Infomerics Upgrades Ratings for Harsh Constructions on Strong Operational Growth and Expanding Order Book
Mumbai, July 23, 2026: Credit rating agency Infomerics Ratings has upgraded its long-term and short-term ratings on the bank facilities of Harsh Constructions Private Limited (HCPL) following sustained growth in the company’s operational scale and solid cash accruals, HCPL said in a press release.
The agency upgraded HCPL’s long-term rating to ‘IVR A/Stable’ and its short-term rating to ‘IVR A1’, while expanding the total bank loan facilities rated to Rs 840.03 crore, up from Rs 543.07 crore previously.
According to the rating agency’s rationale, the upgrade was driven by continued strong growth in HCPL’s scale of operations across FY25 and FY26 while keeping EBITDA margins above the 12.00% mark. This operating performance enabled gross cash accruals to nearly double, rising from Rs 51.13 crore in FY24 to Rs 94.88 crore in FY26.
The rating action also highlights the firm’s strong credit profile, supported by steady cash flows and a balanced capital structure. Over FY25 and FY26, HCPL maintained an overall gearing ratio of approximately 1.0x and a Total Outside Liabilities to Total Net Worth (TOL/TNW) ratio of around 2.0x.
Further strength is derived from HCPL’s large and diversified order book, which stood at Rs 3,276 crore as of June 1, 2026. This pipeline provides clear revenue visibility for approximately 2.5 years based on consolidated FY26 revenues, alongside the backing of experienced promoters and a established client base.
However, Infomerics noted that the ratings remain constrained by significant working capital requirements, as well as the company’s exposure to geographical and customer concentration risks.
Maintaining a ‘Stable’ outlook, Infomerics expects steady revenue growth over the FY27–FY29 period anchored by HCPL’s Rs 3,276 crore order book as of May 2026. The agency also projects that EBITDA margins will hold above 12% over the medium term, generating strong cash accruals to support a comfortable financial risk profile.
