Dhariwal Infrastructure Limited

ICRA notes that the offtake risks for Unit 2 of the plant are mitigated given the presence of long-term PPA for 187 MW tied up with Noida Power Corporation Limited (NPCL) under cost-plus tariff valid till March 2040 and another 109 MW with Tamil Nadu Power Distribution Corporation Limited (TNPDCL) under competitive bid-based tariff, which, however, is valid till September 2028.

Subsequently, the company has tied up new medium term PPAs (25 MW with NPCL, 125 MW with Adani Electricity Mumbai Limited and 75 MW with The Tata Power Company Limited; net capacity basis) effective from Q1 of FY2026, which offers enhanced revenue visibility over the near term and mitigates the offtake risk to a large extent.

Ratings continue to factor in the presence of medium -to-long-term PPAs for ~89% of the overall capacity with unit 1 having medium term PPAs of 2-5 year tenor, whereas the 300 MW unit 2 is tied up under long-term PPAs with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) (100 MW) till September 2028 and Noida Power Company Limited (NPCL) (187 MW) till FY39, which provides revenue visibility.

The negative sensitivity of total debt/EBITDA of 4x was breached in FY26 as the company availed incremental debt of ₹800 crore primarily for funding equity requirement for renewable capacity expansion under Purvah GreenPower Private Limited (rated ‘CARE A;

However, the company had cash and liquid investments of ₹1,271 crore leading to net debt of ₹1,627 crore and resulting in net debt/EBITDA of 2.65x as on March 31, 2026, which is comfortable.

DIL received significant fund support from CESC and Haldia Energy Limited for funding its scheduled debt repayment obligations and prepayments of debt considering significant cash losses over the past years.

While the company has availed term loan of ₹800 crore in FY26 leading to moderation in leverage, the debt coverage indicators remain comfortable owing to the signing of new medium-term PPAs of 235 MW for Unit 1 at remunerative tariffs.

Liquidity: Adequate The company has adequate liquidity position with free cash and cash equivalents amounting to ₹1,222 crore as on June 30, 2026.

The average fund-based working capital utilisation for ₹450 crore limits in the TTM ending June 2026 is 60%.

Ratings continue to factor in the presence of medium-to-long-term PPAs for ~88% of the overall capacity with majority unit 1 having medium term PPAs, whereas the full capacity of 300 MW unit 2 is tied up with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) (100 MW) and Noida Power Company Limited (NPCL) (187 MW) which provides revenue visibility.

While the company has availed term loan of ₹800 crore in FY25 and Q1 FY26 leading to moderation in leverage, the debt coverage indicators remain comfortable owing to the signing of new medium-term PPAs of 225 MW for Unit 1 at remunerative tariffs.

DIL received significant fund support from CESC and Haldia Energy Limited for funding its scheduled debt repayment obligations and prepayments of debt considering significant cash losses over the past years.

Liquidity: Adequate The company has adequate liquidity position with free cash and cash equivalents amounting to ₹675 crore as on June 30, 2025.

The average fund based working capital utilisation in the TTM ending July 2025 is 23%.

However, the debt levels due to incremental term loan of ₹600 crore availed in FY2025 and ₹200 crore availed in May 2025.

DIL has received significant fund support from CESC and Haldia Energy Limited for funding its scheduled debt repayment obligations and prepayments of debt considering significant cash losses over the past years.

Liquidity - Adequate The company has adequate liquidity with free cash and cash equivalents amounting to ₹690 crore as on March 31, 2025.

The average fund-based working capital utilization in FY25 was 20%.

DIL has received significant fund support from CESC and Haldia Energy Limited for funding its scheduled debt repayment obligations and prepayments of debt in view of significant cash losses over the past years.

Press Release Liquidity - Adequate The company has adequate liquidity with free cash and cash equivalents amounting to ₹150 crore as on September 30, 2024.

The average fund-based working capital utilisation in FY24 stood at 43%.

Negative /CARE A1+) for funding its scheduled debt repayment obligations and prepayments of debt in view of significant cash losses over the past years.

Liquidity - Adequate The company has adequate liquidity with free cash and cash equivalents amounting to ₹156 crore as on December 31, 2023.

The average fund-based working capital utilisation in FY24 stood at 43%. 2 CARE Ratings Ltd.

Negative /CARE A1+’) for funding its scheduled debt repayment obligations and prepayments of debt in view of significant cash losses over the past years.

Liquidity: Adequate The company has adequate liquidity position with free cash and cash equivalents amounting to ₹208 crore as on June 30, 2023.

The average fund-based working capital utilisation during the last 12 months ended July 2023 stood at 97%.

Stable/CARE A1+) for funding its scheduled debt repayment obligations and prepayments of debt in view of significant cash losses over the past years.

Liquidity - Adequate The company has adequate liquidity in the form of cash and cash equivalents of ₹190 crore as on June 30, 2022.

Furthermore, the average utilisation of fund-based working capital limits stood at 53% for the trailing 12 months ended June 2022.

