RATING RATIONALE

30Mar2026

Aurora Green Energy Pvt. Ltd.

Brickwork Ratings assigns the long-term ratings for the Bank Loan Facilities of Rs. 29.87 Crs. of Aurora Green Energy Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	29.87	Long Term	BWR BB - /Stable Assignment
Grand Total	29.87	(Rupees Twenty Nine Crores and Eighty Seven 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

Brickwork Ratings has assigned a long-term rating of BWR BB-/Stable for the bank loan facilities of Aurora Green Energy Pvt. Ltd.

The ratings assigned to the bank facilities of Aurora Green Energy Pvt. Ltd. continue to derive strength from its improving track record of operations and the extensive experience of its management. The rating also factors in the growing scale of operations, improving profitability, and a healthy financial risk profile. The assessment is based on the audited financial statements for FY 2025.

The rating outlook has been assigned as "Stable" as BWR believes that "Aurora Green Energy Pvt. Ltd." 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 achieving stability in operations and the rating outlook may be revised to 'Negative' if any unforeseen unfavourable events.

KEY RATING DRIVERS

Credit Strengths:

Locational Advantage :
The company is located in Karur cluster and thus has a competitive advantage in terms of skilled labor, logistics, production knowledge and vendors making the company more efficient and cost effective.
Strong Operating Performance and Profitability :
OPBDIT grows from Rs.0.11 Cr to Rs.7.49 Cr, with Operating Margin rising from 35.6% to 96.1%, reflecting strong earnings growth.
Improved Liquidity and Net Worth :
Tangible Net Worth turns positive to Rs.3.67 Cr and Current Ratio improves to 3.16x, supporting operational and debt requirements.

Credit Risks:

Competition in the Industry :
Entry barriers in the industry are low on account of limited capital and technology requirement and also low differentiation in the end product leading to intense competition and limiting the pricing power resulting in low profitability
Financial Leverage Pressure :
Total Debt/TNW remains elevated at 13.16x in FY25-26, indicating continued reliance on debt.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Going forward the Company's ability to improve the scale of operations, improve and maintain profitability, the debt servicing capacity and manage its working capital efficiently will be the key rating sensitivities.

Positive :

Growth in Total Operating Income by 45% with improvement in profitability margins .
Improvement in liquidity position indicated by better ISCR and DSCR
Gearing ratios at acceptable levels.

Negative :

Any decline in revenue by 50% or more ,resulting in falling operating margin.
Deterioration in liquidity position and decline in ISCR and DSCR.

LIQUIDITY INDICATORS - Stretched

Tightly matched accruals to repayment obligations, with modest cash reserves.

The company’s liquidity remained stretched in FY25, primarily due to the project being under implementation during FY24-25, with only 5 MW commissioned in February 2025, resulting in limited revenue generation, losses, and erosion of net worth. In the current financial year, the 5 MW plant achieved full-year operations, while the additional 6 MW capacity became operational from mid-September 2025, leading to a significant improvement in total operating income and a turnaround in profitability.In FY25, the company reported negative net cash accruals of Rs.-0.18 cr with no CPLTD obligations; however, liquidity is expected to improve with projected net cash accruals of Rs.5.38 cr in FY26 against CPLTD of Rs.1.46 cr, indicating adequate debt servicing capacity going forward. Cash and bank balances remained modest at Rs. 0.34 crore, while working capital requirements were largely funded through borrowings. The company reported a weak tangible net worth of Rs. (0.20) crore in FY25, which is expected to improve to Rs. 3.67 crore in FY26.

ABOUT THE ENTITY

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

M/s. Aurora Green Energy Private Limited (AGEPL) is a private limited company incorporated on 20 December 2023. The registered office of the company is located at No. 4/175-A, Athur Road, Athur, Karur – 639008.

The company is promoted and managed by Mr. K. Balaji, Mr. P. Rajendran, Mr. K. Ramesh, Mr. K. Palanisamy, and Mr. Ravishankar, who collectively bring significant managerial and operational experience. The key promoters—Mr. K. Balaji, Mr. P. Rajendran, Mr. K. Ramesh, and Mr. K. Palanisamy—have over 20 years of experience in the home textiles industry, providing strong business acumen, execution capability, and financial discipline.

AGEPL was incorporated with the objective of generation of electrical power through conventional and non-conventional energy sources, including solar, wind, tidal, hydro, thermal, and other renewable technologies. The company’s scope of activities includes promoting, owning, acquiring, developing, constructing, operating, leasing, and maintaining power plants, solar and wind farms, co-generation projects, energy conservation projects, and associated transmission and distribution systems.

ESG Profile

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

Environmental: Environmental risks in the power sector are driven by carbon emissions, high energy consumption, water usage, and waste generation. Disclosures on renewable energy share , energy efficiency initiatives, water conservation measures , waste management practices, and greenhouse gas emissions are particularly important. Initiatives such as adoption of solar, wind, or other clean energy technologies, afforestation programs, and pollution control measures may also be considered. (To be filled if applicable or available by Analyst)

Social: Social factors focus on occupational health and safety, workforce diversity, and employee well-being. Key metrics include workforce composition , workplace safety initiatives , training and skill development programs, and policies for gender-sensitive safety measures at plants or field sites. These indicators provide insights into the company’s commitment to human capital development and operational resilience.

Governance: Governance assessment emphasizes board independence, audit and ESG committee effectiveness, and compliance systems. Relevant disclosures include board structure , separation of chairman and CEO roles, existence of grievance redressal mechanisms, risk management practices, and oversight of ESG initiatives. Strong governance practices support transparency, accountability, and stakeholder confidence in the power sector context.

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	0.32
EBITDA	Rs.Crs.	Not Available	Not Available	0.11
PAT	Rs.Crs.	Not Available	Not Available	-0.30
Tangible Net Worth	Rs.Crs.	Not Available	Not Available	-0.20
Total Debt / Tangible Net Worth	Times	Not Available	Not Available	-147.49
Current Ratio	Times	Not Available	Not Available	915.22

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for such facilities.

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 (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	29.87	BWR BB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		29.87	(Rupees Twenty Nine Crores and Eighty Seven lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Gokul D Rating Analyst gokul.d@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

Aurora Green Energy Pvt. Ltd.

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	Term Loan - Sanctioned	13.57	_	13.57	Simple##
2	Karur Vysya Bank	Term Loan - Sanctioned	16.30	_	16.30	Simple##
Total			29.87	0.00	29.87
TOTAL (Rupees Twenty Nine Crores and Eighty Seven 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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