TURBOTECH INFRANET PRIVATE LIMITED

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 95.10 Crs. of TURBOTECH INFRANET PRIVATE LIMITED

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	43.00	Long Term	BWR BBB - /Stable Assignment
Non Fund Based	52.10	Long Term	BWR BBB - /Stable Assignment
	(15.00)
	(7.50)
Grand Total	95.10	(Rupees Ninety Five Crores and Ten 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
Note: A long-term rating has been assigned to the Bank Guarantees to reflect their extended tenor of up to 48 months, including a 12-month claim period RATING ACTION / OUTLOOK

Brickwork Ratings has assigned a long-term rating of BWR BBB-/Stable to the bank loan facilities of Turbotech Infranet Private Limited (TIPL), totaling Rs 95.10 Cr. The rating action is supported by TIPL's expanding operational scale, improved profitability margins, and the presence of a robust unexecuted order book valued at Rs 238 Cr. However, the company's credit profile is weighed down by thin margins and the highly competitive nature of the industry.

The Stable outlook indicates BWR's belief that TIPL will sustain its growth and healthy profitability in the near term, bolstered by government initiatives in the water supply and treatment sector.

KEY RATING DRIVERS

Credit Strengths:

• Revenue visibility and growing scale of operations :

  The company's business scale has seen steady growth, rising from Rs. 103 Crore in FY23 to a provisional Rs. 170 Crore in FY26. This growth in operations has been paired with a steady rise in profitability; the operating profit (OPBDIT) margin increased from 1.27% in FY23 to 4.12% in FY26, and the net profit (PAT) margin grew from 1.06% to 2.70% during that period. Revenue visibility over the medium term is supported by an unexecuted order book of roughly Rs. 238 Crore as of April 1, 2026, which is approximately 1.40 times the provisional FY26 revenue of Rs. 170 Crore. These projects, secured through various state government departments, offer a stable outlook for the company's future earnings.

• Comfortable credit metrics :

  As of March 31, 2026, the company reported no long-term bank borrowings. Its debt structure is instead composed of utilized working capital limits, short-term debt, and long-term unsecured loans provided by directors. The total debt of Rs. 72.74 crore includes Rs. 11.86 crore in utilized working capital, alongside director-provided unsecured loans totaling Rs. 32.97 crore in short-term and Rs. 27.91 crore in long-term funding. Promoter-provided unsecured long-term loans of Rs. 27.91 crore are categorised as quasi-equity, given their subordination to bank debt and aligned with bank sanction conditions. Consequently, adjusted tangible net worth (TNW) incorporates these quasi-equity instruments, while adjusted debt excludes them. Under this treatment, the company's adjusted gearing was comfortable at 1.07x as of March 31, 2026, though it showed moderation from 0.87x as of March 31, 2025, primarily due to Rs. 11.65 crore in short-term promoter loans infused during the period. Furthermore, the adjusted TOL/Adj TNW ratio remained healthy at 1.09x as of March 31, 2026, compared to 0.94x as of March 31, 2025.

• Experienced and Resourceful Promoters :

  Under the leadership of Mr. Kailash Chandra Lohiya and Ms. Disha Lohiya, Turbotech Infranet Private Limited benefits from nearly twenty years of expertise in the water infrastructure and finance sectors. This significant industry experience enhances the company's ability to execute projects effectively and maintain strong ties with various government entities. Additionally, the promoters have demonstrated their commitment through regular capital injections, with a further equity infusion of Rs. 14 crore planned for FY27. 

Credit Risks:

• Thin profit margins :

  The company's operating margin remains relatively thin, which restricts its ability to absorb unexpected cost escalations and cyclical sector volatility. However, the promoters have consistently infused funds into the business. In the event of any financial exigencies arising from these constrained margins, timely funding support from the promoters is expected to remain available. Over the medium term, profitability should gradually improve as the company scales up operations and executes larger contracts.

• Exposure to intense competition and project execution risks :

  Revenue depends entirely on successful bidding for government tenders in the highly fragmented water infrastructure sector. This intense competition restricts pricing flexibility and inherently constrains margins. Furthermore, while the business remains exposed to project execution risks, these are largely mitigated by the promoters' extensive industry experience and the company's demonstrated track record of project completion without any major delays reported.

• The working capital-intensive nature of operations :

  The company's operations are working capital-intensive, as reflected in the elongation of the operating cycle to 127 days in FY26 from 103 days in FY25. This increase is primarily driven by a build-up of unbilled work, which led to an extension in inventory holding from 59 days to 81 days over the same period. Furthermore, the reliance on working capital limits is elevated due to negligible creditor support, with payment days remaining notably low at 2-3 days. While the company manages its debtors efficiently, maintaining a relatively swift collection period of 46-49 days from government departments, the overall inventory build-up and the dependence on timely administrative approvals for billing remain key credit monitorables.

