| Rudra Gas Enterprise Limited | ||||||
| 'Crisil BBB- / Stable / Crisil A3 ' assigned to 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 assigned its ‘Crisil BBB-/Stable/Crisil A3’ ratings to the bank facilities of Rudra Gas Enterprise Ltd (RGEL).
The ratings reflect the extensive experience of the promoters and professional management, healthy order book from reputed principal providing revenue visibility, and healthy financial risk profile. These strengths are partially offset by modest scale of operations and susceptibility to tender based nature of operations and large working capital requirement. |
Analytical approach Crisil Ratings has consolidated business and financial risk profile of RGEL and its 51% owned subsidiary, Rudra Global Green Energy Pvt Ltd (RGGEPL), known as Rudra Group. RGGEPL, which is strategically important to, and have a significant degree of operational integration with REGL. Crisil Ratings considers this entity as being strategic to RGEL in view of their strong integration with RGEL’s operations.
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 promoters and professional management: The company is promoted by Mr Kush Patel and Mr Kashyap Patel, who have Bachelor of Technology degrees from Pandit Deendayal Energy University, Gandhinagar, and have experience of more than a decade in the oil and gas industry. They are further assisted by a professional line of management. This has enabled the Rudra group to complete several projects and develop healthy credentials in the city gas distribution segment (key business division). The scope of projects undertaken involves designing, laying and commissioning pipelines for CGD players, including last mile connectivity projects.
Healthy order book from reputed principals providing revenue visibility: The group has an unexecuted order book of around Rs 369 crore (3.69 times the revenue) as of September 2025 under its city gas distribution division, from reputed principals such as Gujarat Gas Ltd (‘Crisil AAA/Stable’), Indian Oil Corporation Ltd (‘Crisil AAA/Stable/Crisil A1+’), Bharat Petroleum Corporation Ltd (‘Crisil AAA/Stable/Crisil A1+’), and Torrent Gas Ltd (‘Crisil AA/Stable/Crisil A1+’); which provides adequate revenue visibility. The group, through its subsidiary, has also bagged a rooftop solar power photovoltaic project of around Rs 191.7 crore from Rajasthan Renewable Energy Corporation Ltd. Under this, it has to design, supply, erect, test and provide comprehensive O&M (operation and maintenance) services for 25 years from commissioning. This is likely to improve the overall business risk profile, which will remain monitorable.
Healthy financial risk profile: Networth remained at around Rs 32.5 crore as on March 31, 2025, leading to strong gearing and total outside liabilities to adjusted networth ratio of 0.73 time and 1.22 times (0.8 time and 1.15 times, respectively, previous fiscal). Debt protection metrics continue to remain comfortable on the back of healthy profitability, as indicated by interest coverage and net cash accrual to adjusted debt ratios of 4.22 times and 0.31 time, respectively, for fiscal 2025 (3.69 times and 0.19 time, respectively, previous fiscal). Overall financial risk profile is expected to remain healthy, supported by steady accretion to reserve over the medium term. |
Key Rating Drivers - Weaknesses Modest scale of operations and susceptibility to tender based nature of operations: Despite improving to around Rs 100 crore in fiscal 2025 from Rs 40-60 crore in the three fiscals through 2024, the scale of operations remains moderate. This restricts operational flexibility of company. Business profile further remains marked by increasing competitive intensity in industry which requires players to bid aggressively to acquire tenders. The same has led to operating profitability remaining volatile in 8-12.5% range for past three fiscals ending March 31, 2025. Improvement in scale along with sustenance of healthy operating profitability thus remains a key rating sensitivity factor.
Large working capital requirement: Gross current assets (net of cash) have remained over 200 days for the two fiscals ended March 31, 2025, and stood at 211 days as on March 31, 2025, due to stretched receivables of 75 days and sizeable current assets made up of retention money, advances to suppliers and other current assets. Operations will remain working capital intensive over the medium term and will be monitorable. |
Liquidity Adequate The group’s annual net cash accrual is expected to be Rs 9-10 crore for fiscals 2026 and 2027 and will be sufficient to meet annual repayment obligation of Rs 2-3 crores. Average bank limit utilisation remained at 90% for the 12 months through September 2025. Cash and bank balance stood at Rs 2 crore while current ratio was 2.06 times, as on March 31, 2025. Unsecured loans from the promoters and related entities stood at Rs 0.26 crore. |
Outlook Stable Crisil Ratings believes the Rudra group will continue to benefit from the extensive industry experience of its promoters and professional management. |
Rating sensitivity factors Upward factors
Downward factors
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About the group RGEL (formerly, Rudra Gas Enterprise Pvt Ltd) was incorporated in 2015 and is promoted by Mr Kush Patel and Mr Kashyap Patel; it was reconstituted as public limited company in 2024. Based in Ahmedabad, Gujarat, the company undertakes city gas distribution and fibre cable network projects (installation and maintenance of fibre optic cables), and rents construction machinery and vehicles.
Rudra Global Green Energy Pvt Ltd is a 51% subsidiary of RGEL and is currently undertaking a solar project in Rajasthan. |
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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