RATING RATIONALE

04Feb2026

King Security Guards Services Pvt. Ltd.

Brickwork Ratings assigns the the long term rating of BWR BBB with a stable outlook and a short term rating of BWR A3+ for the Bank Loan Facilities of Rs. 150.00 Crs. of King Security Guards Services Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	41.21	Long Term	BWR BBB /Stable Assignment
	(5.00)
	(15.00)
	(0.45)
	8.50	Short Term	BWR A3 + Assignment
Non Fund Based	25.00	Long Term	BWR BBB /Stable Assignment
	(5.81)	Long Term	BWR BBB /Stable Assignment
	75.29	Short Term	BWR A3 + Assignment
Grand Total	150.00	(Rupees One Hundred Fifty 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) assigns the long-term rating at BWR BBB with a Stable outlook and short term rating of BWR A3+ for the bank loan facilities of King Security Services Pvt Ltd.

The rating is underpinned by the company's robust operating performance over the last three fiscal years and through FY2025, fueled by the expansion of its security manpower division and the scaling of facility management services. Furthermore, the rating reflects a well-established market presence and a prestigious client roster, which ensures high contract renewal rates and steady new business acquisition. Financially, the company maintains a healthy risk profile, characterized by moderate external debt and strong debt coverage metrics as of March 31, 2025. Liquidity remains adequate, supported by a significant scale of operations and controlled capital expenditure.

Further, the rating also factors in the working capital-intensive nature of the business, driven by an modest receivable cycle. These working capital requirements are expected to remain substantial as operations continue to scale. Additionally, the company faces limited pricing flexibility due to intense competition from both organized and unorganized market participants.

The Stable outlook on the BWR BBB rating reflects BWR opinion that the financial risk profile of King Security Guards services Pvt Ltd is expected to be maintained over the medium term, given steady revenues backed by the healthy order book position and that it will continue to maintain its comfortable capital structure and healthy debt coverage indicators.

KEY RATING DRIVERS

Credit Strengths:

Established Market Position and Experienced Directors : :
The promoters’ experience of over 10 years in the manpower and security services industry, their strong understanding of market dynamics, and their healthy relationships with suppliers and customers will continue to support the business. The company has thirteen branches across twelve states and operates in all major cities of India. It has contracts of 1-4 years with reputed customers, mainly government entities.
Diversified end-user industry base and well-established clientele: :
The Company has longstanding relationship with customers, that include Delhi Metro Rail Corp, Nagar Palika Nigam Ujjain, Modern Coach Factory, IIM Indore,Central Board of Secondary Education etc. The Company also maintains an inhouse fleet of cmmercial vehicles and this ensure total control over service timelines and quality.
Comfortable financial risk profile : :
The company's financial risk profile is strong, marked by a healthy capital structure and strong debt protection metrics. The operating profit margins of the company have improved to 10.61 % and the net profit margin to 6.91 % in FY25. The total operating revenue stood at Rs.276.00 Crs in FY25 recording a 13 % increase from the previous year.The financial risk profile is expected to be maintained over the medium term, given steady revenues from good order book position. The debt protection metrics are at comfortable levels due to limited reliance on external funds. Liquidity also remained adequate , current ratio recording at 1.41x.BWR expects the capital structure to remain comfortable going forward as well supported by the projected healthy cash accruals and less reliance on debt-funded capex over the medium term.

Credit Risks:

Large working capital requirement: :
The industry is characterized by significant working capital requirements, as fixed costs like payroll and statutory dues must be met regardless of when service fees are collected. Consequently, the working capital cycle is expected to remain extended and will require rigorous monitoring.
Exposure to intense competition: :
The Company not only face competition from large players but also thousands of small, local, unorganized agencies.Since starting a small guard agency requires little capital essentially just a license and a uniform new local competitors constantly enter the market. Competitors will frequently poach trained guards by offering slightly higher hourly wages or better shifts, leading to increased recruitment and training costs for the Company.

ANALYTICAL APPROACH - Standalone

BWR has adopted a Standalone approach while arriving at its ratings.

