RATING RATIONALE

10Mar2026

Reso Liva Buildcon LLP

Brickwork Ratings assigns the long-term ratings for the Bank Loan Facilities of Rs. 110.00 Crs. of Reso Liva Buildcon LLP

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	110.00	Long Term	BWR BB /Stable Assignment
Fund Based	(109.94)	Long Term	BWR BB /Stable Assignment
Non Fund Based	(2.20)	Long Term	BWR BB /Stable Assignment
Grand Total	110.00	(Rupees One Hundred Ten Crores Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK

Brickwork Ratings (BWR) has assigned a long-term rating of BWR BB/Stable to the bank loan facilities of Reso Liva Buildcon LLP, amounting to Rs.110 crore. The rating factors in the extensive industry experience of the partners, supported by their adequate net worth and strong track record with proven execution capabilities. The rating also takes into account the project’s locational advantage and satisfactory banker feedback, all of which contribute to the entity’s overall credit strength. However, the rating is constrained by project execution risk due to the nascent stage of construction, exposure to intense competition from established players, the cyclical nature of the real estate industry, inherent construction-related risks, and risks associated with the constitution of the entity.

The Stable outlook reflects the firm’s continued benefit from the partners’ established track record in the real estate business and the favorable location of the project.

The rating may be positively impacted upon timely achievement of construction milestones in line with projections, along with a significant increase in booking levels.

Conversely, the rating may be negatively impacted in the event of any material cost or time overruns, or if cash inflows fall below projections due to lower-than-expected customer advances or bookings.

KEY RATING DRIVERS

Credit Strengths:

Experienced promoter with a long-standing association in the real estate sector and a strong track record with the group :
The promoters possess over three decades of experience in construction and real estate development. Their strong domain expertise, proven execution capabilities, and deep understanding of the Ahmedabad real estate market significantly mitigate management and execution risks, while also providing financial strength and local market insight, particularly in land transactions. The Akshar Group was established in 1990 by one of the promoters and has since built a strong niche in the Ahmedabad real estate market through the timely delivery of projects across segments ranging from affordable housing, commercial to luxury apartments. Over the years, the group has successfully completed 10 projects aggregating approximately 3.1 million sq. ft. of constructed area. This extensive experience provides a significant execution advantage and is expected to enable the completion of THE EMPRESS without delays, in line with the DCCO schedule.
Favorable location and the advantage of modern infrastructure and amenities of the project, THE EMPRESS :
The project (The EPMRESS) is located in the posh residential and commercial precinct of South Bopal, Ahmedabad, near SOBO Centre, and enjoys excellent connectivity to key parts of the city as well as to satellite industrial towns such as Sanand and Bavla. The area is supported by well-developed infrastructure facilities, including prominent commercial hubs, reputed hospitals such as HOC Vedanta Bhopal, Navkar Hospital, KIMS Hospital, and Adwait ICU and Multispecialty Hospital, as well as established educational institutions like Parul Institute of Applied Science and Research, Apollo International School, Shanti Asiatic School, Shanti Business School, and Delhi Public School, Bhopal. With the presence of retail destinations, civic amenities, and proximity to major commercial and industrial zones, the location offers a balanced ecosystem of residential comfort, social infrastructure, and business connectivity.

THE EMPRESS will provide premium living with a wide range of modern amenities, including wellness and fitness facilities, recreational courts, landscaped gardens, children’s and toddler areas, a swimming pool, and exclusive lift access to each unit through a personal foyer.

Credit Risks:

Project execution risk, as construction is at a nascent stage :
Reso Liva Buildcon LLP (RLBL) has already acquired the project land, obtained the necessary approvals, and commenced construction. Excavation and diaphragm wall works have been completed, and foundation-related works are currently in progress. The physical progress of the project stands at around 20%. The total project cost is estimated at Rs. 344 crores, of which Rs. 128.19 crore (approximately 37%) has been incurred to date. The balance project cost of Rs. 216 crore (around 63%) is yet to be executed over the next four years, with the expected completion date scheduled for 30th June 2030. While the remaining construction entails execution risk, the Akshar Group’s strong track record in project implementation provides comfort. The group has successfully completed 10 projects aggregating approximately 3.1 million sq. ft. of constructed area and has built a strong niche in the Ahmedabad real estate market through the timely delivery of projects across segments ranging from affordable housing and commercial developments to luxury apartments. This proven execution capability mitigates the risk associated with the successful and timely completion of the ongoing project to a significant extent.
Exposure to inherent regulations and industry cyclical risk and established players in the real estate sector :
The residential and commercial projects are exposed to inherent regulatory and industry risks and face competition from well-established developers in the real estate sector. The cyclical nature of the domestic real estate market results in volatility in cash inflows due to fluctuations in demand, realizations, and sales velocity. The Indian real estate industry is fragmented, capital intensive, and characterized by long project life cycles, making project performance highly sensitive to economic conditions at every stage, from land acquisition and construction to final delivery. Variations in realizations and salability can lead to uneven cash flows, thereby exposing entities to industry-wide risks. Further, demand for real estate is closely linked to the overall economic outlook, as factors such as GDP growth, employment trends, and household income influence purchasing decisions. Buyer demand is also affected by the availability of financing and interest rate movements. On the cost side, prices and availability of key inputs such as land, labour, cement, and steel significantly impact project economics and the supply of new units. Consequently, changes in economic conditions, interest rates, and input costs contribute to the sector’s inherent cyclicality. Additionally, the industry remains subject to evolving regulatory frameworks in India and faces competitive pressures from both upcoming and completed projects of other established developers in the region.
Constitution of the entity as partnership firm with inherent risk of withdrawal of capital :
The firm’s constitution as a partnership inherently exposes it to certain structural and governance risks. These include the possibility of capital withdrawals by partners in the event of personal exigencies, which could adversely affect the firm’s liquidity position and operational continuity. Any substantial withdrawal from the capital account would also impact the firm’s net worth and, consequently, its gearing levels. Further, the partnership remains vulnerable to dissolution risks arising from the death, retirement, or insolvency of any partner, which could disrupt business stability unless adequately addressed through appropriate partnership agreements.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale). BWR has principally relied upon the Standalone audited financials up to FY25 & Projected financials up to FY32 and clarification/information provided by the firm.

