Amhara Construction Pvt. Ltd.

Brickwork Ratings has revised the outlook on Amhara Construction Pvt Ltd from Stable to Negative, while reaffirming the long-term and short-term ratings of BWR BBB- and BWR A3, respectively, for its Bank Loan Facilities of Rs. 97.30 crores.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
	Previous	Present		Previous (21 May 2025)	Present
Fund Based	2.80	1.30	Long Term	BWR BBB- /Stable Reaffirmation	BWR BBB - /Negative Reaffirmation
Non Fund Based	96.50	96.00	Short Term	BWR A3 Reaffirmation	BWR A3 Reaffirmation
Grand Total	99.30	97.30	(Rupees Ninety Seven Crores and Thirty lakhs Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure

RATING ACTION / OUTLOOK

Brickwork Ratings has reaffirmed the long-term rating of BWR BBB-/Negative and a short-term rating of BWR A3 to Amhara Construction Pvt Ltd for its Bank Loan Facilities of Rs. 97.30 crores. The Negative outlook reflects the company's emerging financial vulnerability following a moderation in scale and profitability during FY26, which partially triggered negative rating sensitivities. Specifically, revenue declined to Rs. 92.08 Cr (due to Bihar Government billing delays), operating profit margins slipped to 8.46%, and net margins fell under 9%, which collectively weakened the Interest Service Coverage Ratio (ISCR) to 1.39x. Despite these near-term pressures, the rating is anchored by the company's intact execution capabilities, steady unexecuted order book of Rs. 128 Cr, steady net worth accretion to Rs. 87.34 Cr, and adequate liquidity highlighted by Rs. 12.26 Cr in free cash with comfortable bank limit buffers, and a healthy Debt Service Coverage Ratio (DSCR) of 1.71x as of provisional FY26.

KEY RATING DRIVERS

Credit Strengths:

• Experienced Promoters and Established Track Record :

  ACPL benefits from the extensive experience of its promoters and an established operating track record of over decades in the EPC construction segment for civil construction projects. The orders are mainly from Executive Engineer New Capital Road Division R.C.D Patna, which is a part of the Bihar Road Construction Department and hence have low counterparty risk. The company has executed several projects for the Govt of Bihar which further support operational repeat order inflows, and timely project execution. The company is promoted by the Rakesh Kumar; Meena Kumari; Rajat Anand & Rounak Kumar family, which has been engaged in the operational activities which has demonstrated operational scalability since 2008, with revenues moving from Rs. 98.80 crore in FY23 to Rs. 82.50 crore in FY24, peaking at Rs. 112.74 crore in FY25, and moderating to Rs. 92.08 crore in FY26 (Provisional). The company ACPL has an order book of Rs. 128.41 crore as of June 2026, providing medium-term revenue visibility. The FY26 moderation was driven by billing delays from Bihar Government authorities, not executional weakness, reflecting the company’s ability to deliver projects even under administrative constraints. The extensive experience of the proprietor will continue to support the business over the medium term.

   

• Relatively Moderate Financial Risk Profile :

  The company has a relatively moderate financial risk profile with Estimated Net worth at Rs. 77.79 crore for FY 2025, to provisional FY 2026 Rs.87.34 crores. The debt Protection metrics of the company are at a modest level with Provisional FY 26 ISCR and DSCR at 1.39 x and 1.71x, respectively. The current ratio of the firm is comfortable with a ratio Provisional FY 26 2.10.

Credit Risks:

• Exposure to Input Price Volatility :

  The company’s operating margins remain vulnerable to fluctuations in raw materials and labour costs. Key inputs such as steel, cement, bitumen, stone, sand, and aggregates constitute a significant portion of overall expenses. Labour charges, including subcontracting costs, also form a substantial share of the cost structure. Given their volatile nature, any sharp increase in these costs can directly impact profitability. Since raw material purchases account for the majority of total costs, margins are inherently exposed to such variations.

• Industry competition, Dependences on Government Tenders and Policy Spending Cycles :

  Revenue is closely tied to the government infrastructure initiatives. Any slowdown or delay in policy decisions, tendering processes, or budget allocations may impact the company's project pipeline and growth trajectory. Although the company has a good track record, it is exposed to competition and is susceptible to risks inherent in tender-based business. Since all of the operations are tender-based, the business depends on the ability to bid for tenders successfully. Additionally, almost all orders are from government agencies, resulting in high dependence on timely clearances for tenders and payments. Revenue and profitability are expected to remain susceptible to risks inherent in tender-based operations and a competitive landscape.
   

