Preeti Buildcon Pvt. Ltd.

Brickwork Ratings assigns the long-term and short-term ratings for the Bank Loan Facilities of Rs. 160.00 Crs.of Preeti Buildcon Pvt. Ltd.

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	57.00	Long Term	BWR BBB /Stable Assignment	RBI
Non Fund Based	103.00	Short Term	BWR A3 + Assignment	RBI
Grand Total	160.00	(Rupees One Hundred Sixty 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 (BWR) assigned a long-term and short-term rating of BWR BBB/Stable / BWR A3+ for a total debt size of Rs. 160.00 Crore to Preeti Buildcon Private Limited (hereinafter referred to as ‘PBPL’ or the ‘Company’)

The assigned rating reflects the longstanding existence of the entity in the civil construction industry and Y-O-Y operational growth in the recent fiscal years, reputed clientele, a healthy order book providing revenue visibility, and a robust financial risk profile.  The rating, however, is constrained as PBPL operates in a highly competitive and fragmented construction industry. The company maintains low counterparty credit risk, supported by a stable payment track record from government-backed state and central government projects. Nevertheless, its profitability and credit profile face ongoing operational pressures, including aggressive bidding practices, project delays caused by pending regulatory approvals, and raw material price fluctuations. While built-in contractual escalation clauses partially offset these cost pressures, efficiently managing significant working capital requirements remains a key credit consideration.

The stable outlook reflects that the company will continue to benefit over the medium term from the extensive experience of its promoters and diversified geographical and reputed clientele.

 

KEY RATING DRIVERS

Credit Strengths:

• Longstanding track record and geographical spread:  :

  With over 25 years of experience in the construction sector, the promoter, Mr. Jugendra Singh, possesses a deep understanding of market dynamics and robust industry relationships. This expertise has enabled PBPL to expand its geographic portfolio and diversify its order book across several states, including Uttar Pradesh,  Madhya Pradesh, Delhi, Punjab, and Rajasthan, while effectively engaging in mid-sized road civil construction projects with various government authorities. 

   

• Comfortable financial risk profile:  :

  The capital structure of PBPL was marginally elevated in FY26 due to the addition of equipment loans; however, it continued to remain comfortable, marked by overall gearing of 1.25x in FY26 (FY25: 1.03x) and improvement in the net worth base to Rs. 65.51 Crore, with healthy accretion of profits.  The debt coverage metrics continued to remain moderate, marked by an interest coverage ratio of 4.95x (FY24: 5.44x) and a debt coverage ratio of 2.26x (FY25: 2.43x)  respectively in FY26. Growing scale of operations shall continue to aid PBPL in maintaining the operating margin around 12% and thereby a comfortable capital structure and debt coverage indicators.

   

• Visibility of revenue and work orders on hand: :

  The company reported year -on-year growth in Total Operating Income (TOI) in the recently fiscals, with Rs. 308.27 Crore in FY26 (FY25: Rs. 229.85 Crore) on the back of completion of the work orders. As of 31 July 2026, the company has work orders of Rs. 681.94 crore to be executed in FY27 & FY28, demonstrating the revenue visibility. The projects are tied to central or state government authorities—such as the Public Works Department (PWD) and the National Highways Authority of India (NHAI), ensuring secure cash flow.  Madhya Pradesh holds the largest share, accounting for 66.50%  of the total unexecuted, followed by Uttar Pradesh, which accounts for 24.12%. 

   

Credit Risks:

• Presence in an intensely competitive and fragmented construction industry with exposure to profit margins:  :

  PBPL is a mid-sized player operating in an intensely competitive construction industry with the presence of a large number of contractors. Furthermore, with low counterparty credit risk and a relatively stable payment track record of projects funded by government bodies. Nevertheless, aggressive bidding by the company or delays in project progress due to unavailability of regulatory clearances may affect the credit profile of the contractor and exert pressure on the margins. Further, its profitability remains susceptible to fluctuations in the input prices. However, the presence of a built-in escalation clause mitigates the risk to a certain extent.