This apart there has been sizable prepayment of debt over last two years which has led to savings in finance cost and improvement in its leverage.

Over the past three years ended FY21, DIL has received fund support from HEL to the tune of Rs.1,010 crore which has been utilized for reduction in total debt of Rs.892 crore which was Rs.496 crore over its scheduled repayment.

Demonstrated support from group entities DIL has received significant fund support from CESC and HEL for funding its scheduled debt repayment obligations and prepayments of debt in view of significant cash losses over the years.

Liquidity - Adequate The company has adequate liquidity in the form of cash and liquid investments of around Rs.149 crore and undrawn working capital limit of Rs.230 crore as on March 31, 2021.

The average working capital utilization stood low at 27% for the trailing twe lve months ended August 2021.

Further, as per management articulation, the company shall maintain liquidity at current level of un -utilized working capital limit and free cash and cash equivalents to the tune of Rs.60 crore.

The company earned a GCA of Rs.207 crore vis-à-vis debt repayment obligation of Rs.164 crore during FY21.

The company earned a cash profit of Rs.90 crore in FY20 vis-à-vis cash profit of Rs.8 crore in FY19 due to higher revenue from Unit I on account of increase in units sold from 1,022 mu in FY19 to 1,170 mu in FY20 along with increase in average tariff for sale of energy to NPCL for Unit II.

The company earned cash profit of Rs.89.76 crore vis-à-vis debt repayment obligation of Rs.269 crore in FY20 (including repayment of short term loan of Rs.125 crore).

The company earned cash profit of Rs.89.76 crore vis-à-vis debt repayment obligation of Rs.269 crore in FY20 (including repayment of short term loan of Rs.125 crore).

The shortfall in debt servicing was met out of fund support received from HEL amounting to Rs.525 crore.

The company earned a GCA of Rs.50.10 crore vis-à-vis debt repayment obligation of Rs.38 crore in Q1FY21.

The debt equity ratio witnessed an improvement from 7.36x as on March 31, 2019 to 6.49x as on March 31, 2020 and further to 6.11x as on June 30, 2020 on account of scheduled payment of term loans along with prepayment of term loan amounting to Rs.291 crore in FY20.

Liquidity Analysis - Adequate The company has an adequate liquidity position with cash and cash equivalents amounting to Rs.13 crore along with undrawn line of credit amounting to Rs.117 crore as on August 31, 2020.

The company earned GCA of Rs.90 crore vis-à-vis debt repayment obligation of Rs.142 crore along with repayment of short term loan amounting to Rs.125 crore.

The shortfall in repayment was met out of fund infused by HEL in FY20 amounting to Rs.525 crore which was utilized for the shortfall of cash accruals to repay term loan obligations and prepay part of a term loan amounting to Rs.291 crore (high cost debt).

The company has a debt repayment obligation of Rs.165 crore in FY21 (out of which Rs.37.65 crore has already been repaid in Q1FY21).

The company earned a cash profit of Rs.8 crore in FY19 vis-à-vis cash loss of Rs.94 crore in FY18 due to operationalization of Unit 1 on account of short term PPA with MAHAGENCO (for 8 months starting from April 2018).

GCA stood at Rs.0.63 crore in Q1FY20 against a debt repayment obligation of Rs.31.1 crore.

Liquidity Analysis - Adequate The company has an adequate liquidity position with an average working capital utilisation of 14% during the last 12 2 CARE Ratings Limited Press Release months ending July 2019.

The GCA for FY19 stood at Rs.8.15 crore and the company received fund support from its fellow subsidiary HEL amounting to Rs.335 crore in FY19 to meet its debt repayment obligation of Rs.215 crore.

The GCA for FY19 stood at Rs.8.15 crore and the company received fund support from its fellow subsidiary HEL amounting to Rs.335 crore in FY19 to meet its debt repayment obligation of Rs.215 crore.

Further, DIL received Rs.130 crore in Q1FY20 from HEL which was utilized to meet its debt repayment obligation for Q1FY20 and prepayment of term loan aggregating Rs.100 crore.

DIL had cash and bank balance of Rs.24.9 crore and unutilized line of credit amounting to Rs.130 crore as on June 30, 2019.

The group had infused Rs.907 crore in FY17 in DIL.

DIL incurred a cash loss of Rs.46 crore on a total operating income of Rs.554.5 crore in H1FY19.

Weak capital structure The overall gearing ratio deteriorated from 4.77x as on March 31, 2017 to 6.69x as on March 31, 2018 on account of new loans availed by the company and reduction in networth due to loss incurred by the company in FY18.

Moderate liquidity profile The company has a moderate liquidity position with a cash and bank balance of Rs.21.63 crore as on March 31, 2018.

DIL has availed term loans of Rs.220 crore in H1FY19 to meet its funds requirements.

Till September 30, 2018, DIL has already repaid Rs.165 crore out of total debt repayment obligation of Rs.222 crore in FY19.

The average fund based working capital utilisation of the company remains low at around 25%-30% providing cushion from liquidity perspective.