Press Release

Press Release

April 07, 2026

JAYAWANT SHIKSHAN PRASARAK MANDAL
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	155.00	ACUITE BBB- \| Stable \| Assigned	-
Bank Loan Ratings	145.00	ACUITE BBB- \| Stable \| Reaffirmed	-
Total Outstanding	300.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B minus) on Rs.145.00 Cr. bank facilities of Jayawant Shikshan Prasarak Mandal (JSPM). The outlook is ‘Stable’. Further, Acuité has assigned a long-term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B minus) on Rs.155.00 Cr. bank facilities of Jayawant Shikshan Prasarak Mandal (JSPM). The outlook is ‘Stable’.

Rationale for rating
The rating reaffirmation considers JSPM’s sustained operating and financial performance, however the debt-funded capex plan is expected to moderate the financial risk profile. The rating continues to derive comfort from the established experience of the trustees in the education sector and the increased intake capacity fulfilled by improved occupancy levels. The rating also considers the adequate liquidity position, marked by sufficient cash accruals against its maturing debt repayment obligations for the same period. However, the rating remained constrained by its working capital-intensive operations and the stringent regulatory framework in the Indian education industry.

About the Company

JSPM is a Pune-based trust established in 1998 and promoted by Dr. Tanaji Jaywant Sawant, Founder Secretary. The current trustees include Dr. Tanaji Jayawant Sawant, Prof. Shivaji Jayawant Sawant, Mr. Giriraj Tanaji Sawant, Ms. Usha Damodar Takke, Mrs. Rajeshwari Giriraj Sawant, Mr. Vilas Mahadev Bhusare, Mr. Shashikant Ramchandra Thite, Mr. Laxman Maruti Bhilare and Mr. Rushiraj Tanaji Sawant. The trust runs 31 educational institutions that offer courses in engineering, management, and pharmacy, among others, in and around Pune. Further, the trust is setting up an 800-bedded hospital-cum-medical college at its Wagholi campus, which is expected to be completed by FY28.

Unsupported Rating

Not Applicable

Analytical Approach

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

Key Rating Drivers

Strengths

Established track record of operations and experienced management
Jayawant Shikshan Prasarak Mandal (JSPM), a charitable educational trust based in Pune, was established in 1998 by Dr. Tanaji Jayawant Sawant. JSPM operates 31 institutes and schools across its four campuses in Pune. The schools under the trust are affiliated with the CBSE Board, while the technical courses are affiliated with Savitribai Phule Pune University. The trust offers over 60 courses, ranging from pre-primary education to technical programmes such as MBA, MCA, Engineering, and Pharmacy. Acuite believes that the trust’s long-standing track record and experienced management team support its strong positioning in the education sector.

Improved revenues and sustained profitability margins
The trust recorded revenue of Rs. 350.96 crore in FY25 as compared to Rs. 310.35 crore in FY24. The marginal growth is attributed to higher fee receipts, increased student intake capacity supported by higher occupancy levels, and the addition of new courses across its institutes. The occupancy levels stood at around 99.52 per cent for AY26 as compared to 99.08 per cent in AY25. Further, JSPM University, which was launched at the Wagholi campus during FY24, has also sustained growth in overall occupancy levels. The operating margins stood at 25.94 per cent in FY25 as compared to 28.52 per cent in FY24, while PAT margins remained range-bound at 9.89 per cent in FY25 as compared to 9.87 per cent in FY24. Furthermore, during 10MFY26, the trust reported revenue of Rs. 397.35 crore and is expected to close FY26 with a topline of around Rs. 405–410 crore with EBITDA of around Rs. 110–120 crore. Acuite believes that the trust’s strong revenue growth driven by near-full occupancy levels and an expanding academic portfolio continues to support its healthy operating profile.

Increase in approved intake, high occupancy levels and growth in fee receipts
JSPM operates a total of 31 institutes and schools in and around Pune, Maharashtra, offering over 65 courses ranging from pre-primary education to technical programmes such as MBA, MCA, Engineering, and Pharmacy. The total sanctioned intake increased to 44,214 seats in AY26 from 40,658 seats in AY25, reflecting continued expansion across courses. The overall occupancy levels remained robust at around 99.52 per cent in AY26, as compared to 99.08 per cent in AY25, indicating sustained demand across campuses. With intake capacity increasing annually, the gap between approved intake and actual admissions is expected to improve further over the medium term. Further, total fee receipts stood at around Rs. 384.37 crore in AY26 as against Rs. 319.17 crore in AY25, registering growth of approximately 20 per cent, driven by improved student intake and consistently high occupancy levels. Acuite believes that the steady increase in approved intake, along with consistently high occupancy levels and strong growth in fee receipts, supports the revenue visibility over the medium term.

