Lansum Leisures & Entertainment LLP

Brickwork Ratings assigns the long-term ratings of BWR BBB-/Stable for the Bank Loan Facilities of Rs. 250.00 Crs. of Lansum Leisures & Entertainment LLP

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	250.00	Long Term	BWR BBB - /Stable Assignment
Grand Total	250.00	(Rupees Two Hundred Fifty 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 has assigned the long-term ratings of "BWR BBB-/Stable" for the bank loan facilities of Lansum Leisures & Entertainment LLP.

The rating has factored, inter alia, the partner's vast experience in the industry and favorable location of the project. However, the rating is constrained by the project execution risk, partnership nature of the firm and the risk associated with cyclicality in the industry. However, Going forward, the ability of the firm to improve its financial risk profile and timely completion of project would be the key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that the Lansum Leisures & Entertainment LLP 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 timely completion of the project and the rating outlook may be revised to 'Negative' if any delay in the completion of the project.

KEY RATING DRIVERS

Credit Strengths:

• Experienced management and established track record of the promoters :

  The Lansum Leisures & Entertainment LLP, promoted by Mr. Umesh Kunapareddy and M/s. Lakshmi Kunapareddy who are in the firm positioned as partners with over two decades of experience showcasing expertise in managing day to day operations of the firm. The group has a project portfolio of completed projects of about 4.96 million sft and ongoing projects of around 8.90 million sft across all projects in the apartment, villa, gated community and commercial formats.

• Favourable location of the project :

  The proposed hotel in Puppalguda Village, Gandipet Mandal, Ranga Reddy District, Telangana, enjoys a strong locational advantage as it is situated in a rapidly developing area with scenic surroundings and excellent connectivity. It is close to reputed schools and higher education institutions, making it attractive for families and academic visitors, while its proximity to major IT and financial hubs such as Gachibowli and Nanakramguda ensures steady corporate demand. Seamless access via the Outer Ring Road enhances connectivity to Hyderabad’s city center and airport, while nearby residential areas provide convenience for daily commutes. Additionally, the presence of reputed hospitals in the vicinity adds to the overall appeal, positioning the hotel to cater effectively to both business and leisure segments.

Credit Risks:

• Vulnerability to cyclicality in hospitality industry and geographical concentration :

  The hotel industry is vulnerable to changes in the domestic and international economy. Typically, the industry follows a six-year cycle.  Companies which have a high financial leverage are more vulnerable to cyclicality due to their fixed financial commitments. Operations are localized and limited to hyderabad and vishakapatnam properties compared with other corporate entities that have presence across multiple locations and states.  This makes the firm vulnerable to the dynamics of a single market and competition from other large players in the same region.

• Project execution risk :

  The projects Radission Blue Hotel Visakhapatnam, Andhra Pradesh and Radission Collection Hotel, Hyderabad, Telangana. are capital-intensive and have long gestation periods with completion timelines set for April 2027 (Visakhapatnam) and April 2029 (Hyderabad). This exposes the firm to risks related to construction delays, cost overruns, regulatory approvals and contractor performance. Extended timelines increase vulnerability to changes in market conditions, financing costs, and input prices. Timely completion and adherence to quality standards are critical, as delays could defer revenue generation and weaken investor confidence.

• Partnership Constitution :

  Given Lansum Leisures & Entertainment LLP constitution as a partnership firm, it is inherently subject to specific risks associated with the potential risk of capital withdrawal by its partners which could adversely impact its financial stability and operational capabilities. Furthermore, the partnership structure exposes to the risk of dissolution in the event of significant changes in the partnership composition, such as the death, retirement, or insolvency of one or more partners.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Lansum Leisures & Entertainment LLP BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale)

RATING SENSITIVITIES

Positive : 

• Achieving 50% or above project construction completion by 31Mar2027.
• Timely disbursement of committed line of funding i,e Rs.90.00crs or above by 31Mar2027.
• Timely infusion of capital as per schedule.
• Timely completion of the ongoing projects without any cost overrun.

Negative :

• Significant delay in disbursement of committed line of funding.
• Any increase in O&M expenses or interest rates impacting the debt serving capacity.
• Achieving 35% or below project construction completion by 31Mar2027.
• Delay in project completion and cost overrun.