RATING SENSITIVITIES

Positive Factors

Revenue ,EBIDTA and PAT to be in excess of the projected amount by a minimum of 10% with no breach in their OPM and NPM margins.
Current Ratio to be maintained at levels of 1.50x and above .
Additional working capital tieup with banks for fostering business growth.

Negative Factors

Dip in revenue by 15% and EBIDTA and PAT by 10% .
Deterioration in TNW.

LIQUIDITY INDICATORS - Adequate

The Company's liquidity is adequate as reflected by the EBIDTA adequately covering the debt obligations and stable cash conversion cycle. During FY25, healthy cash accruals of Rs.23.14 Crs were generated by the company. The trend is expected to increase in the short to medium term which are sufficient to meet its upcoming debt obligation of Rs.6.19 Crs. The current ratio is adequate, recorded at 1.41x as on March 31, 2025. The Current ratio is expected to improve during the upcoming year. Further, utilization levels for the fund-based working capital facilities have remained at more than 90%. Taking into consideration the skewed billing cycle on a month-on-month basis, the working capital management would be a key moniterable.

Overall, liquidity is expected to remain adequate over the medium term, supported by stable cash generation from long-term contracts, low leverage and moderate capex requirements.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Services	Services	Commercial Services & Supplies	Diversified Commercial Services

King Security Guards Services Pvt. Ltd. Having its registered office at 6C/973 , Sector 6, Gomti Nagar Vistar, Saheed Path, Lucknow (U.P.) is an established Indian organization with expertise in Security, Facility Management & Manpower Outsourcing services with excellent track record in Various State/Central Government organizations, PSU & Autonomous Bodies since 2006.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	201.91	245.30	276.00
EBITDA	Rs.Crs.	14.16	16.72	29.29
PAT	Rs.Crs.	7.67	13.93	19.08
Tangible Net Worth	Rs.Crs.	30.56	44.77	64.29
Total Debt / Tangible Net Worth	Times	0.94	1.04	0.91
Current Ratio	Times	1.46	1.38	1.41

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

RATING HISTORY FOR LAST 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	41.21	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	LT	(5.00)	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
		(15.00)	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
		(0.45)	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Fund Based	ST	8.50	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	LT	25.00	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	LT	(5.81)	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	75.29	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		150.00	(Rupees One Hundred Fifty Crores Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Deepthi Nair Rating Analyst deepthinair.v@brickworkratings.com	Suryanarayan N Associate Director - Ratings suryanarayan.n@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

King Security Guards Services 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	HDFC Bank	Cash Credit - Sanctioned	15.00	_	15.00	Simple##
	Sub-Limit (WCDL) - Sanctioned	(15.00)
2	HDFC Bank	Bank Guarantee - Sanctioned	_	15.00	15.00	Simple##
3	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	_	33.00	33.00	Simple##
4	State Bank Of India (SBI)	Bank Guarantee - Proposed	_	27.29	27.29	Simple##
5	State Bank Of India (SBI)	Cash Credit - Sanctioned	17.00	_	17.00	Simple##
	Sub-Limit (CEL) - Sanctioned	(0.45)
6	State Bank Of India (SBI)	Standby Line of Credit - Sanctioned	_	1.00	1.00	Simple##
7	State Bank Of India (SBI)	Bills Purchase (BP) - Sanctioned	_	7.50	7.50	Simple##
8	State Bank Of India (SBI)	Term Loan - Out-standing	3.21	_	3.21	Simple##
9	State Bank Of India (SBI)	Term Loan - Sanctioned	1.00	_	1.00	Simple##
10	Yes Bank	Cash Credit - Sanctioned	5.00	_	5.00	Simple##
	Sub-Limit (Demand Loan) - Sanctioned	(5.00)
11	Yes Bank	Performance Guarantee - Sanctioned	25.00	_	25.00	Simple##
	Sub-Limit (performance guarantee) - Sanctioned	(5.81)
Total			66.21	83.79	150.00
TOTAL (Rupees One Hundred Fifty 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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About Brickwork Ratings

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.

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