D P S Contractors Pvt. Ltd.

Brickwork Ratings has assigned long-term rating for the Bank Loan Facilities of Rs. 128.00 Crs. of D P S Contractors Pvt. Ltd.(DPSCPL)

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	26.00	Long Term	BWR BBB - /Stable Assignment	RBI
Non Fund Based	102.00	Long Term	BWR BBB - /Stable Assignment	RBI
Grand Total	128.00	(Rupees One Hundred Twenty Eight 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
Note: The facility's maturity profile extending beyond 12 months necessitates the assignment of a Long-Term Rating, as short-term scales are reserved for instruments with tenors of one year or less RATING ACTION / OUTLOOK

Brickwork Ratings (BWR) has assigned a Long-Term Rating of BWR BBB- (Stable) for the Bank Loan Facilities of Rs. 128.00 Crores of D P S Contractors Pvt Ltd. (DPSCPL)

The rating is supported by a sharp top-line rebound in provisional FY26 (rebounding 61.7% to Rs. 177.53 Cr), a conservative solvency leverage structure (Total Debt / TNW at 0.49x), resilient operating profitability (EBITDA margin at 13.41%), and strong revenue visibility provided by an unexecuted order backlog of Rs. 1,154.23 Cr (>6.5x FY26 turnover, with over 58% directly backed by central government. These strengths are counterbalanced by the company's modest operational scale within the broader EPC sector, susceptibility of margins to raw material price volatility under competitive tender bidding, and tight short-term liquidity (Current Ratio at 0.88x)

The Stable outlook reflects expectation that DPSCPL will maintain steady execution momentum across its active projects in Uttar Pradesh and Odisha to reach its projected FY27 turnover of Rs. 250.00 Cr, sustain healthy operating margins above 12%, and preserve its low-geared balance sheet while gradually regularizing working capital conduct and supplier payables.

KEY RATING DRIVERS

Credit Strengths:

• Established Market Position and Promoters’ Experience :

  DPSCPL benefits from the extensive track record of its founder-promoter, Mr. Brijesh Pratap Singh, who brings over two decades of technical expertise in civil infrastructure execution. The company has established a strong market presence across national highway widening, bridge construction, canal structures, and railway earthworks. Its proven execution capabilities have enabled long-standing operational relationships with premier sovereign and quasi-sovereign counterparties, including the National Highways Authority of India (NHAI), Ministry of Road Transport and Highways (MoRTH), Indian Railways, and Odisha State PWD, resulting in strong repeat bidding success and contract awards.

• Healthy Revenue Visibility Supported by Robust Order Backlog :

  The company’s business risk profile is anchored by an unexecuted order backlog of Rs. 1,154.23 Cr (over 6.5x FY26 provisional revenue), providing strong revenue visibility over the medium term. Counterparty credit default risk remains exceptionally low, as over 58% of the pending order book is directly backed by central government entities (NHAI, MoRTH, and Indian Railways). Furthermore, customer collection efficiency is clean, with 100% of outstanding trade receivables (Rs. 49.56 Cr) falling strictly within the <90-day aging window with zero recorded bad debts.

• Moderate Financial Risk Profile :

  DPSCPL maintains a conservative capital structure, underpinned by continuous internal profit accruals that expanded Tangible Net Worth (TNW) to Rs. 76.91 Cr in provisional FY26 (projected at Rs. 89.45 Cr in FY27). Active long-term deleveraging reduced term borrowings from Rs. 40.11 Cr in FY23 to Rs. 16.06 Cr in FY26, keeping Overall Gearing low at 0.49x and Total Debt to PBDIT comfortable at 1.58x. Debt coverage metrics remain sound, supported by an Interest Service Coverage Ratio (ISCR) of 4.41x, a Debt Service Coverage Ratio (DSCR) of 2.32x, and Net Cash Accruals (NCA) of Rs. 15.67 Cr against annual debt servicing requirements.

Credit Risks:

• Modest Scale of Operations :

  Despite a 61.7% top-line recovery to Rs. 177.53 Cr in provisional FY26 and projected revenue of Rs. 250.00 Cr in FY27, DPSCPL’s operational scale remains modest within the highly fragmented EPC construction sector. Operational turnover experienced a sharp contraction in FY25 (dropping 64.8% to Rs. 109.76 Cr) due to site handover delays and land acquisition bottlenecks in its Punjab-Amritsar-Katra expressway contract. This modest scale limits its economic capacity to absorb unforeseen site disruptions or overhead under-recovery relative to larger national players.

• Working Capital Intensity & Stretched Liquidity :

  Short-term liquidity coverage is tight, evidenced by a Current Ratio of 0.88x and Quick Ratio of 0.86x in provisional FY26. The company relies heavily on trade credit (payables of Rs. 83.45 Cr; 206 days) and short-term debt (Rs. 21.51 Cr) to fund operations, while free cash balances remain minimal at Rs. 0.13 Cr.

