RATING RATIONALE

18Mar2026

SARTHA INFRASTRUCTURE

Brickwork Ratings assigns the ratings of BWR BB- (stable ) for the Bank Loan Facilities of Rs. 43.39 Crs. of SARTHA INFRASTRUCTURE

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	43.39	Long Term	BWR BB - /Stable Assignment
Grand Total	43.39	(Rupees Forty Three Crores and Thirty Nine 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

BWR has assigned ratings of BWR BB- (Stable ). The rating derives strength from factors such as strong revenue visibility, considering the presence of medium to long term PPA's, government support, and technological advancements whiile also factoring in credit risks such as projects under implementation, exposing the firm to project execution risks, use of quality equipment, and proven technology, achievement of projected CUF/PLF, effective subsidy realization and efficient O &M management, , maintainance and operation costs

The outlook is Stable, reflecting expectations of continued steady growth in revenues, healty operating margins,

KEY RATING DRIVERS

Credit Strengths:

Strong revenue visibility considering the presence of medium-to-long term PPAs for the entire operational capacity and growing demand for power :
The projects benefit from a fully tied-up demand structure through executed long-term 25-year PPAs with Dakshin Gujarat Vij Company Limited (DGVCL) at discovered and adopted levelized tariffs. The RESCO framework, coupled with assured feeder-level procurement, eliminates merchant exposure and provides predictable, annuity-type cash flows with limited market risk. The regulatory backing under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme further strengthens revenue visibility and offtake security.

Further, India's increasing energy demand, particularly in rural and semi-urban areas, presents a significant market opportunity for solar power generation. The project's location may further benefit from proximity to consumption centres, reducing transmission losses
Technically and financially viable: :
The proposed plant configuration, incorporating reputed modules, string inverters, robust mounting structures, standardised 1500V DC architecture, and compliant evacuation infrastructure, is aligned with established utility-scale solar practices. Engagement of an experienced EPC contractor with a demonstrated execution track record enhances implementation reliability. Land arrangements at Mandvi and Mahuva are largely secured on long-term leases co-terminus with the PPA tenure

The estimated total project cost of Rs 56.24 Crore (inclusive of all plant & machinery, BOS, evacuation, civil works, engineering, and working capital margin) translates to a competitive per-MW capital cost consistent with prevailing benchmarks for feeder-level solarisation projects. The proposed debt–equity structure of 3.37 x is in line with sector norms for contracted renewable assets, and the projected cash flows supported by fixed tariffs demonstrate adequate debt servicing capability over the loan tenure (Average DSCR of 1.18 x for and1.20 x for Mandvi project and 1.20 x for the Mahuva project). Operating costs, degradation assumptions, and generation estimates are reasonable and conservative, supporting long-term sustainability.
Government Support and Technological Advancements: :
The Indian government offers various incentives, subsidies, and favorable policies for solar power projects, which can enhance project viability. o Initiatives like the PM-KUSUM scheme and accelerated depreciation benefits make financing more accessible. Further advances in solar technology have led to improved efficiency and reduced costs of solar panels and inverters, enhancing project feasibility. The project can benefit from the latest solar technologies, increasing energy generation and lowering maintenance costs.

Credit Risks:

Project under implementation exposing the firm to project execution risks: :
The firm intends to commission 11.5 MW assets until FY 26, exposing the firm to project execution risk. The Firm is adequately capitalised from an equity perspective to execute these projects. Given the project under development pipeline, the firm remains exposed to under-construction risk. Any material cost or time-related overrun may adversely impact the project level. Additionaly as on 28 Feb 2026, the firm has a license which stood at ~4.5 MW for another solar power project in Gujarat, which is expected to be operational in the medium term

