RATING RATIONALE
13Mar2026
Mohan Mutha Infrastructures Pvt. Ltd.
Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 75.00 Crs. of Mohan Mutha Infrastructures Pvt. Ltd.
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 20.00 | Long Term |
BWR BBB -
/Stable Assignment |
|
| 30.00 | Short Term |
BWR A3
Assignment |
||
| Non Fund Based | 25.00 | Short Term |
BWR A3
Assignment |
|
| Grand Total | 75.00 | (Rupees Seventy Five Crores Only) | ||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK
Brickwork Ratings assigns the ratings of BWR BBB-/Stable for long-term facilities and BWR A3 for short-term facilities, totalling to Rs. 75 Crs. of Mohan Mutha Infrastructures Pvt. Ltd
The ratings assigned are supported by the Experienced Promoters with an established track record in the industry, a healthy order book, providing visibility over the medium term and improving operating performance with moderate financial risk. Conversely, the ratings are constrained by an exposure to operations in the Maldives and risks related to tender-based business operations.
BWR believes Mohan Mutha Infrastructures Pvt. Ltd. will maintain its business risk profile over the medium term. The 'Stable' outlook reflects BWR's expectation that the company will sustain its operational and financial performance while maintaining its long-term customer relationships in the medium term.
KEY RATING DRIVERSCredit Strengths:
-
Improving operating performance with moderate financial risk :
The company’s total operating income has demonstrated growth over the past three years ending FY24, with total operating income growing from Rs. 9.07 cr in FY22 to Rs. 360.95 cr in FY24. While FY25 revenue saw a 28% moderation to Rs. 260.90 cr compared to FY24, this reflects a normalisation following the completion of a large subcontract for Mohan Mutha Exports (group concern). Despite this decline, FY25 performance remains aligned with the envisaged revenue. For the current fiscal year, the company reported revenue of Rs. 262 cr through February 2026 and anticipates ending FY26 within the Rs. 300-310 cr range.
The operating margins have demonstrated steady improvement, rising from 4.82% in FY23 to 8.21% in FY25. This growth is attributed to enhanced overhead absorption and an increase in the proportion of direct orders relative to subcontracts.
Further, the company maintains a moderate financial risk profile characterised by a moderate net-worth base, adequate ISCR, and moderate TOL/TNW. As of December 31, 2025, the debt profile primarily consists of unsecured loans from promoters and related parties (Rs. 45.6 cr), working capital borrowings (Rs. 6.28 cr), and vehicle/equipment loans (Rs. 2.12 cr). Working capital limits sanctioned in June 2025 have been utilised since November 2025.Further, the Mohan Mutha Group is currently undertaking a formal reorganization and rationalization of its structure as part of a long-term governance and succession planning exercise. All inter-company balances—including unsecured loans, receivables, and payables—will be netted off, and the resulting net balances will be settled accordingly. While management anticipates a net infusion following this reorganization, the impact has not yet been factored into the current BWR calculations.
-
Adequate Order book to sales ratio, providing visibility over the medium term :
As of December 31, 2025, the unexecuted order book stood at Rs. 869.27 crore, representing an order book to sales ratio of 3.33x. This provides the company with medium to long-term revenue visibility. While 31% of the order book pertains to projects in the Maldives, introducing a degree of country-specific risk, the same is mitigated by the company’s and the group’s extensive operational history in the region. Furthermore, the company is actively diversifying its project portfolio within India.
-
Experienced Promoters with an established track record in the industry :
MMIPL started its operations in 2008 and has a long track record of around two decades. The promoters have extensive industry experience and an established track record in the EPC business. Along with the experienced management team, the company enjoys the benefit of established relationships with customers and suppliers.
-
Country-specific risk :
Historically, the company has derived the majority of its revenue from its operations in the Maldives. As of December 31, 2025, 31% of unexecuted orders remain concentrated in this region. While this presents a degree of country-specific risk, it is mitigated by the company’s extensive operational history in the Maldives, its role in supplying essential construction materials, and its established relationships with government departments.
