Garuda Construction Assigned IVR BBB+/Stable, IVR A2 Credit Rating
Garuda Construction and Engineering Limited has been assigned credit ratings of IVR BBB+/Stable for Long Term Bank Facilities and IVR A2 for Short Term Bank Facilities by Infomerics. The company has a strong order book of ₹4,336.72 crore and negligible debt, supported by a recent ₹173.85 crore equity raise.
A credit rating upgrade or assignment is a significant event that can influence investor confidence and the company's ability to access capital, though it is not a direct financial result.
The assigned credit rating of BBB+/Stable and A2 is positive for the company, indicating a stable financial outlook and good creditworthiness.
Garuda Construction and Engineering Limited has been assigned credit ratings for its bank facilities by Infomerics Valuation and Rating Private Limited. The Long Term Bank Facilities and Short Term Bank Facilities have received a rating of IVR BBB+/Stable and IVR A2, respectively.
The rating is supported by the company's strong and diversified order book, healthy EBITDA and net profitability margins contributing to strong cash flows, and negligible debt levels. The recent equity raise of ₹173.85 crore in FY25 has further strengthened its capital structure. The company also benefits from its established track record and experienced promoter, Pravin Kumar Brijendra Kumar Agarwal, who is the Managing Director and Chairman.
Key rating weaknesses identified include potential project delays due to statutory clearance issues, an elongated operating cycle stemming from a high collection period, and the working capital requirements associated with non-cash consideration for project execution. The 'Stable' outlook is based on the company's substantial order book of ₹4,336.72 crore as of December 31, 2025, providing medium-term revenue visibility, and an expected sustainment of EBITDA margins above 25% with negligible debt.
Garuda Construction and Engineering Limited reported total operating income of ₹225.03 crore in FY25, with EBITDA margins at 29.53%. The company maintained a near-zero gearing ratio. The total bank facilities rated amount to ₹75.00 crore.
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Garuda Construction and Engineering Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Garuda Construction and Engineering Limited. Read the original for the full detail.