| Savy Infra And Logistics 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 Savy Infra and Logistics Ltd (SIAL).
The ratings reflect the extensive experience of the promoter in the construction industry and the healthy financial risk profile of the company. These strengths are partially offset by order concentration in the revenue profile and exposure to intense competition and large working capital requirement. |
Analytical approach Crisil Ratings has considered the standalone business and financial risk profiles of SIAL. Unsecured loan of Rs 1.5 crore as on March 31, 2025, has been treated as debt. |
Key rating drivers - Strengths Extensive experience of the promoters: The promoter, Tilak Mundhra, has experience of more than two decades in the engineering, procurement and construction (EPC) , mainly undertaking excavation and foundation work. The company has technical and project management capabilities and strong relationships with suppliers and customers, which have ensured repeat orders. Successful implementation of EPC contracts on a timely basis has led to continuous increase in scale of operations. Revenue has grown to Rs 403 crore in the first nine months of fiscal 2026 from Rs 283 crore in fiscal 2025 and Rs 6 crore in fiscal 2023. The company has an outstanding orderbook of Rs 592 crore as on mid-March 2026, which provides medium-term revenue visibility.
Healthy financial risk profile: Networth was Rs 53 crore as on March 31, 2025, and around Rs 141 crore as on September 30, 2025, driven by equity raising of Rs 70 crore through initial public offer. The networth is expected to grow driven by steady accretion to reserve over the medium term. Capital structure was moderate supported by gearing and total outside liabilities to adjusted networth (TOLANW) ratio of 0.8 time and 2.5 times, respectively, as on March 31, 2025, owing to higher reliance on external debt and payables to meet working capital requirement. However, gearing has improved to 0.3 time as on September 30, 2025, post funds raised via IPO. Repayment of term loan and steady accretion to reserve are expected to lead to gearing and TOLANW ratio of below 1 time over the medium term. Debt protection metrics were strong, as reflected in interest coverage and net cash accrual to adjusted debt ratios of 17.5 times and 0.9 time, respectively, in fiscal 2025 aided by healthy profitability. The debt protection metrics will likely remain comfortable over the medium term. |
Key rating drivers - Weaknesses Order concentration in the revenue profile and exposure to intense competition: SIAL undertakes EPC projects, including earthwork and foundation works for infrastructure projects, and provides transportation services for moving excavated materials such as soil and hard rock to dumping sites or customer sites. The company undertakes subcontracts for large players and indirectly caters to government agencies, wherein capital expenditure is linked to the economy. The order book is concentrated with a single customer accounting for around 45% of the order book. Revenue and profitability entirely depend on the company’s ability to secure tenders. However, the low entry barriers and modest capital requirement have led to intense competition, which in turn, restricts the pricing flexibility and bargaining power. Ability to avail orders while maintaining profitability remains critical and hence monitorable.
Large working capital requirement: Operations were working capital intensive, as indicated by gross current assets (GCAs) of 143 days as on March 31, 2025. The GCAs are expected to increase over the medium term driven by large receivables, expected at 105-125 days, owing to large credit period and presence of retention money. Inventory was moderate at 71 days as on March 31, 2025, comprising work-in-progress stock but may increase due to the ongoing projects. With increasing scale of operations, the working capital requirement would continue to increase and effective management of the same would remain a key monitorable over the medium term. |
Liquidity Adequate Bank limit utilisation was moderate at 77% on average for the 12 months through February 2026. Cash accrual is expected at Rs 45-55 crore per fiscal against minimal debt obligation. In addition, it will act as cushion to the liquidity of the company. Current ratio was moderate at 1.13 times as on March 31, 2025. The promoter has extended support by way of unsecured loan of Rs 1.5 crore as on March 31, 2025, to meet the working capital requirement and debt obligation. Cash and bank balance was around Rs 10 crore as on September 30, 2025. |
Outlook Stable Crisil Ratings believes SIAL will continue to benefit from the extensive experience of the promoter, its strong technical capabilities and the established relationships with clients. |
Rating sensitivity factors Upward factors
Downward factors
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About the company SIAL undertakes excavation EPC projects, which involve moving and shaping large volumes of soil and other materials, creating strong and reliable base for buildings, roads or other infrastructure work for clients in infrastructure, mining and steel sectors.
The company also provides full truck load services, which involve the efficient and reliable movement of large volumes of freight.
SIAL was listed on the National Stock Exchange Emerge platform in July 2025. The company is promoted and managed by Tilak Mundhra. |
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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Criteria Details
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