SSNR Projects Pvt. Ltd.

Brickwork Ratings has upgraded the Long-Term rating to BWR BBB (Stable) for the Bank Loan Facilities of Rs. 300.00 Crs. of SSNR Projects Pvt. Ltd.

Particulars

Facilities	Amount (Rs.Crs.)		Tenure	Rating		Regulator
	Previous	Present		Previous (25 Jul 2025)	Present
Fund Based	40.00	40.00	Long Term	BWR BBB- /Stable Assignment	BWR BBB /Stable Upgrade	RBI
Non Fund Based	135.00	260.00	Long Term	BWR BBB- /Stable Assignment	BWR BBB /Stable Upgrade	RBI
Grand Total	175.00	300.00	(Rupees Three Hundred 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) has upgraded the Long-Term Rating for the Bank Loan Facilities of SSNR Projects Private Limited (SSNR) from BWR BBB- (Stable) to BWR BBB (Stable), covering total bank credit facilities of Rs. 300.00 Crore.

The rating is primarily driven by the company’s established operational track record of over a decade, the extensive four-decade-long experience of its promoters, long-standing relationships with premier sovereign/PSU and corporate clientele, and a robust unexecuted order pipeline that provides strong medium-term revenue visibility. The rating further draws strength from SSNR's moderate-to-comfortable financial risk profile, anchored by a healthy net worth base, steady operating profitability (~12%), conservative leverage (Gearing at 0.46x), and adequate debt protection metrics. These strengths are partially offset by geographical and package-level order book concentration, inherent civil engineering execution vulnerabilities (regulatory clearances, weather, site handovers), working capital-intensive operations with capital tied up in security deposits, and the competitive, tender-driven nature of the infrastructure sector.

The Stable outlook reflects BWR’s expectation that SSNR will sustain steady revenue execution and maintain operating margins above 12.00% over the medium term, driven by its robust Rs. 1,397.91 crore unexecuted order pipeline. This expectation is further reinforced by the promoters' deep technical expertise and high entry barriers in specialized subterranean tunneling and hydro civil works. 

KEY RATING DRIVERS

Credit Strengths:

• Experienced management and established track record :

  The company benefits from the extensive experience of its promoter and Chairman, Sri S. Satyanarayana Raju, who has over 40 years of experience executing diverse civil engineering and infrastructure contracts. This deep institutional knowledge is supported by a structured management team under the newly appointed Managing Director, Sri S. Rama Raju, alongside technically qualified professional directors holding specialized degrees in construction management and corporate finance. Incorporated in 2012, SSNR has built a strong track record of over a decade in successfully delivering multi-dimensional, high-barrier infrastructure projects. Its core operational competence is highlighted by the successful execution of complex underground broad-gauge railway tunneling, major irrigation dams, and cross-border hydroelectric power plants in challenging terrains across India and Nepal. 

• Established relationships with reputed clientele and a healthy order book :

  SSNR Projects benefits from an established operational track record and strong relationships with sovereign/PSU clients (Indian Railways, OCCL) as well as reputed private corporates (Hindalco, Adani Group, Greenko), significantly mitigating counterparty credit risks. As of May 31, 2026, the company holds a robust unexecuted order book of Rs. 1,397.91 crore (out of total contracts worth Rs. 2,674.19 crore) to be executed over the next 2–3 years. This provides high medium-term revenue visibility at 3.18 times its FY26 provisional turnover of Rs. 440.04 crore. The order book is well-diversified across railway tunneling, hydro-electric structures, irrigation, and water supply schemes, anchored by key projects like the Mangliyagaon-Budni rail line (Rs. 792.72 crore balance) and Jal Jeevan Mission water schemes (Rs. 266.31 crore balance). Meanwhile, legacy projects including the Arun-3 HEP in Nepal (Rs. 15.00 crore balance) and Sivok-Rangpo rail line (Rs. 2.92 crore balance) are nearing final completion, ensuring low residual execution risk.

