Press Release January 23, 2026 J G HOSIERY PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	540.00	ACUITE A | Positive | Assigned	-
Total Outstanding	540.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­­­Acuite has assigned long term rating of 'ACUITE A' (read as ACUITE A) on the Rs. 540 Cr. bank facilities of J G Hosiery Private Limited. The outlook is 'Positive'. Rationale for Rating The rating has taken into cognizance long track record of operations, benefits derived from the experienced management, long standing relation with the dealer distributor network and diversified geographical presence marketing established brands like Amul Macho, Amul Comfy among others, stable revenues and increase in operating profitability, moderate financial risk profile, adequate liquidity position albeit high bank limit utilization. The rating outlook factors the expected benefits of the capex undertaken in a phased manner in the last 2-3 years, which are expected to reap operational benefits over the medium term and will be a key monitorable.  However, these strengths are partly offset by intensive working capital cycle and intense competition in hosiery industry.

About the Company

­Incorporated in 2001, West Bengal based J G Hosiery Private Limited is engaged in primarily manufacturing men’s innerwear followed by women’s casualwear and recently entered into kid’s segment from 2023. The company markets its extensive product portfolio majorly under Amul Comfy and Amul Macho followed by Sporto, Priya, Zoiro, Kandy Floss among others. The company has its manufacturing units at Kolkata, West Bengal and Tirupur, Tamil Nadu. The directors of the company are Mr. Bishwanath Seksaria, Mr. Shyam Sundar Sekasaria, Mr. Pankaj Seksaria, Mr. Navinn Seksaria.

Unsupported Rating

­Not Applicable

Analytical Approach

­­­Acuite has taken standalone business and financial risk profile of J G Hosiery Private Limited to derive at the rating.

Key Rating Drivers

Strengths

­Experienced promoters along with strong dealer network The promoters have decades of experience in the hosiery industry. JGHPL’s performance is driven by its strong distribution network built across key domestic markets, with its brands marketed by more than 1,100 distributors and across 1.1 lakh retailers. The company also has semi- integrated facility at Tirupur and has now set up a fully integrated facility in Dankuni (expected to be operational in phased manner from April 2025) which is expected to augment business. Acuite believes that the strong distributor network and the longstanding relations with them will augment the business going forward. ­­Stable revenues with increasing operating profitability The revenues have remained stable at Rs. 1241.40 Cr. in FY 25 as compared to Rs. 1186.52 Cr. in FY 24 on account of increase in volume sold in some products albeit similar price realisations on the products. The company has achieved revenues of about Rs.641.80 Cr. till October 2025. The operating profitability has increased to 6.40 percent in FY 25 as compared to 5.86 percent in FY 24 on account of better absorption of manufacturing costs. The company has an ongoing capex plan of constructing fully integrated manufacturing facility at Dankuni, West Bengal with a project cost of Rs. 125 Cr, means of finance with a mix of term loan of Rs. 100 Cr. (sanctioned with ICICI Bank)  and Rs. 25 Cr. by way of internal accruals/promoters contribution. It is expected to be operationalised in phase manner from April 2026.  Acuite believes that the scale of operations and the operating margins is expected to improve over the medium term after the implementation of the capex plans leading to operational efficiencies in inventory management and expected reduction in costs. Moderate financial risk profile The financial risk profile of the company is moderate marked by improving net worth, moderate gearing and moderate debt protection metrices. The tangible net worth of the company stood at Rs. 444.17 Cr. as on March 31, 2025 as compared to Rs. 419.73 Cr. as on March 31, 2024 due to accretion to reserves and treatment of unsecured loans as of Rs. 40 Cr. as quasi equity. Acuite has considered unsecured loans as quasi equity of Rs. 40 Cr, basis an undertaking received from management to retain such monies in business over a long term. Acuite notes that the company also undertook a share buyback worth Rs. 79.8 crore (premium paid on buyback of Rs. 64.70 Cr. and tax on buyback of shares of Rs. 15.12 Cr.) in FY 24. The gearing of the company stood at 1.09 times as on March 31, 2025 as compared to 1.00 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.46 times as on March 31, 2025 as compared to 1.36 times as on March 31, 2024. The debt protection metrices of the company remain moderate marked by Interest Coverage ratio (ICR) of 2.18 times as on March 31, 2025 and debt service coverage ratio (DSCR) of 1.91 times for March 31, 2025. The net cash accruals to total debt (NCA/TD) stood at 0.07 times as on March 31, 2025 as compared to 0.08 times as on March 31, 2024. Debt/EBITDA stood high at 6.00 times as on March 31, 2025 as compared to 5.91 times as on March 31, 2024. Acuité believes that the financial risk profile will remain moderate over the medium term, with steady cash accruals and in the absence of any major debt funded capex plans and expected improvement in the capital structure of the company.

