Rating Rationale

Brickwork Ratings has assigned the long-term rating of BWR B/Stable to the bank loan facilities aggregating Rs.63.88 crores of M/s Bahinabai Constructions.

The rating assigned factors in the extensive experience of the promoters spanning more than two decades in the Navi Mumbai real estate market, strategic micro-market location of the ongoing project 'Sai Shell', availability of requisite RERA approvals, and a structured ring-fenced escrow account mechanism. The rating also derives comfort from a moderate funding mix and construction progress in line with the established project implementation framework.

The rating strengths are constrained due to the nature of the constitution being a proprietorship firm, the nascent stage of physical construction progress of the project, and project implementation risk along with dependence on customer advances. The rating strengths are also partially offset by the moderate brand equity, entrenched competition against highly established local developers in the Ulwe, Navi Mumbai region, and susceptibility to the cyclical nature of the real estate industry.

The Stable outlook on the rating reflects Brickwork Ratings' opinion that the company will benefit from the favourable location of the project, supporting the marketability of its residential projects and resulting in the achievement of the envisaged collections and booking of residential units, along with construction progress as per the project implementation schedule.

The key covenant terms of the SBI sanction letter as stipulated are as follows:-

• The firm has to maintain Fixed Assets Coverage Ratio (FACR) at 2.04x at all times during the currency of the loan. 
• The disbursement will be linked to the stage of construction as per the Cash Budget submitted at the time of sanction, and margin should be brought up front on a pro rata basis in proportion to the loan disbursement.
• Promoters' margin/unsecured loans will not be withdrawn during the currency of the Bank loan, and no interest will be paid on USL during the currency of the Bank loan from project cash flows.
• DSRA amounting to Rs.5.50 Crs, equivalent to 1 month's installment & interest, to be built up before full disbursement during the moratorium period and before commencement of installments in an ESCROW account.
• The cash flow from the proposed project shall be routed through a separate RERA-compliant current account and thereafter through an ESCROW account opened with the Branch, and the Bank will have first charge on the same.
• In the event of advances from customers (both already booked and new bookings) falling short of the amount expected in the means of finance, the shortfall would be made good by the promoters by contributing an additional amount towards their contribution, and any cost overrun will be borne by the promoters from their own sources.

• Extensive experience of the promoters and an established track record :

  Established in 2005, M/s Bahinabai Constructions (operating under the brand name of Dudhe Group) brings over two decades of operational track record in the Navi Mumbai and Panvel real estate markets. The proprietor, Mrs. Surekha Tukaram Dudhe, alongside Mr. Tukaram Ukarda Dudhe, brings extensive industry expertise and deep regional market insights from managing multiple group entities. The group’s proven track record in residential and infrastructure development, combined with timely equity support for its ongoing Ulwe residential project (slated for completion by March 31, 2029), effectively mitigates medium-term business risk. 

• Strategic Micro-Market Location and enhanced connectivity :

   The ongoing residential project, Sai Shell, is situated in a prime area of Ulwe, Mumbai (Taluka Panvel, District Raigad). Strategically located approximately 750 meters from the Bandra-Kurla Complex (BKC) connection, 1.5 km from Vashi Railway Station, and 2.25 km from Uran Road, the property also benefits from being just 2 km from the Atal Bihari Vajpayee Atal Setu, alongside easy access to the Navi Mumbai International Airport and Mumbai-Pune Expressway. The development is supported by established civic infrastructure—including paved approach roads, reliable power, municipal water supply, and drainage—and the project's close proximity to schools, markets, and hospitals is expected to sustain strong buyer demand in the medium to long term. 

• Moderate funding mix :

  The total estimated cost of the project is Rs.148.56crore, which is projected to be met through the promoter’s contribution of Rs.28.56crore (~19.22% of project cost), sanctioned Term Loan of Rs.60 crore from SBI (~40.39% of project cost), and customer advances of Rs.60 crore (~40.39% of project cost).

