Sugs Lloyd Limited (SLL), a company specializing in solar energy, electrical transmission and distribution, and civil EPC projects, has received credit ratings from CARE Ratings Limited for its bank facilities totaling ₹125 crore. The ratings reflect the company's growing operations, healthy profitability, and strong order book position.

Credit Ratings Breakdown

Key Strengths

1. Experienced Promoters: SLL benefits from the leadership of Priti Shah and Santosh Kumar Shah, who have around two decades of experience in the electrical transmission and distribution industry.

2. Growing Operations: The company's total operating income (TOI) grew at a compound annual growth rate (CAGR) of 97.81% for four years, reaching ₹176.20 crore, up from ₹65.13 crore in the previous year.

3. Healthy Profitability: SLL maintained a comfortable PBILDT (Profit Before Interest, Lease, Depreciation, and Tax) margin of 14.63%.

4. Strong Order Book: As of July 31, SLL's order book stood at ₹470.94 crore, approximately 2.67 times its gross sales, providing medium-term revenue visibility.

5. Improved Capital Structure: The company's capital structure improved significantly following an equity infusion of ₹85.65 crore from IPO proceeds in September.

Challenges

1. Working Capital Intensive Operations: The company's working capital cycle stood at 112 days, primarily due to extended receivable days of 116 days.

2. Competitive Industry: SLL operates in a tender-based business environment with intense competition, which may pressure profitability margins.

Financial Performance

A: Audited, UA: Unaudited

Outlook

CARE Ratings has assigned a 'Stable' outlook to Sugs Lloyd Limited, indicating confidence in the company's ability to maintain its financial performance. The ratings agency believes that SLL will continue to benefit from the experience of its promoters in the industry.

While the company faces challenges such as working capital intensity and competitive pressures, its strong order book and improved capital structure post-IPO provide a solid foundation for future growth.

Sugs Lloyd Limited has announced significant changes to its board and committee structure. The company disclosed these developments in a regulatory filing dated October 28, 2025.

Board Resignation

Mr. Ghanshyam Dhananjay Gavali (DIN: 03343352) has resigned from his position as Non-Executive Non-Independent Director of Sugs Lloyd Limited. The resignation, citing personal and unavoidable circumstances, took effect from the close of business hours on October 27, 2025.

Committee Restructuring

As a result of Mr. Gavali's departure, the company has made changes to its Nomination & Remuneration Committee:

The reconstituted Nomination & Remuneration Committee now comprises:

Company's Statement

The Board of Sugs Lloyd Limited expressed its appreciation for Mr. Gavali's contributions during his tenure, acknowledging the company's benefit from his experience, judgment, and commitment.

Regulatory Compliance

The company has affirmed that these changes are in line with the applicable regulations, including SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The necessary disclosures have been made to the stock exchange as per regulatory requirements.

In his resignation letter, Mr. Gavali confirmed that he has no outstanding dues or claims against the company and expressed gratitude for the support received during his tenure.

These changes reflect Sugs Lloyd Limited's ongoing efforts to strengthen board oversight and enhance governance practices.