Weaknesses

­­­Intensive Working Capital Cycle The working capital cycle of the company is intensive as reflected by Gross Current Assets (GCA) of 261 days for March 31, 2025 as compared to 245 days for March 31, 2024. The debtor period stood at 85 days as on March 31, 2025 as compared to 73 days as on March 31, 2024. The collection cycle typically is between 50-60 days, it can also be extended up to 70-80 days, on need base. For new distributors and dealers, the company also avails advances or security deposits from them. Further, the inventory days of the company stood at 154 days as on March 31, 2025 as compared to 151 days in FY2024. The inventory holding of the company is about 3-4 months. The company markets a wide range of products and accordingly has to maintain large quantity of inventory of each of its product type apart from the inventory of raw material and lead time in processing of inventory. This is expected to be rationalised on the augmentation of the new capex expected to be completed by April 2026. The creditors stood at 72 days as on March 31, 2025 as compared to 67 days as on March 31, 2024. The suppliers are paid within 50-60 days. Acuité believes that the working capital operations of the company will improve over the medium term due to efficient collection mechanism and expected improvement in inventory policy. Intensive competition in the hosiery industry The hosiery industry is largely fragmented and is characterised by the presence of many players in the unorganised segment and is largely dominated by this segment. On the other hand, in the organised segment, the company faces competition from players with strong brands such as Dollar Industries Limited and Rupa and Company Limited. However, the company’s strong brand, extensive distribution network and pan India reach partly mitigates the risk arising from competition.

Rating Sensitivities

­­­Movement in revenues and operating profitability Working capital cycle Improvement in the capital structure Successful stabilization of Dankuni plant

Liquidity Position

Adequate

­­­The company has adequate liquidity marked by net cash accruals of Rs 35.47 Cr. as on FY2025 as against long term debt repayment of Rs. 0.95 Cr. over the same period. The accruals are expected to remain in the range of about Rs. 43 to Rs. 67 Cr. as against debt repayment of of Rs. 6 Cr- Rs. 19 Cr. in the next two years annually. The management has flexibility to infuse funds as and when required to support the business. The cash and bank balance stood at Rs. 16.11 Cr. as on March 31, 2025 and Rs. 20.08 Cr. as on March 31, 2024. The company also has free deposits with bank of Rs.5.86 Cr. in FY 25 and Rs. 1.52 Cr. in FY 24. Further, the current ratio of the company stood at 1.58 times as on March 31, 2025 as compared to 1.67 times as on March 31, 2024. The average bank utilization limit of the company for 7 months ended October 2025 is 92.97 percent. Acuité believes that the liquidity of the company is to remain adequate over the near to medium term on account of steady cash accruals, moderate debt repayment,  absence of any major debt funded capex plans, moderate current ratio albeit high dependence on bank lines for funding working capital requirements.

Outlook: Positive

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	1241.40	1186.52
PAT	Rs. Cr.	24.52	23.01
PAT Margin	(%)	1.98	1.94
Total Debt/Tangible Net Worth	Times	1.09	1.00
PBDIT/Interest	Times	2.18	2.46

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

ICRA, vide its press release dated December 23rd, 2025 had denoted the rating of J G Hosiery Private Limited as 'ICRA A/Stable/A2+; REAFFIRMED AND ISSUER NOT CO-OPERATING.

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

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

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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 LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 75.00 Simple ACUITE A | Positive | Assigned AXIS BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 55.00 Simple ACUITE A | Positive | Assigned H D F C Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE A | Positive | Assigned ICICI BANK LIMITED Not avl. / Not appl. Term Loan 16 Aug 2023 Not avl. / Not appl. 19 Jan 2029 100.00 Simple ACUITE A | Positive | Assigned AXIS BANK LIMITED Not avl. / Not appl. Term Loan 13 Mar 2025 Not avl. / Not appl. 31 May 2033 15.00 Simple ACUITE A | Positive | Assigned YES BANK LIMITED Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 60.00 Simple ACUITE A | Positive | Assigned HSBC Limited Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE A | Positive | Assigned INDUSIND BANK LIMITED Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE A | Positive | Assigned CITI Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE A | Positive | Assigned Federal Bank Limited Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 45.00 Simple ACUITE A | Positive | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti Associate 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.