Crisil Assigns BBB/Stable Long Term Rating to Apex Ecotech Limited's Bank Loan Facility

Crisil Assigns BBB/Stable Long Term Rating to Apex Ecotech Limited's Bank Loan Facility​

Apex Ecotech Limited (AEL) has received credit ratings from Crisil Ratings for its bank loan facilities. The company secured a Crisil BBB/Stable rating for its long term facility and a Crisil A3+ rating for the short term facility, covering a total bank loan facility of Rs 75 Crore.

The ratings were assigned by Crisil Ratings based on an evaluation of AEL's financial profile, operational track record, and industry dynamics. The company, which was previously known as Apex Ecotech Private Limited, operates in the industrial water and wastewater treatment sector, focusing on designing, engineering, installation, commissioning, and operation and maintenance solutions, with 'Zero liquid discharge systems' being a primary product.

Key Rating Details for Bank Facilities​

The rating action covered various financial instruments and facilities provided by lenders. The ratings assigned are detailed below:


The facilities evaluated include a Cash Credit facility of Rs 10 Crore and various bank guarantees totaling Rs 65 Crore from the Bank Of India.

Company Financial Performance Highlights​

Crisil Ratings noted that AEL maintains a healthy financial profile, which is supported by its low reliance on external funds. For the year ended March 31, 2026, AEL's networth was estimated around Rs 63 crore, showing an increase from Rs 46.23 crore in FY25 and Rs 14.72 crore in FY24.

The company holds significant unexecuted orders amounting to approximately Rs 146 crores as of July 01, 2026, indicating adequate revenue visibility over the medium term. Furthermore, AEL's debt protection metrics are strong, with both interest coverage and net cash accrual to total adjusted debt (NCAAD) ratios estimated at around 110 times and 13 times for fiscal 2026, respectively.

Financial indicators for AEL over the past two years are summarized in the table below:

Analyst View on Strengths and Weaknesses​

Crisil Ratings attributed the positive ratings to several key strengths, including the extensive industry experience of its promoters (Mr Anuj Dosajh, Mr Ajay Raina, and Mr Ramakrishnan Balasundaram Aiyer), which spans over two decades in industrial water and wastewater treatment. The company's low total outside liabilities to adjusted tangible networth (TOL/ANW) ratio of approximately 0.3 times for the year ending March 31, 2026, was also cited as a positive indicator of its financial health.

However, the rating report highlighted specific weaknesses and monitoring points. The company faces exposure to intense competition within the water and wastewater treatment industry, which may affect pricing flexibility and profitability. Additionally, AEL has a moderately high working capital requirement, indicated by Gross Current Assets (GCA) days of 137 days as on March 31, 2026, down from 237 days in FY25.

In terms of liquidity, the company benefits from a cushion provided by its working capital limits of Rs 10 crores and bank guarantees of Rs 30 crores. The current ratio was estimated at around 4.4 times as on March 31, 2026. Crisil Ratings maintained a stable outlook for AEL, noting that the company will continue to benefit from its promoter's experience and established client relationships.

APEXECO Stock Price Movement​

On Friday, Apex Ecotech Limited shares edged higher to settle at ₹261.80, climbing 3.14% with an increase of ₹8.00. The stock traded a total volume of 12,000 shares during the session.