• Project and Geographic Concentration :

  The top three projects (Deoria Bypass HAM, Meridian Heights Real Estate, and Sambalpur Ring Road) account for nearly 68% of the unexecuted order book. Furthermore, capital allocation toward self-promoted commercial real estate (Meridian Heights; Rs. 249.00 Cr balance) introduces execution and cash flow segregation risks relative to core EPC contracting.

ANALYTICAL APPROACH - Standalone

For arrive at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria, as detailed below (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Positive Sensitivities

• Sustainable growth in scale of operations with Total Operating Income exceeding Rs. 250.00 Cr on a sustained basis, driven by timely milestone execution across major road and railway contracts (such as Deoria Bypass HAM and Sambalpur Burla Ring Road).

• Strengthening of short-term liquidity, reflected in a sustained recovery of the Current Ratio above 1.15x (up from 0.88x in FY26) alongside a significant reduction in trade payables and working capital reliance.

Negative Sensitivities

• Significant decline in revenue scale below Rs. 150.00 Cr or delayed execution in major contracts resulting in unabsorbed fixed overhead costs and margin erosion.

• Substantial stretch in working capital or un-projected debt-funded capital expenditure (including equity drawdowns into self-promoted real estate projects like Meridian Heights) that drives Total Outside Liabilities to Net Worth (TOL / TNW) above 2.00x.

LIQUIDITY INDICATORS - Adequate

The liquidity profile of DPS Contractors remains adequate. Short-term current ratio compression (0.88x in FY26 due to 206 days in trade payables) is offset by Net Cash Accruals of Rs 15.67 crore, which comfortably absorb scheduled CPLTD obligations of Rs 11.20 crore (NCA to Long-Term Debt at 0.98x). DPSCPL maintains a robust non-fund-based cushion with Rs 32.27 crore in unutilized Bank Guarantee headroom across PNB, HDFC, and Kotak, backed by Rs 5.77–8.66 crore in encumbered FD margins. Overall liquidity is further supported by low gearing (0.49x) and an expanding net worth base of Rs 76.91 crore.

ABOUT THE ENTITY

DPS Contactors Private Limited (DCPL) was incorporated in 2007 in Uttar Pradesh by Mr. Dinesh Pratap Singh and Mr. Brijesh Pratap Singh. Currently, the company is managed by Mr. Brijesh Pratap Singh, Mr. Ram Khelwan, and Mr. Ram Vilas. DCPL specializes in civil construction projects including roads, bridges, pipelines, canals, irrigation, and electrification works, primarily executing contracts in Uttar Pradesh for major public sector clients such as the Public Works Department (PWD), Indian Railways, and the National Highways Authority of India (NHAI).

ESG Profile

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

Environmental: DPSCPL demonstrates strong environmental alignment by executing major highway and rail infrastructure projects under strict environmental guidelines set by public clients, while sourcing eco-compliant raw materials from reputable national suppliers.DPSCPL demonstrates strong environmental alignment by executing major highway and rail infrastructure projects under strict environmental guidelines set by public clients, while sourcing eco-compliant raw materials from reputable national suppliers.

Social:The company drives positive community impact by constructing vital regional transit corridors, highway safety stretches, and public health infrastructure, supported by site safety protocols and clean, dispute-free counterparty relationships.

Governance: The company operates under a closely held promoter-led structure with centralized decision-making, where key monitorables include bank limit utilization discipline, timely compliance reporting, and clear operational segregation between core contracting and self-promoted real estate projects.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	311.86	109.76	177.53
EBITDA	Rs.Crs.	33.33	19.06	23.81
PAT	Rs.Crs.	16.86	6.46	8.88
Tangible Net Worth	Rs.Crs.	61.10	68.03	76.91
Total Debt / Tangible Net Worth	Times	0.66	0.49	0.49
Current Ratio	Times	1.17	0.99	0.88

KEY COVENANTS OF THE FACILITY RATED

The facility carries standard financial and operational covenants typical for such credit 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	26.00	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	LT	102.00	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		128.00	(Rupees One Hundred Twenty Eight Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Engineering Procurement and Construction

Analytical Contacts
Vedant Nitin Tokekar Ratings Analyst vedant.t@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	4.00	_	4.00	Simple##
2	HDFC Bank	Bank Guarantee - Sanctioned	35.00	_	35.00	Simple##
3	Kotak Mahindra Bank	Bank Guarantee - Sanctioned	34.00	_	34.00	Simple##
4	Kotak Mahindra Bank	Over Draft - Sanctioned	2.00	_	2.00	Simple##
5	Punjab National Bank	Bank Guarantee - Sanctioned	33.00	_	33.00	Simple##
6	Punjab National Bank	Cash Credit - Sanctioned	20.00	_	20.00	Simple##
Total			128.00	0.00	128.00
TOTAL (Rupees One Hundred Twenty Eight 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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