RATING RATIONALE
20Mar2026
Aries Infraventures
Brickwork Ratings has assigned a long-term rating of BWR BB-/Stable to Aries Infraventures for its Bank Loan Facilities of Rs. 50.00 crores.
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 50.00 | Long Term |
BWR BB -
/Stable Assignment |
|
| Grand Total | 50.00 | (Rupees Fifty Crores Only) | ||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK
Brickwork Ratings has assigned a long-term rating of BWR BB-/Stable to the bank loan facilities aggregating to Rs. 50.00 crore of Aries Infraventures. The rating reflects the swift construction progress of the ongoing residential project, supported by an experienced promoter group with over 20 years of presence and a proven track record of timely project delivery, including the scheduled completion of Imperial Heights. The management’s strong financial commitment is reflected in its contribution to the total project cost, with project funding envisaged through customer advances, timely sales traction & term loan drawdowns. Furthermore, it also factors in the favorable project location and the ongoing project Imperial Courtyards progressing in a timely mannerner, which supports execution and cashflow visibility. The Stable outlook reflects the expectation of continued promoter support through timely fund infusion, improvement in liquidity upon commencement of sales, and steady construction progress.
KEY RATING DRIVERSCredit Strengths:
-
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.
-
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.
-
Swift Construction Progress Backed by an Experienced and Reputable Promoter :
The project is promoted by the developer with over 20 years of experience in the real estate market and prior experience in executing civil construction projects. The promoter enjoys a good market reputation and long-standing relationships with stakeholders, which enhance credibility and execution capability. The group has completed its earlier project, Imperial Heights, the sales traction of its is expected to support the overall financial position of the entity. The ongoing project, Imperial Courtyards, is currently progressing ahead of its scheduled timeline. The firm’s strong financial commitment reflected in contribution to the total project cost.
-
Project Execution Risk :
Timely project execution remains critical, as any delays could lead to escalation in project costs, deferment of revenue recognition, and pressure on cash flows and profitability.
-
Partnership Constitution :
As a partnership firm, Aries Infraventures 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 the death or retirement of partners.
-
Sensitivity to Policy, Interest Rate, and Cyclical Real Estate Risks :
The project remains exposed to changes in government policies, taxation structures, homebuyer incentives, and housing finance norms, which can materially influence demand dynamics and overall project viability. Additionally, rising interest rates may increase borrowing costs and reduce affordability for end-users, potentially impacting sales momentum. The real estate sector is inherently cyclical and closely linked to macroeconomic conditions; any economic slowdown could adversely affect housing demand, cash flows, and sales velocity. Further, the residential real estate market is highly competitive and fragmented, which may exert pressure on pricing and absorption levels, notwithstanding the recent improvement in industry outlook and the positive regulatory impact of RERA.
To arrive at its ratings, BWR has considered the standalone performance of Aries Infraventures. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).
RATING SENSITIVITIES
Positive:
Timely execution in line with the project implementation schedule, along with improved sales traction leading to higher customer advances, would be positive for the entity.
Negative:
Significant execution delays resulting in cost overruns, escalation in project costs, or inability to scale up and achieve envisaged sales traction in line with capex plans would be negative for the entity.
As of March 31, 2025, the entity maintained cash and cash equivalents of approximately Rs. 0.78 crore. The projected mismatch between inflows and outflows during the construction phase is expected to be funded through a combination of term loan drawdowns, customer advances, and promoter infusion. Any delay in loan disbursement, slower-than-expected sales traction resulting in lower customer advances, or deferment in promoter support could materially impact liquidity and exert pressure on the construction and delivery schedule, thereby affecting the overall project execution timeline.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Consumer Discretionary | Realty | Realty | Residential, Commercial Projects |
M/s Aries Infraventures is a partnership firm engaged in the real estate development sector, with a primary focus on residential group housing projects. The firm was constituted on June 1, 2019, and is promoted by Mr. Arvind Kumar (85%) and Mr. Vikas Tyagi (15%), who are actively involved in the execution and management of the firm’s real estate projects. The firm’s registered and corporate office Modipuram, Meerut, UP and it holds valid statutory registrations to support its formalized operational structure.
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 to the rules.
Social: Social considerations focus on workforce health and safety for both permanent and contractor staff, adherence to labor laws are compliant, safety performance, and training or human capital development programs. Diversity and inclusion is favourable and community engagement initiatives, including local community programs, affordable housing, or livelihood support implemented, reflect 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 22 - 23 (Audited) |
FY 23 - 24 (Audited) |
FY 24 - 25 (Audited) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | Not Available | Not Available | Not Available |
| EBITDA | Rs.Crs. | -0.02 | 0.36 | 0.76 |
| PAT | Rs.Crs. | -0.02 | -0.32 | -0.45 |
| Tangible Net Worth | Rs.Crs. | 0.93 | 0.64 | 1.67 |
| Total Debt / Tangible Net Worth | Times | 5.40 | 37.92 | 25.86 |
| Current Ratio | Times | 8.30 | 30.96 | 27.74 |
The terms of the sanction of loans from banks include standard covenants normally stipulated for such facilities by the banks.
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 | 50.00 |
BWR BB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Grand Total | 50.00 | (Rupees Fifty Crores Only) | |||||||
- General Criteria
- Approach to Financial Ratios
- Rating Criteria - Rating of Real Estate - Residential Projects
| Analytical Contacts | |
|---|---|
|
Shalaka Shashikant Keer Ratings Analyst shalaka.k@brickworkratings.com |
Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | Customer Support | CustSupport@brickwrokratings.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 | Punjab National Bank | Term LoanSanctioned | 10.00 | _ | 10.00 | Simple## |
| 2 | Punjab National Bank | Term LoanSanctioned | 40.00 | _ | 40.00 | Simple## |
| Total | 50.00 | 0.00 | 50.00 | |||
| TOTAL (Rupees Fifty 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.
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
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