• Comfortable Financial Risk Profile Backed by Low Gearing :

  The company maintains a moderate to comfortable financial risk profile, anchored by steady top-line growth with Total Operating Income (TOI) expanding to Rs. 440.04 crore in FY26 (up from Rs. 421.35 crore in FY25) and further recording Rs. 111.55 crore in Q1 FY27 (>25% of full-year FY26 turnover). Operating profitability remained consistently stable, with OPBDIT margins holding firm at 12.17% in FY26 (12.19% in FY25 and FY24), yielding an absolute PAT of Rs. 19.08 crore (Rs. 18.27 crore in FY25). Capital structure continues to reflect reasonable leverage; although Total Debt rose to Rs. 88.66 crore in FY26 (from Rs. 49.20 crore in FY25) to fund incremental project execution, overall gearing (Total Debt/TNW) stayed comfortable at 0.46x (0.29x in FY25). Total Outside Liabilities to Net Worth (TOL/TNW) widened to 1.70x in FY26 (1.11x in FY25), primarily driven by higher project-specific trade payables. Despite increased debt service obligations, coverage metrics remain adequate, evidenced by an Interest Service Coverage Ratio (ISCR) of 4.30x and a Debt Service Coverage Ratio (DSCR) of 1.91x in FY26, ensuring sufficient debt-servicing capability over the medium term.

Credit Risks:

• Working Capital Intensity & Significant Non-Fund-Based Line (BG) Dependence :

  EPC operations require substantial working capital to support retention money, security deposits, and multi-year contract billing cycles. Gross working capital increased in FY2026, driven by a rise in trade receivables to 52 days [23 days in FY25] and inventory holdings to 52 days [40 days in FY25]. However, this expansion was balanced by withholding trade payables under back-to-back subcontracting arrangements, which surged to Rs. 138.76 Cr [Rs. 88.92 Cr in FY25] and extended payable days to 263 days [196 days in FY25] (cash conversion cycle of -159 days [-133 days in FY25]). Consequently, Total Outside Liabilities to Tangible Net Worth (TOL/TNW) temporarily expanded to 1.70x in FY2026 [1.11x in FY25], while the Current Ratio stood at 1.25x [1.18x in FY25]. Contract execution also remains dependent on Bank Guarantees (BGs) for performance security and mobilization advances.

  This working capital stretch subsided in Q1 FY2027, as a 26.5% run-off in trade payables (-Rs. 36.76 Cr) down to Rs. 102.00 Cr brought TOL/TNW down to 1.42x (well clear of the >2.00x negative trigger limit), with the ratio expected to return to historical levels by the end of FY2027. Liquidity is supported by Rs. 91.00 Cr in FY26 [Rs. 62.93 Cr in FY25] held in retention/security deposits (releasable against BGs) and cash balances of Rs. 62.98 Cr in FY26 [Rs. 45.81 Cr in FY25] (including Rs. 33.50 Cr in unencumbered FDs).

• Geographical and Project Concentration Risks Mitigated by Reputed Counterparties :

  The company’s healthy order book remains exposed to notable geographical and project concentration risks. Geographically, approximately 67.97% of the unexecuted order pipeline is clustered across three states—Madhya Pradesh, Odisha, and West Bengal—rendering operations sensitive to regional regulatory, economic, or environmental shifts. Additionally, top-heavy project concentration is high, with the top three contract packages accounting for 83.20% of the total unexecuted order book. Nonetheless, these risks are substantially mitigated by the robust credit profile and premier status of counterparties such as IRCON International Limited, Odisha Construction Corporation Limited (OCCL), and East Coast Railway, alongside the company’s established, long-standing associations with them.

• Susceptibility to Project Execution and Inherent Construction Risks :

  The company’s operations remain exposed to inherent project execution risks, including timely site handovers, regulatory/environmental clearances, funding mobilization, and seasonal weather disruptions. These execution variables are particularly pronounced given the technical complexity of heavy underground tunneling and hydroelectric civil works, where delays can directly strain working capital turnaround, alter project completion schedules, and impact operating profitability. While SSNR mitigates these vulnerabilities through its substantial technical experience and ownership of specialized machinery, unforeseen operational impediments could temporarily affect near-term performance. Consequently, the company's ability to execute its ongoing order book promptly and achieve projected revenue and margin milestones remains a critical rating monitorable.

