Dharti Dredging and Infrastructure Ltd.

Brickwork Ratings reaffirms and simultaneously withdraws the ratings for the Bank Loan Facilities of Rs. 135.00 Crs. of Dharti Dredging and Infrastructure Ltd.

Particulars

Facilities/Instruments	Amount (Rs.Crs.)		Tenure	Rating		Regulator
	Previous	Present		Previous (21 Jul 2025)	Present
Fund Based	40.00	40.00	Long Term	BWR BBB- /Stable Assignment	BWR BBB - /Stable Reaffirmation/Withdrawal	RBI
Non Fund Based	95.00	95.00	Short Term	BWR A3 Assignment	BWR A3 Reaffirmation/Withdrawal	RBI
Grand Total	135.00	135.00	(Rupees One Hundred Thirty Five 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 / WITHDRAWAL

Brickwork Ratings (BWR) reaffirmed the long-term and short-term rating of Dharti Dredging and Infrastructure Ltd to BWR BBB- Stable / BWR A3 while simultaneously withdrawing for bank loan facilities of Rs. 135.00 crore, based on the request from the company and the receipt of a No Objection Certificate (NOC) from its sole lending bank, Bank of Maharashtra which is in compliance with BWR's withdrawal policy. The reaffirmation of the ratings with a 'Stable' outlook is factored in the company's operational performance, marked by robust revenue growth in FY26 and medium-term revenue visibility backed by a healthy, unexecuted order book from counterparties like IWAI and DCI while maintaining a healthy credit profile.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating

KEY COVENANTS OF THE INSTRUMENT / FACILITY RATED

The key covenants are the standard terms as stipulated in the sanction letters of the rated facilities

KEY RATING DRIVERS

Credit Strengths:

• Experienced Management & healthy Revenue Visibility :

  DDIL is backed by promoters and a professional management team with over two decades of marine industry experience, benefiting from strong strategic and financial support. This leadership has driven steady growth, scaling operations from Rs 8 crore in FY24 to Rs 122 crore in FY26. Revenue generation is anchored by a strong clientele including Inland Waterways Authority of India (IWAI), Dredging Corporation of India (DCI), Yogayatan Ports, and Yogayatan GG Infra. Near-to-medium-term revenue visibility remains highly secure, supported by a healthy unexecuted order book of Rs 446 crore as of Sept 2026.

• Moderate Financial Risk Profile :

  The company's financial risk profile remains moderate, supported by consistent internal accrual generation and strengthening of its capital base. TNW increased from Rs. 80.56 crore in FY24 to Rs. 95.30 crore in FY25 and further to Rs. 151.79 crore in FY26, primarily supported by profit retention. Further the entity is supported by the increase in scale of operations, total debt-to-TNW improved at 0.45x in FY26, while TOL/TNW at 0.27x. The company has also demonstrated improvement in absolute profitability, with PAT increasing to Rs. 56.51 crore in FY 26 with its net cash accruals to Rs. 64.46 crore in FY26.

   

Credit Risks:

• Inherent Industry & Execution Risks :

  The company is exposed to the highly competitive, tender-driven nature of the EPC sector, facing challenges such as aggressive bidding, variable order inflows, and reliance on timely government approvals. Additionally, its specialized operations in coastal and inland water zones carry unique physical execution risks due to unpredictable weather, tidal, and sediment conditions. Consequently, the company's revenue growth and profitability remain highly susceptible to project delays, cost overruns, and fluctuating input and labour prices.

• Client Concentration Risk :

  The company's revenue stream and future cash flows are exposed to significant concentration risk, with the vast majority of its unexecuted order book heavily dependent on just four key clients: Inland Waterways Authority of India (IWAI), Dredging Corporation of India (DCI), Yogayatan Ports, and Yogayatan GG Infra. This acute reliance on a limited clientele heightens the risk of revenue stagnation. Any administrative delays, project deferments, site handover issues, or capital expenditure constraints specific to these entities could severely impact the company's operational and financial trajectory. To achieve sustainable long-term growth and mitigate this vulnerability, diversifying the customer base remains a key strategic priority.

