Suyog Gurbaxani Funicular Ropeways Gets CARE Ratings: BBB- Stable

Suyog Gurbaxani Funicular Ropeways Ltd. has appointed CARE Ratings Limited as its new credit rating agency, replacing CRISIL. The company's total rated bank facilities amount to ₹80 crore, with ₹78 crore designated for long-term debt.

New Agency, New Ratings

CARE Ratings has assigned a 'BBB-; Stable' rating to the company's ₹78 crore of long-term bank facilities. Additionally, its ₹2 crore of long-term/short-term bank facilities received a 'BBB-; Stable / CARE A3' rating. The total rated amount stands at ₹80 crore. These ratings are typically valid for one year from March 31, 2026, indicating a stable outlook from the new agency.

Why It Matters

Changing its rating agency and securing stable credit ratings are key for the company's debt financing and borrowing costs. A stable rating signals confidence in the company's creditworthiness to lenders and investors, potentially aiding future fundraising. It also provides a new perspective on the company's financial health and risk profile.

Previous Rating and Context

Previously, CRISIL Ratings had assigned a 'CRISIL BBB/Stable' rating to Suyog Gurbaxani's long-term bank facilities, reaffirmed in October 2025. The company operates the Saptashrungi Gad temple ropeway and is involved in the Haji Malang project. This project has faced delays and led to significant unbilled receivables. CRISIL's ratings had considered the ropeway's location, promoter experience, and moderate debt service coverage ratio (DSCR), but also noted risks from toll collection variability and interest rates.

What This Means for the Company

The company's credit profile will now be assessed and monitored by CARE Ratings instead of CRISIL. Lenders will use CARE's 'BBB-; Stable' rating to evaluate the company's debt. This marks a fresh assessment of the company's financial strengths and risks, offering investors a new perspective on its debt health.

Key Risks

• Operational and Safety Risks: Risks associated with operating ropeway projects, managed through maintenance and insurance.
• Stretched Working Capital: Significant unbilled receivables from the Haji Malang project create a strained working capital cycle, potentially affecting cash flow.
• Moderate Debt Coverage: Debt coverage indicators remain moderate, offering little room for unexpected shortfalls or payment delays.
• Modest Scale & Single Asset Dependence: The company's relatively small size and reliance on one ropeway asset may limit its financial options.

Industry Peers

Suyog Gurbaxani operates in a niche ropeway segment. Broader infrastructure players in the Indian market include Larsen & Toubro Ltd., Rail Vikas Nigam Ltd., and IRB Infrastructure Developers Ltd. These companies operate in varied infrastructure sectors at different scales and financial profiles, making direct comparisons difficult. Their presence highlights the competitive environment for infrastructure funding and project development in India.

Key Figures

• The company's total rated bank facilities stand at ₹80 crore as of April 06, 2026.
• Unbilled receivables from the Haji Malang project were about ₹84 crore on September 30, 2025, adding to working capital strain.

What's Next

• Monitor CARE Ratings' future reviews of Suyog Gurbaxani's credit profile.
• See how the company resolves payments for the Haji Malang project.
• Track operational efficiency and safety at the Saptashrungi ropeway.
• Watch for news on new projects or expansion plans that could alter its financial flexibility.
• Note any changes in interest rates or government policies affecting toll income.