• Project implementation risk & dependency on customer advances :

  M/s Bahinabai Construction is currently executing its MAHA RERA-registered residential project, Sai Shell (comprising 212 units across Wings A & B, launched in Jan 2025 with a DCCO of March 2029). With only around 12% construction completed and 4 units booked out of 212 as of June 2026, the project remains in its early stages and faces initial absorption friction in the hyper-competitive Navi Mumbai region. The firm's operating performance and liquidity are heavily exposed to project implementation risks, relying on critical drawdown of bank facilities and timely construction-linked customer advances. Consequently, any sluggishness in booking velocity or delays in milestone collections could create temporary cash flow pressures and will remain monitorable over the medium term. 

• Moderate brand equity and entrenched competition :

  The Panvel and Ulwe micro-markets feature a crowded pipeline of residential projects. M/s Bahinabai Construction faces stiff competition from established regional developers with strong balance sheets and established delivery records, requiring continuous pricing competitiveness and marketing efforts.

• Susceptible to the cyclical nature of the real estate industry :

  The real estate sector in India is cyclical, influenced by fluctuating prices, unclear transactions, and a highly fragmented market. The demand for residential developments is closely linked to interest rates and the overall economic conditions in the area. As a result, the business risk profile is vulnerable to risks stemming from a slowdown in the industry.

• Exposure to risks inherent in the real estate sector and geographical concentration of projects :

  The firm’s project portfolio is heavily concentrated in the Navi Mumbai and Raigad regions of Maharashtra. This localized exposure makes operational performance directly vulnerable to regional real estate dynamics, supply-demand imbalances, and municipal infrastructure timelines. Furthermore, because the broader real estate sector in India is cyclical, sluggish regional demand or an industry-wide slowdown could depress cash flows, delay collections, and heighten business risk.

Positive factors

• Timely construction progress of the project, with at least 50% physical progress by the next review, along with timely receipt of customer advances.
• Sustenance of growth in bookings of units along with healthy customer advances in line with projections, leading to a comfortable financial profile.

Negative factors

• Any delay in project implementation and execution timelines and/or cost overruns beyond the estimated project cost of Rs.148.56 cr, leading to deterioration in the project’s cash flows, debt-servicing metrics, and overall credit profile.
• Additionally, lower-than-expected booking of units, delays in customer collections, or significant delays in the disbursement of committed funding lines leading to liquidity stress would remain key negative rating sensitivities.

M/s Bahinabai Constructions has adequate liquidity for funding the construction of its ongoing project, "Sai Shell," through a mix of customer advances, bank loans, and promoters' funds. Customer advances as of 30 June 2026 for its ongoing project are in line with the projections, and the same is expected to increase gradually in line with the increase in bookings of its unsold inventory. The promoters have already infused Rs. 20.25 crores out of the total promoter margin of Rs. 43.11 crores. Repayment of the term loan of Rs.60 crore is scheduled to commence from April 2029, providing a sufficient moratorium of 39 months during the construction phase. The liquidity profile derives further comfort from the maintenance of a ring-fenced RERA account with a defined waterfall structure for routing project collections and insulates the repayment of the rated debt from any sort of tardiness in the overall repayment structure for the entity. However, any unforeseen cost escalation beyond what is agreed upon in the business plan must be met through the infusion of additional funds/equity by the promoters and may significantly impact liquidity. 

Not applicable as the constitution of the firm is a proprietorship entity.

Bahinabai Construction is a real estate and construction firm based in Panvel, Navi Mumbai (Raigad), Maharashtra. The firm was established in April 2005 as a proprietary concern and is managed by Mrs Surekha Tukaram Dudhe. The firm has been instrumental in executing multiple mid-to-large-scale residential projects in growth corridors like Panvel and Khalapur, including Sea Regency, Dudh Vitevari complex, Shiv Thirth, Sai Angan, Guruprasad Apartment, and Sai Sukhiya, etc. 

The entity is currently developing a new mix of residential & commercial projects - "Sai Shell" (Wing A & Wing B, proposed with 8 Nos. of Shops, 8 Nos. of offices, total 196 Nos. of 2 BHK & 3 BHK Residential Flats), which is a premium, sea-facing residential development located in Sector 9, Ulwe, Navi Mumbai. 

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.

Not Applicable

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