| Advait Energy Transitions Limited | ||||||
| Ratings upgraded to 'Crisil A- / Stable / Crisil A2+ '; Rated amount enhanced for Bank Debt | ||||||
| Rating Action | ||||||
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| Note: None of the Directors on Crisil Ratings Limited’s 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. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed rationale Crisil Ratings has upgraded its ratings on the bank facilities of Advait Energy Transitions Ltd (AETL) to ‘Crisil A-/Stable/Crisil A2+’ from ‘Crisil BBB+/Stable/Crisil A2’.
The rating upgrade reflects the improvement in the business risk profile of AETL, led by increase in the company’s revenue and order book and ramp-up in the new and renewable energy business. Revenue increased to Rs 486 crore in the first nine months of fiscal 2026 from Rs 205 crore in the corresponding period of fiscal 2025. In fiscal 2025, AETL recorded revenue of Rs 399 crore. The order book grew from Rs 204 crore as of March 2024 to Rs 1,048 crore as of December 2025. However, the operating margin reduced to ~12% in the first nine month of fiscal 2026. This was due to increased revenue contribution of the new and renewable energy (NRE) division, which is growing and is in initial phase of operations and had lower operating margin compared with power transmission solution (PTS), which is a legacy business and had operating margin of 16-17%.
The ratings reflect the extensive experience of the promoter in the electrical equipment and engineering, procurement, and construction (EPC) business, the significant growth in the company’s revenue and its strong financial risk profile with comfortable debt protection metrics. These strengths are partially offset by working capital-intensive operations, exposure to risks inherent in tender-based business with intense competition, and susceptibility to risks related to timely completion of capital expenditure (capex) and ramp-up of operations. |
Analytical approach Crisil Ratings has combined the business and financial risk profiles of AETL and its subsidiary, Advait Greenergy Pvt Ltd (AGPL) and its step down subsidiary, A&G Hydrogen Technologies Pvt Ltd.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key rating drivers - Strengths Extensive industry experience of the promoter: The two-decade-long experience of the promoter in the EPC business, his understanding of the market dynamics and established relationship with suppliers and customers will continue to support the business risk profile. These factors will help AETL scale up revenue and build a strong order book.
Significant growth in revenue: Operating income increased to Rs 399.40 crore in fiscal 2025 from Rs 201 crore in fiscal 2024, while operating margin was at 13.2%. The rise in turnover was due to a large order book and the commencement of manufacturing units related to aluminium clad steel wire (ACS), emergency restoration system (ERS) and stringing tools. The operating margin reduced to ~ 12% in the first nine months of fiscal 2026 due to increased revenue contribution of the NRE division, which is in initial phase of operations has lower profitability compared with the legacy PTS business. AETL’s order book grew from Rs 204 crore as of March 2024 to Rs 1,048 crore as of December 2025, and provides revenue visibility for the next two years.
Healthy financial risk profile: Low reliance on external debt led to strong gearing and total outside liabilities to adjusted networth ratio of 0.33 time and 1.38 times, respectively, as on March 31, 2025. Debt protection metrics were comfortable due to low leverage and healthy profitability, with interest coverage and net cash accrual to total debt ratio at 4.84 times and 0.51 time, respectively, for fiscal 2025. The financial risk profile is expected to improve over the medium term with accretion to reserve and despite addition of debt to fund capex. |
Key rating drivers - Weaknesses Working capital-intensive operations: Gross current assets were at 307 days as on March 31, 2025, due to receivables of 213 days and moderate inventory of 16 days. The GCAs may remain high over the medium term due to commencement of manufacturing facilities along with execution of EPC contracts.
Exposure to risks inherent in tender-based business with intense competition: The EPC industry is intensely competitive due to low entry barriers. Furthermore, AETL’s operations are concentrated in installation and construction work. Also, there is high dependence on tenders floated by the government, semi-government and other entities, which are awarded through competitive bidding.
Susceptibility to risks related to timely completion of capex : AETL plans capex of Rs 140 crore for battery energy storage system (BESS). The capex will be funded through debt and equity. While the additional debt will have a marginal impact on gearing, considering the strong networth and healthy internal accrual, timely completion of capex with no major cost overrun and successful ramp-up of operations will be monitorable. |
Liquidity Adequate Bank limit utilisation was moderate at 69.32% on average for the 12 months through November 2025. Annual cash accrual is expected over Rs 65 crore against yearly term debt obligation of Rs 18 crore over the medium term, and the surplus will cushion liquidity. The current ratio was healthy at 1.44 times and the company had large cash and bank balance of around Rs 97 crore as on March 31, 2025. Low gearing and moderate networth support financial flexibility and provide financial cushion in case of any adverse condition or downturn in the business. |
Outlook Stable AETL will continue to benefit from the extensive experience of its promoter and established relationship with clients. |
Rating sensitivity factors Upward factors:
Downward factors:
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About the company Advait Energy Transitions Limited is an Ahmedabad-based company that offers robust products and end-to-end solutions for power transmission, substation, and telecommunication infrastructure. The company diversified into renewable energy in 2023.
Founded in 2009, Advait Energy Transitions Limited specializes in stringing tools, ACS wire manufacturing, OPGW operations, ERS, turnkey telecom projects, live line installations, and green energy. The company also provides Alkaline and PEM electrolyser systems, fuel cell systems, hydrogen refuelling stations (HRS), hydrogen blending systems, and hydrogen storage units. |
Key financial indicators
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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Annexure – List of entities consolidated
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Criteria Details
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