RATING RATIONALE

05Feb2026

Santhosh Buildwel Infra Pvt. Ltd.

Brickwork Ratings upgrades the long-term rating to BWR BBB-/Stable and the short-term rating of BWR A3 for the Bank Loan Facilities of Rs. 47.50 crore of Santhosh Buildwel Infra Pvt Ltd (SBIPL) and removes the rating from the Issuer Not Cooperating category.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities**	Previous	Present	Tenure	Previous (09 May 2025)	Present
Fund Based	12.00	14.00	Long Term	BWR B+ /Stable Continues to be ISSUER NOT COOPERATING* /Downgrade	BWR BBB - /Stable removal from ISSUER NOT COOPERATING* category/Upgraded
Non Fund Based	29.50	33.50	Short Term	BWR A4 Continues to be ISSUER NOT COOPERATING* /Reaffirmation	BWR A3 removal from ISSUER NOT COOPERATING* category/Upgraded
Grand Total	41.50	47.50	(Rupees Forty Seven Crores and Fifty 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 BBB- with a Stable outlook and the Short-Term Rating to BWR A3 for the Bank Loan Facilities amounting to Rs. 47.50 Crore of Santhosh Buildwel Infra Private Limited. 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 working capital management and adequate liquidity position. However, the ratings are constrained in terms of geographical 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.

ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA:

For arriving at its ratings, BWR has considered a standalone approach and applied its rating methodology as detailed in the Rating Criteria. (hyperlinks provided at the end of this rationale).

KEY RATING DRIVERS

Credit Strengths:

Experienced Promoters and Established Track Record :
SBIPL benefits from the extensive experience of its promoters and an established operating track record of over decades in the EPC construction segment with its executive team possessing the expertise in planning and handling diverse as well as complex civil & construction projects. The company has successfully executed several projects for various public works departments and municipal authorities in Karnataka which further support operational stability, repeat order inflows, and timely project execution. The company is promoted by the Talampally family, which has been engaged in diversified business activities since 1999 across education, construction, and allied sectors, providing strong managerial depth and sectoral understanding. Revenue has grown to Rs 66.74 crore in fiscal 2024 from Rs 49.39 crore in fiscal 2023, and further improved to Rs 81.74 crore in fiscal 2025. The firm has a healthy order book of over Rs ~201.33 crore as of Dec 2025, to be executed over the next 2 years, providing adequate revenue visibility. The extensive experience of the proprietor will continue to support the business over the medium term.
Moderate Financial Risk Profile :
The Estimated Net worth is modest at Rs. 26.37 crore as on March 31st, 2025. Debt protection metrics are comfortable with estimated interest coverage and estimated net cash accruals to total debt at 2.47 times and 0.23 times, respectively, for fiscal 2025, and this is likely to improve further over the medium term. Estimated Gearing remains comfortable at 0.43 times as of March 31, 2025.

Credit Risks:

Exposure to Input Price Volatility :
The company’s operating margins remain vulnerable to fluctuations in raw materials and labour costs. Key inputs such as steel, cement, bitumen, stone, sand, and aggregates constitute a significant portion of overall expenses. Labour charges, including subcontracting costs, also form a substantial share of the cost structure. Given their volatile nature, any sharp increase in these costs can directly impact profitability. Since raw material purchases account for the majority of total costs, margins are inherently exposed to such variations.
Geographical Concentration Risk :
SBIPL’s order book depicts high geographical concentration, with the entire outstanding revenue largely derived from Karnataka state government agencies. While the company benefits from diversification across multiple departments and projects within the state, thereby mitigating single-customer concentration risk, the reliance on a single geography exposes it to state-specific risks, including budgetary constraints, policy changes, and potential delays in fund releases. Such concentration could impact cash flow predictability during periods of fiscal stress at the state level. Nevertheless, the risk is partially mitigated by SBIPL’s long-standing relationships, repeat orders from various Karnataka government entities, and demonstrated execution capability, which support revenue visibility and operating stability.
Industry competition, Dependences on Government Tenders and Policy Spending Cycles :
Revenue is closely tied to the government infrastructure initiatives. Any slowdown or delay in policy decisions, tendering processes or budget allocations may impact the company's project pipeline and growth trajectory. 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 government agencies, 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.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Santhosh Buildwel Infra Pvt Ltd. (SBIPL). 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, leading to Higher Cash Accruals while maintaining the current credit profile with TOL/TNW 0.85x of FY25.

