Sangamam Power Projects Pvt. Ltd.

Brickwork Ratings assigns the ratings of BWR BBB+ for Long term Non fund based facilities aggregating RS 50 Crs and BWR A2 for the short term Non Fund based facilities aggregating Rs 70 Crs of Sangamam Power Projects Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Non Fund Based	50.00	Long Term	BWR BBB + Assignment
	70.00	Short Term	BWR A2 Assignment
Grand Total	120.00	(Rupees One Hundred Twenty 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

BWR has assigned  BWR BBB+ for Long term Non Fund bank loan facilities of Letter of Guarantee/CounterGuarantee  aggregating Rs 50 Crs and BWR A2 for Short term Non Fund based Bank loan facilities aggregating Rs 70 Crs. The rating derives strenth from modest track record of developing and operating renewable energy capacity , strong revenue visibility considering presence of medium-to-long term PPAs for entire operational capacity,  satisfactory generation and collection performance, established relationships with reputed customers ,debt secured through ring-fenced and escrowed cash flow and DSRA for Major SPV  Sirmour Small Hydro Power Private Limited , financial linkages between group companies , However ratings are constrained by large projects under implementation exposing the company to project execution risks, geographical concentration risk considering ~100% of operational portfolio being in Madhya pradesh currently,Vulnerability of cash flows to variation in weather conditions.

KEY RATING DRIVERS

Credit Strengths:

• Modest track record of developing and operating renewable energy capacity :

  The group has an Modest  tack record of over a decade in developing and operating renewable energy plants. SPPPL builds renewable energy plants in two modes – Opex mode and Capex mode. The company  currently has licenses of renewable energy plants aggregating to ~439 MW  in mutiple SPV's along with  projects built in opex mode (42 MW) . Managing directors  Mr. Sitharam Ready Kata and his wife Ravina, are both IT professionals with a background in the utility sector in the US. They returned to India and ventured into power firms, starting with their own resources.

• Strong revenue visibility considering presence of medium-to-long term PPAs for entire operational capacity :

  The group has  entered medium term to long term PPAs with state government  of  Madhya Pradesh ,  and currently in discussion with Rajasthan , Jharkhand  for the offtake of these Capex capacity. The tenor of PPAs range between 25- 35  years on average , imparting strong revenue visibility for the underlying assets.  and provide long-term revenue visibility. BWR Ratings also takes a note of the high tariff competitiveness of group's plants against the applicable grid tariffs in the Key states, results in high economic incentive for the off-takers to honour contractual terms.

   

• Satisfactory generation and collection performance :

  Generation performance on portfolio level has been satisfactory as PLF has been over 90% in FY 24 for major SPV  Sirmour Small Hydro Power Private Limited and 95%  in FY 25.  Total Operating income improved  by 49% in FY24 . Total Operating income improved by 58% in FY 25 due to plants at SPV Level  Simour Small hyrdo Projects Private Limited, group companies  Classcons Infratech Pvt Ltd (10 MW )  and Amhata Hydro Energy Private Limited are already operational (7.6MW ) coupled with EPC Operating income dervived from Sangamam Power Projects Pvt. Ltd. Furthermore, collection performance remained satisfactory as reflected by average receivables of 31 days at consolidated level for the group . Also the group has average ISCR of 5.99x in FY 23-27 and Average DSCR of 2.06 x in FY 23-26   

• Established relationships with reputed customers :

  The company has  established long-term relationships with reputed clientele which include leading state governments utility companies  such as Madhya Pradesh Power Management  Company Limited,  Bhopal Muncipal Corporation Limited , M.P Urja Vikas Nigam Limited  in  Madhya pradesh . The company has plans to diversify and comme up with projects in states such as  Rajasthan and  Jharkhand.

