Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 4224.53 ACUITE BBB+ | Reaffirmed | Rating Watch with Developing Implications -
Total Outstanding 4224.53 - -
Total Withdrawn 0.00 - -
 

Rating Rationale

­Acuité has reaffirmed the long-term ratings to 'ACUITE BBB+' (read as ACUITE triple B plus) on the Rs. 4224.53 Cr. bank facilities of Jaiprakash Power Ventures Limited (JPVL). The ratings have been placed under 'Rating watch with Developing Implications’.

Rationale for rating


Acuite earlier kept the ratings under watch with negative implications mainly due to the SEBI's Adjudication order dated 27th December 2024 imposing penalty on Jaiprakash Power Ventures Limited and top officials of the company on the account of non-compliances of certain Accounting Standards from the financial years from 2012-13 to 2021-22. The company filed for an appeal on Securities Appellate Tribunal (SAT) against it. The case is still ongoing, and next hearing is scheduled on 9th June 2026 before SAT. Acuite has removed the rating under watch with negative implications since 50% of the penalty has already been deposited as per SAT order, no further demand has been raised by SEBI in the matter, provision has been created in the books of FY 25 against the penalty and given the quantum of the penalty irrespective of the final outcome, an adverse decision is not expected to have any material impact on the company’s financial risk profile or its overall creditworthiness. 

Further, the rating has been kept under watch with developing implications mainly due to MER (Material Event) triggered in the view of the company (JPVL) on 27th February 2026 intimated stock exchanges that an application has been filed before the Hon'ble National Company Law Tribunal (NCLT) for the initiation of Corporate Insolvency Resolution Process (CIRP) under the provisions of section 7 of the Insolvency and Bankruptcy Code, 2016, against them by National Asset Reconstruction Company Limited (NARCL) through its Power of Attorney Holder, India Debt Resolution Company Limited, alleging a default amount of Rs. 511.73 crores plus interest and other charges, in relation to corporate guarantee extended by the company to M/s Jaiprakash Associates Limited (JAL). The matter is yet to come up before the Hon'ble NCLT’ as per the disclosure. The NARCL loan has been transferred by the State Bank of India (SBI) against its outstanding dues from JAL. It is noted that SBI was a part of the Framework Agreement executed between JPVL and its consortium of lenders on 18 April 2019, which included a clause stating that ‘SBI shall release the Corporate Guarantee issued for guaranteeing the obligations of JAL in relation to the credit facility availed by JAL. 

The matter remains under review by the respective authorities, and Acuite will continue to monitor the developments closely.

The reaffirmation of the ratings reflects the company’s strong financial risk profile, robust liquidity position, and the presence of long-term power off-take agreements (PPAs). The ratings also factor in the long-term Fuel Supply Agreements (FSAs) in place to meet the additional coal requirements beyond captive consumption, currently fulfilled through the Amelia (North) Coal Mine. Acuite notes that the Bandha North Coal Mine remains under development. Mining activities are presently underway, funded through internal accruals, and the mine is expected to become operational for captive consumption by FY 2028–29.

The company’s scale of operations and profitability moderated in FY 2025 compared to FY 2024, primarily due to lower power generation on account of maintenance shutdowns at thermal plants and a decline in tariff rates. However, as of 9M FY 2026, both PLF and PAF have improved, and the company is on track to achieve higher generation in FY 2026 relative to FY 2025, assuming tariffs remain at similar levels.

These strengths are partially offset by delays in the realization of receivables and the ongoing matter before the NCLT related to the corporate guarantee extended to the promoter group entity (JAL). 

Key Rating Drivers

Rating Sensitivities

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 5470.30 6777.95
PAT Rs. Cr. 810.73 686.10
PAT Margin (%) 14.82 10.12
Total Debt/Tangible Net Worth Times 0.31 0.38
PBDIT/Interest Times 5.07 4.07
­