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.

Four penny stocks have captured investor attention following announcements of fresh work orders worth a combined ₹41.73 crores, spanning diverse sectors from IT infrastructure to agricultural drones. These contract wins demonstrate growing business momentum and revenue visibility for companies in the small-cap segment.

Major IT Infrastructure Contract

ACS Technologies secured the largest order among the four companies, receiving a significant contract from Andhra Pradesh Urban Infrastructure Asset Management Limited. The IT firm, established in 1980 and specializing in system integration and IoT solutions, will execute this project as part of a consortium with Dreamstep Software Innovations Private Limited.

Power Sector Cable Supply

Sharika Enterprises Limited, a power sector specialist established in 1998, received a purchase order from LS Cable India Private Limited for optical ground wire cables. The company focuses on power generation, transmission, and distribution services with expertise in smart grid technologies.

Agricultural Drone Maintenance

Drone Destination Limited, India's first DGCA-authorized Remote Pilot Training Organisation, secured a maintenance contract supporting the government's digital agriculture initiative. The company operates an integrated ecosystem covering drone manufacturing, pilot training, and drone-as-a-service offerings.

Environmental Consulting Services

Techknowgreen Solutions Limited, a Pune-based environmental consulting firm established in 2001, won a specialized advisory contract from Web Werks (India) Private Limited. The company provides sustainable solutions for regulatory compliance and infrastructure development across multiple sectors.

Market Response and Sector Diversity

The market response to these announcements varied, with three of the four companies experiencing positive share price movements. The contracts span multiple high-growth sectors including digital infrastructure, renewable energy transmission, precision agriculture, and environmental compliance. These developments highlight the diverse opportunities available within the penny stock segment and demonstrate how smaller companies are participating in India's digital transformation and sustainable development initiatives.