Ravi Renewables Pvt. Ltd.

Brickwork Ratings assigns the long-term ratings at BWR BB+/Stable and the short-term ratings at BWR A4+ for the Bank Loan Facilities of Rs. 50.00 Crs. of Ravi Renewables Pvt. Ltd.

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	25.00	Long Term	BWR BB + /Stable Assignment	RBI
Non Fund Based	25.00	Short Term	BWR A4 + Assignment	RBI
	(5.00)
Grand Total	50.00	(Rupees Fifty Crores Only)

Note:
1. Please refer to BWR website www.brickworkratings.com for the definition of the ratings
2. Refer to Annexures I, II, and III for details of rated bank loan facilities, debt instruments, and the List of Entities Consolidated RATING ACTION / OUTLOOK

Brickwork Ratings assigns the long-term ratings at BWR BB+ /Stable and the short-term ratings at BWR A4+ for the bank loan facilities aggregating to Rs.50.00 Crs of Ravi Renewables Pvt. Ltd.

The rating derives strength from the extensive experience of the promoters, established track record in the solar EPC business, healthy order book position and healthy profitability supported by the company’s transition from the relatively low-margin steel trading business to the solar EPC segment. The rating also factors in established relationships with reputed customers, favourable growth prospects in the renewable energy sector and adequate liquidity supported by positive cash accruals and manageable debt repayment obligations. The rating, however, remains constrained by high dependence on group-company orders, uncertainty regarding funding tie-up and timely financial closure of large projects, execution risk associated with significant scale-up, limited track record at the projected scale, working capital intensity and susceptibility of profitability to price volatility and competitive pressures.

The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term. BWR believes Ravi Renewables Pvt. Ltd.’s business and financial risk profile will be maintained over the medium term. The outlook may be revised to Positive if the company demonstrates a sustained increase in the scale of operations and higher-than-envisaged profitability, resulting in improvement in its financial risk profile, along with timely execution of the envisaged projects and successful financial closure of major projects. The outlook may be revised to Negative if the company reports lower-than-expected revenue or profitability, delays in execution of major projects, deterioration in the working capital cycle due to elongation of receivables, weakening of liquidity or debt protection metrics.

For assigning the rating, BWR has relied upon the last 3 years of audited financials till FY25, Provisional for FY26 and projected financials for FY27 & FY28, and publicly available information and clarification provided by management.

KEY RATING DRIVERS

Credit Strengths:

• Experienced promoter :

  The company is supported by an experienced management team with diversified expertise across steel trading, solar energy, finance, real estate and project execution. Mr. Ravindra Kumar Garg, Chairman, has over 55 years of experience in steel trading and administration. Mr. Manu Garg, Managing Director, has over 31 years of experience and has been involved in the solar energy business since 2018, including execution of government-backed solar projects. Mr. Love Agarwal, Whole Time Director, has over 17 years of experience in land acquisition, project closures, financial and accounting matters and government liaison. The board is also supported by Mr. Sandeep Malhotra, a non-executive director with over 35 years of experience across financial and corporate sectors.

• Improved Profitability and Moderate Financial Risk Profile :

  The company witnessed a significant improvement in profitability in FY26, with EBITDA increasing to Rs. 5.26 crore from Rs. 1.91 crore in FY25, while EBITDA margin improved to 4.64% from 1.64%. PAT increased to Rs. 5.16 crore from Rs. 1.30 crore, with PAT margin improving to 4.55% from 1.12%. The financial risk profile remained moderate, supported by comfortable leverage and debt protection metrics, with Total Debt/TNW at 0.20x, ISCR at 4.99x and DSCR at 4.92x in FY26.

• Healthy Orderbook Position :

  The company has a healthy order book position of Rs. 431.97 crore as on April 1, 2026, providing strong revenue visibility over the medium term. The order book is diversified across projects for GAIL-NVPN, ITC Limited, Prabhat Sharma, KUSUM projects, Sunglaze Power Pvt. Ltd. and Ravi Solar Generation Pvt. Ltd. Of the total order book, Rs. 292.47 crore is expected to be executed during FY27 and Rs. 126.00 crore during FY28, supporting business growth and revenue visibility.

Credit Risks:

• Susceptibility of Profitability to Price Volatility and Timely Project Execution :

  The company's profitability remains susceptible to volatility in solar module and other project-related input prices, particularly under EPC contracts where cost escalation may affect project margins. Further, the execution of solar projects is dependent on timely availability of approvals, procurement of equipment and completion within the stipulated timelines. Any delay in project execution or adverse movement in input prices could lead to cost overruns, delayed revenue recognition and pressure on operating profitability.

