RATING RATIONALE
02Apr2026
Arcadia Infra
Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 65.00 Crs. of Arcadia Infra
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 65.00 | Long Term |
BWR BB
/Stable Assignment |
|
| Grand Total | 65.00 | (Rupees Sixty Five 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 65.00 cr of Arcadia Infra. The rating assigned factors in the experienced promoter profile, satisfactory project progress, favourable location, and moderate sales traction, providing visibility to cash flows. The rating also derives comfort from the promoters’ execution capabilities in similar line of activities and the presence of key regulatory approvals. Construction risk, timely sales and collection, volatility in sales velocity owing to the inherent cyclicality of the sector, and moderate visibility of promoter funding are factors constraining the ratings.
The ‘Stable’ outlook reflects BWR's expectation that the project will progress as planned, with steady sales traction and timely completion, supported by the promoters’ experience and financial strength, leading to improvement in cash flows and liquidity.
KEY RATING DRIVERSCredit Strengths:
-
Experienced promoters: :
The project “Arcadia 111” is managed by promoters having around two decades of experience in the real estate sector with an established presence in Ahmedabad through multiple residential and commercial developments. The promoters have already delivered ~ 1,600 units in the past, comprising residential and commercial units.
-
Favourable location of the project:
:
The project benefits from its strategic location in the Ghatlodiya area of Ahmedabad, a well-developed area with proximity to SG Highway (within ~200–300 metres) and good connectivity through surrounding road infrastructure, which supports its marketability. The location is predominantly residential-cum-commercial in nature with established social and physical infrastructure, aiding demand generation. The project has witnessed favourable customer response, with ~100 units booked (of a total of 276 units) with collections of ~Rs. 28 crores as of March 2026.
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Cash Flow Sufficiency:
:
The total cost of the project is ~ Rs 172 cr and is proposed to be funded by debt of Rs 65 Crores and promoters’ contribution of Rs 64 Crores and the balance Rs 43 Crores is expected to be funded by Advance from customers. As of Feb 18, 2026 company has incurred Rs. 113 cr towards the construction of the project and has achieved ~60% physical progress. The project shall require additional Rs 59 Cr to complete, which can be funded by committed receivables of approximately Rs. 52 Cr from sold units and undrawn debt of Rs 21 Cr. The construction-linked payment structure provides steady inflow visibility, thereby supporting cash flow generation over the project lifecycle.
-
Exposure to Real Estate Cyclicality and Dependence on Sales Momentum: :
The project remains exposed to the inherent cyclicality of the real estate sector, wherein demand is sensitive to macroeconomic conditions, interest rates, and changes in consumer sentiment, which could impact sales velocity and pricing. The timely generation of cash flows is largely dependent on the firm’s ability to sustain adequate sales momentum and achieve planned customer collections, particularly for the balance inventory. Any slowdown in bookings or delays in collections could result in a mismatch between inflows and project-related obligations, thereby exerting pressure on liquidity and debt servicing. While the project benefits from its location and moderate pricing, the dependence on steady sales traction continues to remain a key monitorable.
-
Exposure to Execution Risk: :
The project remains exposed to execution risk, given that timely completion within the stipulated timeline and cost estimates is critical to achieving the envisaged cash flows. Although the project has achieved ~60% physical progress, a substantial portion of construction remains, thereby exposing it to risks related to delays in contractor execution, labour availability, and potential cost escalations. Any such delays could lead to a mismatch in expected customer collections and project cash flows. Nevertheless, the risk is partially mitigated by the satisfactory progress achieved so far.
To arrive at its ratings, BWR has relied on the company’s standalone financials. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).
RATING SENSITIVITIES
Positive Sensitivities:
- Timely receipt of customer advances supported by improved sales traction as per the planned schedule, along with completion of the project in line with or ahead of its scheduled DCCO
Negative Sensitivities:
-
Cost overrun due to execution delays and inability to achieve the projected revenue and cash flow milestones, impacting overall liquidity and debt servicing capability.
As of March 31, 2025, the project had cash and cash equivalents of approximately Rs. 4.18 Cr. Pending collection from sold inventory is ~Rs. 52, and the undrawn tied-up term loan limits are ~Rs. 21 Cr. Against this pending construction cost to be incurred is ~Rs. 59 crs. Additionally, Interest During Construction (IDC) is funded, and the term loan has morotorium of 36months indicating comfortable liquidity in the near to medium term.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Consumer Discretionary | Realty | Realty | Residential, Commercial Projects |
M/s. Arcadia Infra is a partnership firm established in 2023 and based in Ahmedabad, Gujarat. The firm is promoted by five partners, namely Mr. Ashvinkumar Amrutbhai Patel, Mr. Fullchandra Vishnubhai Patel, Mr. Jayesh Rambhai Patel, Mr. Mahesh Lallubhai Patel, and Mr. Abhi Kanubhai Patel. The firm is engaged in real estate development, including construction, land development, and the sale of residential and commercial properties. The partners have around two decades of experience in the real estate sector. The firm is currently undertaking the development of an ultra-premium residential project named “Arcadia 111,” comprising 276 units (including residential and commercial units) in Ahmedabad, Gujarat.
ESG ProfileThe company demonstrates a Evolving ESG profile based on its environmental, social, and governance practices.
Environmental: The project has obtained key environmental and regulatory approvals, including Environmental Clearance, indicating compliance with applicable environmental norms. Construction activities are being carried out in line with prescribed guidelines, with standard measures towards waste management, water usage, and environmental safeguards; however, no specific green building certifications or advanced sustainability initiatives are indicated.
Social: The project contributes to local economic development through the creation of residential and commercial infrastructure and the generation of employment during the construction phase. The promoter group has an established track record in the region, supporting customer confidence, while adherence to regulatory approvals such as RERA enhances transparency and protection of homebuyer interests.
Governance: The project has received all major statutory approvals, including RERA registration, building plan approval, fire NOC (provisional), and airport authority NOC, reflecting adequate regulatory compliance. The firm is managed by experienced promoters with defined profit-sharing arrangements; however, the governance framework remains typical of a partnership structure with significant reliance on promoter-driven decision-making.
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 | 11.73 |
| EBITDA | Rs.Crs. | Not Available | 0.02 | 2.27 |
| PAT | Rs.Crs. | Not Available | -0.01 | 0.75 |
| Tangible Net Worth | Rs.Crs. | Not Available | Not Available | 23.92 |
| Total Debt / Tangible Net Worth | Times | Not Available | Not Available | 1.07 |
| Current Ratio | Times | Not Available | 5.57 | 4.26 |
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 | 65.00 |
BWR BB/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Grand Total | 65.00 | (Rupees Sixty Five Crores Only) | |||||||
- General Criteria
- Approach to Financial Ratios
- Rating Criteria - Rating of Real Estate - Residential Projects
- Commercial Real Estate Rating Methodology
| 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 |
| 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 | Canara Bank | Term LoanSanctioned | 65.00 | _ | 65.00 | Simple## |
| Total | 65.00 | 0.00 | 65.00 | |||
| TOTAL (Rupees Sixty 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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