| Sathlokhar Synergys E&C Global Limited | ||||||
| 'Crisil BBB+ / Positive / Crisil A2 ' assigned to Bank Debt | ||||||
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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+/Positive/Crisil A2’ ratings to the bank facilities of Sathlokhar Synergys E&C Global Limited (SSEGL). The Positive outlook reflects the expectation of sustained improvement in the business and financial risk profiles of SSEGL, supported by robust revenue growth, healthy operating margin and strong financial metrics. Revenue has increased by compound annual growth rate of 109% from Rs 87 crore in fiscal 2023 to Rs 800 crore in fiscal 2026. The growth is supported by increase in orders from existing customers as well as addition of orders from new ones. The operating margin has sustained at healthy level of 14.5-15% over the past three fiscals. The financial risk profile also remained strong with low gearing and strong debt protection metrics, supported by equity infusion from capital market in fiscals 2025 and 2026. The ratings reflect the extensive experience of SSEGL promoters in the construction industry, healthy orderbook providing revenue visibility, end-to-end engineering, procurement and construction (EPC) service provider, diversified sector exposure and healthy financial risk profile. These strengths are partially offset by susceptibility to tender-based operations and geographical concentration risk in revenue profile. |
Analytical approach Crisil Ratings has evaluated the standalone business and financial risk profiles of SSEGL. |
Key rating drivers - Strengths Extensive industry experience of the promoters and healthy orderbook in diversified sectors as an end-to-end EPC service provider: The promoters have experience of over two decades in the civil construction industry. This has given them an understanding of the market dynamics and enabled them to establish relationships with suppliers and customers. The company had orderbook of Rs 980 crore as of December 2025, which is to be executed over the next 12 months. Additionally, the company maintained orders of Rs 17,000 crore as of March 2026, of which 10% is expected to be converted in fiscal 2027. The healthy orderbook position provides significant revenue visibility over the medium term. The company executes projects for various clients across manufacturing, logistics, FMCG, pharma, institutional and healthcare sectors, thus mitigating sectoral risk. The company executes EPC turnkey projects from concept to commissioning across industrial, commercial, institutional and solar sectors. Additionally, the company has its own pre-engineered building (PEB) fabrication unit which enables precision, cost savings, and seamless integration from design to site installation. Healthy financial risk profile: The capital structure was healthy due to low reliance on external funds yielding gearing of 0.1 time and total outside liabilities to adjusted networth ratio of 0.6 time as on March 31, 2025. The debt protection metrics have also been comfortable due to leverage and healthy profitability. The interest coverage and net cash accrual to total debt ratios were comfortable above 25 times and 4 times, respectively, in fiscal 2025 and are expected at similar level over the medium term. |
Key rating drivers - Weaknesses Susceptibility to tender-based operations: Revenue and profitability entirely depend on the ability to win tenders. Also, entities in this segment face intense competition and thus are required to bid aggressively to get contracts, which restricts the operating margin. Also, given the cyclicality inherent in the construction industry, the ability to maintain profitability through operating efficiency becomes critical. Geographical concentration risk in revenue profile: SSEGL has high geographic concentration in its revenue profile. The company derives around 90% of its revenue from projects executed in Tamil Nadu, Karnataka and Andhra Pradesh. Thus, any slowdown in these economies may adversely affect financial and business performance. |
Liquidity Adequate Bank limit utilisation was low at 50% on average for the 12 months ended February 28, 2026. Annual cash accrual is expected above Rs 80 crore against nil term debt obligation over the medium term and will cushion liquidity. The current ratio was healthy at 2.7 times as on March 31, 2025. Low gearing and moderate networth support financial flexibility and provides cushion in case of any adverse conditions or downturn in the business. |
Outlook Positive Crisil Ratings believes SSEGL will continue to benefit from the extensive experience of its promoters and established relationships with clients, leading to improvement in the overall business risk profile with better revenue and sustenance of operating margin at similar healthy level. |
Rating sensitivity factors Upward factors
Downward factors
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About the company SSEGL was incorporated in 2013. SSEGL is a Chennai-based EPC turnkey construction company, providing end-to-end turnkey execution across design, civil works, PEB structures, mechanical-electrical-plumbing (MEP) systems, solar installations, and interior fit outs. The company operates across industrial, commercial, institutional, warehousing, Integrated Building Management Systems (IBMS), utilities, solar, statutory approvals and healthcare sectors. The company was listed on the EMERGE platform of National Stock Exchange of India Ltd in August 2024. SSEGL is promoted by G Thiyagu (Managing Director & CEO) and Sangeethaa Thiyagu (Whole-Time Director & COO). |
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 - 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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Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: 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. |
Criteria Details
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