Press Release July 21, 2025 JINDAL STAINLESS STEELWAY LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	125.00	ACUITE AA | Stable | Assigned	-
Bank Loan Ratings	105.00	-	ACUITE A1+ | Assigned
Total Outstanding	230.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

A­cuite has assigned its long-term rating of 'ACUITE AA' (read as ACUITE double A) on the Rs.125 Cr. bank loan facilities and short-term rating of 'ACUITE A1+' (read as ACUITE A one plus) on the Rs. 105 Cr. of bank loan facilities of Jindal Stainless Steelway Limited (JSSL). The Outlook is 'Stable'. Rationale for Rating The assigned ratings factors the strong operational, financial and management linkages with its parent entity i.e. Jindal Stainless Limited (JSL). The rating also factors the improving scale of operations aided by sales volume & profitability, healthy financial risk profile, strong liquidity position with steady accruals and moderate working capital operations of the company. However, the rating is constrained due to susceptibility of profitability margins due to volatility in raw material prices.

About the Company

­Haryana based, Jindal Stainless Steelway Limited, incorporated in 2004, engaged in services like slitting, cut-to-size, blanking, and polishing of Stainless Steel (SS) sheets, coils, and blanks to meet specific customer requirements. Their activities also include job work for JSL and have a 1500 customer base which includes OEM & SS (Stainless Steel) trades. The company has installed capacity of 7,42,200 MTPA of steel processing at its plants at Gurgaon, Chennai, Vadodara and Mumbai. The company is managed by Mr. Vijay Kumar Sharma, Mr. Sanjay Kumar Goyal, Mr. Tarun Kumar Khulbe, Mr. Shruti Shrivastava, Mr. Madhur Gupta and Mr. Vaishali Deshmukh as directors.

About the Group

JSL is a part of the Ratan Jindal Group as a flagship company and is the leading integrated SS producers in the country with steel melting capacity of 3.00 MTPA. The manufacturing facilities are located at Jaipur (Odisha) and Hisar (Haryana). The company also has a captive thermal power plant, captive ferrochrome facilities, captive chromite mine, stainless steel melting, rolling mill and downstream value-added facilities. It manufactures stainless steel slabs and hot-rolled/cold-rolled coils and sheets and is also engaged in the production of specialty SS, which are high value-added products, including precision strips and defence products.

Unsupported Rating

­Acuite AA-/Stable

Analytical Approach

­Acuite has considered standalone business & financial risk profile of Jindal Stainless Steelway Limited (JSS). In addition to that, Acuite have factored in the support from parent entity i.e. Jindal Stainless Limited on the account of strong operational linkages and brand presence

