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 26-08-2026 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 BB+/Stable (Rating Assigned) RBI Short Term Rating IVR A4+ (Rating Assigned) 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 August 26, 2026 Rating Action Total Bank Loan Facilities Rated Rs. 960.00 Crore Regulator^ Long Term Rating IVR BB+/Stable (Rating Assigned) RBI Short Term Rating IVR A4+ (Rating Assigned) 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 ratings assigned to Vishnu Prakash R Punglia Limited (VPRPL) reflect the company's healthy order pipeline, experienced management, and long-standing presence in the infrastructure industry. The ratings are further supported by the company's established track record and growth prospects, subject to timely execution of its ongoing and upcoming projects. However, these strengths are partially offset by its moderate financial risk profile and stretched working capital cycle. The company also remains exposed to the tender-based nature of operations and intense competition, along with execution risks associated with nascent and slow-moving projects. 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. These strengths are expected to support sustained business growth and stable operating performance, while maintaining a moderate and manageable financial risk profile over the medium term. 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 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, timely execution remains critical, as delays in certification, elections, and departmental approvals during FY25–FY26 adversely affected operating income, margins, and cash flows. Going forward, efficient execution of major water supply contracts across Rajasthan, Uttar Pradesh, Uttarakhand, and Madhya Pradesh, alongside railway station redevelopment and civil projects, will be key to achieving the projected ~11.5% CAGR in TOI between FY26 and FY29. Overall, while the company’s order book remains robust and well diversified, its financial recovery will ultimately depend on its ability to convert this strong pipeline into revenues through timely and efficient project execution. 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. Weaknesses 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 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. Page | 2 www.infomerics.com Press Release 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 momentum. Furthermore, owing to the same factors, payment releases from government departments and agencies were delayed. Additionally, requirements relating to security deposits and retention money led to a further stretch in receivable cycles, resulting in elevated collection periods of 150 days in FY26 (FY25: 107 days). The current ratio moderated to 1.34x as on March 31, 2026, compared to 1.51x as on March 31, 2025, reflecting the impact of continued working capital intensity on liquidity. Exposure to tender based nature of operations and competitive industry The company majorly procures orders which ar [Showing first 8,000 characters — download PDF for full document]