   

• Working capital-intensive nature of operations: :

  Being an EPC contractor, PBGL has high working capital intensity primarily due to funding requirements for security deposits, retention amounts, and margin money towards various contracts & non-fund-based facilities. In FY26, the receivable cycle is 22 days, and the conversion cycle is 30 days at a comfortable level; nevertheless, any unforeseen operational slowdowns or cost escalations leading to higher working capital intensity will remain a key factor from a credit perspective.

   

RATING SENSITIVITIES

Positive  :

• Revenue growth exceeding 40%, backed by a twofold increase in the order book while maintaining operating margins to generate adequate cash accruals.
• Sustained capital structure metrics, maintaining gearing below 1.0x and total outside liabilities to net worth under 1.25x.

Negative:

• Contraction in operating profitability below 10% or a drop in revenue, leading to reduced cash accruals.
• Significant elongation of the working capital cycle, leading to prolonged high facility utilization and deteriorating the liquidity and financial profile.
• Delays in executing the substantial order book within scheduled timelines, negatively affecting cash flows and the overall business risk profile.

LIQUIDITY INDICATORS - Adequate

Liquidity is supported by adequate cash accruals, which ranged from Rs. 17 to 26 Crores across FY25 and FY26, and are projected to reach around Rs. 33 Crores against debt repayment obligations of Rs. 20 Crores in FY27. As of March 31, 2026, free cash and bank balances stood at ~Rs. 19.85 Crores, alongside lien-marked fixed deposits totaling Rs. 21.92 Crores. For the 12 months ending July 20, 2026, average utilization stood at 90% for fund-based working capital limits and 98% for bank guarantees. Furthermore, the proposed working capital limits will bolster overall liquidity and provide an additional buffer.

 

ABOUT THE ENTITY

Incorporated in 2009, Preeti Buildcon Pvt. Ltd. is a Delhi-based entity primarily engaged in the construction of road/bridges on an Engineering, Procurement and Construction (EPC) basis.

ESG Profile

NA

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Audited)
Operating Revenue		148.83	229.85	308.27
EBITDA		14.00	27.04	39.88
PAT		10.10	13.71	22.93
Tangible Net Worth		34.96	42.59	65.51
Total Debt / Tangible Net Worth		0.49	1.03	1.25
Current Ratio		1.27	1.42	1.45

KEY COVENANTS OF THE FACILITY RATED

The key covenants are the standard terms as stipulated in the sanction letters of the rated facilities. 

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
CARE	Classified as CARE BB- (Stable)/CARE A4; Issuer not cooperating due to non-furnishing of information to carry out the review.	11Feb2026
IND	Classified as IND B (Negative)/IND A4; Issuer not cooperating; Issuer not cooperating due to non-furnishing of information to carry out the review.	17Jul2026

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	57.00	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	103.00	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		160.00	(Rupees One Hundred Sixty Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Engineering Procurement and Construction

Analytical Contacts
KunjalDabhi Associate Manager -Ratings kunjal.d@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	Over Draft - Sanctioned	5.00	_	5.00	Simple##
2	HDFC Bank	Bank Guarantee - Sanctioned	_	25.00	25.00	Simple##
3	Kotak Mahindra Bank	Over Draft	4.00	_	4.00	Simple##
4	Kotak Mahindra Bank	Bank Guarantee - Sanctioned	_	45.00	45.00	Simple##
5	Others	Over Draft - Proposed	16.21	_	16.21	Simple##
6	Punjab National Bank	Overdraft - Sanctioned	22.50	_	22.50	Simple##
7	Punjab National Bank	Bank Guarantee - Sanctioned	_	22.50	22.50	Simple##
8	Punjab National Bank	GECL - Sanctioned	4.49	_	4.49	Simple##
9	Union Bank of India	Overdraft - Sanctioned	4.00	_	4.00	Simple##
10	Union Bank of India	GECL - Sanctioned	0.80	_	0.80	Simple##
11	Union Bank of India	Bank Guarantee - Sanctioned	_	10.50	10.50	Simple##
Total			57.00	103.00	160.00
TOTAL (Rupees One Hundred Sixty 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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