LIQUIDITY INDICATORS - Adequate

The firm is projected to maintain sufficient level of inflow and it is expected to grow steadily with an increase in bookings. Additionally, the firm is to benefit from the resourcefulness of the partner group. Hence the overall liquidity position is expecetd to be at adequate level.

ABOUT THE ENTITY

The Lansum Leisures & Entertainment LLP incorporated on 25/07/2022 under Limited Liability Partnership Act 2008. The registered & corporate office of the company is located at Plot No. 283, Road No.78, Jubilee Hills, Hyderabad, Shaikpet, Telangana-500033.The main objective of the firm is to carry on in India and abroad the business of hoteliers. Developing Clubs, Resorts, Restaurants, Convention Centers etc., including acquisition, construction, management either by acquiring the property on outright sale or undertaking the same on development basis or lease or otherwise.

The entity proposed to establish a 5 Star Deluxe Hotel having 267 Rooms with 243 Car parking at 4 basements, spread on an extent of land of 5,919.15 sq. Mt. with a hotel building of 4 Cellar + 1 Ground + 30 upper floors (Meeting rooms, Swimming pool and pool deck with pool bar, Spa, banquet halls, bar area, etc.) located in Sy.No. 343, 347p, Puppalguda Village, Gandipet Mandal, Ranga Reddy District, Telangana.

The firm had entered into Hotel Management Agreement (HMA) in 11April2023 with Radisson Hotels (South Asia) Private Limited to manage and operate the proposed hotel facility.

ESG Profile

The firm's ESG profile demonstrates a Adequate profile across environmental, social, and governance dimensions, aligned with the operational characteristics of the services sector.

Environmental: the firm focuses on optimizing energy consumption across its operations. Initiatives to reduce its carbon footprint include operating in a manner where emissions lead only to Scope 2 GHG emissions and the firm has implemented initiatives to reduce these, specifically through renewable energy. Waste management practices cover the generation of some solid wastes though the firm reportedly does not generate significant hazardous waste. The firm company follows State Pollution Control Board (SPCB) guidelines for wastewater management supported by conservation and treatment measures. The firm reported no instances of environmental non-compliance or penalties during the period.

Social : From a social perspective, the firm emphasizes fair wages, competitive benefits and employee well-being, reporting no pending complaints related to working conditions, sexual harassment, discrimination, or child labor at the end of the year. Health and safety policies are in place, with no fatal incidents reported. Diversity and inclusion efforts are reflected inthe board's structure, which includes at least one Woman Director. Employee capability development remains a priority, supported by training programmes and structured career progression initiatives.

Governance: From a governance standpoint, the firm’s framework includes a Board of Directors where the Chairman is not an Independent Director. Adherence to regulatory and ethical standards is maintained, with no non-compliances reported in the Secretarial Audit Report (MR-3). Workforce governance policies promote fairness and equity across the organization. Ethical conduct is guided by a documented code of conduct and anti-corruption policies, with no confirmed violations reported during the period. Data security and cybersecurity are managed such that there were zero consumer complaints pending resolution regarding data privacy or cyber security at the end of the year.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)	FY 25 - 26 (Provisional - Others(10MFY26))
Operating Revenue	Rs.Crs.	Not Available	Not Available	Not Available
EBITDA	Rs.Crs.	-0.16	-0.02	-0.01
PAT	Rs.Crs.	-0.15	-0.01	-0.01
Tangible Net Worth	Rs.Crs.	1.53	19.23	32.11
Total Debt / Tangible Net Worth	Times	41.34	3.59	2.74
Current Ratio	Times	8.22	3.61	7.62

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction of the rated facilities include standard covenants normally stipulated for such facilities such as : 

• DER following any disbursement to not exceed the Project DER
• The financial covenants shall be tested on an annual basis from the financial year in which the principal repayment commences. It should be ensured that FACR/DER/CR/TOL to TNW/DSCR is maintained as projected.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Nil

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	250.00	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		250.00	(Rupees Two Hundred Fifty Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Service Sector Company

Analytical Contacts
Harish R Ratings Analyst harish.r@brickworkratings.com	Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@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	Union Bank of India	Term Loan - Sanctioned	250.00	_	250.00	Simple##
Total			250.00	0.00	250.00
TOTAL (Rupees Two Hundred Fifty 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.