Experienced management and established track record of operations
­Jyoti Apparels is engaged in manufacturing and exporting of garments. It has an established operational track record of over four decades. The operations of the firm are being managed by Mr Hari Kishenlal Magu , Mr. Kamal Kishore Magu, Mr. Rakesh Magu and Mr. Santosh Magu. They are being supported by the team of experienced professionals in managing day to day operations of Jyoti Apparels. The extensive experience of the promoters has enabled entity to establish a healthy relationship with its customers and suppliers. The firm is having a longstanding relationship with reputed clienteles namely Monoprix Exploitation, Next Retail Limited, Cabana Life etc. Acuité believes that firm may continue to benefit from its experienced management and established track record of operations along with reputed clientele over the near to medium term.

Steady scale of operations, albeit moderation in profitability
The firm reported a revenue of Rs. 112.11 Cr. in FY25, as against Rs. 95.24 Cr. in FY24. The growth in topline remained modest, primarily impacted by a decline in export business due to geopolitical challenges affecting cross-border trade The EBITDA margin moderated to 6.86% in FY25 from 7.34% in FY24, largely due to an increase in employee expenses, including contractual labour costs. Similarly, the PAT margin declined slightly to 2.17% in FY25 from 2.51% in FY24, mainly on account of higher interest costs arising from term loans availed for the development of an additional facility at Manesar. Further, the firm has achieved a revenue of Rs. 107.70 Cr (est.) till March 2026. 

Moderate Financial Risk Profile
The financial risk profile of the firm remained moderate marked by modest net worth, moderate gearing and debt protection metrices. The net-worth of the firm increased and stood at Rs. 41.74 Cr. in FY25 as against Rs. 36.75 Cr. in FY24, due to capital introduced by the partners in FY25. The gearing of the firm is slightly improved and stood at 1.98 times in as on March 31, 2025 as compared to 2.09 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.26 times as on March 31, 2025 as compared to 2.39 times as on March 31, 2024. The debt protection metrices of the firm remain moderate marked by Interest Coverage ratio (ICR) of 1.62 times as on March 31, 2025 and debt service coverage ratio (DSCR) of 0.78 times for March 31, 2025 against 1.47 times as on March 31, 2024. The decline has been noticed because of the increase in the term loans attributed to the capex that is being done by the firm. Acuite believes that financial risk profile of the firm is likely to remain moderate in the absence of large debt funded capex.

Working Capital Intensive Operation
The working capital operations of the firm remain intensive marked by GCA days which stood at 258 days in FY25 as compared to 286 days in FY24. The inventory and debtor days of the firm stood at 146 days and 67 days respectively in FY25 against 162 days and 76 days respectively in FY24. Increase in GCA and inventory days is mainly due to order delays caused by trade route disruptions amid adverse geopolitical conditions, leading to higher inventory holding. On the other hand, the creditor days of the firm stood at 34 days in FY25 against 39 days in FY24. Acuite believes that working capital operations of the firm will remain intensive due to nature of operations of the firm.

Highly competitive industry and susceptibility of margins to volatility in raw material prices
The garment industry is a highly fragmented industry and presence of large number of organized and unorganized players has created high competition in the industry. Entity faces competition from large players as well as numerous players in the unorganized segment. Further, operating and profitability margins are expected to remain susceptible to fluctuations in the raw material prices.