Press Release April 20, 2026 JSP AUTOCORE PRIVATE LIMITED Rating Downgraded and Withdrawn

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	46.18	ACUITE BB | Stable | Downgraded	-	RBI
Bank Loan Ratings	0.00	17.82	Not Applicable | Withdrawn	-	RBI
Total Outstanding	0.00	46.18	-	-	-
Total Withdrawn	0.00	17.82	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuite has downgraded the long-term rating to 'ACUITE BB' (read as ACUITE double B) from 'ACUITE BB+' (read as ACUITE double B plus) on the Rs. 46.18 Cr. bank facilities of JSP Autocore Private Limited (JAPL). The outlook is 'Stable'. Further, Acuite has withdrawn the long-term rating on Rs. 17.82 Cr. bank facilities of JSP Autocore Private Limited (JAPL) The same is withdrawn without assigning any rating as it is a proposed facility. The rating is being withdrawn on account of request received from the issuer. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument. Rationale for Downgrade The rating factors in the subdued operating performance of the company, reflected in stagnant revenues and a deterioration in operating profitability, resulting in negative margins and a sharp weakening of the financial risk profile in FY25. Further, the same is expected to persist over the near term. However, the rating continues to draw comfort from the management’s long-standing experience in the automobile dealership business and the company’s  moderately efficient working capital management.

About the Company

Incorporated in 2018, JSP Autocore Private Limited (JAPL) is an authorised dealer of Kia Motors Limited, engaged in the sale of new and pre-owned passenger vehicles, along with providing after-sales services. The company is headquartered in Bengaluru, Karnataka. The company is promoted and managed by Mr. Ponraj Sivapriya and Ms. Jhansi Ponraj, who are also the directors of the company.

Unsupported Rating

­Not applicable

Analytical Approach

­­Acuite has considered standalone business and financial risk profile of JAPL to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced management JAPL was incorporated in the year 2018, and currently being managed Ms. Ponraj Sivapriya and Ms. Jhansi Ponraj. The management has experience of over six years in the automobile dealership and allied businesses.  The company operates a network of three showrooms, comprising two new-car showrooms and one Certified Pre-Owned (CPO) showroom catering to used vehicle sales. These outlets are located at Bellandur, Singasandra, and Dommasandra. Further, the company has two service centres situated at Bellandur and Doddanagamangala, which support its after-sales service operations, including vehicle servicing, maintenance, and repair services. Moderately efficient working capital operations The company’s working capital operations remains efficient, marked by gross current assets (GCA) days of 81 days in FY2025, albeit marginally higher than 71 days in FY2024. The GCA levels are primarily driven by moderate inventory holdings and advances extended to suppliers, which form part of the current assets. Inventory holding levels remained comfortable, with inventory days improving to 41 days in FY2025 from 46 days in FY2024. The company extends a short credit period of 5–15 days to its customers, wherein debtors stood at  11 days in FY2025 (6 days in FY2024).

Weaknesses

­Moderation in operating performance  The company reported revenues of Rs. 239.05 Cr. in FY2025, reflecting a decline of ~29.31 percent compared to Rs. 338.17 Cr. in FY2024. The contraction in revenue was mainly attributable to the industry-wide slowdown in the passenger vehicle segment for Kia Motors, coupled with the lower-than-anticipated demand recovery. Further, till February 2026, the company has achieved revenue of Rs. 204.63 Cr. The company has reported operating losses in FY2025, with a negative operating margin of 0.17% (operating loss of Rs. 0.41 Cr.), as against an operating margin of 2.03% in FY2024. The decline in profitability was mainly driven by the lower revenue base and intense competitive pressures in the passenger vehicle segment, wherein the company was required to offer higher discounts to sustain sales volumes. This resulted in margin compression and operating losses during FY2025. Acuite believes that the company’s ability to improve its scale of operations and restore profitability margins will remain a key monitorable. Below average financial risk profile The company’s financial risk profile remains below average marked by significantly weakened net worth base, elevated gearing, and weak debt protection metrics. The adjusted net worth declined sharply to Rs 3.62 Cr. in FY2025 from Rs 13.46 Cr. FY2024 primarily due to losses incurred during the year. The reduction in net worth, coupled with the drawdown of additional debt (housing loan), led to a substantial deterioration in leverage indicators, with overall gearing increasing to 15.94 times as on March 31,2025 from 4.57 times as on March 31,2024. Similarly, the total outside liabilities to tangible net worth (TOL/TNW) rose to 19.75 times in FY2025 from 5.43 times in FY2024. Debt protection metrics remain weak with servicing managed through infusion of unsecured loans by the promoters. Acuité believes that the financial risk profile is expected to remain constrained over the near to medium term, given the company’s low and potentially negative cash accruals. Exposure to intense industry competition The passenger car industry in India is highly competitive. Being an authorized dealer for Kia Motors, the company has to compete with dealers of other car brands such as Maruti Suzuki, Hyudai, Tata, Mahendra & Mahendra etc. Auto manufacturers also encourage more dealerships (thereby increasing competition among dealers) to improve market penetration and sales. Thus, the business risk profile may continue to be constrained by limited bargaining power with principals, and exposure to intense competition.

Rating Sensitivities

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

­ Growth in operating performance with revenues growing above Rs 300.00 Cr Improvement in debt coverage indicators

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

­ Decline in the operating performance with revenues falling below Rs 150.00 Cr Elongation of working capital cycle

Liquidity Position

Stretched

­The company’s liquidity position remains stretched, as reflected in negative cash accruals of Rs. 5.59 Cr. in FY2025, compared to positive cash accruals of Rs. 2.51 Cr. in FY2024. The company is expected to continue reporting negative cash accruals in the near term. The resultant shortfall in internal accruals is proposed to be bridged through infusion of unsecured loans by the promoters. However, the company does not have any long-term repayment obligations, as its housing loan was fully repaid in Q4 FY2026. The current ratio remained below unity at 0.92 times as on March 31, 2025, indicating tight liquidity, although the company-maintained cash and bank balances of Rs. 8.04 Cr. on the same date. Further, the company’s reliance on working capital borrowings remains moderately high, with average bank utilisation for the inventory funding facility at 80.51% for twelve months ended February 2026.

Outlook-Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	239.05	338.17
PAT	Rs. Cr.	(9.84)	(1.80)
PAT Margin	(%)	(4.12)	(0.53)
Total Debt/Tangible Net Worth	Times	15.94	4.57
PBDIT/Interest	Times	(0.06)	1.45

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 • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.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 23 Jan 2025 Inventory Funding Long Term 40.00 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Stable) Inventory Funding Long Term 9.00 ACUITE BB+ | Stable (Assigned) Inventory Funding Long Term 15.00 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Stable) 01 Dec 2023 Inventory Funding Long Term 40.00 ACUITE BBB- | Stable (Assigned) Inventory Funding Long Term 15.00 ACUITE BBB- | Stable (Assigned)

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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

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