RATING SENSITIVITIES

The key ratings sensitivities will be the firm's ability to accelerate project development, efficiently manage project costs and financial requirements, maintain increased residential and commercial unit bookings, and ensure sufficient capital infusion as needed.

Positive Rating Factors:

The rating outlook may improve if construction progress reaches 40% or more through timely achievement of stage-wise milestones in the coming year and the project progresses in line with the scheduled timelines.
An increase in customer bookings or advances to 50% or more during the calendar year up to December 2026

Negative Rating Factors:

The rating may be adversely affected in case of significant cost or time overruns.
In case customer advances are below the projected levels for the period.

LIQUIDITY INDICATORS - Stretched

The firm has adequate current assets, with a current ratio of 4.91 times as of FY25, supported by customer advances of Rs.4.97 crore and no scheduled debt repayment obligations for the next three years. Repayment of the term loan is scheduled to commence from July 2030, and the undisbursed portion of the term loan amounting to Rs.76 crore will support project finance requirements. Further, as per the company’s projections, the firm is expected to generate sufficient cash flows by FY30 to meet its term loan repayment obligations. As discussed with management, the partners have infused adequate capital into the business and are willing to extend further support, if required, in the form of unsecured loans to meet project expenses and debt servicing requirements. Additionally, the value of unsold units currently under construction is estimated at approximately Rs.380 crore. However, as the project is at an initial stage, customer advances are required to Increase going forward to support project requirements. Hence, based on the above factors, the company’s liquidity is assessed as ‘Stretched’.”

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Consumer Discretionary	Realty	Realty	Residential, Commercial Projects

Reso Liva Buildcon LLP (RLBLLP or ‘the Entity’) is a registered limited liability partnership incorporated on 11 May 2023, bearing LLPIN: ACB-1016. RLBLLP has been formed as a special purpose vehicle (SPV) for the development of a mixed-use residential and commercial project titled ‘The Empress’ under a landowner development model. The project is located at south Bhopal, Ahmedabad, Gujarat – 380058.

The key partners, Shri Kalpeshbhai Kantilal Patel and Shri Vikrambhai Mafatlal Patel, have around 30 years of experience in real estate development. The project is promoted by the Akshar Group, which was established in 1990 and has built a strong presence in the Ahmedabad real estate market through timely execution of projects ranging from affordable housing to luxury apartments. To date, the Group has completed 10 projects with an aggregate constructed area of approximately 3.1 million sq. ft.

The partners and promoters of RLBLLP are Mr. Shri Kalpeshbhai Kantilal Patel, Shri Vikrambhai Mafatlal Patel, and Shri Mohanbhai Raijibhai Bharwad

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	Not Available	Not Available	Not Available
EBITDA	Rs.Crs.	Not Available	0.18	1.60
PAT	Rs.Crs.	Not Available	Not Available	Not Available
Tangible Net Worth	Rs.Crs.	Not Available	27.77	59.16
Total Debt / Tangible Net Worth	Times	Not Available	0.36	0.60
Current Ratio	Times	Not Available	128.65	4.91

KEY COVENANTS OF THE FACILITY RATED

The terms of the sanction include the standard covenants typically prescribed for such facilities, and the following additional covenants have been specified by the lender.

The partners shall continue to infuse capital on a year-on-year basis as may be required to fund the project to ensure its timely completion and shall maintain a sufficient DSRA at all times, as stipulated in the sanction letter, to ensure adequate liquidity for debt servicing.
The unsecured loans of Rs. 68 Crores shall remain subordinated and cannot be withdrawn until the project is completed.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Not Applicable.

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	110.00	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	LT	(109.94)	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	LT	(2.20)	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		110.00	(Rupees One Hundred Ten Crores Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Likith M S Rating Analyst likith.ms@brickworkratings.com	Suryanarayan N Associate Director - Ratings suryanarayan.n@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

Reso Liva Buildcon LLP

ANNEXURE-I

Details of Bank Facilities rated by BWR

SL.No.	Name of the Bank/Lender	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)	Complexity of the Instrument
1	State Bank Of India (SBI)	Term Loan - Sanctioned	110.00	_	110.00	Simple##
	Sub-Limit (Credit Exposure Limit within TL) - Sanctioned	(2.20)
	Sub-Limit (FCNR TL) - Sanctioned	(109.94)
Total			110.00	0.00	110.00
TOTAL (Rupees One Hundred Ten Crores Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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