NAVANAAMI PROJECTS PRIVATE LIMITED

Brickwork Ratings assigns the rating for the Bank Loan Facilities of Rs. 520.00 Crs. of Navanaami Projects Private Limited.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	520.00	Long Term	BWR BBB /Stable Assignment
Grand Total	520.00	(Rupees Five Hundred Twenty 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 (BWR) has assigned the rating of BWR BBB/Stable for Rs. 520 Crs. of bank loan facilities of Navanaami Projects Private Limited.

Rating assignment to the bank loan facilities of Navanaami Projects Private Limited (NNPL or the company) factors in its association with the Hyderabad-based Navanaami Group, established track record and extensive industry experience of the Group’s promoters, equity infusion from the promoters, location advantage of the ongoing projects, and the stable outlook for the residential real estate sector in India. The Group's presence in the Hyderabad area and the promoters' experience and long-standing relationships with industry stakeholders provide the company with comfort and operational & financial flexibility.

However, the rating remains constrained by high dependence on customer advances for the projects and average sales velocity of residential units. It is further moderated by the inherent cyclicality and regulatory risks associated with the real estate sector, as well as the intense competition among the incumbents.

NNPL is currently executing three residential real estate projects - 'Megaleio' and 'Navanaami One' in Hyderabad, and 'Courtyard of Life' in Bengaluru. Megaleio is a luxury residential project with 150 residential units and ~14.99 lakh sq. ft of saleable area. The total project cost is Rs. 750 Crs. It is expected to be funded through promoters' contribution of Rs. 187.50 Crs., customer advances of Rs. 91.50 Crs., and bank loan of Rs. 270 Crs. The project is getting progress-based disbursement from its lender, and the total cost incurred till 28 Feb 2026 is ~Rs. 362 Crs., ~48% of total project cost. Customer advances received till 28 Feb 2026 are ~Rs. 91.50 Crs., ~31% of the total customer advances planned and 37% of the total booking value till that date. 

Navanaami One is a high-rise residential project with 362 residential units and ~9.90 lakh sq. ft. of saleable area. The total project cost is Rs. 525 Crs. It is expected to be funded through promoters' contribution of Rs. 110 Crs., customer advances of Rs. 165 Crs., and bank loan of Rs. 250 Crs. The execution commenced in Nov'25, and the total cost incurred till 28 Feb 2026 was ~Rs. 69 Crs., ~13% of total project cost. The financial closure for the project is yet to be achieved, with the proposal for a term loan of Rs. 225 Crs. under the lender's consideration. Customer advances received till 28 Feb 2026 are ~Rs. 24 Crs., ~13% of the total customer advances planned and 32% of the total booking value till that date.

Courtyard of Life is an affordable housing project with 100 residential units and ~1.65 lakh sq. ft. of saleable area for the developer's portion. Total cost incurred is ~Rs. 35 Crs. till 28 Feb 2026 against the total project cost of Rs. 80 Crs. The project is expected to be funded through promoters' contribution of Rs. 10 Crs., customer advances of Rs. 40 Crs., and bank loan of Rs. 30 Crs. Customer advances received till 28 Feb 2026 are ~Rs. 8 Crs., ~21% of the total customer advances planned and 20% of the total booking value till that date.

The Stable outlook indicates a low likelihood of rating change over the medium term. The outlook may be revised to Positive if the company makes sustained and substantial progress towards completing the projects without any time and cost overrun and achieves a higher-than-expected sales velocity from the unsold units. The outlook may be revised to Negative in case of any delay in project execution or delay in the sale of the unsold units.

KEY RATING DRIVERS

Credit Strengths:

• Experience of the promoters :

  The company is part of Hyderabad based Navanaami Group which is promoted by Mr. Gadde Venkat Naveen. He has an extensive experience of almost three decades in the real estate sector. The Group has a track record of successful completion of eight projects with ~1.5 million sq. ft built-up area in Hyderabad and Bengaluru. The promoters also have a proven track record of supporting the company's operations through unsecured loans on a need-basis. They are supported by a team of qualified professionals in the execution of the ongoing project.

