RATING RATIONALE

24Mar2026

TRG Industries Pvt. Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 70.00 Crs. of TRG Industries Pvt. Ltd.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities**	Previous	Present	Tenure	Previous (06 Mar 2025)	Present
Fund Based	15.00	15.00	Long Term	BWR BB-/Stable Reaffirmation	BWR BB - /Stable Reaffirmation
Non Fund Based	55.00	55.00	Short Term	BWR A4 Reaffirmation	BWR A4 Reaffirmation
Grand Total	70.00	70.00	(Rupees Seventy Crores 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

RATING ACTION / OUTLOOK

Brickwork Ratings (BWR) reaffirms the bank loan rating of BWR BB-/Stable/BWR A4 for a debt size of Rs. 70 Crores.

The ratings reflect the company’s moderate business risk profile driven by its established position in the infrastructure with a presence in multiple states and the benefits of diversification through the hospitality sector. The ratings also factor in the company’s comfortable financial risk profile and the extensive experience of the promoter. The strengths are partially offset by the moderate scale of operations, large working capital requirement, susceptibility to tender-based operations, and economic and industrial cycles.

BWR notes that the adequate liquidity of the Company will enable it to meet the requirements of debt repayments. The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term. BWR expects that TRG Industries Pvt. Ltd.’s business risk profile will be maintained over the medium term.

KEY RATING DRIVERS

Credit Strengths:

Longstanding presence: :
The promoters have experience of over three decades in the civil construction industry. This has given them an understanding of market dynamics and enabled them to establish relationships with suppliers and customers, which will continue to support the business. Also, the promoters have been operating a hotel named 'TRG' successfully in Jammu since 2000.
Diversified revenue and geographical spread operations :
The company has a presence in two sectors such as infrastructure and hospitality; it generates revenue in 60:40 ratios respectively. Further, the revenue profile is diversified, with the rental income. The company is actively pursuing a geographic diversification strategy to mitigate the operational risks associated with its historical concentration in Jammu and Kashmir. The company is shifting its focus toward projects in Madhya Pradesh and Uttar Pradesh to bypass the weather-related delays and security volatility inherent to the J&K region. By expanding its footprint into these regions, management aims to stabilize project execution timelines and reduce the impact of regional disturbances on the company's overall financial performance. The company has work orders on hand of Rs. 223 Crores to be executed during 2026 & 2027 providing revenue visibility over the medium term.
Comfortable financial risk profile: :
In FY25, the capital structure remains comfortable with TNW of Rs. 27.18 Crore, and a gearing of 0.98x (FY24: 0.81x). Total outside liabilities to net worth remains stable at 1.42x on account of negligible long-term debt. The adjusted ISCR is 7.55x in FY25 (FY24: 1.42x). In the absence of any large, debt-funded capital expenditure, the financial risk profile will remain healthy over the medium term. Further, company has unutilized Bank guarantees of about Rs. 34.23 crores which provides cushion to bid for new orders. Operating margins including Rental income remains stable between 4% to 6% consistently.

Credit Risks:

Risks associated with tender-based business :
The Company receives all its work orders from central/state government companies constituting 100% of its order book position. All these are tender-based, and the revenues are dependent on the company’s ability to bid successfully for these tenders and complete the works within the envisaged timeline and cost. Profitability margins come under pressure because of the competitive nature of the industry. However, the promoters’ long-standing industry experience of more than four decades and the operating efficiency of the company mitigate this risk to a great extent.
Modest scale of operations and susceptibility to volatility in raw material prices : :
The scale of operations of the company witnessed a fluctuating trend in the past couple of years. During FY25, the company's contract receipt dipped yet again by 16.6% ~ Rs. 44.99 Crores (FY24: Rs. 54.16 Crores), though hotel income continues to rise in its second year by 16.48% to Rs. 21.20 Crores (FY24: Rs. 18.17 Crores). As informed by the management, the company generated an operating income of Rs. 59.19 Crores approximately as of 28th February 2026.

The raw material is the major cost driver and the prices of the same are volatile therefore cost base remains exposed to any adverse price fluctuations in the prices of cement, sand, steel, etc being major cost components among all materials. Accordingly, the profit margins of the company is susceptible to fluctuation in raw material prices. With a limited ability to pass on the increase in raw material costs in a competitive operating scenario, any substantial increase in raw material costs would affect the entity’s profitability.

ANALYTICAL APPROACH - Standalone

The ratings of TRG Industries Pvt. Ltd. have been arrived at on a standalone basis after the independent evaluation of its financial risk profile. For arriving at its ratings, Brickwork Ratings (BWR) has applied its rating methodology as detailed in the rating criteria.

RATING SENSITIVITIES

Positive:

The rating may be upgraded if there is sustained scale-up in core operations along with sustained improvement in the operating profitability margins of the company of more than 5% and key financial metrics such as its ISCR above 1.50x.

