CARE Ratings revises Nambiar Builders long-term rating to A-
CARE Ratings Strengthens Nambiar Builders Credit Outlook with A- Upgrade
CARE Ratings has revised Nambiar Builders Private Limited's long-term rating for bank facilities to A- (Stable), reflecting substantial improvement in operational and financial risk profile of the group.
Core Drivers of the Upgrade
Improvement in operational performance is driven by strong booking growth supported by healthy sales traction in new project launches, improvement in collections and robust launch pipeline. Improved collections have led to reduction in the group's overall debt, resulting in improved leverage.
In the ten-month period through January 2025, the group launched the new project District-25 and an additional phase of Ellegenza, aggregating to over 20 lakh sq ft of saleable area. The group sold over 18 lakh sq ft in this period against 2 lakh sq ft in FY24, and sold inventory of over ₹2,000 crore in value terms against close to ₹200 crore in FY23. This growth was attributable to strong sales traction in newly launched District-25, where the company sold substantial inventory swiftly after its launch in January 2025.
Financial Position and Liquidity
As of January 31, 2025, the Nambiar Group owns a substantial land bank of over 300 acres, with these land parcels strategically located near the company's ongoing projects in Bengaluru, likely to benefit from availability of these sizeable land parcels in sustaining growth in its bookings and collections.
The group has maintained free liquid investments of ₹65.27 crore against scheduled debt commitments of close to ₹40.3 crore in the next four quarters, providing sufficient liquidity cushion. The group's cash flow position is comfortable as Nambiar Group has healthy level of committed receivables, which covers over 136% of balance project cost and outstanding debt.
Portfolio and Development Track Record
Till date the group has successfully developed approximately 25 lakh sq ft of residential and commercial projects. The Nambiar Group is primarily focused on real estate development in the Bengaluru market, with a developed real estate portfolio that includes residential, commercial, and villa developments.
The key promoters—Ratheesh Nambiar (Managing Director), Rajesh Nambiar (Director), and Ramesh Nambiar (Director)—have over 15 years of experience and track record in executing residential real estate projects in Bengaluru.
Outlook and Key Monitoring Points
The stable outlook reflects CARE Ratings' belief that the group will continue to maintain a strong cash flow position to meet project and debt obligations, supported by significant committed receivables from ongoing projects, while maintaining a low leverage profile.
Going forward, the group's ability to timely launch planned projects, ramp-up bookings and collections, while maintaining a comfortable financial risk profile, will remain a key rating monitorable.
Market Positioning
The group's projects are strategically situated between Hosur Road and Sarjapur Road, near the Wipro corporate office, along the rapidly developing Dommasandra-Chandapura road, which has become a prime area for residential developments.