Press Release February 18, 2026 JAYCEE STEELS PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	12.50	ACUITE BB- | Stable | Reaffirmed	-
Bank Loan Ratings	0.50	-	ACUITE A4+ | Reaffirmed
Total Outstanding	13.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

A­cuité has reaffirmed its long-term rating of ‘ACUITE BB-’ (read as ACUITE double B minus) and the short-term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs 13.00 Cr. bank facilities of Jaycee Steels Private Limited (JSPL). The outlook is ‘Stable’. Rationale for rating The rating reaffirmation factors the company’s modest scale of operations, below average financial risk profile, intensive nature of working capital operations, stretched liquidity position and highly competitive and fragmented nature of industry. However, the rating continues to draw comfort from the company’s established operational track record spanning over three decades along with the long-standing industry experience of its management. The rating also considers marginal improvement in scale of operations and operating margins. Going ahead, the ability of the company to maintain steady growth in revenue, while maintaining profitability margins would remain key monitorable.

About the Company

Incorporated in 1986, Jaycee Steels Private Limited (JSPL) is engaged in the manufacturing of auto parts (cylinder blocks, spare parts, piston, piston rings, etc.) for two- wheeler, three-wheeler vehicles and parts for the industrial machinery (CI Casting and MS Casting). Mr. Brij Mohan Sachdeva & Mr. Varun Sachdeva are the directors of the company. The manufacturing plant of the company is in Ghaziabad, Uttar Pradesh. The company sells its products to automobile component manufacturers, industrial machinery manufacturers and in the local replacement markets in Uttar Pradesh and nearby states.

Unsupported Rating

­Not applicable

Analytical Approach

­Acuité has taken a standalone view of the business and financial risk profile of JSPL to arrive at the rating.

Key Rating Drivers

Strengths

­Established track record of operations and experienced management JSPL has an operational track record of around three decades in automotive industry. Mr. Brij Mohan Sachdeva (Director) and Mrs. Shakti Sachdeva (Director) have an experience of over three decades in this line of business. The long track record of operations and experience of management has helped the company to healthy develop relationships with its customers and suppliers.Acuité believes that JSPL will sustain its existing business profile on the back of an established track record of operations and experienced management.

Weaknesses

Modest scale of operations In FY2025, the revenue of the company increased marginally but remained modest at Rs. 33.54 Cr. marking a 4.41 percent from Rs 32.12 Cr. in FY2024. The operating margin for FY2025 improved to 8.38 percent from 7.48 percent in FY2024, primarily driven by a reduction in employee expenses. However, PAT margin substantially dipped and remained thin at 0.06 percent in FY2025 from 0.55 percent in FY2024 due to decline in other non-operating income. Till December 2025, JSPL has achieved revenue of Rs 24.76 Cr. Acuité believes that the company’s ability to further scale up its operations and improve profitability margins will remain a key monitorable going forward. ­Below average financial risk profile The financial risk profile of the company remains below average, marked by low net worth, high gearing, and subdued debt protection indicators. The tangible net worth of the company stood at Rs. 6.56 Cr. as on March 31,2025 (Rs 6.54 Cr. as on March 31,2024). The gearing level further deteriorated, stood high at 4.20 times as on March 31,2025 (3.95 times as on March 31,2024). The debt protection metrics of the company remained moderate, reflected by interest coverage ratio(ICR) and  debt service coverage ratio (DSCR) at 1.49 times and 1.09 times respectively as on March 31,2025. Going ahead, the financial risk profile is expected to improve, supported by steady accruals generation and in absence any further major debt funded capex over the medium term. Intensive nature of working capital operations The working capital operations of the company remained intensive, marked by high GCA of 302 days as on March 31,2025, up from 280 days as on March 31, 2024. The elongated GCA days are primarily driven by elevated inventory levels, increased debtor days and high other current assets, mainly comprising of balances with government authorities and security deposits. The inventory holding period stood at 226 days as on March 31,2025 (217 days as on March 31,2024). The company maintains inventory for 4–5 months, given the lead time required for developing auto components and industrial parts. The debtor holding period stood at 77 days as on March 31,2025 (62 days as on March 31,2024). Highly competitive and fragmented nature of industry JSPL operates in a highly fragmented industry with large number of organized and unorganized players present in the market exposing it to intense competition. However, the risk is mitigated to an extent on account of established track record of operation.

Rating Sensitivities

­ Improvement in scale of operation and profitability margin Any significant increase in debt levels or stretch in working capital management thereby impacting the financial and liquidity profile Elongation in working capital cycle

Liquidity Position

Stretched

The company liquidity profile remains stretched owing to high reliance on working capital borrowings with average utilisation of fund-based limits at around 98.72 percent over the twelve months ending December 2025. Moreover, the company generated sufficient cash accruals of Rs. 0.83 Cr. for FY2025 against the maturing long term debt obligations of Rs. 0.61 Cr. for the same period. Further, going forward, the company is expected to generate a cash accrual in the range of Rs. 1.02 Cr. to 1.19 Cr. in FY2026 to FY2027 against its maturing repayment obligations in the range of ~Rs. 0.72 Cr. during the same period. The cash and bank balances stood low at Rs. 0.06 Cr. as on March 31,2025, while the current ratio remained moderate at 1.18 times.

Outlook-Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	33.54	32.12
PAT	Rs. Cr.	0.02	0.18
PAT Margin	(%)	0.06	0.55
Total Debt/Tangible Net Worth	Times	4.20	3.95
PBDIT/Interest	Times	1.49	1.42

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

­Not applicable

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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 26 Nov 2024 Bank Guarantee (BLR) Short Term 0.50 ACUITE A4+ (Reaffirmed) Cash Credit Long Term 11.25 ACUITE BB- | Stable (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 1.25 ACUITE BB- | Stable (Reaffirmed) 30 Aug 2023 Bank Guarantee (BLR) Short Term 0.50 ACUITE A4+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 0.25 ACUITE BB- (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 10.00 ACUITE BB- (Reaffirmed & Issuer not co-operating*) Working Capital Demand Loan (WCDL) Long Term 1.25 ACUITE BB- (Reaffirmed & Issuer not co-operating*) Proposed Long Term Bank Facility Long Term 1.00 ACUITE BB- (Reaffirmed & Issuer not co-operating*)

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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 Indian Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.50 Simple ACUITE A4+ | Reaffirmed ICICI BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.25 Simple ACUITE BB- | Stable | Reaffirmed Indian Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.25 Simple ACUITE BB- | Stable | Reaffirmed

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Divya Bagmar 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.