Rating Rationale

BWR has assigned long-term ratings of BWR BBB (Stable) for Fund-based and Non-Fund-based facilities aggregating Rs 220 Crs. The rating factors in credit strength, such as experienced management and a long track record, Improvement in operating revenue and profit margin, moderate financial risk profile, while also factoring in credit risk such as an intensive working capital cycle and exposure to risks inherent in tender-based business.

The stable outlook is assigned to the long-term ratings as the company is expected to benefit from a strong order book position of ~ Rs 535 Crs as on 30 July 2026. This provides revenue visibility in the medium term

BWR has relied upon audited financials until FY 25 and FY 26 Provisional, and projections submitted by the company until FY 28, and information submitted by the company  to arrive at ratings. 

There are standard covenants as per  Sanction Letter 

• Experience Management and Long Track Record :

  Established in 1978 as a sole proprietorship, RSKCPL was incorporated as a private limited company in 2003. The company’s daily operations are led by Managing Director Mr. Rajendra Singh Kiledar, alongside directors Mr. Shivendra Singh Kiledar and Mr. Raghavendra Singh Kiledar. With over three decades of hands-on experience in civil construction, the leadership team has built strong, enduring relationships with key clients and suppliers.  RSKCPL will continue leveraging its seasoned management and established industry network for ongoing success

• Improvement in operating revenue and profit margin :

   In FY 2026 (provisional), RSKCPL registered  12.17% growth in operating revenue, reaching  Rs 211.58 crore compared to Rs 188.61 crore in FY 2025, supported by steady execution across infrastructure segments. Profitability margins also showed positive momentum: operating margin expanded to 14.18% (up from 13.53% in FY 2025) despite elevated raw material costs, while net profit margin edged up to 5.94% (from 5.88% in FY 2025). As of July 30, 2026, the company maintains a healthy order book of 534 crore, providing medium-term revenue visibility with an Order Book to Income (OB/OI) ratio of 2.53x. However, expansion into Mizoram—accounting for Rs 165 crore of the backlog—marks RSKCPL’s entry into the North-East and introduces execution risks in unfamiliar terrain. While operating performance is projected to remain on a growth trajectory, key monitorables will include managing regional concentration (25% of revenue from Madhya Pradesh and 75% from Maharashtra and Mizoram) and ensuring timely project execution while securing new orders

• Moderate financial risk profile :

  RSKCPL maintains a moderate financial risk profile, supported by a healthy  Tangible net worth of Rs.92.77 crore in FY2026 (Prov.) versus Rs.80.21 crore in FY2025 (A). The gearing ratio remained comfortable at 0.65x in FY2026 (Provisional), with total borrowings rising to Rs 60.61 crore in FY 2026(Provisional) from Rs.51.45 crore in FY 2025 due to increased short-term and long-term debt. Debt protection metrics were stable, with ISCR at 2.51x and DSCR at 2.09 in FY2026 (Prov.) compared to 3.27x and 2.39x in FY2025. TOL/TNW stood at 1.77x in FY2026 (Prov.) compared to1.67x in FY2025, while Debt/EBITDA stood at  2.02x in FY 2026(prov) from 2.01x in FY 2025. Net Cash Accruals to Total Debt stood at 0.30x in FY 2026(prov) from 0.33x in FY2025. With no major capex planned, the financial risk profile is expected to remain comfortable over the medium term.

• Intensive working capital cycle :

   RSKCPL’s working capital management remains intensive, with cash conversion cycle increasing to 115 days as compared to 103 days, primarily driven by an increase in inventory days to 180 days (FY2026 Prov.) from 154 days (FY2025), reflecting a higher work-in-progress (WIP) buildup of Rs.87.55 crore in FY2026 (prov) compared to Rs.76.26 crore in FY2025 due to a robust order book. Debtor days also rose to 83 days in FY2026 (Prov.) from 63 days in FY2025, impacted by significant year-end revenue booking of ~Rs.91 crore (43-45%) in Q4FY26, with 11% of receivables outstanding in the 90–180-day bracket. Accounts payable days, though deteriorated to 148 days in FY2026 (Prov.) from 114 days in FY2025, remain stretched due to deferred payments to suppliers and inclusion of subcontractor fees, with subcontracting accounting for ~10% of total work. With sustained focus on inventory control and enhanced collection efficiency, the company’s working capital cycle is expected to improve going forward.

• Exposure to risks inherent in tender-based business :

  Tender-based operations limit the pricing flexibility of the company and make revenue dependent on the ability to bid successfully. The operating margin remains constrained by competitive pricing. Profitability of each project is subject to pricing, availability of labour, machinery mobilisation, weather, and geological conditions. 