Key Rating Drivers

Strengths

­Strong Parent Support JSSL promoted by JSL which is the flagship company of the Ratan Jindal group. The company procures all the raw material from its parent entity i.e. JSL on an arm’s length basis and customize it as per the requirement of the customer. The company add value to the raw material procured and sells it to different market segment from its parent. JSSL acts as a crucial channel for JSL's products to reach OEMs, small end-users, and traders. Acuite believes that going forward, with the group's support and experience the company will be able to grow its operations in medium to longer term.  Improving Scale of Operations & Profitability The revenue from the operations of the company has improved at a CAGR of 10.95% from FY 23 to FY 25, thereby increasing the topline from Rs. 2,639.01 cr. in FY 23 to Rs. 3,043.06 Cr. in FY 2024 to Rs. 3,248.63 Cr. in FY 2025. The company has sold more volume units in FY 25 against previous year FY 24; however, the average price realization declined on correction in the steel prices. The operating margin of the company improved by 64 bps which stood at 4.54% in FY 25 against 3.90% in FY 24. The Net margin improved by 73 bps which stood at 3.42% in FY 25 against 2.69% in FY 24. The net profit of the company is Rs. 111.12 Cr. in FY 2025 against the Rs. 81.79 Cr. in FY 2024. Acuite believes that the operating revenue & margins will improve in near to medium term on the account of better expected volumes to be sold by the company.  Healthy Financial Risk Profile The company’s financial risk profile is strong marked by net worth, gearing and debt protection metrics. The tangible net worth of the company improved & stood at Rs. 654.28 cr. as on March 31, 2025, against Rs. 510.59 Cr. as on March 31, 2024. The Gearing ratio of the company slightly deteriorated however stood below unity at 0.16 times as on March 31, 2025, as against 0.09 times as on March 31, 2024. The company is only relying on short-term working capital debt. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 0.77 times as on March 31, 2025, as against 0.74 times as on March 31, 2024. The debt protection metrics is marked by ISCR at 28.15 times and DSCR at 19.68 times for FY 2025. The Debt-EBITDA & ROCE stood at 0.63 times & 23.24% for FY 25 respectively. Acuité believes that going forward the financial risk profile of the company will remain strong backed by steady accruals in near to medium term. Efficient Working Capital Operations The working capital operations of the company is efficiently managed marked by Gross Current Asset Days of 92 days in FY 25 against 80 days in FY 24. GCA days increased in FY 25 due to increase in other current asset which includes the balance with statutory authorities. The inventory holding and debtor days are healthy which stood at 51 days and 30 days for FY 25 respectively. The average creditor days stood at 40 days for FY 25. Acuite believes that the working capital operations of the company will remain at a same level in near to medium term due to nature of operations of the company.

Weaknesses

­Susceptible to volatility in raw material prices in the distribution segment, with cyclical nature of the industry The company faces significant exposure to volatile raw material prices and the cyclical nature of its industry. As the distribution segment forms a large part of its business, and the risk of inventory rests solely with the company, fluctuations in the prices of key raw materials like stainless steel scrap, nickel, and ferrochrome ore directly impact profitability. The company sources these materials from JSL, whose primary inputs are subject to market volatility. Due to market conditions and existing sales contracts, the company may not always be able to immediately pass on these price changes to customers. This delay in adjusting prices creates inventory risk, further affecting the company's financial performance.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

­Acuite takes into consideration the benefit derived by Jindal Stainless Steelway Limited from the support of its parent entity i.e. (JSL) and its strong brand presence. Stress Case Scenario While the rating has been derived on the standalone business and financial risk profiles of JSSL, Acuite believes that being the 100% step-down subsidiary of JSL, in case of any stress case scenario, the required support would come from the parent entity.

Rating Sensitivities

­Movement in scale of operations & Profitability Elongation of working capital operations

Liquidity Position

Strong

The liquidity profile of the company is strong marked by generating net cash accruals of Rs. 120.73 Cr. in FY 25 against repayment liability of Rs. 1.68 Cr. (lease liability) for the year. The company has a unencumbered cash & bank balance of Rs. 30.57 Cr. as on 31st March 2025. The current ratio of the company is 1.68 times for FY 25. The average fund-based bank limit utilization for last nine months ended March 2025 is 41.56%. Acuite believes that the liquidity position of the company is expected to remain strong in near to medium term with steady accruals and absence of debt funded capex.

Outlook - Stable

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Other Factors affecting Rating

­None.

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	3248.63	3043.06
PAT	Rs. Cr.	111.12	81.79
PAT Margin	(%)	3.42	2.69
Total Debt/Tangible Net Worth	Times	0.16	0.09
PBDIT/Interest	Times	28.15	23.05

Status of non-cooperation with previous CRA (if applicable)

­None.

Any other information

­None.

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History :

­Not Applicable.

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating ICICI Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A1+ | Assigned ICICI Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE AA | Stable | Assigned State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 45.00 Simple ACUITE AA | Stable | Assigned Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE AA | Stable | Assigned Axis Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE AA | Stable | Assigned HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE AA | Stable | Assigned HDFC Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A1+ | Assigned Axis Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A1+ | Assigned Punjab National Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE A1+ | Assigned State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE A1+ | Assigned

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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

­ Sr. No.  Company name 1 Jindal Stainless Limited 2 Jindal Stainless Steelway Limited

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Kartik Arora Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.