CRISIL upgrades Nambiar Builders to A-/Stable rating
Credit Rating Upgrade Signals Nambiar's Operational Maturity
CRISIL Ratings upgraded its rating on the long-term bank facilities of Nambiar Builders Private Limited (NBPL) to CRISIL A-/Stable from CRISIL BBB+/Stable on April 30, 2025. The move reflects a material step forward for the Bangalore-based developer, which had carried BBB+ ratings since early 2024.
What Drove the Upgrade
The rating reflects a stronger business profile and cash-flow visibility. The underlying momentum is anchored in execution: The newly launched District 25 project witnessed 100% sales on the day of launch, reflecting the strong market position of the company.
The timing of the upgrade sits within a broader shift in Nambiar's financial position. Collections have gradually increased with execution progress and new launches. Collections in FY24 improved to close to ₹550 crore against over ₹380 crore in FY23. External debt has significantly decreased in the last and current fiscal years. External debt reduced from ₹443 crore as of March 31, 2023, to ₹375 crore as of March 31, 2024, and further to ₹266 crore as of January 2025. Consequently, the group's debt-to-collection ratio improved from 1.15x in FY23 to 0.68x in FY24, and 0.56x in 10MFY25.
Portfolio Scale and Committed Receivables
Nambiar Builders is a Bengaluru-based real estate developer founded in 2009. The company has developed villas, gated communities and apartments around Sarjapur Road and East Bengaluru. The group's development portfolio includes four projects, with total of approximately 43 million square feet of saleable area, and two JDA projects with Sobha Limited covering approximately 55 million square feet, where group is landowner and Sobha Limited is a developer. As of January 2025, 81% of the saleable area has been sold, with approximately 50% of the project costs yet to be incurred, reflecting strong sales performance at an intermediate stage.
As on January 31, 2025, 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, which provides sufficient liquidity cushion.
The Larger Market Position
Between April 2024 and January 2025, the group launched one new project District-25 and an additional phase of Project Ellegenza aggregating to total saleable area over 20 million square feet. Considering substantial launches, the group sold over 18 million square feet in this period, which is significantly higher than 2 million square feet area sold in FY24. In value terms, the group sold inventory of over ₹2,000 crore in 10MFY25 against close to ₹200 crore in FY23, marking a strong year on year growth. This growth was attributable to strong sales traction in its newly launched project Nambiar District-25, where the company sold substantial inventory swiftly after its launch in January 2025.
Implications for Ongoing Development
The A-/Stable rating is broadly aligned with Nambiar's growth trajectory, particularly as larger-scale projects come online. NAMBIAR BUILDERS PRIVATE LIMITED generated a revenue of Rs. 364 Crore for the financial year ending on Mar 31, 2025. The rating provides a formal confirmation of financial discipline at a stage when the developer is managing material project costs across multiple concurrent developments.
As of January 31, 2025, the Nambiar Group owns a substantial land bank of over 300 acres, with significant development potential. These land parcels are strategically located near the company's ongoing projects in Bengaluru. The group is likely to benefit from availability of these sizeable land parcels in sustaining growth in its bookings and collections.