• Debt secured through ring-fenced and escrowed cash flow and DSRA for Major SPV :

  The Group at consolidated level has Total Debt of Rs  313.90 Crs in FY 25 comprising majorly of external debt of Rs 252 Crs availed at  SPV  level Simour Small Hyrdo Projects Private Limited for running 24 MW Hyrdo power project .The group has plan for increasing the debt by Rs 120 Crs for 38.80 MW Solar Power project in FY 26 in Sirmour Small Hydro Projects Private Limited . The  debt has long  repayment schedule of 15-18 years on average  which provides comfort to group for overall debt servicing. This  debt has  repayment secured though ring-fenced and escrowed cash flow mechanism and DSRA equivalent is maintained or  covering interest and principally repayments of 2 quarters in form of  Fixed deposit with IREDA of Rs 11.54 Crs for 24 MW running hydro project inSimour Small hyrdo Projects Private Limited . Additionaly there is pledge of 76 % of equity shares /CCD’s/Preference shares of core promoters contribution/Guarantor. Additionally  for Rs 120 Crs loan sanctioned by IREDA for 38.8 MW solar Power project has Cash sweep mechanism (50% of surplus) and interest on quasi equity/dividend payment is allowed after cash sweep during tenure of loan  and also call option after 15 years of repayment with DSRA and Escrow mechanism also in place. Additionally as on date other SPV's does not have external debt.  

• Financial  Linkages between group companies :

  In parent company  at standalone level Sangamam Power Projects Private Limited there  are unsecured Loans of Rs 31 Crs from group compamies in FY 25 . In FY 25  there are  Other long term liabilities of Rs 98.94Crs which  comprises of advances availed from group companies  .Similarly there are  Loans and advances of Rs 48.89 Crs which are  extended to group companies in FY25  and  there are  Rs 64 Crs of Non Current Investments in FY 25 .  There are Rs 5.89 Crs of unsecured loans from Sangamam Power Projects Private Limited in Simour Small hyrdo Projects Private Limited.  These intercompany transactions/related party provides financial flexibility to Group 

Credit Risks:

• Leverage capital structure of the company :

  Company’s capital structure is leveraged considering debt funded capex incurred for setting up renewable energy projects. Gearing levels stood at 4.30 in  FY24 end and at 2.97 x in FY 25. However gearing level  is expected to reduce in future even after availment of debt of Rs 120 Crs  for under construction solar  project of 38.80 MW in  Sirmour Small Hydro Power Private Limited  and additional debt if Group increases its capacity further until FY 27 at  group company level  for projects in Marshall Small Hydro Power Private Limited and Sangamam Power Projects Private Limited at standalone level.  Average Grossdebt/EBITDA for FY 23-27 is ~4.11 x The company intends to enhance its operational capacity by FY26 end. Majority term loans availed at group level  are linked to floating interest rates exposing the company’s cash flows to adverse movement in the interest rates

   

• Large projects under implementation exposing the company to project execution risks :

  A s of 30 June 2025 ,the  group has alreday commisioned 41.6 MW capacity of projects and   intends to commission  ~80.6 MW assets until FY 28. Out of this  however  financial closure for 28 MW has not taken place until now. The company is adequately capitalised from an equity perspective to execute these projects. However, BWR Ratings notes that availability of long-tenure debt at cost competitive rates would continue to be a key credit monitorable. Given the large projects  under development pipeline, the group remains exposed to under-construction risk. Any material cost or time related overrun may adversely impact project level. However, the group’s established track record of building projects provides comfort. Additionaly  as on June 30 , 2025, the group has  Licenses  which  stood at ~439 MW at SPV and Group Level  which does not have debt . 

• Geographical concentration risk considering ~100% of operational portfolio being in Madhya pradesh :

  The group has presence across few  locations in India , making the portfolio geographically concentrated   ~100%  of underlying assets are currently operational in Madhya Pradesh exposing it to geographical concentration risk.  However BWR Ratings notes the company is expanding operations in different geographies namely Rajastham , Jharkhand , Orissa.

   

• Vulnerability of cash flows to variation in weather conditions :

  As tariffs are one part, the company may book lesser revenues in case of non-generation of power due to variation in weather conditions and/or equipment quality. This would affect its cash flows and debt servicing ability. The geographical concentration of asset amplifies the generation risk.

