wich indicates that overall debt servicing is satisfactory

   

• Substantial Scale & Track Record :

  The Oswal Group commands a land bank of 592 acres of freehold industrial land (350 acres acquired) across 12 states and 23 cities. Over the past three years, the group has successfully delivered 5.19 mn sq. ft. of Grade-A warehousing, with 2.0 mn sq. ft. currently under construction and an expansion pipeline of 7.58 mn sq. ft. planned over the next two years over multiple SPVs

• Business Model & Cash Flow Stability :

  Operating predominantly on a Built-to-Suit (BTS) model ensures full utilization from inception, while long-term lease structures provide high revenue visibility and predictable cash flows over the tenure of the Loan 

• Adequate Debt Servicing and Shortfall Undertaking :

  • The Financing of the Project is completely secured by the presence of a condition that all future lease rentals are directly deposited into the Current Account maintained with the lender. The terms of the sanction automatically allow the lenders to collect the requisite principal and interest as and when the Lease rental comes into the account from the tenant. Further, the structure of repayment is ballooning in nature

  • Further, there  is a shortfall undertaking

  • Shortfall Undertaking: Cost Overrun Undertaking: The company must provide an undertaking before the disbursement of funds stating that any cost overrun for the project will be borne entirely by the company from its own long-term sources. The rated debt for the project with Instakart Services Private Limited is already completed

  • Fund Induction Undertaking: The borrower undertakes to induct long-term funds as and when required to ensure the regular repayment of term loan interest and installments in the event that cash flows fall short of the requirement 

  • Repayment Obligation Undertaking: An undertaking must be obtained before loan disbursement stating that, in the event of an increase in the Rate of Interest (ROI), the promoter of the company will infuse funds to meet the repayment obligations.3 Project Escalations: The borrower is required to meet any escalation costs from its own sources and cannot request an additional term loan from the bank.  The rated debt for the project with Instakart Services Private Limited is already completed

Credit Risks:

• Exposure to project implementation risk :

  The firm is exposed to project implementation risks as they are developing an 85,920-sft area, with the lease expected to commence in Jan 2027. The project cost is Rs 29 crore, which will be funded through a mix of debt and equity of  4.49 :1 (Rs 20.88 crore through construction finance and the balance through promoter contribution). Nevertheless, demand risk is mitigated with pre-leasing of the entire leasable area. However, any significant delay in project execution or cost overrun may impact the financial risk profile and will be a key rating monitorable

• Exposure to tenant concentration risk :

  The entire leasable area is occupied by two tenants, exposing the company to tenant concentration risks. Surrender of the lease by either of these tenants will significantly weaken the financial risk profile. However, this risk is mitigated by lease agreements of nine to twenty years. Additionally, the lock-in period of six to twelve years mitigates the risks to some extent.

   

• Susceptibility to volatility in occupancy and interest rates :

  India's warehousing sector is inherently cyclical, making cash flows sensitive to interest rate volatility and shifts in occupancy. During economic downturns, rental collections—the company's primary revenue source—can face pressure from weakened tenant demand, while intense competition risks can affect rental rates and tenant retention. Nevertheless, current cash inflows are sufficient to absorb these operational and interest rate fluctuations, though cash flow stability will be closely monitored.

ANALYTICAL APPROACH - Standalone

BWR has applied a standalone approach

RATING SENSITIVITIES

 

Positive Rating Drivers (Upward Triggers)

• Prepayment / De-leveraging: Accelerated debt payoff improving DSCR continuously above 1.80x.

• Higher-than-expected rental income,  strengthening surplus generation leading to improvement in the f overall financial risk profile

Negative Rating Drivers (Downside Triggers)

• Vacancy Risk / Tenant Non-Renewal: Higher-than-anticipated vacancy during re-leasing windows, or significant increase in debt, impacting the debt protection metrics, pushing DSCR below 1.20x.
• Non-compliance with  DSRA maintenance.
• Decline in occupancy to below 90-95%, leading to lower-than-expected rental income

LIQUIDITY INDICATORS - Adequate

As of June 2026, the company had created and maintained a DSRA of Rs 2.40 Crs, equivalent to one quarter of the principal and interest payment as required by the financing documents. The company is expected to generate cash accruals of Rs  ~18-19 Crs in FY 27  with repayment obligations of Rs 6.14 Crs in FY26. Further, there is adequate cash flow and a debt service coverage of over 1 .29x  over  FY 26-29. Further, the presence of strong promoters adds to financial flexibility and provides comfort.

ABOUT THE ENTITY

Logipark Patna Private Limited is an unlisted Indian Private Non-Government Company incorporated on December 6, 2023. It is part of the established OWM Nahar Group network. The company primarily operates within the logistics infrastructure sector, focusing on warehousing and support activities for transportation.  The company is managed by prominent promoters/directors associated with the Nahar/Oswal group: Kamal Oswal (Director) , Rishabh Oswal (Director)  Abhinav Oswal (Director)

 

ESG Profile

The company demonstrates an evolving ESG profile based on its environmental, social, and governance practices.

 

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.	Not Available	Not Available	1.48
EBITDA	Rs.Crs.	Not Available	Not Available	1.48
PAT	Rs.Crs.	0.01	Not Available	-7.98
Tangible Net Worth	Rs.Crs.	0.02	0.02	-2.97
Total Debt / Tangible Net Worth	Times	Not Available	3401.73	-49.68
Current Ratio	Times	659.64	0.18	0.28

KEY COVENANTS OF THE FACILITY RATED

There are standard covenants as per Sanction Letter

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	94.07	BWR A/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		94.07	(Rupees Ninety Four Crores and Seven lakhs Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Karan Ahluwalia Ratings Analyst karan.ahluwalia@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@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	Punjab National Bank	Term Loan - Sanctioned	94.07	_	94.07	Simple##
Total			94.07	0.00	94.07
TOTAL (Rupees Ninety Four Crores and Seven lakhs Only)

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