Rationale

 The ratings assigned to CC Infratech Private Limited (CCIPL) factors in the healthy growth in revenues in the last three yearsand order book position of ~Rs. 1,959 crore as on October 31, 2025, which translates to 5.7 times of its revenues in FY2025 providing medium-term revenue visibility. The ratings take into account the proven experience of the promoters in the construction business by virtue of running a much bigger construction business under Star Infratech (rated [ICRA] A-; Stable; A2+). Moreover, the company has recently received four orders of Rs. 1,160 crore in Q3 FY2026 from Cauvery Neeravari Nigama Limited (CNNL), with three orders in joint venture (JV) with Star Infratech and one order in JV with KDH Infra Engineering Private Limited (KDH Infra), which will further strengthen its order book position. The rating considers the healthy increase in scale of operations to Rs. 343.0 crore in FY2025 from Rs.291.6 crore in FY2024, which is expected to improve in the medium term, with the receipt of new orders. The ratings note the availability of working capital facilities of Rs. 80.0 crore (Rs. 20.0 crore of fund-based and Rs. 60.0 crore of non-fund based facilities) to the company, which is likely to support the liquidity position and future order inflows. The ratings note the segmental order book diversification across layout development, irrigation, water supply and drainage, electrical and buildings segments. The ratings are supported by the company’s adequate financial risk profile. The total debt stood at Rs. 9.6 crore as on March 31, 2025, which are entirely unsecured loans from related parties. Its net worth increased to Rs. 47.3 crore as on March 31, 2025 from Rs. 19.6 crore as on March 31, 2024 owing to fresh equity infusion of Rs. 10.0 crore and accretion of profits to reserves. However, given the high creditors and GST payables, the TOL/TNW stood moderate at 1.6 times as on March 31, 2025 (vs 3.1 times as on March 31, 2024). Nevertheless, in the absence of interest-bearing debt, the coverage metrics remained healthy during the last three years and are expected to remain adequate in the medium term, which remains a key monitorable going forward. The ratings are, however, constrained by the company’s limited track record in the construction business. Nevertheless, Star Infratech supported CCIPL’s operations by sub-contracting works in the initial years and funding its working capital requirements through timely payments. At present, it is bidding for new projects in JV with Star Infratech and plans to bid at individual capacity over the medium to long term. The ratings are further restrained by the high geographical concentration risk, with 100% of the order book restricted to Karnataka, and significant project concentration risks, as the top five projects contribute to 87.5% of the outstanding order book. Additionally, execution risks remain moderate, as many projects are at nascent stages of construction. The ratings are constrained by CCIPL’s modest operating profit margins owing to sub-contract nature of works. The Stable outlook reflects ICRA’s opinion that the company is likely to be benefitted by the expected revenue growth, supported by its healthy order book position and resourcefulness of its promoters, who have experience of running a much bigger construction business