Meadows Buildsys LLP

Brickwork Ratings assigns the long-term rating of BWR BB/Stable and the short-term rating of BWR A4 for the Bank Loan Facilities of 171.92 Crs. of Meadows Buildsys LLP

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	165.00	Long Term	BWR BB /Stable Assignment	RBI
Non Fund Based	6.92	Short Term	BWR A4 Assignment	RBI
Grand Total	171.92	(Rupees One Hundred Seventy One Crores and Ninety Two 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 rating of BWR BB/Stable and short-term rating of BWR A4 for the bank loan facilities aggregating to Rs.171.92 Crs of Meadows Buildsys LLP.

The rating has factored, inter alia, the promoters experience in the real estate industry, favorable location and maintenance of DSRA and escrow accounts. However, the rating is constrained by the project execution risk, partnership nature of the firm and the risk associated with cyclicality in the real estate industry. However, Going forward, the ability of the firm to improve its financial risk profile, timely completion of project would be the key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that the Meadows Buildsys LLP 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 and the timely commencement of operations and the rating outlook may be revised to 'Negative' if any delay in the completion of the project and the commencement of operations

KEY RATING DRIVERS

Credit Strengths:

• Locational Advantage :

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

• 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.

• Experienced Management and Established Track Record of the Promoters:- :

  Meadows Buildsys LLP benefits from the established experienced management , which has successfully executed past projects across residential and commercial segments across Punjab.

Credit Risks:

• Partnership Constitution:- :

  As a partnership firm, Meadows Buildsys 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.

• Exposure to Inherent Cyclicality in the Real Estate Industry:- :

  The firm operates solely in Ludhiana, Punjab, 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.

ANALYTICAL APPROACH - Standalone

BWR has considered the standalone approach

RATING SENSITIVITIES

Going forward, the firm’s ability to commence operations in a timely manner by March 2029 and subsequently achieve the projected revenue milestones will remain key rating sensitivities.

Positive Triggers:

• Timely completion of the project in March 2029
• Timely achievement of sales Realizations and booking amounts in line with the projections.
• Timely receipt of customer advances in line with the projected schedule.
• Sustained improvement in the financial risk profile, supported by healthy cash flows and reduced leverage.

Negative Triggers:

• Any material delay in project implementation and execution timelines and/or cost overruns beyond the estimated project cost, leading to deterioration in the project’s cash flows, debt-servicing metrics, and overall credit profile.

LIQUIDITY INDICATORS - Adequate

The firm’s liquidity position is assessed to be adequate. The total estimated project cost of Rs. 455.08 crore is proposed to be funded through a sanctioned term loan of Rs. 165.00 crore, customer booking advances of Rs.193.08 crore, and the balance Rs. 65.00 crore to be infused by the promoters. In the event of any delay in capex completion, incremental funding requirements are expected to be met through additional promoter support.

As on FY26, the current ratio stood at a healthy level of 20.14x, primarily supported by promoter infusion and advances from customers. Repayment obligations on the Rs. 165.00 crore term loan are scheduled to commence from 28 March 2029, providing adequate moratorium for project stabilization.

Liquidity is expected to be supported by steady growth in bookings, ensuring sufficient cash inflows. Additional comfort is derived from the presence of a Debt Service Reserve Account (DSRA). Further, the facility is structured with a dedicated escrow account mechanism, wherein all sales realizations are routed through a defined waterfall structure, ensuring priority-based allocation of funds towards statutory dues, debt servicing, and reserve requirements.

The liquidity profile is expected to remain adequate, supported by DSCR of -0.07x in FY26, which is projected to remain above unity throughout the tenure of the facility. In case of any delay in capex completion or shortfall in customer advances, the promoters have committed to bridge the funding gap, providing additional comfort. The firm reported cash and cash equivalents of Rs. 0.84 crore as on FY26 (Prov).

Overall, the liquidity position is further strengthened by the financial flexibility, resourcefulness, and demonstrated support of the promoter group, and is expected to remain adequate over the medium term.

ABOUT THE ENTITY

Meadows Buildsys LLP is a Ludhiana, Punjab-based civil construction firm incorporated on 24 August 2023. The LLP operates across the real estate development value chain as contractors, builders, town planners, infrastructure developers, and estate developers and also carries on business as real estate agents. The firm's flagship project, "The Welkin Heights," is a Group Housing development currently under construction.

 Mr. Kartik Gupta, Mr. Ajay Mehta, Mr. Amarjit Gandhi and Mr. Pawan Kumar Goel are the partners in the firm.

ESG Profile

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

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 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	Not Available	Not Available	Not Available
EBITDA	Rs.Crs.	Not Available	-0.05	-0.29
PAT	Rs.Crs.	Not Available	-0.05	-0.29
Tangible Net Worth	Rs.Crs.	11.69	20.48	22.13
Total Debt / Tangible Net Worth	Times	1.01	1.21	2.10
Current Ratio	Times	41.18	14.45	20.14

KEY COVENANTS OF THE FACILITY RATED

There are standard covenants as per sanction letter

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

NIL

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	165.00	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	6.92	BWR A4 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		171.92	(Rupees One Hundred Seventy One Crores and Ninety Two lakhs Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Deepak Ahuja Rating Analyst deepakahuja@brickworkratings.com	Shyam Sunder Narang shyam.n@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	State Bank Of India (SBI)	Term Loan - Sanctioned	165.00	_	165.00	Simple##
2	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	_	6.92	6.92	Simple##
Total			165.00	6.92	171.92
TOTAL (Rupees One Hundred Seventy One Crores and Ninety Two lakhs 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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