• Sustainable funding with good market traction :

  In FY25, the promoters infused equity of Rs. 88.45 Crs. in FY25, partly through conversion of unsecured loans as equity, and balance through fresh funds. The company has been able to fund a considerable portion of the promoter contribution (~67%) of the three projects till date. Till 28 Feb 2026, the promoters have already funded ~77% for Megaleio, ~100% for Courtyard of Life, and ~46% for Navanami One of their planned contributions. The projects are gaining traction in the market, with 46 out of 150 units in Megaleio and 37 out of 100 units of Courtyard of Life already sold. For Navanami One, which started in November 2025, 42 out of 362 planned units have been sold. The company has received ~31% of planned customer advances for Megaleio, ~21% for Courtyard of Life, and ~13% of Navanaami One. The external project funding for Megaleio and Courtyard of Life have been secured, while that for Navanaami One is in advanced stage of approval.

• Stable industry outlook :

  India’s residential real estate market in 2026 is being shaped by rapid urbanisation, steady economic growth, and evolving housing preferences, with declining home loan interest rates fueling robust demand in the affordable segment. The central government’s strong emphasis on infrastructure expansion is bolstering the resilience of the residential real estate sector, reinforcing its stability and enhancing its long-term growth potential. However, a clear shift is underway toward mid-income and luxury housing, driven by lifestyle upgrades and aspirations for higher quality living. Post-Covid demand recovery, coupled with fewer new launches in FY26, has led to broad-based price increases, resulting in value growth outpacing volume growth. While transaction volumes may moderate, the combination of urban migration, rising incomes, and preference for better amenities is expected to keep the demand outlook stable, positioning the industry for sustained long-term expansion.

• Locational advantages :

  All of the company’s projects enjoy locational advantages, being positioned near key infrastructure, employment hubs, and lifestyle amenities that enhance convenience, connectivity, and long-term value appreciation. Megaleio and Navanaami One in Hyderabad are situated close to rapidly developing urban clusters such as Kokapet (SEZ, ITES, and residential), Gandipet (residential and commercial), and the Financial District (ITES and office hub), with seamless access via the Nehru Outer Ring Road. Similarly, the Courtyard of Life project in Bengaluru benefits from proximity to major IT hubs like Wipro Main Campus and RGA Tech Park, as well as leading educational institutions, hospitals, and sports facilities. This blend of accessibility and amenities makes these locations highly desirable for end-users seeking quality living and for investors looking at sustained demand and value growth.

Credit Risks:

• Project execution risk :

  All three projects are RERA-registered, underscoring regulatory compliance and transparency. While Navanaami One is still in its early execution stage with financial closure pending, Megaleio and Courtyard of Life have achieved ~45-50% completion. A significant reliance on customer advances remains across all projects, with these advances accounting for 39% of planned project costs in Megaleio, 50% in Courtyard of Life, and ~36% in Navanaami One. However, the proportion of customer advances received to date is only ~24% of such advances planned as part of project funding, and ~34% of total booking value, highlighting the need for stronger sales velocity and improved collections to ensure smooth execution. In the event of short-term cash flow mismatches, promoter support may be required to maintain project momentum and financial stability.

• Risk associated with real estate industry :

  The residential real estate sector in India is inherently exposed to multiple risks, including demand fluctuations tied to overall economic growth, sensitivity to interest rate changes by the RBI, and frequent policy or regulatory changes. Challenges such as lack of uniformity in building regulations, delays in environmental and safety approvals, and operational hurdles in project execution further add to uncertainty. Launches of new projects and inventory absorption are closely linked to the broader economic cycle, with improved sentiments, favourable policy rates, and government initiatives typically driving higher launches and reducing unsold stock. Segment-wise demand is also influenced by government policy preferences, while judicial pronouncements on environmental clearances or insolvency disputes can significantly impact project timelines and market stability.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has adopted a standalone approach and applied its rating methodology as detailed in the Rating Criteria. The company has no subsidiary, associate, or joint venture as of 31 Mar 2025.