Positive Triggers (Factors for Rating Upgrade)

• Revenue & Scale Growth: Sustained growth in operating income through higher order intake and successful contract wins.

• Execution Track Record: Timely execution of ongoing projects without cost or time overruns.

• Profitability Expansion: Improvement in operating EBITDA margins greater than 18% alongside expansion in overall operations.

• Working Capital Efficiency: Better management of receivable days and Inventory days and reduced stretch in the working capital cycle /Cash conversion cycle 

• Liquidity & Leverage Strengths: Strengthening of liquidity buffers and a reduction in net financial leverage < 1.50 x

Negative Triggers (Factors for Rating Downgrade)

• Declining Operations: A drop in execution volume or revenue contraction on a sustained basis.

• Credit Metric Deterioration: Significant increase in leverage, specifically with net leverage rising above 2.5 x

• Working Capital Stretches: Elongation in debtor collections (delay in bill clearances from government/civil authorities)  and inventory days, leading to cash flow stress and Elongation of the cash conversion cycle beyond 150 days 

• Liquidity Strain: High utilization of bank facilities (fund-based/non-fund-based) and weakening cash accruals relative to debt servicing obligations.

RSKCPL’s rating continues to be supported by its adequate liquidity profile, underpinned by consistent cash accruals of Rs.19.64 crore in FY2027  against debt obligations of Rs.11.07 crore in FY2027, reflecting stable debt servicing capability. The company’s short-term solvency remains steady, with  current ratio at  1.65x as on March 31, 2026 (Prov.)  Fund-based working capital limits were highly utilized at ~82%. Further, Liquidity is supported by cash and bank balances of Rs. 4.22crore. Promoter support through unsecured loans on a need basis of Rs.6.6 crore further enhances financial flexibility. With no debt-funded capex plans and expected cash accrual generation, the company’s liquidity position is likely to improve going forward.

1. Environmental Factors (E)

As a regional infrastructure contractor, environmental impacts stem from ground-level civil construction practices:

• Resource Use: Material footprint consists mainly of asphalt, bitumen, aggregates, cement, and steel for road and bridge projects.

• Compliance: Subject to local pollution control guidelines (e.g., dust suppression, hot-mix plant emission controls, and waste disposal regulated by State Pollution Control Boards).

• Carbon Impact: Standard construction logistics and heavy equipment usage without dedicated net-zero or renewable-transition disclosures.

2. Social Factors (S)

• Workforce & Safety: Civil road and bridge construction entails high operational risk. Safety protocols rely on standard contract specifications set by public works departments (PWDs) rather than independent ESG frameworks.

• Employment: Employs a core administrative team alongside localized, contract-based site labor force tailored to ongoing project sites.

• Community Impact: Infrastructure execution directly connects and improves regional transport routes across tier-2/3 regions in Central India.

3. Governance Factors (G)

• Board & Ownership: Family-managed board structure (Promoters: Rajendra Singh Kiledar, Raghvendra Singh Kiledar, and Shivendra Singh Kiledar).

• Financial Oversight & Credit Profile: Rated by credit agencies like Acuité Ratings & Research (holds investment-grade ratings for bank facilities), reflecting standard compliance, debt coverage, and financial disclosure standards required by banking partners.

• Regulatory Compliance: Active statutory filings with the Ministry of Corporate Affairs (MCA).

Rajendra Singh Kiledar Constructions Private Limited (RSKCPL) was Incorporated in 2003, building on operations that began in 1977. The company is an A-class government-certified contractor specializing in roads, bridges, and public buildings. The company executes  Public infrastructure projects for the state governments of Madhya Pradesh and Maharashtra. The company is a family-led management company  by Mr. Rajendra Singh Kiledar alongside his sons, Shivendra and Raghavendra Singh Kiledar. The company has long-standing industry experience, strong state government ties, and an operational footprint in Central India.

The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated. It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's credit rating. It also does not indicate the complexity associated with analysing an entity's financial, business, industry risks or complexity related to the structural,transactional or legal aspects. Details on the complexity levels of the instruments are available on BWR's website Complexity Levels.

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
IND	IND B/Negative(ISSUER NOT COOPERATING)/ IND A4(ISSUER NOT COOPERATING). India Ratings has not received adequate information and has not been able to conduct management interaction with Rajendra Singh Kiledar Constructions Pvt Ltd while reviewing the rating.	18Jun2026

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Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI]. BWR is the 5th agency to get a credit rating registration in India in 2009 and its corporate office in Bengaluru. It has a country-wide presence with representatives in 150+ locations. Canara Bank is our institutional investor.

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