• Fragmented and Highly Competitive Industry Governed by Tender-Driven Pricing :

  SSNR Projects operates within an intensely competitive and highly fragmented engineering, procurement, and construction (EPC) infrastructure sector. Because the procurement of large-scale railway, irrigation, and hydroelectric contracts is entirely tender-driven, the company's long-term revenue visibility remains dependent upon its capacity to bid aggressively while satisfying stringent technical pre-qualification benchmarks. This competitive operating environment inherently limits pricing flexibility, rendering profitability margins susceptible to unexpected variations in raw material inputs, labor, and fuel costs. While the company has managed to sustain stable operating margins (tracking at 12.17% in FY26, 12.19% in FY25, and 12.19% in FY24), the broad industry landscape is heavily crowded with numerous regional and national contractors bidding for similar public sector packages. Nevertheless, this industry risk is partially mitigated by SSNR’s deep technical specialization in underground engineering and tunneling. This niche capabilities profile serves as a high operational entry barrier, insulating the firm from general civil construction bidding pressures and reinforcing its steady order pipeline. 

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone approach for the Company. BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Positive Sensitivities:

• Scale Expansion & Margin Retention: Sustained growth in operational scale with Total Operating Income (TOI) exceeding Rs. 500.00 crore via timely order book execution, while maintaining an operating profit (OPBDIT) margin above 12.50% on a sustained basis.
• Capital De-leveraging & Debt Coverage: Significant strengthening of the financial risk profile led by profit retention or efficient liability management, resulting in a TOL/TNW ratio declining below 1.20x alongside a sustained Debt Service Coverage Ratio (DSCR) above 2.00x.

Negative Sensitivities:

• Operational Contraction & Margin Compression: A significant decline in operational scale with TOI dropping below Rs. 350.00 crore, or a sharp compression in OPBDIT margin below 10.00%, adversely impacting gross cash accruals.
• Balance Sheet Leverage & Coverage Weakening: Deterioration in the financial profile—driven by un-envisaged debt-funded CapEx, working capital stretch, or delays in receivables/retention realizations—pushing the TOL/TNW ratio above 2.00x (or TD/TNW above 0.80x) and weakening the DSCR below 1.30x.

LIQUIDITY INDICATORS - Adequate

SSNR maintains an adequate liquidity profile, supported by provisional FY26 net cash accruals of Rs. 36.54 crore and unencumbered cash and bank balances of Rs. 62.98 crore (including Rs. 33.50 crore in unencumbered FDs) as of March 31, 2026. This free cash cushion provides a 4.27x coverage ratio over immediate debt obligations (CPLTD of Rs. 14.72 crore due in FY27). Debt service capability is further reinforced by robust coverage metrics (ISCR of 4.30x, DSCR of 1.91x) and a Current Ratio of 1.25x [1.18x in FY25]. Financial flexibility is augmented by an unutilized fund-based working capital buffer of ~17% (~Rs. 5.50–6.00 crore) against total limits of Rs. 32.50 crore (enhanced to Rs. 34.50 crore via a Rs. 2.00 crore ad-hoc facility; 15-month average utilization at 83.11% through June 2026). Additionally, the balance sheet holds Rs. 91.00 crore in retention money and security deposits (releasable against Bank Guarantees), providing overall financial buffer to absorb site mobilization needs. Timely bill certification and receivable realizations remain key monitorables.

ABOUT THE ENTITY

Incorporated in March 2012, Visakhapatnam-based SSNR Projects Private Limited (SSNR) is a family-owned Engineering, Procurement, and Construction (EPC) contractor. The company specializes in executing complex civil infrastructure projects, with core expertise in hydropower plants, major irrigation networks, and underground railway tunneling. Over the years, SSNR has established a proven track record by successfully delivering multi-dimensional projects across India and Nepal for reputed clients like N.F. Railways, OCCL, and GREENKO. Under the leadership of Managing Director Sri S. Satyanarayana Raju, the company has grown into a dependable infrastructure developer, consistently delivering high-quality solutions across diverse and challenging terrains.