   

ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA - Standalone

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

RATING SENSITIVITIES

Not Applicable.

LIQUIDITY INDICATORS - Adequate

The entity's liquidity remains adequate. FY 26 cash and cash equivalents of Rs 77.15 Cr and expected operational accruals of Rs 66.46 Cr against repayments of around Rs 10-12 Cr. Liquidity is further supported by average fund-based bank limit utilization of around 38%; non-fund-based bank limit utilization of around 68%, with a current ratio of 4.20x in FY 26, providing a sufficient cushion. The debt protection metrics of the company are at a comfortable level, with ISCR and DSCR as of FY 2026, 25.88x and 7.92x, respectively.
 

COMPANY's / FIRM's PROFILE

Incorporated on 11 November 1993, Dharti Dredging and Infrastructure Limited (DDIL) is a company specializing in dredging and marine infrastructure construction, with over decades of experience and successfully executed projects across seaports, inland waterways, and estuaries. The company offers specialized marine services, including subsea dredging, land reclamation, ground amelioration, trenching, rock dumping, and the construction of breakwaters and submerged reefs. On 20 July 2023, the National Company Law Tribunal (NCLT), Hyderabad, approved the acquisition of DDIL by the Yogayatan Group through the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.

ESG Profile

The company demonstrates Adequate ESG profile based on its environmental, social, and governance practices.
Environmental: The company’s environmental performance is assessed through green building certifications, energy efficiency measures, and adoption of renewable energy sources like solar panels or green power, which is not applicable to the entity. Water management and waste reduction practices, including rainwater harvesting, wastewater recycling, and recycling/reuse of construction waste, are also important. Climate risk exposure and resilience measures, such as flood protection or heat-resistant materials, are evaluated. Compliance with environmental regulations and any history of violations or penalties are in line with the rules.
Social: Social considerations focus on workforce health and safety for both permanent and contractor staff, adherence to labour laws are compliant, safety performance, and training or human capital development programs. Diversity and inclusion are favourable, and community engagement initiatives, including local community programs, affordable housing, or livelihood support, are implemented, reflecting the company’s commitment to social responsibility.
Governance: Governance is supported by experienced promoters and escrow-backed structures that support financial discipline. However, the partnership structure leads to concentrated decision-making, and formal ESG committees and advanced governance disclosures are limited. Overall governance is adequate but can improve with greater formalisation and transparency. Governance assessment considers board composition, risk management, and compliance.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY(IF ANY)

Not Applicable

RATING HISTORY FOR THE PREVIOUS THREE YEARS(including withdrawal and suspended)

Name of Instrument (NCD/Bank Loan /Non- Fund Based facilitates/ Commercial Paper etc.)	Current Rating  (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	40.00	BWR BBB-/Stable (Reaffirmation/Withdrawal)	21Jul2025	BWR BBB- Stable (Assignment)	NA	NA	NA	NA
Non Fund Based	ST	95.00	BWR A3 (Reaffirmation/Withdrawal)	21Jul2025	BWR A3 (Assignment)	NA	NA	NA	NA
Grand Total		135.00	(Rupees One Hundred Thirty Five Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Engineering Procurement and Construction (EPC) Companies
• Short Term Debt
• BWR Withdrawal Policy
• Manufacturing Company

Analytical Contacts
Shalaka Shashikant Keer Ratings Analyst shalaka.k@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@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	Bank of Maharashtra	Term Loan - Sanctioned	30.00	_	30.00	Simple##
2	Bank of Maharashtra	Cash Credit - Sanctioned	10.00	_	10.00	Simple##
3	Bank of Maharashtra	Bank Guarantee - Sanctioned	_	95.00	95.00	Simple##
Total			40.00	95.00	135.00
TOTAL (Rupees One Hundred Thirty Five Crores Only)

## 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.

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