RATING RATIONALE

05Jan2026

ADHIRATH INFRACON LLP

Brickwork Ratings assigns the long term ratings of BWR BB/Stable for the Bank Loan Facilities of Rs. 92.00 Crs. of ADHIRATH INFRACON LLP

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	92.00	Long Term	BWR BB /Stable Assignment
Grand Total	92.00	(Rupees Ninety Two Crores 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 assigned the long-term ratings of "BWR BB/Stable" for the bank loan facilities aggregating to Rs.92.00 Crs of Adhirath Infracon LLP.

The rating has factored, inter alia, the promoters vast 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 Adhirath Infracon 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:

Location Advantage :
The project site is located within a developed area with a mix of residential and commercial establishments and is well connected by road, rail, and airways.
Experienced Management and Established Track Record of the Promoters :
Adhirath Infracon LLP benefits from the established experience and operational discipline of the Sampad Group, which has successfully executed 12 projects across residential and commercial segments and is currently undertaking 2 additional projects, apart from the Adhirath project, across Ahmedabad, Gujarat.

Although Adhirath Infracon LLP is a newly constituted entity, it operates under the helm of common promoters, Mr. Malaykumar Bharatkumar Patel and Mr. Bipinbhai Ramanlal Patel, who act as authorised signatories or partners across all major projects of the group, ensuring continuity in leadership, execution capability, and governance.
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 one month of interest and principal repayments, which adds an extra layer of financial security.

Credit Risks:

Project Execution Risk :
Delays in execution may result in increased operating expenses and negatively impact revenue booking and overall profitability.
Exposure to Inherent Cyclicality in the Real Estate Industry :
The firm operates solely in Ahmedabad, Gujarat, 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.
Partnership Constitution :
As a partnership firm, Adhirath Infracon 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.

ANALYTICAL APPROACH - Standalone

Standalone - For arriving at its ratings, BWR has considered the standalone performance of Adhirath Infracon LLP. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

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

Positive Triggers:

Improvement in construction progress, including achievement of at least a 20% increase in physical implementation progress from current levels, ahead of or in line with the projected timelines stipulated.
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.
Sales realization falling below 80% of the total saleable area on or before March 2030.
Significant delays in the disbursement of the committed funding lines.

LIQUIDITY INDICATORS - Adequate

The firm’s liquidity position is assessed to be adequate. The total estimated project cost of Rs. 240.45 crore is proposed to be funded through a sanctioned term loan of Rs. 92.00 crore, customer booking advances of Rs. 80.00 crore, and the balance Rs. 68.43 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 FY25, the current ratio stood at a healthy level of 2.84x, primarily supported by promoter infusion and advances from customers. Repayment obligations on the Rs. 92.00 crore term loan are scheduled to commence from 20 March 2030, 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 an average DSCR of 1.68x, 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. 0.10 crore as on FY25.

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

Macro Economic Indicator	Sector	Industry	Basic Industry
Consumer Discretionary	Realty	Realty	Residential, Commercial Projects

Adhirath Infracon LLP, incorporated in April 2024, is engaged in the development of a premium 3BHK residential apartment project located at Sughad, Gandhinagar, Gujarat. The project, titled “Adhirath by Sampad,” is being developed under the established umbrella of the Sampad Group.

The firm is promoted by eight experienced partners with over 13 years of collective expertise in the real estate and construction industry. Adhirath Infracon LLP has two active designated partners, Mr. Malaykumar Bharatbhai Patel and Mr. Bipinbhai Ramanlal Patel, both based in Ahmedabad, Gujarat.

The project is spread over a 9,752 sq. mt. site owned by the firm and comprises 336 units of 3BHK apartments across 8 blocks, each consisting of 2 basements, ground plus 14 floors.

The total estimated project cost is Rs. 240.45 crore, proposed to be funded through a sanctioned term loan of Rs. 92.00 crore, booking amounts of Rs. 80.00 crore, and the balance Rs. 68.43 crore to be contributed by the promoters. Site work commenced in April 2025, and financial closure has been achieved. The project is expected to be completed by December 2029.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited - Annual)	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)
Operating Revenue	Rs.Crs.	Not Available	Not Available	Not Available
EBITDA	Rs.Crs.	Not Available	Not Available	0.04
PAT	Rs.Crs.	Not Available	Not Available	Not Available
Tangible Net Worth	Rs.Crs.	Not Available	Not Available	18.31
Total Debt / Tangible Net Worth	Times	Not Available	Not Available	0.05
Current Ratio	Times	Not Available	Not Available	2.84

KEY COVENANTS OF THE FACILITY RATED

All scheduled receivables of the project, along with any other receivables, shall be deposited exclusively into the RERA-designated account.
DSRA equivalent to one month’s interest on the drawn outstanding during the moratorium period, and subsequently one month’s interest plus one month’s installment during the project implementation period, shall be maintained with the bank.
The borrower shall maintain a Fixed Asset Coverage Ratio (FACR) of 2.11x.
The partners shall retain their contribution towards capital and unsecured loans in the LLP until the repayment of all dues.
All other standard covenants as stipulated in the sanction terms shall remain applicable.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Not Applicable.

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating (2025)			2024		2023		2022
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	92.00	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		92.00	(Rupees Ninety Two Crores Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Mukul Singh Sahu Ratings Analyst mukulsingh.s@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

ADHIRATH INFRACON LLP

ANNEXURE-I

Details of Bank Facilities rated by BWR

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	92.00	_	92.00	Simple##
Total			92.00	0.00	92.00
TOTAL (Rupees Ninety Two 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.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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