ESG Profile

The company’s overall ESG risk profile is assessed as Neutral to Adequate, reflecting baseline statutory compliance, standard operational safety measures, and developing internal systems aligned with its current business scale. At present, ESG-related factors do not pose a material risk to the company's credit profile. While formal sustainability disclosures and structured carbon accounting frameworks remain at an evolving stage, current site-level practices effectively manage environmental and social exposures associated with heavy civil construction.

Environmental: Operations in underground tunneling, hydroelectric structures, and major earthworks inherently involve substantial fuel consumption, earth movement, and dust generation. The company mitigates these environmental impacts through standard site-level practices, including controlled rock blasting, soil stabilization, water sprinkling, and strict adherence to State Pollution Control Board (SPCB) guidelines for muck and construction waste disposal. Furthermore, given its involvement in geographically sensitive infrastructure projects, compliance with environmental impact assessments, river basin regulations, and forest clearances remains central to avoiding execution disruptions and regulatory halts.

Social: Given the high-hazard nature of subterranean engineering and heavy civil construction, the company places strong emphasis on occupational health and safety (OHS) through site-specific safety protocols, compulsory personal protective equipment (PPE) enforcement, and routine safety drills to minimize workplace injuries. The company manages a large on-site labor force across diverse geographies, maintaining compliance with statutory labor regulations, timely wage disbursements, and adequate site housing, sanitation, and medical care. Additionally, the execution of public utility projects—such as rural water supply schemes under the Jal Jeevan Mission—delivers positive socio-economic outcomes by enhancing local community infrastructure and regional employment.

Governance: The company’s governance framework is supported by an experienced board led by promoter-directors with extensive industry domain expertise, alongside technically qualified executive directors overseeing construction management and corporate finance. The entity maintains a clean track record of financial transparency, timely statutory filings, and audited reporting by independent chartered accountancy firms, backed by a clean credit history with consortium lenders. While formal ESG policies and independent board-level sustainability committees are yet to be fully operationalized, the company continues to progressively formalize its corporate governance structure and risk management practices in line with its expanding operational scale.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	395.02	421.35	440.04
EBITDA	Rs.Crs.	48.17	51.37	53.55
PAT	Rs.Crs.	17.84	18.27	19.08
Tangible Net Worth	Rs.Crs.	153.64	171.91	190.99
Total Debt / Tangible Net Worth	Times	0.40	0.29	0.46
Current Ratio	Times	1.13	1.18	1.25

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for such facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

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	40.00	BWR BBB/Stable (Upgrade)	25Jul2025	BWR BBB- Stable (Assignment)	05Feb2024	BWR BB- Stable (Continues to be in ISSUER NOT COOPERATING* category/Downgraded)	06Feb2023	BWR BB Stable (ISSUER NOT COOPERATING*)
		0.00	NA	NA	NA	25Jul2024	BWR B+ Stable (Continues to be in ISSUER NOT COOPERATING* category/Downgraded and withdrawn)	NA	NA
Non Fund Based	LT	260.00	BWR BBB/Stable (Upgrade)	25Jul2025	BWR BBB- Stable (Assignment)	NA	NA	NA	NA
Non Fund Based	ST	0.00	NA	NA	NA	05Feb2024	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	06Feb2023	BWR A4 (ISSUER NOT COOPERATING* /Downgrade)
		0.00	NA	NA	NA	25Jul2024	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn)	NA	NA
Grand Total		300.00	(Rupees Three Hundred Crores Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Shreekant Digambar Kadere Senior Rating Analyst shreekant.dk@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	Canara Bank	Cash Credit - Sanctioned	12.50	_	12.50	Simple##
2	Canara Bank	Bank Guarantee - Sanctioned	55.00	_	55.00	Simple##
3	Karur Vysya Bank	Bank Guarantee - Sanctioned	125.00	_	125.00	Simple##
4	Karur Vysya Bank	Cash Credit - Sanctioned	20.00	_	20.00	Simple##
5	Un tied portion	Cash Credit - Proposed	7.50	_	7.50	Simple##
6	Un tied portion	Bank Guarantee - Proposed	80.00	_	80.00	Simple##
Total			300.00	0.00	300.00
TOTAL (Rupees Three Hundred Crores 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.