RATING RATIONALE

25Mar2026

Mago Construction Pvt. Ltd.

Brickwork Ratings upgrades the long-term rating to BWR BB-/Stable and reaffirms the short-term rating of BWR A4 for the Bank Loan Facilities of Rs 18.75 crore of Mago Construction Pvt Ltd and removes the rating from the Issuer Not Cooperating category.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities**	Previous	Present	Tenure	Previous (22 Jul 2025)	Present
Fund Based	2.00	6.75	Long Term	BWR C Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed	BWR BB - /Stable removal from ISSUER NOT COOPERATING* category/Upgraded
Non Fund Based	7.00	12.00	Short Term	BWR A4 Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed	BWR A4 Reaffirmation and Removed from the ISSUER NOT COOPERATING* category
Grand Total	9.00	18.75	(Rupees Eighteen Crores and Seventy Five lakhs 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 has upgraded the Long-Term Rating to BWR BB- with a Stable outlook, and the Short-Term Rating reaffirmed to BWR A4 for the Bank Loan Facilities amounting to Rs. 18.75 Crore of Mago Constructions Pvt Ltd. The company has also been removed from the INC (Issuer Not Cooperating) category. The assignment of the ratings reflects experienced management, established client relationships, revenue growth, stable profitability, and an adequate financial risk profile. The ratings also factor in the company’s efficient track record and adequate liquidity position. However, the ratings are constrained in terms of customer concentration, execution-related challenges, and vulnerability to government policy and spending cycles. The “Stable” outlook reflects the expectation of a stable credit profile over the near to medium term.

KEY RATING DRIVERS

Credit Strengths:

Adequate Financial Risk Profile :
The tangible net worth of the company increased in FY 25 Rs. 19.40 Cr from Rs. 18.78 Crores in FY 24. The debt Protection metrics of the company are at a comfortable level with FY 25 ISCR and DSCR at 1.50x and 1.30x times, respectively. The current ratio of the firm is comfortable with a ratio FY 25 11.02 for the past two years.
Extensive Experience of Promoter and Adequate Revenue Visibility :
The firm benefits from the extensive experience of the Mago family, who collectively bring over three decades of expertise in EPC civil construction. Their deep industry knowledge and proven execution capabilities have enabled timely project completion and fostered strong client relationships, particularly with MES, resulting in repeat orders and sustained business momentum. Financially, the firm demonstrates improving performance, with revenues rising from Rs 5.83 crore in FY2024 to Rs 13.84 crore in FY2025. Moreover, an order book of Rs 71.21 crore (as of Feb 2026), executable over the next 2–3 years, provides adequate revenue visibility with credit stability. This alignment of seasoned promoter expertise with a well-secured order pipeline enhances business sustainability

Credit Risks:

Industry Competition :
Although the company has a good track record, it is exposed to competition and is susceptible to risks inherent in tender-based business. Since all of the operations are tender-based, the business depends on the ability to bid for tenders successfully. Additionally, almost all orders are from MES, resulting in high dependence on timely clearances for tenders and payments. Revenue and profitability are expected to remain susceptible to risks inherent in tender-based operations and a competitive landscape.
Client Concentration :
While MCPL benefits from strong relationships with the Military Engineer Services (MES) and repeat orders over decades, its high dependence on a single client segment poses concentration risk. The firm’s revenue stream is largely tied to defense-related civil works, with MES accounting for the bulk of its order book. This reliance exposes the company to potential volatility in government contracting cycles, budgetary allocations, and policy changes. Limited diversification beyond MES projects constrains business resilience, making revenue visibility vulnerable to shifts in defense infrastructure demand.

ANALYTICAL APPROACH - Standalone

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

RATING SENSITIVITIES

Positive:
Substantial growth in revenue and profitability, while maintaining the current credit profile

Negative:
Decline in revenue or operating margin, or further elongation of the working capital cycle

LIQUIDITY INDICATORS - Adequate

The entity's liquidity remains adequate, with a current ratio of 11.02 in FY25. It has cash and cash equivalents of Rs 0.36 Cr, and expected operational accruals of Rs 0.72 Cr against repayments of Rs 0.27 Cr. Liquidity is further supported by average fund-based bank limit utilization 88.58%, with non-fund-based utilization at 98%, providing a sufficient cushion for short-term obligations.

ABOUT THE ENTITY

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

Mago Construction Private Limited (MCPL), incorporated in 1984 and headquartered in Agra, has established itself as a specialized EPC civil contractor which works with the Military Engineer Services (MES) & others. It is registered as a Super-Special-Category enlistment with MES since 1992, which grants bidding eligibility across all categories of military engineering projects across India. The company is managed by the Mago Family, which undertakes civil construction projects such as RCC structures, pavements, specialised framed structures, roads, runways, hangars, military base complexes, industrial sheds and other technical defence infrastructure across India.

ESG Profile

The company demonstrates a Evolving 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 implemented, reflect 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.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	5.02	5.83	13.84
EBITDA	Rs.Crs.	-2.49	0.75	1.27
PAT	Rs.Crs.	0.34	0.39	0.62
Tangible Net Worth	Rs.Crs.	18.39	18.78	19.40
Total Debt / Tangible Net Worth	Times	0.27	0.24	0.20
Current Ratio	Times	9.97	11.56	11.02

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for bank loan facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Not applicable

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	6.75	BWR BB-/Stable (removal from ISSUER NOT COOPERATING* category/Upgraded)	22Jul2025	BWR C (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	15Jul2024	BWR C (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	12Jul2023	BWR C (Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
Non Fund Based	ST	12.00	BWR A4 (Reaffirmation and Removed from the ISSUER NOT COOPERATING* category)	22Jul2025	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	15Jul2024	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	12Jul2023	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
Grand Total		18.75	(Rupees Eighteen Crores and Seventy Five lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Shalaka Shashikant Keer Ratings Analyst shalaka.k@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

Mago Construction 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	ICICI Bank	Loans against Property - Sanctioned	4.75	_	4.75	Simple##
2	Punjab and Sind Bank	Bank Guarantee - Sanctioned	_	12.00	12.00	Simple##
3	Punjab and Sind Bank	Over Draft - Sanctioned	2.00	_	2.00	Simple##
Total			6.75	12.00	18.75
TOTAL (Rupees Eighteen Crores and Seventy Five lakhs 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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