­Acuité has consolidated Business and financial risk profiles of Jai Ganesh Ispat and Ferro Alloys Private Limited (JGIFAPL), JGI Steel Processors Private Limited (JGISPPL) and JGI Metal Convertors Private Limited (JGIMCPL) to arrive at the rating on account of common management and strong operational and financial linkages in the form of inter party transactions and corporate guarantee extended to JGIMCPL by Jai Ganesh Ispat and Ferro Alloys Private Limited (JGIFAPL).

Established track record of operations and experienced management
JGI group has a strong track record of operations and experienced management. The company's promoters have been engaged in the steel trading business since 1997, which has helped establish strong relationships with both suppliers and customers. This has led to stability in the inflow of orders and the supply of raw materials. The extensive experience of the promoters and the company's established presence have enabled JGI group to secure valuable able distributorship in Goa. Additionally, the group has acquired distributorship rights for the Coastal Maharashtra region, including the districts of Sindhudurg, Ratnagiri, Raigad, and Kolhapur. Acuité believes that the group will benefit from its experienced management, which helps maintain long-standing relationships with customers and suppliers.

Improvement in operating performance
The group has shown consistent improvement in operating performance with revenue of Rs. 735.79 Cr. reported in FY26 (Est.) as against Rs. 637.26 Cr.  in FY25. The improvement is on account of increase in orders received in JGI Metal Convertors Private Limited and JGI Steel Processors Private Limited. The EBITDA margin remained stable at 7.37 percent in FY26 (est.) and 7.11 percent in FY25. EBITDA margin is expected to be in the range of 7 to 7.55 per cent in FY27-FY28 backed by stable demand and cost control. PAT margin of the group has also improved during FY26 (Est.) to 5.05 percent against  to 4.39 percent in FY25 . Acuite believes, the operating performance of the group would improve steadily over the medium term.

Healthy financial risk profile
JGI group’s financial profile remained healthy marked by healthy capital structure, comfortable coverage indicators and healthy liquidity. The group’s net worth stood healthy at Rs  156.03 Cr. as on March 31, 2026 (Est.) as against Rs  118.84 Cr. as on March 31, 2025, backed by steady accretion to reserves. The total debt stood at Rs. 138.82 Cr. in FY26 (Est.) as against Rs. 126.40 Cr. in FY25. The capital structure remained healthy with gearing 0.89 times in FY26 (Est.) as compared to 1.06 times in FY25. Total Outside Liabilities to Tangible Net Worth (TOL/ TNW) stood at 1.15 times in FY26 (Est.) as compared to 1.74 times in FY25.  The Debt/EBITDA stood at 2.23 times in FY2026 (Est.) as compared to 2.50 times in FY25.
The group's coverage indicators are comfortable marked by  interest coverage ratio (ICR) and Debt Service Coverage Ratio (DSCR) of 6.50 times and 3.16 times in FY26 (Est.) and 4.97 times and 3.30 times in FY25 respectively. Net Cash Accruals (NCA)/Total Debt (TD) stood at 0.29 times for FY26 (Est.) as against 0.25 times for FY25. Acuité believes that financial risk profile of the group will remain healthy over the medium term, supported by no significant debt-funded capital expenditure plans in near to medium term.

Moderately intensive working capital operations
The group's working capital operations remained  moderately intensive in nature as reflected by its Gross Current Asset (GCA)  of 135 days and 144 days in FY26 (Est.) and FY25 respectively. JGI group offers credit period of around 45 -60 days to its customers and makes upfront payment to its suppliers. Its inventory days stood at 50-52 days during FY26 (Est.) and FY25 respectively. The debtor days stood at 63 days in FY26 (Est.) as compared to 46 days in FY25. Further, the average bank limit utilisation at consolidated level stood moderate at 75.06 per cent for last six months ended May, 2026.
Acuite believes that with competitive and trading nature of operations, the company needs to maintain inventory while offering credit keeps the operations working capital intensive in nature.

Susceptibility of profitability to volatility in raw material prices in a cyclical and competitive nature of steel industry
JGI group’s profitability remains susceptible to volatility in steel prices and input costs, given the trading and processing nature of operations and limited ability to fully pass on sharp price movements to customers in a timely manner. Although the group has maintained stable operating margins with improvement in profitability, sustained performance will remain dependent on effective inventory management, procurement practices and the group’s ability to manage price fluctuations amid competitive market conditions.
The steel long products industry is intensely competitive, with many organized and unorganized players. Its performance is linked to the cyclical nature of the steel industry and end-user industries such as real estate, infrastructure, and construction. However, this risk is mitigated by the booming infrastructure industry and the high demand, supported by government initiatives in the current fiscal year.

• ­Significant growth in revenues while maintaining healthy profitability on a sustained basis
• Improvement in working capital management with GCA below 120 days
• Improvement in financial risk profile with debt to EBITDA below 1.5 times

• ­Significant decline in revenues and profitability margins
• Deterioration in financial risk profile due to unexpected borrowings with gearing above 1.5 times
• Further, elongation in working capital cycle exerting pressure on liquidity