Achievement of the Commercial operation date within the stipulated timeline under the PPAs with Dakshin Gujarat Vij Company Limited is critical to prevent penalties, loss of tariff benefits, or delay in revenue commencement.
Use of quality equipment and proven technology :
Effective execution by Raycal Power Infra Pvt. Ltd., with adequate manpower, supply chain readiness, and quality control, is vital for timely and cost-efficient project completion. Deployment of bankable modules, inverters, and balance-of-system components with performance warranties will ensure targeted generation and long-term plant reliability.
Achievement of projected CUF/PLF and Timely financial closure and equity infusion: :
Sustaining expected generation levels (~20% CUF) through proper design, layout optimisation, and preventive maintenance is necessary to meet revenue and DSCR projections and adequate and timely promoter contribution, along with term loan disbursement, is essential to maintain project cash flow during construction.
Effective subsidy realisation and Efficient O&M management ,Maintenance and Operation Costs: :
Timely receipt and application of capital subsidy under Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) is important to reduce debt burden and strengthen financial metrics. Structured O&M practices, remote monitoring systems, and rapid fault rectification will minimise downtime and maximise energy yield over the 25-year life.

While solar power systems generally have low operational costs, ongoing maintenance, cleaning, and monitoring are necessary to ensure optimal performance. Any unforeseen maintenance issues can disrupt energy generation and impact revenue

ANALYTICAL APPROACH - Standalone

BWR Ratings has evaluated the standalone business and financial risk profiles of Sartha Infrastructure

RATING SENSITIVITIES

Positive: These are milestones that would improve the credit rating

Timely Project Completion: Completing the project as per DCCO with no time and cost overrun, as per the schedule approved by all stakeholders, viz. Company, Lenders, and Government authorities
Project stabilization.

Negative Sensitivity (Downgrade Triggers)

These are "red flags" that would lead to a lower credit rating :

Delayed Commissioning: Any delay in achieving DCCO

LIQUIDITY INDICATORS - Stretched

Stretched liquidity characterized by expected cash accruals of Rs -1.76 Crs in FY 26, vis-a-vis Nil repayment obligations in FY 26, expected cash accruals of Rs 7.13 Crs against CPLTD of Rs 1.37 Crs, and a moderate cash balance of Rs 0.17 Crs in FY 25. The company has plans for starting the solar power project of Rs ~56 Crs in FY 26. The current ratio stood at 7.01 x in FY 25. The liquidity position remains supported by unsecured loans infused by the promoters on a need basis.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Utilities	Power	Power	Power Generation

M/s Sartha Infrastructure is a Gujarat-based partnership firm incorporated on 29 May 2014 to undertake infrastructure and energy-related development activities. The firm has been engaged in the execution and development of civil and infrastructure works and has progressively diversified into the renewable energy sector in line with the Government of India’s thrust on clean and sustainable power generation.. The firm is led by the promoters who have an experience of 25 years of creating products in the form of residential & commercial buildings, conducting government projects & Infrastructure development.

ESG Profile

The company demonstrates a Evolving ESG profile based on its environmental, social, and governance practices.

Environmental:The firm is operating solar power project, which is expected to reduce air and water pollution

Social: The firm has not spent any amount on corporate social responsibility

Governance: Since this is LLP , the firm does not have independent directors in board

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.	1.78	0.40	0.36
EBITDA	Rs.Crs.	0.04	0.01	-0.01
PAT	Rs.Crs.	0.02	-0.01	-0.03
Tangible Net Worth	Rs.Crs.	3.56	3.17	2.92
Total Debt / Tangible Net Worth	Times	0.30	0.35	0.33
Current Ratio	Times	32.73	113.17	7.01

KEY COVENANTS OF THE FACILITY RATED

There are standard covenants as per the Sanction Letter

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	43.39	BWR BB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		43.39	(Rupees Forty Three Crores and Thirty Nine lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Karan Ahluwalia Ratings Analyst karan.ahluwalia@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

SARTHA INFRASTRUCTURE

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	RAJKOT NAGARIK SAHAKARI BANK LTD	Term Loan - Sanctioned	43.39	_	43.39	Simple##
Total			43.39	0.00	43.39
TOTAL (Rupees Forty Three Crores and Thirty Nine 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.

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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