ANALYTICAL APPROACH - Standalone

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 link mentioned  below (Hyperlinks provided  at the end of this rationale)

RATING SENSITIVITIES

Positive Sensitivities:

• Significant increase in scale of operation and EBITDA / Operating margins above 10% while maintaining or improving the current credit profile indicated by Adjusted TOL/Adjusted TNW of 1.09x or Adjusted Gearing of 1.07x 

Negative Sensitivities:

• Any major decline in the revenue or a reduction in the profitability margin below the existing level.
• Elongation in receivables or working capital stretches beyond 150 days, impacting liquidity or an increase in Adjusted TOL /Adjusted TNW to above 2.00x

LIQUIDITY INDICATORS - Adequate

The liquidity position of the company is adequate, supported by unencumbered cash and cash equivalents of Rs. 1.61 Crore as on March 31, 2026 (Provisional). In FY26, the company reported net cash accruals of Rs. 4.66 Crore against no major scheduled long-term debt repayment obligations. Average utilisation of fund-based working capital bank limits is maintained at approximately 70%. Additionally, the liquidity position is supported by the infusion of unsecured loans from the promoters, which provides supplementary funding availability for operations.

ABOUT THE ENTITY

Turbotech Infranet Private Limited (TIPL), incorporated in 2015, is based out of Surat, Gujarat, and is promoted by Mr. Kailash Chandra Lohiya and Mrs. Disha Lohiya. The company is engaged in creating and managing water infrastructure projects, such as community-based drinking water projects (including treatment, supply, and distribution), sewage treatment plants, and sewage networks. It acts as a turnkey solution provider for water treatment, supply, and distribution projects based on solar as well as conventional energy sources. The company has executed various projects in the states of Uttar Pradesh, Assam, Karnataka, Rajasthan, Punjab, and Bihar. 

ESG Profile

The company demonstrates an evolving ESG profile based on its environmental, social, and governance practices.

Environmental: The company’s environmental profile is supported by its core operations in creating and managing Water Infrastructure Projects, like the Community-based Drinking Water project, including Treatment, Supply & Distribution, Sewage Treatment Plants and Sewage Network, along with the gradual incorporation of solar-based systems in project execution. Environmental risks in EPC operations primarily arise from construction-site impacts, resource consumption, and waste generation; however, detailed disclosures on water consumption, waste segregation (including C&D waste), and emissions tracking are limited. While adherence to ISO 14001:2015 indicates compliance with environmental management systems and no major adverse regulatory issues are reported, formal carbon emission reporting, reduction targets, and sustainability disclosures are yet to be established.

Social: The company has a strong positive social impact through its operations, providing potable water access to ~2 million people every day across rural and semi-urban regions. It maintains occupational health and safety standards as reflected by OHSAS 45001:2018 certification, covering both employees and site-level workforce; however, granular disclosures on safety performance metrics, workforce training, and human capital development remain limited. The company is understood to be compliant with applicable labour laws, though disclosures on diversity, inclusion, and structured community engagement frameworks are not available.

Governance: The governance framework is promoter-driven, with management having relevant technical and financial expertise in EPC water projects. While the company maintains required certifications (including ISO 9001:2015) and follows standard compliance practices for government contracts, the overall governance structure remains evolving, with limited visibility on board independence, formal risk management committees, and ESG-specific oversight at the corporate level. Project-level monitoring and execution controls are in place; however, comprehensive ESG reporting and institutionalised governance frameworks are yet to be fully developed

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	123.14	155.25	170.38
EBITDA	Rs.Crs.	1.85	4.63	7.02
PAT	Rs.Crs.	1.75	3.27	4.60
Tangible Net Worth	Rs.Crs.	6.30	9.57	14.17
Total Debt / Tangible Net Worth	Times	8.52	6.33	5.13
Current Ratio	Times	2.29	2.05	1.91

KEY COVENANTS OF THE FACILITY RATED

The terms of the sanction includes standard covenants typically required 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	43.00	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	LT	52.10	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	LT	(15.00)	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
		(7.50)	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		95.10	(Rupees Ninety Five Crores and Ten lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Engineering Procurement and Construction (EPC) Companies

Analytical Contacts
Anjali Singh Senior Rating Analyst anjali.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	AU Small Finance Bank	Cash Credit - Sanctioned	9.00	_	9.00	Simple##
2	AU Small Finance Bank	Bank Guarantee - Sanctioned	37.10	_	37.10	Simple##
3	Bandhan Bank	Bank Guarantee - Sanctioned	15.00	_	15.00	Simple##
	Sub-Limit (JV/SPV BG-Sublimit of Bank Guarantee ) - Sanctioned	(7.50)
4	Bandhan Bank	Cash Credit - Sanctioned	10.00	_	10.00	Simple##
5	Punjab National Bank	Cash Credit - Sanctioned	24.00	_	24.00	Simple##
	Sub-Limit (Bank Guarantee) - Sanctioned	(15.00)
Total			95.10	0.00	95.10
TOTAL (Rupees Ninety Five Crores and Ten 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.