   

ANALYTICAL APPROACH - Consolidated

BWR has applied the consolidated approach as  SPPL has 100 %  shareholding in SPV's namely :- 

KARTECH KYC SERVICES PRIVATE LIMITED

ONSTAR VENTURES PRIVATE LIMITED

Krishna Green Power Pvt Ltd

Yeshaswi Green Energy Private Limited

PIPRAHI HYDRO ENERGY PVT LTD

BANZAI RENEWABLE PRIVATE LIMITED

HARDI HYDRO ENERGY PVT LTD

AMHATA HYDRO ENERGY PVT LTD

SIRMOUR SMALL HYDRO POWER PVT LTD

RATING SENSITIVITIES

Positive

• Ability of the entity to increase its scale of operations by 25% while improvement in its profitability on a sustained basis.
• Ability of the entity to improve its capital structure and overall debt service Indicators coupled with improved  liquidity indicators 
• Ability of entity to improve its TOL/TNW to ~2X in medium term

Negaitive

• Decline  in scale of operations by 25% while improvement in its profitability on a sustained basis.
• Decline in capital structure and overall debt service Indicators
• Project execution risk  for Debt funded capex of Rs 160 Crores  in Sirmour Small Hydro Power Private Limited and Rs 161 Crs in Marshall Small Hydro Power Private Limited:  which can lead to time and cost over run risk in medium term 
• Debt funded acquisition leading to detioration in overall capital structure.
• Deterioration of  TOL/TNW to ~5X in medium term 

LIQUIDITY INDICATORS - Adequate

dequate liquidity characterized by sufficient cushion in cas accruals vis-a-vis repayment obligations .Cash accruals stood at Rs.66 Crs  in 12months provisional till March 2025 & is projected to be at Rs. 77Crs in FY26 & Rs 113 Crs  in FY27 against the repayment obligations of Rs 16-19 Crs on average and moderate cash balance of Rs. 2.56 Crore. Its capex requirements are modular and expected to be funded using ~debt of Rs294 Crores for which it has sufficient headroom. , supported by the current ratio of 1.05 x amd 1.31 x in FY 24 and FY 25

ABOUT THE ENTITY

 Sangamam Power Projects, have been a prominent renewable energy company since 2008, with in-house experience in Design, Development, Operation and Management of Renewable Energy power plants.  Core Competence entails a specialization in Hydroelectric Energy, Solar Energy, and Wind Energy.

In conjunction with  vast experience across various forms of Renewable Energy projects, company  strived to tailor to the individual needs of  clients and have accomplished a range of Renewable Energy Business models, including EPC(Engineering, Procurement, and Construction), BOOT(Build, Own, Operate, Transfer), DBFOOT(Design, Build, Finance, Own, Operate, Transfer), and Captive Projects for both Public and Private clients.

 

 

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Provisional)
Operating Revenue	Rs.Crs.	34.38	79.55	114.42
EBITDA	Rs.Crs.	1.28	5.70	11.35
PAT	Rs.Crs.	2.38	5.41	7.45
Tangible Net Worth	Rs.Crs.	25.80	31.21	38.66
Total Debt / Tangible Net Worth	Times	1.84	1.12	1.21
Current Ratio	Times	0.99	1.41	0.75

KEY FINANCIAL INDICATORS (Consolidated)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Provisional)
Operating Revenue	Rs.Crs.	90.40	135.02	213.35
EBITDA	Rs.Crs.	22.54	43.44	105.50
PAT	Rs.Crs.	8.94	17.84	56.22
Tangible Net Worth	Rs.Crs.	31.46	49.30	105.59
Total Debt / Tangible Net Worth	Times	4.07	4.30	2.97
Current Ratio	Times	0.43	1.49	1.48

KEY COVENANTS OF THE FACILITY RATED

There are standard banking covenants as per the latest renewal letters. 

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating  (2025)			2024		2023		2022
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Non Fund Based	LT	50.00	BWR BBB+/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	70.00	BWR A2 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		120.00	(Rupees One Hundred Twenty Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Consolidation of Companies
• Power Generation Projects
• Engineering Procurement and Construction

Analytical Contacts
Karan Ahluwalia Ratings Analyst karan.ahluwalia@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com	Customer Support | CustSupport@brickwrokratings.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	ICICI Bank	Bank Guarantee - Sanctioned	_	50.00	50.00	Simple##
2	Indian Renewable Energy Development Agency Limited (IREDA)	Letter of Guarantee - Sanctioned	50.00	_	50.00	Simple##
3	Union Bank of India	Bank Guarantee - Sanctioned	_	20.00	20.00	Simple##
Total			50.00	70.00	120.00
TOTAL (Rupees One Hundred Twenty 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.