• Geographical and Customer Concentration Risks :

  ACPL’s order book depicts high geographical concentration, with the entire outstanding revenue largely derived from the Bihar state government agencies. While the company benefits from diversification across multiple departments and projects within the state, thereby mitigating single-customer concentration risk, the reliance on a single geography exposes it to state-specific risks, including budgetary constraints, policy changes, and potential delays in fund releases. Such concentration could impact cash flow predictability during periods of fiscal stress at the state level. Nevertheless, the risk is partially mitigated by ACPL’s long-standing relationships, repeat orders from various Bihar government entities, and demonstrated execution capability, which support revenue visibility and operating stability.

   

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Amhara Construction 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:

Sustained improvement in the credit profile, reflected in a Total Outside Liabilities to Tangible Net Worth (TOL/TNW) ratio of less than 1.0x.
Sustained improvement in working capital management and a significant recovery in receivables, leading to a healthy liquidity profile with an Interest Service Coverage Ratio (ISCR) of more than 2.0x.
 

Negative:

Delays in project execution or any other factors leading to a significant decline in the scale of operations and profitability margins.
Deterioration of the financial risk profile, marked by the ISCR decreasing below 1.25x and the adjusted TOL/TNW exceeding 1.75x.

LIQUIDITY INDICATORS - Adequate

The entity's liquidity remains adequate. As of 31 March 2026, it has free cash and cash equivalents of Rs 12.26 Cr, and FY26 net cash accruals of Rs 10.67 Cr against repayments of Rs 8.28 Cr. Liquidity is further supported by average fund-based bank limit utilization of 77.39%, with non-fund-based utilization at 44.56% as of June 2026, providing a sufficient cushion for short-term obligations. The debt protection metrics of the company are at a comfortable level with ISCR and DSCR as of FY 2026, 1.39x and 1.71x times, respectively, with a current ratio of 2.10x.

ABOUT THE ENTITY

Amhara Construction Pvt. Ltd. (ACPL), incorporated in 2008 and headquartered in Patna, Bihar, is a Class‑1 contractor engaged in the construction and maintenance of roads for government and private clients on a tender basis. The company caters to multiple Government Road Construction Departments under the Government of Bihar. The board comprises Mr Rakesh Kumar, Mr Suraj Kumar Sharma, Mr Raunak Kumar, and Mr Rajat Anand, who collectively oversee operations and project execution.

ESG Profile

The company demonstrates a Evolving 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 (Provisional)
Operating Revenue	Rs.Crs.	82.50	112.74	92.08
EBITDA	Rs.Crs.	10.59	12.08	7.79
PAT	Rs.Crs.	8.40	11.45	9.55
Tangible Net Worth	Rs.Crs.	66.55	77.79	87.34
Total Debt / Tangible Net Worth	Times	1.27	0.94	1.08
Current Ratio	Times	1.93	1.82	2.10

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

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR THE PREVIOUS 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	1.30	BWR BBB-/Negative (Reaffirmation)	22Apr2025	BWR BBB- Stable (removal from ISSUER NOT COOPERATING* category/Upgraded)	12Apr2024	BWR BB Stable (ISSUER NOT COOPERATING* /Downgrade)	13Jan2023	BWR BBB- Stable (Assignment)
		0.00	NA	21May2025	BWR BBB- Stable (Reaffirmation)	NA	NA	NA	NA
Non Fund Based	ST	96.00	BWR A3 (Reaffirmation)	22Apr2025	BWR A3 (removal from ISSUER NOT COOPERATING* category/Upgraded)	12Apr2024	BWR A4 (ISSUER NOT COOPERATING* /Downgrade)	13Jan2023	BWR A3 (Assignment)
		0.00	NA	21May2025	BWR A3 (Reaffirmation)	NA	NA	NA	NA
Grand Total		97.30	(Rupees Ninety Seven Crores and Thirty lakhs Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Shalaka Shashikant Keer Ratings Analyst shalaka.k@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com
Media Contact | media@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	Bank of India	Term Loan - Out-standing	_	_	0.00	Simple##
2	Bank of India	Over Draft - Proposed	_	_	0.00	Simple##
3	Bank of India	Bank Guarantee - Sanctioned	_	34.50	34.50	Simple##
4	Bank of India	Bank Guarantee - Proposed	_	61.50	61.50	Simple##
5	Bank of India	Overdraft - Sanctioned	0.50	_	0.50	Simple##
6	State Bank Of India (SBI)	Overdraft - Sanctioned	0.80	_	0.80	Simple##
Total			1.30	96.00	97.30
TOTAL (Rupees Ninety Seven Crores and Thirty lakhs Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.