Negative:
Decline in revenue or operating margin with TOL/TNW beyond 2.0x might lead to negative rating action.

LIQUIDITY INDICATORS - Adequate

The entity's liquidity remains adequate. As of 31, March 2025; it has cash and cash equivalents of Rs 1.84 Cr, and FY25 operational accruals of Rs 2.55 Cr against repayments of Rs 0.67 Cr. Liquidity is further supported by average fund-based bank limit utilization of ~82.73%, with non-fund-based utilization at 76.88% as of Dec,2025, providing a sufficient cushion for short-term obligations. The debt Protection metrics of the company are at a comfortable level with ISCR and DSCR as of FY 2025, 2.47x and 1.72x times, respectively, with a current ratio of 2.29x.

ABOUT THE ENTITY

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

Santhosh Buildwel Infra Private Limited (SBIPL) was incorporated in 2009 and is an established EPC construction company with its registered office in Bengaluru, Karnataka. The company is promoted by its directors Mr. Santoshkumar Talampally, Mr. Devaraj Talampally, Mr. Mahesh Talampally, Mr. Akash Talampally, and Mrs. Shakuntala A. Talampally. SBIPL is a part of the diversified Talampally Group, which was founded in 1999 with the establishment of Basavakalyan College of Engineering, followed by Basavakalyan College of D.Ed. and ITI. Over the years, the group has expanded into multiple business verticals, including education, construction and allied products, rubber, and other allied sectors. The core operations of SBIPL are largely government-driven, with projects primarily undertaken for various Karnataka state agencies such as the Karnataka Industrial Areas Development Board (KIADB), Karnataka Housing Board (KHB), Karnataka State Police Housing & Infrastructure Development Corporation Limited (KSPH&IDCL), and the Public Works Department (PWD), Government of Karnataka. The company undertakes civil construction projects encompassing roads, buildings, and other infrastructure works. SBIPL follows a robust quality management system and is ISO 9001:2008 certified, reflecting its commitment to quality, timely execution, and adherence to statutory and regulatory standards.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	49.39	66.74	81.74
EBITDA	Rs.Crs.	5.90	4.39	4.92
PAT	Rs.Crs.	2.55	1.78	2.15
Tangible Net Worth	Rs.Crs.	22.43	24.21	26.37
Total Debt / Tangible Net Worth	Times	0.53	0.24	0.43
Current Ratio	Times	1.76	3.35	2.29

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

The company is having a rating of ACUITE BB+ | Stable/A4+ dated Dec 24, 2024, from ACUITE Ratings.

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	14.00	BWR BBB-/Stable (removal from ISSUER NOT COOPERATING* category/Upgraded)	09May2025	BWR B+ Stable (Continues to be ISSUER NOT COOPERATING* /Downgrade)	13May2024	BWR BB- Stable (Continues to be ISSUER NOT COOPERATING* /Downgrade)	03Mar2023	BWR BBStable (ISSUER NOT COOPERATING* /Downgrade)
Non Fund Based	ST	33.50	BWR A3 (removal from ISSUER NOT COOPERATING* category/Upgraded)	09May2025	BWR A4 (Continues to be ISSUER NOT COOPERATING* /Reaffirmation)	13May2024	BWR A4 (Continues to be ISSUER NOT COOPERATING* /Reaffirmation)	03Mar2023	BWR A4 (ISSUER NOT COOPERATING* /Downgrade)
Grand Total		47.50	(Rupees Forty Seven Crores and Fifty 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

Santhosh Buildwel Infra 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	Canara Bank	Secured Overdraft against Hypothecation - Sanctioned	10.00	_	10.00	Simple##
2	Canara Bank	Bank Guarantee - Sanctioned	_	28.00	28.00	Simple##
3	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	_	5.50	5.50	Simple##
4	State Bank Of India (SBI)	Cash Credit - Sanctioned	4.00	_	4.00	Simple##
Total			14.00	33.50	47.50
TOTAL (Rupees Forty Seven Crores and Fifty 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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