RATING RATIONALE

02Mar2026

PTR Brothers Projects

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 50.00 Crs. of PTR Brothers Projects

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	25.00	Long Term	BWR BB /Stable Assignment
Non Fund Based	25.00	Short Term	BWR A4 Assignment
Grand Total	50.00	(Rupees Fifty 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 a long-term rating of BWR BB (Stable) and a short-term rating of BWR A4 to the bank facilities aggregating to Rs. 50.00 crore of PTR Brothers Projects. The ratings derive strength from the firm’s moderate track record and scale of operations in the business, robust profitability, experienced promoters, and expected improvement in revenue visibility backed by the existing order position. Small scale of operation, geographic and customer concentration, elongated billing cycles from government departments, and relatively high interest costs are factors that constrain the rating.

The Stable outlook reflects BWR’s expectation that PTR Brothers Projects will continue to achieve steady order inflows and execution, leading to stable operational performance over the medium term. The outlook also factors in the firm’s ability to sustain its profitability and maintain a broadly stable financial risk profile.

KEY RATING DRIVERS

Credit Strengths:

Moderate credit profile :
The firm maintains a moderate financial risk profile, marked by healthy EBITDA margins (~18–21%) and comfortable albeit moderated interest coverage (2.55x in FY25). Leverage levels remained moderate with TOL/TNW at 1.07x in FY25. Overall, profitability and accruals provide some cushion to the capital structure
Reasonable track record of operations :
PTR Brothers Projects has an operational track record of over 13 years in the civil construction segment with established presence in executing government road projects in Andhra Pradesh. The promoters’ experience and demonstrated execution capabilities support order inflows and project implementation.

Credit Risks:

Geographic concentration risk :
The firm’s operations are largely concentrated in the state of Andhra Pradesh, exposing it to region-specific risks including changes in state government spending, tender availability, and competitive intensity within the region.
Uncertain billing cycle :
The firm’s receivables are largely dependent on fund availability with state government authorities, where payments are released only after inspection and budget allocation, resulting in an unpredictable realization timeline. Although National Highway projects witness relatively faster payments (around 15 days), state projects forming a meaningful portion of the order book can experience delays, leading to elevated working capital requirements, higher reliance on bank limits, and potential pressure on liquidity during periods of execution ramp-up.
Small scale of operations :

Despite growth in FY24, the firm continues to operate at a modest scale (FY25 TOI of ~Rs.39 crore), which limits financial flexibility and bargaining power. The relatively small scale compared to larger EPC peers constrains its ability to absorb execution or cash flow shocks.

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 link mentioned below (Hyperlinks provided at the end of this rationale)

RATING SENSITIVITIES

Positive Sensitivity

Increase in scale of operations beyond Rs.75.00crs while maintaining the current credit profile and margins.

Negative Sensitivities

Elongation in the gross working capital cycle beyond 90 days impacting liquidity.
Any deterioration in the order book position below 1.00x (of revenue) affecting revenue visibility.

LIQUIDITY INDICATORS - Adequate

PTR Brothers Projects’ liquidity is adequate, supported by moderate cash accruals and availability of bank limits. The firm had cash and cash equivalents of Rs. 6.30 crore as on March 31, 2025( FY24: Rs. 0.14crs). Net cash accruals are projected at Rs. 2.99 crore in FY26 against scheduled repayment obligations of Rs. 1.77 crore, indicating adequate coverage. The average utilisation of working capital limits remained moderate at ~83% over the last 12 months, providing some cushion for incremental requirements. However, liquidity remains susceptible to elongated billing cycles from government authorities

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Industrials	Construction	Construction	Civil Construction

PTR Brothers Projects (PTR), established in November 2013, is a partnership firm engaged in the execution of road construction and maintenance works in Andhra Pradesh. The firm primarily undertakes government-awarded civil construction projects, including highways, rural roads, expressways, bridges, and urban road infrastructure, and has developed an established operational track record in the segment.

The firm was originally constituted by Mr. Narra Mallikarjuna Reddy and Mrs. Narra Arunamma. In August 2020, Mrs. Paidala Keerthi Reddy and Mrs. Paidala Deepthi Reddy were inducted as partners, resulting in a four-partner structure. Subsequently, effective April 1, 2024, Mr. Narra Mallikarjuna Reddy and Mrs. Paidala Deepthi Reddy retired from the firm to form a separate entity, M/s Paidala Tigers. Post reconstitution, PTR is currently managed by Mrs. Narra Arunamma and Mrs. Paidala Keerthi Reddy as managing partners with an equal profit-sharing ratio of 50:50 (as on March 31, 2025).

ESG Profile

Environmental:
The firm’s operations involve road construction activities, which have a moderate environmental impact through the consumption of construction materials, fuel usage, and the generation of dust and emissions at project sites. Nevertheless, PTR Brothers Projects follows standard industry practices and regulatory requirements relating to environmental clearances, waste management, and site safety, which mitigates environmental risks to an extent.

Social:
PTR Brothers Projects executes government road projects that contribute to improvement in regional connectivity and socio-economic development in Andhra Pradesh. The firm maintains adherence to prescribed labour and safety norms at project sites. However, the entity remains exposed to typical sectoral risks related to labour availability and on-site safety management.

Governance:
The firm is a closely held partnership led by experienced promoters, Mrs. Narra Arunamma and Mrs. Paidala Keerthi Reddy, who are actively involved in day-to-day operations. While the promoter-driven structure enables quick decision-making, the governance framework remains modest, typical of small partnership entities, with limited institutionalisation of systems and processes.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	30.81	64.64	39.06
EBITDA	Rs.Crs.	6.01	9.53	8.24
PAT	Rs.Crs.	3.01	6.80	4.11
Tangible Net Worth	Rs.Crs.	10.86	14.40	9.40
Total Debt / Tangible Net Worth	Times	2.23	1.03	1.13
Current Ratio	Times	1.99	2.19	2.84

KEY COVENANTS OF THE FACILITY RATED

The terms of the sanction includes standard covenants typically required for such 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	25.00	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	25.00	BWR A4 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		50.00	(Rupees Fifty Crores Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Anjali Singh Senior Rating Analyst anjali.s@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

PTR Brothers Projects

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	Karur Vysya Bank	Bank Guarantee - Sanctioned	_	25.00	25.00	Simple##
2	Karur Vysya Bank	Secured OD - Sanctioned	25.00	_	25.00	Simple##
Total			25.00	25.00	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.

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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