Negative:

The rating may be downgraded if the company’s revenues continue to further decline due to a delay in the execution of projects, its financial risk profile deteriorates significantly by increasing debt or a weakened liquidity profile.

LIQUIDITY INDICATORS - Adequate

The expected cash accrual will remain between Rs 1-2.55 crore for fiscals 2026 and 2027 against zero obligations of long-term debt. Overall overdraft utilization of both banks averaged around 50% for the 13 months ending on 31st January 2026. Additionally, unutilized BG as of 17th March, 2026 is approx. Rs. 34.23 crores providing cushion to bid for new orders. The working capital cycle is efficiently managed with sanctioned overdraft limits of Rs. 18 Crs and a shorter collection period of hotel & restaurant income. A Current Ratio between 1.80 and 2.76 indicates that the company has sufficient liquidity position. The Cash and bank balances were Rs 13.33 crore as on March 31, 2025, & Rs.15.13 crore as on 15th November 2025, out of which Rs 12.45 crore & Rs 14.92 crore were encumbered with banks, respectively. case The unsecured loans from the promoters will continue to support the liquidity.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Industrials	Construction	Construction	Civil Construction

TRG Industries Pvt Ltd (TRG) established in 1980 by Mr T R Gupta (Chairman and MD), undertakes civil construction projects. Based in Jammu, the company constructs roads, runways, bridges, and railway tracks for government authorities. Apart from the side, the company also owns and operates a hotel (22 rooms) by the name of TRG hotel, a restaurant with a capacity of 150 people, a bar, and gym in Jammu.

ESG Profile

The company demonstrates a Adequate ESG profile based on its environmental, social, and governance practices.

Environmental: Environmental risks for TRG are primarily driven by its civil construction activities (roads, bridges, and runways) which involve significant land-use impacts and energy consumption. While the company has over four decades of operational experience, specific disclosures regarding GHG-emission reduction targets or the adoption of renewable energy solutions (such as solar-powered hotel facilities or toll plazas) are currently not available in the provided records. TRG must manage significant environmental risks inherent to the Jammu & Kashmir region, where projects are susceptible to topographical challenges and weather-induced halts. Compliance with environmental regulations appears to be Followed, as the company continues to secure and execute government contracts which mandate adherence to standard water and dust-management practices.

Social: TRG’s social profile is centered on labor practices and community impact across its dual operations in construction and hospitality. In the construction segment, the company adheres to mandatory health and safety frameworks required by government authorities, although specific lost-time injury trends are not disclosed. The company appears Compliant with basic labor standards, utilizing a workforce for manual material transport in high-altitude terrains, such as the PMGSY road projects. Social performance is bolstered by the hospitality segment, where occupancy is driven by pilgrims to the Vaishno Devi temple, suggesting a role in supporting local religious tourism and community infrastructure.

Governance: Governance is characterized by a centralized, family-led structure, with board independence rated as Low due to the board being comprised entirely of the Jammu-based Gupta family. Board diversity is present through the directorship of Vidushi Gupta alongside Naresh and Anirudh Gupta. There is a formal grievance-handling mechanism effectively Implemented through structured engagement with concessioning authorities (state and central highway bodies) during the tender and arbitration processes. The company demonstrates compliance with applicable laws, and despite frequent litigation regarding contract disputes and arbitration awards of ₹400 Crores, there is an absence of major regulatory violations (Yes) that would preclude them from government bidding.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)	FY 25 - 26 (Provisional - Others(7.5MFY26 (15 nov, 2025)))
Operating Revenue	Rs.Crs.	72.57	66.20	40.76
EBITDA	Rs.Crs.	1.36	0.98	0.87
PAT	Rs.Crs.	-0.50	1.16	0.92
Tangible Net Worth	Rs.Crs.	25.81	27.18	28.08
Total Debt / Tangible Net Worth	Times	0.81	0.98	0.80
Current Ratio	Times	2.12	1.80	1.98

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

ANY OTHER INFORMATION

RATING HISTORY FOR THE PREVIOUS 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	15.00	BWR BB-/Stable (Reaffirmation)	06Mar2025	BWR BB-Stable (Reaffirmation)	29Feb2024	BWR BB- Stable (Upgrade and Removed from the INC category)	NA	NA
Non Fund Based	ST	55.00	BWR A4 (Reaffirmation)	06Mar2025	BWR A4 (Reaffirmation)	29Feb2024	BWR A4 (Reaffirmation and Removed from the INC category)	NA	NA
Grand Total		70.00	(Rupees Seventy Crores Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Muskan Jain Ratings Analyst muskan.j@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

TRG Industries Pvt. Ltd.

ANNEXURE-I

Details of Bank Facilities rated by BWR

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	Jammu and Kashmir Bank	Bank Guarantee - Sanctioned	_	55.00	55.00	Simple##
2	Jammu and Kashmir Bank	Secured OD - Sanctioned	15.00	_	15.00	Simple##
Total			15.00	55.00	70.00
TOTAL (Rupees Seventy Crores 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.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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