STANDARD INFRATECH INDIA PRIVATE LIMITED

Brickwork Ratings has assigned a long-term rating of BWR BBB/Stable and a short-term rating of BWR A3 to Standard Infratech India Pvt. Ltd. for its Bank Loan Facilities of Rs. 181.00 crores.

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	40.00	Long Term	BWR BBB /Stable Assignment	RBI
Non Fund Based	141.00	Short Term	BWR A3 Assignment	RBI
Grand Total	181.00	(Rupees One Hundred Eighty One Crores 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 Rating of BWR BBB with a Stable outlook and the Short-Term Rating of BWR A3 for the Bank Loan Facilities amounting to Rs. 181.00 crore of Standard Infratech India Pvt Ltd (SIIPL). The assignment of the ratings reflects experienced management, established client relationships, revenue growth, stable profitability, and an adequate financial risk profile. The ratings also factor in the company’s efficient working capital management and adequate liquidity position. However, the ratings are constrained by moderation in operating margins and the inherent working-capital intensity of EPC operations, particularly exposure to delays in government receivables. The Stable outlook reflects the expectation that the company will sustain its execution momentum and financial discipline, while maintaining adequate liquidity and leverage.

KEY RATING DRIVERS

Credit Strengths:

• Established Track Record with Strong Order Book and Revenue Visibility :

  SIIPL has an established operating track record of over two decades in the civil construction and EPC segment, supported by experienced management and an established execution platform. The company has demonstrated sustained growth in scale, with revenue increasing from Rs. 214.02 crore in FY24 to Rs. 272.87 crore in FY25 and further to Rs. 324.21 crore in FY26. The unexecuted order book of Rs. 773.78 crore as of June 2026, equivalent to around 2.38x FY26 revenue, provides healthy medium-term revenue visibility. The order book is also spread across underground drainage, water supply, building and canal projects, reducing dependence on a single infrastructure segment. The company's owned equipment base, repeat and new clientele and demonstrated execution capabilities provide support to timely project execution.

• Moderate Financial Risk Profile :

  The company's financial risk profile remains moderate, supported by consistent internal accrual generation and strengthening of its capital base. TNW increased from Rs. 74.49 crore in FY24 to Rs. 87.00 crore in FY25 and further to Rs. 101.95 crore in FY26, primarily supported by profit retention. Despite the increase in scale of operations, total debt-to-TNW remained moderate at 0.45x in FY26, while TOL/TNW remained below 1x at 0.83x. The company has also demonstrated improvement in absolute profitability, with PAT increasing to Rs. 14.94 crore and net cash accruals to Rs. 18.79 crore in FY26.

Credit Risks:

• Inherent exposure to tender-driven and competitive nature of EPC industry :

  The company remains exposed to the inherent risks associated with the competitive and tender-driven nature of the EPC infrastructure industry, including variability in order inflows, intense competition, aggressive bidding, execution delays, cost overruns and dependence on timely approvals from government authorities. Profitability remains susceptible to changes in input prices, labour costs, project mix and execution efficiency. Any sustained moderation in order inflows or delays in project execution could adversely impact revenue growth, profitability and cash accruals.

• Working capital intensive nature of EPC operations :

  The EPC business is inherently working capital intensive, with funds typically being deployed towards mobilisation, procurement, labour and execution costs ahead of receipt of milestone-based payments. The industry is also exposed to delays in certification and payment from government departments, PSUs and other institutional customers, which can result in elongation of receivable cycles and increased reliance on working capital borrowings. Consequently, timely realisation of receivables and efficient working capital management remain critical to maintaining liquidity and financial flexibility.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Standard Infratech India Pvt Ltd. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Positive:
Significant improvement in the scale of operations beyond Rs 450 crores, while maintaining margins at the current level and TOL/TNW below 1x, would support a positive rating action.
Negative:
Significant drop in revenue alongside weakening of the capital structure, with the TOL/TNW exceeding 2x, would lead to negative rating action.

LIQUIDITY INDICATORS - Adequate

The entity’s liquidity remains adequate, supported by free cash and cash equivalents of Rs. 4.47 crore as of March 31, 2026, and net cash accruals of Rs. 18.79 crore against debt repayments of Rs. 8.61 crore in FY27. Liquidity is further supported by low utilisation of fund-based working capital limits at 21.70%.

ABOUT THE ENTITY

Standard Infratech India Private Limited is an established civil construction entity that primarily executes government infrastructure contracts. Originally founded in May 2000 as a partnership, the firm was formally incorporated as a private limited company in 2010. The company is promoted by Managing Director, Sesha Reddy Mallavarapu. The company has expanded its geographical footprint from its early base in Andhra Pradesh and Karnataka to active operations across multiple states, including Telangana, Rajasthan, Madhya Pradesh, and Chhattisgarh. In addition to this, the entity has diversified its execution capabilities beyond traditional building construction to encompass complex water supply networks, sewage treatment plants, and canal infrastructure.

ESG Profile

The company demonstrates 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, which is not applicable to the entity. Water management and waste reduction practices, including rainwater harvesting, wastewater recycling, and recycling/reuse of construction waste, are also important. 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 are in line with the rules.
Social: Social considerations focus on workforce health and safety for both permanent and contractor staff, adherence to labour laws are compliant, safety performance, and training or human capital development programs. Diversity and inclusion are favourable, and community engagement initiatives, including local community programs, affordable housing, or livelihood support, are implemented, reflecting the company’s commitment to social responsibility.
Governance: Governance is supported by experienced promoters and escrow-backed structures that support financial discipline. However, the partnership structure leads to concentrated decision-making, and formal ESG committees and advanced governance disclosures are limited. Overall governance is adequate but can improve with greater formalisation and transparency. Governance assessment considers board composition, risk management, and compliance.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Audited)
Operating Revenue	Rs.Crs.	214.02	272.87	324.21
EBITDA	Rs.Crs.	18.97	22.44	23.40
PAT	Rs.Crs.	10.21	12.51	14.94
Tangible Net Worth	Rs.Crs.	74.49	87.00	101.95
Total Debt / Tangible Net Worth	Times	0.90	0.40	0.45
Current Ratio	Times	2.29	2.82	2.27

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for bank loan 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	40.00	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	141.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		181.00	(Rupees One Hundred Eighty One Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Engineering Procurement and Construction (EPC) Companies
• Infrastructure Sector

Analytical Contacts
Shalaka Shashikant Keer Ratings Analyst shalaka.k@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@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	HDFC Bank	Cash Credit - Sanctioned	10.00	_	10.00	Simple##
2	HDFC Bank	Bank Guarantee - Sanctioned	_	35.00	35.00	Simple##
3	ICICI Bank	Cash Credit - Sanctioned	10.00	_	10.00	Simple##
4	ICICI Bank	Bank Guarantee - Sanctioned	_	31.50	31.50	Simple##
5	Kotak Mahindra Bank	Bank Guarantee - Sanctioned	_	20.00	20.00	Simple##
6	Kotak Mahindra Bank	Cash Credit - Sanctioned	5.00	_	5.00	Simple##
7	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	_	40.00	40.00	Simple##
8	State Bank Of India (SBI)	Cash Credit - Sanctioned	14.00	_	14.00	Simple##
9	State Bank Of India (SBI)	Letter of Credit - Sanctioned	_	4.00	4.00	Simple##
10	Yes Bank	Cash Credit - Sanctioned	1.00	_	1.00	Simple##
11	Yes Bank	Bank Guarantee - Sanctioned	_	10.50	10.50	Simple##
Total			40.00	141.00	181.00
TOTAL (Rupees One Hundred Eighty One Crores Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf.

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