Press Release

Press Release

March 04, 2026

JIJAU MU3 PROJECT PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	57.09	ACUITE BBB- \| Stable \| Reaffirmed	-
Total Outstanding	57.09	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on Rs. 57.09 Cr. of bank facilities of Jijau MU3 Project Private Limited (JMU3PPL). The outlook is ‘Stable’.

Rationale for reaffirmation
The rating reaffirmation considers the receipt of 10 half yearly annuity payments till date. Further, there have been no instances of delay in the debt servicing, despite several delays in the receipt of annuity from the government department. The rating also draws comfort from the continuous operational and financial assistance provided by the sponsor. Further, the waterfall mechanism in escrow and maintenance of debt service reserve account (DSRA) equivalent to one half yearly instalment and six months interest along with free fixed deposits provides additional support. However, the rating remains constrained by the payment risk related to delay in receipt of annuity payments and risk related to increase in the interest rates or operational and maintenance expenses.

About the Company

Jijau MU3 Project Private Limited (JMU3PPL), a SPV, setup by Jijau Constructions Road Builders Private Limited (JCRBPL) in 2018 to undertake development of Hybrid Annuity Package No. MU-3 in the State of Maharashtra awarded by Public Works Department (PWD) of the Government of Maharashtra. The company entered into Concession Agreement (CA) on August 2018 with the PWD Maharashtra for a period of 10 years. Under the CA, it upgraded the Tembha Khardi Jawhar Jamsar Bopdari Ruighar road SH-77 in Palghar District on a Hybrid Annuity Mode. The project acheived COD in August 2020.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of JMU3PPL to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of sponsor
The sponsor for the project, JCRBPL is engaged into engineering procurement construction business since 2009. Over the years it has established its presence in the Mumbai, Palghar and Thane districts of Maharashtra, worked majorly with government clients.
Acuite believes that the established track record of the sponsor will support JMU3PPL, as and when required.

Presence of waterfall mechanism in escrow account and maintenance of DSRA
JMU3PL has an escrow mechanism through which cash flows from PWD are routed and used for payment as per the defined payment waterfall. Only surplus cash flow after meeting operating expenses, debt servicing obligations, and provision for major maintenance expenses can be utilized as per the borrower's discretion during the concession period. Till December 2025, the company has received 10 half yearly annuities. Further, the company maintains a DSRA (Rs. 6.42 Cr. outstanding as on Dec 31, 2025) equivalent to one half yearly instalment of principal plus six months of interest for debt servicing in order to mitigate any unforeseen risk related to delay in annuity receipt.

Weaknesses

Exposed to risks of delay in annuity receipts
Off late, there has been delays in the receipt of annuities from the PWD. The February 2025 annuity was delayed and received on March 30, 2025, which led to DSRA invocation for debt servicing. However, the same was replenished within 3 days of annuity receipt. Further, the August 2025 annuity payment was delayed significantly and received only on December 31, 2025. The interest and principal servicing were managed by utilizing the free deposits and support from the sponsor. Therefore, the company remains exposed to such delays in receipt of the annuity which could adversely impact debt-servicing ability. Acuité believes that any delay or deduction in annuities will affect the debt servicing capabilities of JMU3PPL.

Changes in operational cost and interest rate
Along with fixed annuities, the company also receives interest payments on the balance annuities at a rate equivalent of prevailing bank rate plus spread which exposes it to volatility in the interest rates. Further, the company is exposed to risks related to maintenance of the project. If the prescribed standards and timely maintenances of the project are not performed, it will significantly affect the annuity payments.

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)

JMU3PPL maintains a DSRA equivalent to one half yearly instalment of principal and six months’ interest along with escrow mechanism.

Stress case Scenario
Acuité believes that, given the presence of DSRA and waterfall payment in escrow mechanism, JMU3PPL will be able to service its debt on time, even in a stress scenario.

Rating Sensitivities

Timely receipt of annuity payments
Continued support from the sponsor
Any increase in O&M expenses or interest rates

Liquidity Position

Adequate

While the company continues to face delays in receiving few annuity payments, JMU3PPL’s liquidity position is adequate. The maintains DSRA balance of Rs. 6.42 Cr. and free fixed deposits of Rs. 5.60 Cr. as on January 2026. Further, additional fund support from the sponsor is expected to be received for any cashflow mismatches. The average DSCR is expected to be adequate and remain at ~1.7 times over the remaining debt tenure.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	8.01	11.22
PAT	Rs. Cr.	1.85	1.29
PAT Margin	(%)	23.06	11.52
Total Debt/Tangible Net Worth	Times	1.55	1.31
PBDIT/Interest	Times	1.42	1.32

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
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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
06 Dec 2024	Term Loan	Long Term	39.48	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	14.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	3.61	ACUITE BBB- \| Stable (Reaffirmed)
12 Jan 2024	Term Loan	Long Term	43.09	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.65	Simple	ACUITE BBB- \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Sep 2029	46.44	Simple	ACUITE BBB- \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kruti Patel
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.