Press Release

Press Release

March 18, 2026

JAGSON INTERNATIONAL LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	236.47	ACUITE BBB \| Stable \| Assigned	-
Bank Loan Ratings	112.00	ACUITE BBB \| Stable \| Reaffirmed	-
Bank Loan Ratings	10.00	-	ACUITE A3+ \| Reaffirmed
Total Outstanding	358.47	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long-term rating of ‘ACUITE BBB' (read as ACUITE triple B) and short-term rating of ‘ACUITE A3+’ (read as ACUITE A three plus) on Rs.122.00 crore bank facilities of Jagson International Limited (JIL). The outlook revised to ‘Stable’ from ‘Negative’.

Acuite has assigned the long-term rating of ‘ACUITE BBB' (read as ACUITE triple B) on Rs.236.47 crore bank facilities of Jagson International Limited (JIL). The outlook is ‘Stable’.

Rationale for Rating
The revision in the outlook factors in the improvement in the company’s operating revenue, which increased by ~24.42% to Rs. 176.42 crore in FY2025 from Rs. 141.79 crore in FY2024. The operating profit margin also improved substantially to 38.94% in FY2025 from 0.19% in FY2024, primarily on account of the full-year operationalization of two rigs that were under major maintenance in FY24. The rating continues to draw comfort from the company’s healthy financial risk profile, marked by comfortable gearing and adequate coverage indicators. However, the rating remains constrained by the company’s intensive working capital requirements, as reflected in elevated gross current assets (GCA) of 418 days in FY2025, though improved from 753 days in FY2024.

About the Company

New Delhi based, Jagson International Limited (JIL) was incorporated in 1988 as a private limited company by Mr Jagdish Gupta. It’s a family-owned business. JIL is the flagship company of the Jagson group of Companies. JIL is one of the first private sector companies to enter the field of offshore drilling for Oil and Gas exploration. Besides this JIL is also involved in warehousing and storage at ports. JIL has successfully done offshore drilling in the Indian waters for more than a decade. Oil and Natural Gas Corporation (ONGC) has been awarding various contracts to JIL for offshore drilling and is currently the sole customer for JIL, against stiff global competition. JIL has successfully drilled wells offshore, up to the depth of 25,000 feet.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered standalone business and financial risk profile of Jagson International Limited.

Key Rating Drivers

Strengths

Experienced promoters, reputed clientele and established business model
JIL has establish presence since 1988 in the field of off-shore drilling for Oil and Gas exploration companies. The company is promoted by Mr. Jagdish Gupta is the founder of Jagson Group with business experience of more than 30 years in diversified businesses. He is supported by Mr. Sardar Mudgal Singh and Mr. Pradeep Gupta who has more than 2 decades of experience in diversified business. Jagson International Ltd. has been in the business of oil rigs and drilling for over 30 years. The vast experience of promoters and established track record of operations has helped to establish long-standing relationships with India's leading upstream companies like ONGC. JIL has been able to complete the deployments in a timely manner and has been able to secure contracts renewals at prevailing rig charter rates.

Improvement in Revenue and Profitability
The company reported a healthy improvement in its operating performance, with revenue increasing to Rs. 176.42 Cr. in FY2025 from Rs. 141.79 Cr. in FY2024. The EBITDA margin also improved significantly to 38.94% in FY2025 from 0.19% in FY2024. The improvement in scale and profitability is primarily attributable to the full-year operationalisation of two rigs which were under major maintenance in FY24. Further, the company has recorded revenue of Rs. 266.06 Cr. in 9M FY2026, indicating sustained momentum in operations. The company has also deployed another rig in FY26 which is expected to augment operations. Acuité believes that the operating performance of the company will remain a key monitorable on account of the inherently volatile nature of the industry.

Healthy Financial Risk Profile
The financial risk profile remains healthy, supported by a strong net worth base, low gearing and comfortable coverage indicators. The tangible net worth stood at Rs. 1230.85 Cr. as on March 31, 2025, as against Rs. 1190.12 Cr. as on March 31, 2024. The increase in net worth is largely driven by accretion of profits to reserves, although partially offset by a reduction in the Tonnage Tax Reserve. The gearing ratio stood low at 0.06 times in FY2025 compared to 0.03 times in FY2024, and though it is expected to increase due to the planned debt-funded capex in the near to medium term, it is likely to remain at comfortable levels. The interest coverage ratio improved to 31.00 times in FY2025 from 10.85 times in FY2024, while the DSCR also strengthened to 30.40 times in FY2025 from 10.85 times in FY2024. TOL/TNW stood comfortable at 0.08 times as on FY2025 as against 0.07 times in FY2024. The company undertook a capex of ~Rs. 507 Cr. in FY26 and FY25 for the purchase of a new rig, which will be funded through a mix of external debt and internal accruals. Acuité expects the financial risk profile to remain stable, notwithstanding the anticipated increase in debt levels.

