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| 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| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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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). |
| About the Company |
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J?PVL was incorporated in 1994 as a part of the "Jaypee Group" and is promoted by Jaiprakash Associates Limited (JAL). It has been listed on the NSE and BSE since 2005. The company is engaged in the generation of power through a 400 MW hydropower project, Vishnuprayag in Uttarakhand, and two thermal power projects located in Madhya Pradesh, viz., the 1,320 MW Nigrie thermal power plant and the 500 MW Bina thermal power plant. The directors are Mr. Dinesh Kumar Likhi, Mr. Pritesh Vinay, Mr. Manoj Gaur, Mr. Suren Jain, Mr. Praveen Kumar Singh, Mr. Sunil Kumar Sharma, Mr. Binata Sengupta, Mr. Anupam Lal Das, Mr. Vandana Rakesh Singh, Mr. Sudhir Mital, Mr. Rama Raman and Ms. Sonam Bodh (IDBI Nominee).
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| Unsupported Rating |
| Not Applicable. |
| Analytical Approach |
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Acuite has considered standalone financial and business risk profile of Jaiprakash Power Ventures Limited to arrive at the rating.
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| Key Rating Drivers |
| Strengths |
| Established track record of operations and tied up of long term agreements
The company, incorporated in 1994, has an established operational track record spanning more than three decades and forms part of the ‘Jaypee Group’. It operates a total power generation capacity of 2.22 GW, comprising the 400 MW Jaypee Vishnuprayag Hydro Electric Power Plant, which supplies 88% of its net generation to Uttar Pradesh Power Corporation Limited (UPPCL) under a long-term PPA while the remaining 12% is provided free of cost to the Government of Uttarakhand; the 500 MW Jaypee Bina Thermal Power Plant, which supplies 70% of its installed capacity to Madhya Pradesh Power Management Company Ltd. (MPPMCL) at MPERC-approved tariffs with the balance sold in the merchant market; and the 1320 MW Jaypee Nigrie Supercritical Thermal Power Plant, which supplies 30% of installed capacity to MPPMCL under a long-term PPA, with the remaining generation sold on a merchant basis through bilateral arrangements and power exchanges. Acuite believes that the company will continue to benefit from its long operating history, diversified asset base and the presence of long-term off-take agreements, which provide revenue visibility and stability over the medium to long term. Strong Financial Risk Profile The financial risk profile of the company remains strong, supported by a high net worth base, low gearing and comfortable debt protection metrics. The tangible net worth improved from Rs. 11,286.89 crore as on 31 March 2024 to Rs. 12,092.34 crore as on 31 March 2025, primarily on account of profit accretion to reserves. The gearing ratio improved to 0.31 times in FY 2025 from 0.38 times in FY 2024, while TOL/TNW also strengthened to 0.45 times from 0.52 times over the same period. Debt-to-EBITDA improved to 1.80 times in FY 2025 from 2.32 times in FY 2024, reflecting better cash generation and declining debt levels. The debt protection indicators remained comfortable, with ISCR and DSCR at 5.07 times and 2.73 times, respectively, in FY 2025. The company has been consistently pre-paying its debt and does not have any principal repayment obligations until September 2026. Acuite believes that the company’s financial risk profile will remain strong over the medium term, supported by steady internal accruals and the absence of any debt-funded capex plans. |
| Weaknesses |
| Decline in scale of operations & Profitability
The company reported a total net operating income of Rs. 5,470.30 crore in FY 2025 compared to ?Rs. 6,777.95 crore in FY 2024, translating into a decline of 19.29%. The moderation in revenue was primarily on account of lower power generation due to maintenance shutdowns at thermal plants, along with a reduction in tariff rates during FY 2025 as compared to the previous year. The net saleable energy generation declined by 584.61 Million Units (MU) in FY 2025 over FY 2024. Consequently, EBITDA reduced from Rs. 2,252.21 crore in FY 2024 to Rs. 1,897.33 crore in FY 2025, while Profit Before Tax (PBT) declined from Rs. 1,376.82 crore to Rs. 1,214.56 crore over the same period. The company reported net revenue of Rs. 4,177.03 crore for the period up to December 2025. Although saleable energy generation improved during 9M FY 2026, lower tariff realizations kept overall revenue broadly at similar levels when compared with 9M FY 2025. Acuite believes that, going forward, the company is on track to achieve higher energy generation, having already generated 10,860.43 MU up to December 2025. Assuming tariff rates remain stable in Q4 FY 2026, the company’s scale of operations and profitability are expected to show a marginal improvement in FY 2026. Delay in Realization of Counterparty Bills Although the company’s overall debtor days remained comfortable at 63 days in FY 2025, more than 30% of the outstanding receivables have remained unrealized for over three years. These largely pertain to counterparty discoms, primarily UPPCL and MPPMCL. Acuite believes that any further build-up of receivables or delays in collections from these counterparties, leading to a weakening of the company’s liquidity or credit risk profile, will remain a key rating sensitivity.
CIRP proceedings initiated against JPVL The matter primarily pertains to the corporate guarantee extended by JPVL to its promoter group company, Jaiprakash Associates Limited (JAL), for USD 1,500 lakh against the facilities availed by JAL from the State Bank of India (SBI). JAL is already under CIRP, following a petition filed by ICICI Bank during the quarter ended 30 June 2024, pursuant to which the Hon’ble National Company Law Tribunal (NCLT), Allahabad Bench, admitted JAL into CIRP via its order dated 3 June 2024. Since the underlying loan was subsequently transferred by SBI to NARCL—and given that SBI was a party to the earlier Framework Agreement while NARCL was not—the CIRP petition has been filed by NARCL. Any crystallization of the said corporate guarantee may impact the liquidity profile of JPVL and, therefore, remains a key rating sensitivity. |
| ESG Factors Relevant for Rating |
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JPVL is dedicated to aligning operations with sustainability and responsible stewardship. They are implementing robust ESG risk management frameworks, regularly assessing our environmental and social impact, and promoting transparency. Additionally, the company collaborates with industry partners, policymakers, and communities to drive positive change and find innovative solutions. By recognizing the importance of ESG in the power sector, company is expected to invest in resources, research and development, and employee empowerment to strengthen our capabilities. By addressing ESG risks, they are safeguarding the future and fulfilling their responsibility to the planet and communities. Together it is committed to sustainable practices, responsible growth, and a brighter future for generations to come.
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Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Strong |
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The liquidity position of the company remains strong, marked by generating healthy net cash accruals of Rs. 1,280.93 crore in FY2025 against debt repayment obligations of Rs. 207.47 crore during the same period. Liquidity is further strengthened by free fixed deposits amounting to Rs. 1,359.54 crore as on March 31, 2025. The company has a cash & bank balance of Rs. 92.67 crore as on 31st March 2025. The company reported a comfortable current ratio of 2.80 times as on March 31, 2025. Acuite believes that the company’s liquidity profile will continue to remain robust over the near to medium term, driven by sustained cash accruals and the availability of adequate liquidity buffers to meet any unforeseen requirements.
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| Outlook - Not Applicable |
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| Other Factors affecting Rating |
| None. |
| 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 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any other information |
| None. |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.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 |
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