Furthermore, the company is actively diversifying its portfolio within India. Key recent milestones include securing orders from the Lakshadweep Public Works Department in January 2026, as well as projects awarded by the NHAI in July 2024 and April 2025. -
Fragmented nature of the construction sector, with a tender-based nature of operations and execution challenges :
The construction sector in India is characterised by a highly fragmented and competitive landscape, primarily driven by a tender-based procurement process. This environment often leads to intense competition, fluctuating revenues, and constrained profitability for many industry participants. Furthermore, the industry faces significant execution challenges, including delays in land acquisition, regulatory hurdles, environmental clearances, and interest rate risks. These external factors, combined with aggressive bidding practices, continue to impact the credit profiles of various players. As revenue is contingent upon a company's ability to successfully bid for new projects, profit margins frequently remain under pressure.
Despite these industry-wide challenges, the company remains well-positioned due to its extensive experience and longstanding track record in the construction sector. The company’s established reputation and cordial client relationships provide a distinct competitive advantage over its peers.
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
- Expansion of the order book through diversified orders, resulting in revenue visibility, may lead to positive rating action
- Improvement in PBILDT margin (double-digit margins) and in gross current assets days (receivables and inventory) on a sustained basis, leading to improved net cash accruals, may lead to a positive action
Negative Sensitivities
- Aggressive bidding or delayed execution of works leading to cost and time overruns, translating into margin pressure or lower cash accruals, might be negative to the ratings.
- An increase in debt levels or equity withdrawals, leading to a deterioration of the capital structure, may lead to negative rating action
- Further delays in receivables, resulting in liquidity strain, may lead to negative rating action
Liquidity profile of the company is marked adequate, supported by cash accruals of Rs. 14.48 cr for FY25 and cash and bank balance of Rs. 9.99 cr. as on March 31, 2025, as against nominal term debt repayment of Rs. 1.81 cr for FY26. Liquidity is further supported by a moderate current ratio of 1.29 times as of March 31, 2025, and a healthy ISCR of 6.79 times. In June 2025, the company availed working capital limits from the Indian Overseas Bank. Average utilization of these limits was approximately 22% between November 2025 and February 2026. Additionally, the Mohan Mutha Group is currently undergoing a formal reorganization and structural rationalization as part of its long-term governance and succession planning. BWR will continue to monitor any significant increases in debt levels or equity withdrawals that could lead to a deterioration of the capital structure and/or liquidity profile of the rated entity.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Industrials | Construction | Construction | Civil Construction |
Established in 2008, Mohan Mutha Infrastructures Pvt. Ltd. serves as the infrastructure development and EPC arm of the Mohan Mutha Group. The company specializes in the execution of turnkey projects across the marine, road, building, water, and allied infrastructure segments in India and Maldives. Operations are overseen by Chairman Mr. Hansraj Mutha, supported by a professional management team and promoter-family directors.
ESG ProfileNA
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. | 89.29 | 362.95 | 260.90 |
| EBITDA | Rs.Crs. | 4.31 | 20.62 | 21.43 |
| PAT | Rs.Crs. | 5.96 | 13.50 | 12.36 |
| Tangible Net Worth | Rs.Crs. | 18.00 | 31.25 | 43.27 |
| Total Debt / Tangible Net Worth | Times | 0.56 | 0.43 | 1.28 |
| Current Ratio | Times | 1.51 | 0.93 | 1.29 |
The terms of sanction include standard covenants normally stipulated 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 | 20.00 |
BWR BBB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Fund Based | ST | 30.00 |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Non Fund Based | ST | 25.00 |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Grand Total | 75.00 | (Rupees Seventy Five Crores Only) | |||||||
- General Criteria
- Approach to Financial Ratios
- Short Term Debt
- Engineering Procurement and Construction
| Analytical Contacts | |
|---|---|
|
Kanwalpreet Singh Ratings Analyst kanwalpreet.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 |
| 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 | Indian Overseas Bank | Cash CreditSanctioned | 20.00 | _ | 20.00 | Simple## |
| 2 | Indian Overseas Bank | Packing Credit (PC)Sanctioned | _ | 20.00 | 20.00 | Simple## |
| 3 | Indian Overseas Bank | Letter of CreditSanctioned | _ | 15.00 | 15.00 | Simple## |
| 4 | Indian Overseas Bank | Letter of GuaranteeSanctioned | _ | 10.00 | 10.00 | Simple## |
| 5 | Indian Overseas Bank | FDDBP/ FDUBD / RDBF /RUBFSanctioned | _ | 10.00 | 10.00 | Simple## |
| Total | 20.00 | 55.00 | 75.00 | |||
| TOTAL (Rupees Seventy Five 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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