Weaknesses

Intensive Working Capital Operations
The company’s working capital operations remain highly intensive, as reflected in its elevated gross current assets (GCA) of 418 days in FY2025, albeit improved from 753 days in FY2024. The high GCA cycle is primarily driven by elevated inventory and receivable levels. Inventory days stood at 373 days in FY2025 as against 289 days in FY2024, while debtor days moderated to 121 days in FY2025 from 219 days in FY2024. The long inventory cycle is inherent to the nature of operations, given the requirement for extensive spares and maintenance parts for rig operations. Acuité believes that the working capital intensity is expected to remain at similar levels over the medium term due to the inherent characteristics of the business.

Highly Competitive and Tender-Based Industry
The company operates in a highly competitive industry, wherein revenue visibility is closely linked to its ability to secure contracts through a tender-based bidding process. The tendering environment is competitive, with bids often awarded on the basis of the lowest quoted price, which exposes the company to margin pressures. The dependence on securing new contracts through competitive bidding also adds uncertainty to future revenue flows. Acuité believes that the tender-based nature of the business will continue to expose the company to competitive risks.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Sustained improvement in revenues.
Improvement in operating margin to 50% or more in FY27, compared to FY26.

Potential triggers (individual or collective) for a downward rating action:

Deterioration in financial risk profile with DSCR declining below 1.00x.
Inability to secure new contracts for rigs.

Liquidity Position

Adequate

Company has adequate liquidity marked by net cash accruals to maturing debt obligations, current ratio, cash and bank balance. Company generated adjusted net cash accruals of Rs. 75.49 Cr. (adjusted for tonnage tax reserve) for FY2025 against debt obligation of Rs. 22.39 Cr. for the same period. Current Ratio stood at 2.78 times as on 31 March 2025 as against 3.93 times in the previous year. Fund based working capital limits are utilized at ~67.53% and non- fund based working capital limits are utilized at ~84.94% during the last nine months ended February 2026. Cash and Bank Balances of company stood at Rs. 18.04 Cr. Acuite believes that the liquidity of the company would remain adequate due to healthy cash accruals, small debt obligations, healthy current ratio, albeit working capital intensive operations over the medium term.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	176.42	141.79
PAT	Rs. Cr.	79.83	0.56
PAT Margin	(%)	45.25	0.39
Total Debt/Tangible Net Worth	Times	0.06	0.03
PBDIT/Interest	Times	31.00	10.85

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
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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
22 Apr 2025	Bank Guarantee/Letter of Guarantee	Short Term	5.00	ACUITE A3+ (Reaffirmed)
	Letter of Credit	Short Term	5.00	ACUITE A3+ (Reaffirmed)
	Proposed Bank Guarantee	Short Term	0.16	ACUITE A3+ (Reaffirmed)
	Cash Credit	Long Term	30.00	ACUITE BBB \| Negative (Reaffirmed)
	Term Loan	Long Term	34.84	ACUITE BBB \| Negative (Reaffirmed)
	Term Loan	Long Term	32.00	ACUITE BBB \| Negative (Assigned)
	Cash Credit	Long Term	15.00	ACUITE BBB \| Negative (Reaffirmed)
01 Apr 2025	Bank Guarantee/Letter of Guarantee	Short Term	5.00	ACUITE A3+ (Reaffirmed)
	Letter of Credit	Short Term	5.00	ACUITE A3+ (Reaffirmed)
	Proposed Bank Guarantee	Short Term	35.00	ACUITE A3+ (Reaffirmed)
	Cash Credit	Long Term	30.00	ACUITE BBB \| Negative (Reaffirmed)
	Cash Credit	Long Term	15.00	ACUITE BBB \| Negative (Reaffirmed)
08 Jan 2024	Bank Guarantee/Letter of Guarantee	Short Term	5.00	ACUITE A3+ (Reaffirmed)
	Letter of Credit	Short Term	5.00	ACUITE A3+ (Reaffirmed)
	Proposed Bank Guarantee	Short Term	35.00	ACUITE A3+ (Reaffirmed)
	Cash Credit	Long Term	30.00	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	15.00	ACUITE BBB \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A3+ \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB \| Stable \| Reaffirmed \| Negative to Stable
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE BBB \| Stable \| Reaffirmed \| Negative to Stable
YES BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB \| Stable \| Reaffirmed \| Negative to Stable
YES BANK LIMITED	Not avl. / Not appl.	Foreign Currency Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Nov 2026	40.48	Simple	ACUITE BBB \| Stable \| Reaffirmed \| Negative to Stable
YES BANK LIMITED	Not avl. / Not appl.	Foreign Currency Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Sep 2028	149.77	Simple	ACUITE BBB \| Stable \| Assigned
YES BANK LIMITED	Not avl. / Not appl.	Foreign Currency Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2026	80.22	Simple	ACUITE BBB \| Stable \| Assigned
State Bank of India	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A3+ \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.52	Simple	ACUITE BBB \| Stable \| Reaffirmed \| Negative to Stable
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.48	Simple	ACUITE BBB \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Siddharth Garg
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.

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