Rationale

The rating reaffirmation for S.E. Builders and Realtors Limited (SEBRL) factors in the strong sales for the ongoing Phase V of the Utalika project, which provides healthy cash flow visibility, thereby likely to result in low reliance on external debt and comfortable debt protection metrics. As of December 2025, the company sold 93% of the total saleable area and has committed receivables of Rs. 349.4 crore from Phase V, against which the total outstanding debt is Rs. 5 crore and the pending project cost is Rs. 232 crore, translating into a comfortable cash flow adequacy ratio of 147.4%. SEBRL’s collections are estimated to improve in FY2026 and remain adequate in FY2027, backed by the strong sales and the expected healthy construction progress. Further, with the external debt estimated to sustain at low levels, the debt protection metrics are likely to remain comfortable in FY2026 and FY2027. The rating notes the long and established track record of the Ambuja Neotia Group, the promoter group, in Kolkata. The Group has delivered more than 25 million square feet (msf) of area comprising residential and commercial spaces and hospitality projects through various joint venture and subsidiary companies over the past two decades. The Group’s track record and the attractive location of the project, with good connectivity and presence of adequate social infrastructure in the vicinity, has supported the project’s saleability. The rating, however, is constrained by the exposure to residual execution risk for Phase V of the project with 45% of the pending cost as of December 2025. Given the healthy sales progress for Phase V, the balance project cost is expected to be largely funded by customer advances and timely receipt of these advances will remain critical for completing the project within the scheduled RERA construction timeline of June 2028. The rating is constrained by SEBRL’s modest scale of operations being a single project special purpose vehicle (SPV) company and exposure to high geographical and asset concentration risks due to dependence on a single project in Kolkata, along with cyclical nature of the industry, which renders the company’s sales vulnerable to any downturn in demand and competition within the region from various established developers. The Stable outlook on the rating reflects ICRA’s opinion that the company will be able to achieve adequate collections, along with healthy construction progress in the project, and maintain comfortable leverage.