Press Release

Press Release

August 19, 2026

JAGATJIT INDUSTRIES LIMITED
Rating Downgraded & Withdrawn

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	160.60	ACUITE C \| Downgraded & Withdrawn	-	RBI
Total Outstanding	0.00	0.00	-	-	-
Total Withdrawn	0.00	160.60	-	-	-

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Acuite has downgraded and withdrawn its long-term rating to ACUITE C (read as ACUITE C) from ACUITE B+ (read as ACUITE B plus) on the Rs.160.60 Cr. bank facilities of Jagatjit Industries Limited (JIL). The rating has been withdrawn on account of the request received from the issuer and NOC (No Objection Certificate) received from the respective lender.
The rating has been withdrawn as per Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility.

Rationale for Rating
The rating downgrade reflects delays in servicing of debt obligations (for instruments not being rated by Acuite) in last 12 months as per the written feedback received from one of the lenders.
Further, the rating reflects a decline in scale of operations due to operational challenges and working capital constraints during FY26. However, the profitability turned positive due to monetisation of Gurugram property along with other income. The financial risk profile remains weak along with poor liquidity reflected from cash flow mismatch during the year in servicing debt repayment.

About the Company

Jagatjit Industries Limited (JIL) was incorporated in 1944 in Punjab by Mr. L.P. Jaiswal as Jagatjit Distilling and Allied Industries Limited and was subsequently renamed to its present form. The company is engaged in the manufacture, distribution, and sale of Indian Made Foreign Liquor (IMFL) and country liquor. JIL also operates a food division comprising a malt house, malt extract plant, and malted milk food manufacturing unit. The New Delhi property, located at Ashoka Estate, Connaught Place, comprises approximately 23,000 sq. ft. across two floors and is leased out, generating steady rental income for the company. JIL has recently diversified into ethanol segment. The company is promoted by Roshini Sanah Jaiswal, Mr. Ravi Manchanda and Mr. Karamjit Singh Jaiswal.

Unsupported Rating

Not Applicable

Analytical Approach

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

Key Rating Drivers

Strengths

Established presence in the domestic market and diversified revenue streams
The promoters of the company are experienced and have decades of experience in the alcoholic beverages industry and has provided financial support in form of unsecured loans as and when required.
JIL is into diversified business profile spanning Indian Made Foreign Liquor (IMFL) and Country Liquor (CL), Malted Milk Food (MMF) and Malt Extract (MEX)and rental income from owned real estate assets. The company recently commenced its ethanol manufacturing unit which is expected to improve the scale of operations. Acuite believes that the diversified revenue streams and business segments provide resilience against sector-specific and regulatory risks, supporting the company's overall business stability.
Acuite believes that, given the company's diversified business profile, JIL is likely to mitigate any systematic risks arising from any regulatory changes.

Weaknesses

Decline in scale of operations albeit positive profitability
The company’s operating income (net of excise duty) declined to Rs.253.53 Cr in FY26 as against Rs.491.81 Cr in FY25. The decline in revenue was due to working capital constraints and boiler-related technical issues in ethanol division, which led to a temporary suspension of production in initial phase of operations. Further, the company achieved Rs.186.80 Cr in Q1FY27.
The operating margin stood at (18.71) % in FY26 as against (2.30) % in FY25 primarily due to increase in costs, coupled with lower capacity utilization arising from production disruptions during the year. However, the PAT margin stood at 3.97% in FY26 as against (4.73) % in FY25 due to other income from monetisation of property. During FY26, the company has sold its Gurugram Property that led to profit of Rs.95.30 Cr resulting in positive profitability. Further, the company generates rental income of ~Rs.7 Cr from its other property. The EBITDA and PAT margins stood at 0.32% and (8.23) % in Q1FY27 respectively.

Weak financial risk profile
The company's financial risk profile remains weak, marked by high gearing, low debt protection metrics albeit steady networth. The gearing stood high at 5.77 times in FY26. The debt protection metrics include ICR and DSCR which stood at 1.78 times and 1.35 times respectively in FY26 due to other income. The tangible networth stood at Rs.62.48 Cr in FY26 as against Rs.53.04 Cr in FY25 due to accretion to reserves.

Rating Sensitivities

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

Not Applicable

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

Not Applicable

Liquidity Position

Poor

The liquidity is poor, on account of delays in timely servicing of debt obligations due to cash flow mismatch during the year. However, the net cash accruals stood at Rs.28.28 Cr in FY26 to cover the repayment obligations of Rs.11.61 Cr. over the same period. The current ratio stood low at 0.53 times in FY26. The promoters have the flexibility to infuse funds in the business as and when required. The average bank limit utilization stood at 89.69% for last 12 months ended May 26.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials :

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	253.53	491.81
PAT	Rs. Cr.	10.06	(23.28)
PAT Margin	(%)	3.97	(4.73)
Total Debt/Tangible Net Worth	Times	5.77	7.56
PBDIT/Interest	Times	1.78	0.50

*FY2026 is based on abridged financials statements

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
28 May 2025	Term Loan	Long Term	160.60	ACUITE B+ \| Stable (Downgraded from ACUITE BB- \| Stable)
28 May 2025	Proposed Long Term Bank Facility	Long Term	39.40	ACUITE Not Applicable (Withdrawn)
25 Feb 2025	Proposed Long Term Bank Facility	Long Term	38.00	ACUITE BB- \| Stable (Reaffirmed)
25 Feb 2025	Term Loan	Long Term	162.00	ACUITE BB- \| Stable (Reaffirmed)
25 Nov 2024	Term Loan	Long Term	200.00	ACUITE BB- \| Stable (Reaffirmed)
20 Aug 2024	Term Loan	Long Term	200.00	ACUITE BB- \| Stable (Reaffirmed)
24 Apr 2024	Term Loan	Long Term	200.00	ACUITE BB- \| Stable (Reaffirmed)
25 Jan 2023	Term Loan	Long Term	200.00	ACUITE BB- \| Stable (Upgraded from ACUITE B+ \| Stable)
06 Jan 2023	Term Loan	Long Term	200.00	ACUITE B+ \| Stable (Downgraded from ACUITE BB- \| Stable)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
INDUSIND BANK LIMITED	Not avl. / Not appl.	Term Loan	Unlisted	RBI	01 Dec 2018	Not avl. / Not appl.	30 Jun 2034	160.60	Simple	ACUITE C \| Downgraded & Withdrawn ( from ACUITE B+ )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Manvi Khaitan
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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.

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