ACS Technologies Limited has announced that Infomerics Valuation and Rating Limited has assigned credit ratings to its banking facilities totaling ₹100.00 crore on January 21, 2026. The rating assignment marks a significant milestone for the IT services company as it continues to expand its operations across government and private sector clients.

Rating Details and Facility Breakdown

Infomerics has assigned comprehensive ratings across the company's banking facilities, reflecting its assessment of ACS Technologies' creditworthiness and financial stability.

The facilities comprise various banking instruments including Working Capital Term Loan (₹5.00 crore), Cash Credit facilities (₹52.00 crore including proposed limits), and Bank Guarantee facilities (₹43.00 crore including proposed limits). HDFC Bank serves as the primary lender for existing facilities, with additional proposed limits under consideration.

Financial Performance and Business Growth

ACS Technologies demonstrated substantial revenue growth in FY25, with total operating income increasing by 54.4% year-on-year from ₹81.99 crore in FY24 to ₹126.58 crore in FY25. This growth trajectory represents a compound annual growth rate of approximately 35% over the last three fiscal years, driven by higher order execution and supported by a healthy order book.

Despite strong revenue growth, profitability margins moderated as the company strategically accepted lower-margin private sector contracts to enhance market penetration and diversify its customer base beyond government clients.

Strong Order Book and Market Position

The company maintains a robust unexecuted order book position of ₹539.86 crore as of November 30, 2025, representing 4.26 times its FY25 revenue. This substantial order book provides strong revenue visibility for the next 1-2 years, with Annual Maintenance Contract work extending over 5-10 years depending on contract terms.

ACS Technologies serves a diverse client base including State Government agencies, Central Government entities, and private organizations across infrastructure, manufacturing, and trading segments. The company's focus on government clients and reputed private players provides comfort through low counterparty credit risk.

Capital Structure and Debt Management

The company maintains a comfortable capital structure with an overall gearing ratio of 0.48x as of March 31, 2025, compared to 0.27x in the previous year. The increase in gearing primarily reflects higher working capital borrowings driven by significant operational growth and increased order execution.

Despite the moderation in some debt coverage indicators, the company's interest coverage ratio remained comfortable at 4.33x in FY25, and total indebtedness as reflected by TOL/ATNW stood at 1.15x as of March 31, 2025.

Rating Rationale and Outlook

Infomerics' rating assignment considers several key factors including the extensive experience of promoters with over three decades in the industry, established relationships with reputed clientele, and improvement in business performance. The ratings also acknowledge the company's strong order book position providing healthy revenue visibility.

However, the ratings account for challenges including modest scale of operations, exposure to intense competition in the IT/ITES sector, and the working capital-intensive nature of operations. The operating cycle improved significantly from 262 days in FY24 to 170 days in FY25, though it remains elevated due to the project-based nature of system integration and turnkey technology contracts.

The stable outlook reflects expectations of continued stable business performance underpinned by the strong order book and healthy revenue visibility for the near to medium term. The company's liquidity profile is considered adequate, with sufficient cash accruals relative to debt repayment obligations and satisfactory working capital utilization at approximately 75% of limits.

ACS Technologies Limited has announced the execution of a substantial agreement with the Andhra Pradesh Commercial Taxes Department, marking a significant business development for the technology services company. The agreement, valued at ₹13.61 crore, was disclosed to BSE Limited on January 20, 2026, under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Agreement Details and Scope

The comprehensive contract involves multiple technical components for the Andhra Pradesh government's tax administration system. The project encompasses development, maintenance, integration, and management of applications specifically for the AP Commercial Taxes Department. Additionally, the agreement includes maintenance of infrastructure and integration with several key government systems including GSTN, NIC, CFMS, and other government departments.

Regulatory Compliance and Corporate Structure

The company has confirmed full compliance with regulatory requirements, stating that the agreement falls under domestic operations. Key compliance aspects include:

• No promoter or group company interest in the awarding entity
• The contract does not constitute a related party transaction
• All terms and conditions are governed by the executed agreement
• Proper disclosure under SEBI regulations maintained

Company Profile and Certifications

ACS Technologies Limited operates with over 40 years of service excellence in the technology sector. The company maintains robust quality standards through multiple ISO certifications, including ISO 9001, 20000, 22301, 26000, and 27001. The organization has established branch offices in key Andhra Pradesh locations, including Visakhapatnam and Vijayawada, positioning it strategically for regional government projects.

Strategic Significance

This agreement represents ACS Technologies' continued engagement with government digitization initiatives, particularly in the critical area of commercial tax administration. The project involves integration with multiple government systems, demonstrating the company's technical capabilities in handling complex, multi-platform government technology solutions. The substantial contract value of ₹13.61 crore underscores the scope and importance of modernizing Andhra Pradesh's commercial tax infrastructure.