Press Release

Press Release

February 17, 2026

JAI HANUMAN UDYOG LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	42.00	ACUITE BB+ \| Stable \| Reaffirmed	-
Total Outstanding	42.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of 'ACUITE BB+' (read as ACUITE double B plus) on Rs.42.00 crore bank facilities of Jai Hanuman Udyog Limited (JHUL). The outlook is 'Stable'.

Rationale for rating reaffirmation
The rating reaffirmation reflects JHUL’s continued stable operating performance albeit modest scale of operations and average financial risk profile. The company continues to benefit from its established operational track record and experienced management. The rating however remains constrained on account of high customer concentration and working capital intensive operations. The profitability remained susceptible to volatility in raw material prices in an intensely competitive iron and steel industry.

About the Company

Incorporated in 2003, Jai Hanuman Udyog Limited (JHUL) is engaged in the manufacturing of sponge iron with a total installed capacity of 73000 MTPA in its manufacturing facility located in Jharsuguda, Odisha. The operations of the company are being managed by current Promoter Director, Mr. Deepak Agarwal, Sameer Agarwal and Kabita Kedia. The operations of the company were taken over by the current management in June’20.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of JHUL to arrive at the rating.

Key Rating Drivers

Strengths

Established operational track record and experienced management
The company is in this business for over a decade, the Promoters of the company namely, Mr. Deepak Agarwal, Mr. Sameer Agarwal & Mrs. Kabita Kedia have extensive experience in the Iron & Steel Industry of more than one and a half decade. The promoter's extensive experience has played a pivotal role in the company's ability to cultivate robust relationships with both its customers and suppliers. Further, they are ably supported by a group of experienced professionals as well. Acuité believes that the long experience of the management might continue to benefit the company going forward, resulting in steady growth in the scale of operations.

Stable operating performance albeit modest scale of operations
The company continue to exhibit stable operating performance, with revenue of Rs. 148.68 crore in FY2025 as against Rs. 139.49 crore in FY2024. The marginal improvement in revenue during FY2025 was primarily driven by an increase in sales volume, although partially offset by moderation in price realizations. Capacity utilization improved to 71 percent in FY2025 compared to 59 percent in FY2024. The operating profit margin remained largely stable at 7.00 percent in FY2025 as against 7.04 percent in FY2024, while the net profit margin stood at 2.31 percent in FY2025 compared to 2.67 percent in FY2024. Further, in 8M FY2026, the company generated revenue of Rs. 68.64 crore (with Rs. 89.25 crore booked as of January 2026). The EBITDA and PAT margins during this period stood at 5.71 percent and 0.83 percent respectively. Acuité believes that the company’s operating performance is expected to improve steadily over the medium term on the back of sustained demand.

Average financial risk profile
The financial risk profile of the company remains average, marked by an average net worth, low gearing, and moderate debt protection metrics. The tangible net worth stood at Rs. 31.50 crore as on 31 March 2025 as against Rs. 28.06 crore as on 31 March 2024. The total debt of the company stood at Rs. 42.89 crore, comprising Rs. 5.22 crore of unsecured loans from related parties and Rs. 37.67 crore of short-term debt. The gearing (debt-equity ratio) stood at 1.36 times as on 31 March 2025 as compared to 1.18 times as on 31 March 2024. Debt protection indicators marginally declined yet remained moderate, with debt service coverage ratio (DSCR) and interest coverage ratio (ICR) standing at 1.67 times and 2.64 times in FY2025 as against 2.09 times and 2.68 times in FY2024. Total Outside Liabilities to Tangible Net Worth (TOL/TNW) stood at 1.51 times as on 31 March 2025, compared to 1.56 times as on 31 March 2024. Net Cash Accruals to Total Debt (NCA/TD) stood at 0.12 times for FY2025 as against 0.17 times in FY2024. Acuité believes the financial risk profile of the company is expected to improve on the back of steady net cash accruals and the absence of any major debt-funded capex plans.

Weaknesses

Customer concentration risk
The company faces high customer concentration risk with the top 3 customers collectively accounting for ~85% of the total revenue, indicating a high degree of concentration of revenue among a limited number of clients. However, it is worth noting that the company has maintained long and established relations with these companies. Acuité believes that ability of the company to diversify its customer base is a key rating sensitivity.

Working capital intensive nature of operations
The operations of the company remained working capital intensive marked by gross current assets (GCA) of 136 days in FY2025 as against 123 days in FY2024. Inventory days stood at 79 days in FY2025 as against 84 days in FY2024. Debtor days increased to 24 days in FY2025 from 15 days in FY2024. Creditor days stood at 0 days in FY2025 as compared to 21 days in FY2024. The average credit period allowed by suppliers ranges between 15–20 days. The average utilization of fund-based working capital limits remained high at 99.60 percent over the six months ended January 2026. Acuité believes that the company’s operations will continue to remain working-capital intensive over the medium term.

Susceptible of profitability to volatility in raw material prices in an intensely competitive iron and steel industry
The company’s profitability is vulnerable to fluctuations in raw material prices, a common challenge in the highly competitive iron and steel industry. Since raw materials constitute a significant portion of production costs, any volatility directly impacts margins, especially when pricing power is limited due to intense industry competition. As a result, even minor price movements in inputs can affect overall profitability, making effective cost management crucial for sustaining performance.

Rating Sensitivities

Improvement in scale of operations and profitability margins.
Deterioration in capital structure or debt protection metrics.
Further elongation of the working capital cycle, leading to higher fund-based limit utilization.

Liquidity Position

Adequate

The company has an adequate liquidity position, marked by net cash accruals (NCAs) of Rs. 5.27 crore as against long-term debt repayment obligations of Rs. 1.53 crore. The current ratio stood moderate at 1.31 times as on 31 March 2025 as compared to 1.20 times as on 31 March 2024. The cash and bank balance of the company stood at Rs. 0.12 crore as on 31 March 2025. Further, the moderate working capital intensity of operations is reflected in Gross Current Assets (GCA) of 136 days in FY2025 as against 123 days in FY2024. The reliance on fund-based working capital limits remained high at around 99 percent over the six months ended January 2026.Acuité believes that the company is likely to maintain an adequate liquidity position over the medium term on account of steady accruals.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	148.68	139.49
PAT	Rs. Cr.	3.44	3.73
PAT Margin	(%)	2.31	2.67
Total Debt/Tangible Net Worth	Times	1.36	1.18
PBDIT/Interest	Times	2.64	2.68

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
06 Dec 2024	Cash Credit	Long Term	37.50	ACUITE BB+ \| Stable (Reaffirmed)
	Working Capital Term Loan	Long Term	2.75	ACUITE BB+ \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	1.75	ACUITE BB+ \| Stable (Reaffirmed)
30 Nov 2023	Cash Credit	Long Term	36.00	ACUITE BB+ \| Stable (Assigned)
	Working Capital Term Loan	Long Term	2.75	ACUITE BB+ \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	3.25	ACUITE BB+ \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Cash Credit	10 Feb 2025	Not avl. / Not appl.	Not avl. / Not appl.	40.00	Simple	ACUITE BB+ \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE BB+ \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Anuja Bele
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

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

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.

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