Credit Rating

VISHNU PRAKASH R PUNGLIA LIMITED ENGINEER, CONTRACTOR & DESIGNER An ISO 9001: 20 1 5 C e r t i f i e d C o m p a n y 19-09-2026 To, To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1, 21st Floor, Dalal Street, Fort, Block G, Bandra-Kurla Complex, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 BSE Scrip Code: 543974 NSE Scrip Symbol: VPRPL Sub: Intimation of Credit rating Ref: Regulation 30 of the SEBI {Listing Obligations and Disclosure Requirements} Regulations, 2015 (“Listing Regulations") Dear Sir/Madam, We wish to inform you that “Infomerics Valuation and Rating Ltd” has assigned the credit ratings to Vishnu Prakash R Punglia Limited. The details are as follows: Rating Action Total Bank Loan Facilities Rated Rs. 960.00 Crore Regulator^ Long Term Rating IVR C+/Stable (Rating Downgraded) RBI Short Term Rating IVR A4 (Rating Downgraded) RBI ^Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. The letter issued by Infomerics Valuation and Rating Ltd assigned the above-mentioned credit rating to the Company for its Facilities/Instruments is enclosed herewith. The above information is also available on the website of the company www.vprp.co.in . Kindly take the above intimation on your records. For VISHNU PRAKASH R PUNGLIA LIMITED Manohar Lal Punglia Managing Director DIN: 02161961 Encl.: as above CIN: L45203MH2013PLC243252 Corporate office: B-31/32, Second Floor, Industrial Estate, New Power House Road, Jodhpur-342003, Rajasthan Telephone: 0291-2434396, Email: accounts@vprp.co.in Reg. Office – Unit No. 3, 5th Floor, B Wing, Trade Star Premises Co-Opeartive Society Limited, Village Kondivita, Mathuradas Vasanji Road, Near Chakala Metro Station, Andheri (East), Mumbai 400059 Maharashtra Press Release Vishnu Prakash R Punglia Limited September 18, 2026 Rating Action Total Bank Loan Facilities Rated Rs. 960.00 Crore Regulator^ Long Term Rating IVR C+/Stable (Rating Downgraded) RBI Short Term Rating IVR A4 (Rating Downgraded) RBI ^Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. Refer Annexures for details of facilities/instruments, facility wise lender details, and detailed explanation of covenants. Note: None of the Directors on Infomerics Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. Rationale The downgrade in the ratings assigned to the bank facilities of Vishnu Prakash R Punglia Limited (VPRPL) is primarily driven by instances of delays in servicing principal debt obligations pertaining to unsecured short-term working capital borrowings from banks, as disclosed in the Annual Report for FY26. The aforesaid unsecured short-term working capital limits are not rated by Infomerics Valuation and Rating. The ratings continue to draw support from VPRPL's healthy order pipeline, experienced management, established track record and long-standing presence in the infrastructure industry. The company's growth prospects remain supported by its order book and ongoing project opportunities. However, the benefits of the order pipeline remain contingent upon timely execution and effective conversion into revenues and cash flows. Going forward, timely servicing of debt obligations, improvement in working capital management, strengthening of the financial risk profile and successful execution of the order book will remain key rating sensitivities. Outlook: Stable The ‘Stable’ outlook reflects the expectation that Vishnu Prakash R Punglia Limited (VPRPL) will continue to benefit from its established market position, experienced management, long-standing presence in the infrastructure industry and healthy order pipeline. Analytical Approach Approach Comments Consolidation/ Standalone Standalone Parent/ Group Support Not Applicable Page | 1 www.infomerics.com Press Release Key Rating Drivers with Detailed Description Strengths Experienced management and long-standing presence in the infrastructure industry VPRPL is an integrated engineering, procurement and construction (EPC) company with long standing presence of more than four decades in construction and execution of infrastructure projects especially water supply projects (WSP). The company is promoted by the Punglia family and derive comfort from the decades of promoter’s experience and well qualified team of management personnel. Healthy Order Pipeline, Subject to Timely Project Execution The company currently has an unexecuted order pipeline of approximately Rs. 4,391 crore spanning water supply, railway, road, civil, and sewerage projects. This diversified portfolio provides strong revenue visibility over the next 2–3 years. However, the benefits of the order pipeline remain contingent upon timely execution and effective conversion into revenues and cash flows. The company’s operating performance during FY25–FY26 was impacted by delays in certification, elections and departmental approvals, which constrained revenue growth, margins and cash flows. . Any continued delays in project execution, certifications or approvals could defer revenue recognition and exert pressure on profitability and working capital. Accordingly, the company’s ability to improve execution efficiency and achieve timely order-to-revenue conversion remains a key monitorable for the projected financial recovery. Weaknesses Delay in servicing of debt Instances of delays in servicing principal debt obligations pertaining to unsecured short-term working capital borrowings from banks, as disclosed in the Annual Report for FY26. Such instances of delayed debt servicing indicate heightened stress in the company’s liquidity position. The aforesaid unsecured short-term working capital limits are not rated by Infomerics Valuation and Rating. Moderate financial risk profile The company’s capital structure weakened in FY26, with tangible net worth declining to Rs. 583.62 crore from Rs. 773.33 crore in FY25, primarily due to reported losses. Consequently, overall gearing increased to 1.12x as on March 31, 2026, compared with 0.91x in FY25, while the TOL/TNW ratio rose to 2.14x from 1.59x. Debt protection metrics also deteriorated significantly, with DSCR declining to –0.37x from 1.36x and ISCR to –1.11x from 2.29x, reflecting negative operating cash flows and greater dependence on working capital borrowings. The weakening in Page | 2 www.infomerics.com Press Release coverage indicators was primarily driven by higher finance charges of Rs. 73.85 crore and continued reliance on short-term debt. Although promoter support provided some near-term liquidity relief, the company’s financial risk profile remains moderate. A sustained improvement will depend on timely execution of the healthy order pipeline, stronger cash generation, and restoration of adequate debt-servicing capacity. Stretched working capital cycle The company’s operating cycle has witnessed a significant elongation over the last three financial years, increasing from around 50 days in FY23 to approximately 105 days in FY24 and further to 188 days in FY25 and about 237 days in FY26. This elongation has primarily been driven by a sharp increase in inventory and collection periods. Inventory days rose to 309 in FY26 (FY25: 212), reflecting build‑up of work‑in‑progress due to delays in work certification and slow project execution. These delays were mainly attributable to state elections in Rajasthan and Madhya Pradesh, as well as the central elections, further the certification and approvals were impacted by certain departmental delays which adversely impacted project momen [Showing first 8,000 characters — download PDF for full document]