RATING SENSITIVITIES

Upward:

• Project completion without any time or cost overrun
• Better than expected realisation of sales velocity
• Better than expected realisation of sales value per square foot
• Debt/equity ratio falling below 1.50 times for two consecutive fiscals

Downward:

• Delay in project execution leading to time and/or cost overrun
• Lower than expected sales velocity and sales value realisation

LIQUIDITY INDICATORS - Adequate

The company's liquidity position is adequate, marked by EBITDA and net cash accruals covering the annual debt servicing obligations, steady customer advances, adequate debt coverage ratios, and a moderate current ratio. Repayment of the project loan of Megaleio shall start from 30 Jun 2028. The debt servicing of the loan taken for the Courtyard of Life project is being serviced through sweep-in from customer advances. The sales velocity of the ongoing projects is moderate, with customer collections linked to milestone achievement in project execution. Promoters have brought in ~67% of their planned contribution till 28 Feb 2026. The receivables as of 25 Mar 2026 (unaudited) were at ~Rs. 239 Crs. Timely approval and disbursal of the project loan for the Navanaami One project would be monitorable.

ABOUT THE ENTITY

Navanaami Projects Private Limited (NPPL or the company) is a Hyderabad-based company incorporated on 02 May 2005. The company is engaged in the construction of residential and commercial complexes and executing construction contracts in the states of Telangana and Karnataka. It is part of the Hyderabad-based Navanaami Group. Navanaami Group has completed and delivered over eight projects with approximately 1.5 million sq. ft. built-up area in Hyderabad and Bengaluru. The Group is promoted by Mr. Gadde Venkat Naveen, who is also the Managing Director of NPPL.

ESG Profile

The company demonstrates an evolving ESG profile based on its environmental, social, and governance practices. Some of the completed and ongoing projects of the company have in-built provisions for rainwater harvesting, solar power generation, sewage treatment, etc. which indicate the company's sensitivity towards environmental issues and sustainable development.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)	FY 25 - 26 (Unaudited - Others(9MFY26))
Operating Revenue	Rs.Crs.	13.26	2.27	123.63
EBITDA	Rs.Crs.	1.62	8.06	23.99
PAT	Rs.Crs.	2.03	3.48	21.72
Tangible Net Worth	Rs.Crs.	15.50	107.08	128.80
Total Debt / Tangible Net Worth	Times	4.10	1.51	1.44
Current Ratio	Times	1.03	1.75	1.67

KEY COVENANTS OF THE FACILITY RATED

 The terms of sanction include standard covenants normally stipulated for such facilities. Some additional covenants for the project loan of Megaleio project, sanctioned by Union Bank of India, are:

• The company will convert Rs. 93.75 Crs. of unsecured loans into equity / preference shares within 1 month of 1st disbursement of the loan.
• The facility will be released in stages, depending upon the progress of the work.
• In case of a reduction in project cost due to savings in cost and others, the term loan component shall be reduced proportionately.
• Any overrun in the cost shall be funded by the promoters from their own sources, or customer advances, to the satisfaction of the Bank.
• The company to undertake that the unsecured loans are subordinated to the Bank's loan, and the same shall not be repaid during the currency of the Bank loan or without prior concurrence of the Bank.
• The company to undertake that the unsecured loans will not carry an interest rate up to DCCO. Thereafter, if such a loan carries interest, it shall be less than the rate of interest charged in the account and will be made with the prior consent of the Bank.

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	520.00	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		520.00	(Rupees Five Hundred Twenty Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Real Estate-Commercial
• Real Estate-Residential

Analytical Contacts
Swarn Saurabh Assistant Manager - Ratings swarn.s@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com
Media Contact | media@brickworkratings.com	Client Support | clientsupport@brickworkratings.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	State Bank Of India (SBI)	Term Loan - Proposed	225.00	_	225.00	Simple##
2	Un tied portion	Term Loan - Proposed	25.00	_	25.00	Simple##
3	Union Bank of India	Term Loan - Sanctioned	270.00	_	270.00	Simple##
Total			520.00	0.00	520.00
TOTAL (Rupees Five Hundred Twenty 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.