• Intense Competition :

  The company operates in the solar power project/renewable energy segment, which is characterised by intense competition from established as well as emerging players. Competitive bidding and pricing pressure could constrain the company's ability to maintain margins. The company would need to continuously secure new orders at viable margins to sustain its growth trajectory.

• Working Capital Intensity :

  The company's working capital requirements are expected to increase with the scaling up of operations. The working capital cycle is projected to increase from 3 days in FY26 to 27 days in FY27 and 40 days in FY28, while short-term borrowings are projected to rise from Rs. 6.85 crore in FY26 to Rs. 30.00 crore in FY27 and Rs. 35.00 crore in FY28. The increasing working capital intensity could lead to greater reliance on external funding and expose the company to liquidity and funding risks.

ANALYTICAL APPROACH - Standalone

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

RATING SENSITIVITIES

Going forward, the ability of the company to improve its scale of operations, profitability margins, overall credit risk profile and efficiently manage its working capital requirement would be the key rating sensitivity.

Positive :

• Sustained growth in operating income, with revenue consistently above Rs.300 crore, supported by healthy order inflows and timely execution of the solar EPC orderbook.
• Sustained improvement in profitability, with EBITDA margin maintained above 10%.

Negative :

• Significant shortfall in revenue/order execution, with operating income remaining below Rs.200 crore, due to delays in execution or inadequate fresh order inflows.
• Deterioration in profitability, with EBITDA margin declining below 5.0% on a sustained basis due to cost overruns, intense competition or adverse movement in solar module/input prices.

LIQUIDITY INDICATORS - Adequate

The company’s liquidity profile remains adequate, supported by moderate internal cash accruals. The net cash accrual for FY26 stood at about Rs.5.69 crore against CPLTD of around Rs.0.25 crore, indicating adequate coverage of scheduled repayments. The company is expected to generate cash accruals of around Rs.13.41 crore in FY26, against the projected CPLTD of about Rs.0.30 crore, reflecting satisfactory debt servicing capability. The current ratio remained moderate at 2.44 times in FY26 and is projected at 1.69 times in FY26. Further comfort is derived from the Cash and Bank Balance of Rs.8.72 Crs, which provides financial flexibility. The average working capital utilisation is around 50-60%.

ABOUT THE ENTITY

Ravi Renewables Private Limited (formerly Ravi Steel and Renewables Private Limited) [RRPL], incorporated in 1997 and promoted by Mr. Ravindra Kumar Garg, is a New Delhi-based company engaged in solar EPC projects. The company was primarily engaged in iron & steel trading until FY2017-18, thereafter, gradually increasing its focus on solar EPC and executing initial small-scale orders from FY2023-24. The company has since scaled up its solar EPC operations significantly, with the segment contributing 69.7% of revenue in FY26. The solar EPC business has grown nearly 7x over the last three years, with the company executing turnkey projects for government and private-sector clients, including Himachal Pradesh Power Corporation Limited, Punjab Genco Limited, PEDA, Chhatrapati Shahu Ji Maharaj University and KIET Engineering College, among others.

ESG Profile

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

Environmental: The company operates in the solar EPC/renewable energy segment and is therefore environmentally friendly, contributing to clean energy generation and reduction in dependence on conventional energy sources.However, EPC activities involve construction-site impacts, material consumption and waste generation, for which appropriate environmental and waste-management practices are followed

Social: The company currently employs a workforce of approximately 82 professionals. The company focuses on employee safety, workplace practices and compliance with applicable labour regulations, while project execution also contributes to renewable-energy infrastructure development.

Governance: The company is promoter-driven with established management oversight, and adherence to applicable statutory, regulatory and contractual requirements remains important. Mr. Ravindra Kumar Garg, Chairman, has over 56 years of experience in steel marketing and distribution and has been associated with Loha Vyapaar Sangh, Ghaziabad as Secretary for over 20 years.

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

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	25.00	BWR BB+/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	25.00	BWR A4+ (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(5.00)	BWR A4+ (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		50.00	(Rupees Fifty Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Engineering Procurement and Construction

Analytical Contacts
Chinmaya R Rating Analyst chinmaya.r@brickworkratings.com	Shyam Sunder Narang shyam.n@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	Axis Bank Ltd.	Cash Credit - Sanctioned	15.00	_	15.00	Simple##
	Sub-Limit (Bank Guarantee (Short Term)) - Sanctioned		(5.00)
2	Axis Bank Ltd.	Bank Guarantee - Sanctioned	_	10.00	10.00	Simple##
3	Un tied portion	BG/LC/ILC - Proposed	_	15.00	15.00	Simple##
4	Un tied portion	Cash Credit - Proposed	10.00	_	10.00	Simple##
Total			25.00	25.00	50.00
TOTAL (Rupees Fifty Crores Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf.

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