Healthy financial risk profile
The trust maintains a healthy financial risk profile characterised by a high net worth, low gearing, and comfortable debt protection metrics. As on March 31, 2025, JSPM’s net worth increased to Rs. 401.33 crore from Rs. 366.62 crore as on March 31, 2024, primarily due to profit accretion to reserves. The trust’s gearing stood at 0.39 times as on March 31, 2025, as against 0.48 times in the previous year. The total debt as on March 31, 2025, stood at Rs. 158.18 crore, compared to Rs. 176.41 crore as on March 31, 2024, comprising Rs. 110.90 crore of long-term debt, Rs. 31.05 crore of short-term debt, USL from promoters of Rs. 0.50 crore, and maturing debt obligations of Rs. 25.73 crore. The TOL/TNW ratio remained comfortable at 0.44 times as on March 31, 2025. Further, the trust reported a healthy interest coverage ratio of 4.58 times and a DSCR of 2.49 times in FY25. Further, the trust has undertaken the construction of a new project, an 800-bedded hospital namely “Jayawant Hospital”, a medical college-cum-hospital, with a total capex of Rs. 439.91 crore, funded through bank debt of Rs. 260 crore and the rest through internal accruals, with the capex expected to be completed by FY28. Acuite believes that, notwithstanding the benefits, the financial risk profile is likely to moderate to an extent.

Weaknesses

Working capital intensive nature of operations
JSPM’s operations remained working capital intensive, marked by gross current assets (GCA) days of 212 days in FY25 as compared to 276 days in FY24. The student mix comprises both open-category and backward-category students, with around 60 per cent of the students belonging to the backward category. While fees from open-category students are received at the time of admission, fees relating to backward-category students are reimbursed by the government. Post completion of the admission process in August, the grant proposals are submitted in December, with the government grants generally received by April–May, resulting in elevated debtor levels. Fees receivable from students are reflected as sundry debtors. Consequently, debtor days stood at 180 days in FY25 as compared to 220 days in FY24. Acuite believes that the trust’s operations will remain working capital intensive, given the inherent nature of the education sector in which it operates.

Dependence on scholarships and stringent regulatory framework
A significant portion of the institutes’ admissions is supported by government scholarships, which results in delays in revenue recognition. Further, the institutes face intense competition from other private institutions offering similar courses. Given the competitive environment, attracting the requisite number of students in line with the sanctioned intake remains a challenge. The Indian education sector is highly regulated, and trust-operated institutes are required to comply with a stringent regulatory framework. Any significant changes in regulations by the Government of India or policy changes by the respective affiliating bodies could adversely impact the trust’s revenue, financial position, and operating performance. Acuite believes that the trust’s high dependence on government scholarships and its exposure to regulatory and competitive pressures pose inherent risks to its revenue visibility and operating performance.

Rating Sensitivities

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

• Significant and sustained improvement in revenues over 25 per cent and improvement in profitability margins
• Improvement in DSCR above 3 times

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

Delay in completion or stabilisation of debt funded capex leads to cost escalations thereby exerting pressure on profitability margins
Any further elongation in the working capital cycle
DSCR below 1.5 times

Liquidity Position

Adequate

Liquidity is adequately supported by net cash accruals (NCAs), which stood at Rs. 73.93 crore as on March 31, 2025 as against debt obligation of Rs. 17.40 crore. The NCAs are expected to range from Rs. 78 crore to Rs. 118 crore for FY2026-FY2028, while repayment obligations are projected to be around Rs. 25 crore to Rs. 35 crore during that the same period. The trust’s unencumbered cash and bank balance stood at Rs. 17.55 crore as of March 31, 2025. The current ratio stood at 2.65 times in FY25.
Acuite believes that the trust's liquidity is likely to remain adequate over the medium term due to healthy cash accruals against maturing debt repayment obligations for the same period.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	350.96	310.35
PAT	Rs. Cr.	34.71	30.62
PAT Margin	(%)	9.89	9.87
Total Debt/Tangible Net Worth	Times	0.39	0.48
PBDIT/Interest	Times	4.58	3.85

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
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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
09 May 2025	Proposed Long Term Bank Facility	Long Term	96.35	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+ \| Stable)
	Term Loan	Long Term	35.65	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+ \| Stable)
	Dropline Overdraft	Long Term	13.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+ \| Stable)
08 Mar 2024	Dropline Overdraft	Long Term	13.00	ACUITE BB+ \| Stable (Upgraded from ACUITE B+ \| Stable)
	Proposed Long Term Bank Facility	Long Term	87.66	ACUITE BB+ \| Stable (Upgraded from ACUITE B+ \| Stable)
	Term Loan	Long Term	44.34	ACUITE BB+ \| Stable (Upgraded from ACUITE B+ \| Stable)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.06	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Canara Bank	Not avl. / Not appl.	Term Loan	16 Sep 2025	Not avl. / Not appl.	31 Aug 2037	142.94	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Canara Bank	Not avl. / Not appl.	Term Loan	16 Sep 2025	Not avl. / Not appl.	31 Aug 2037	117.06	Simple	ACUITE BBB- \| Stable \| Assigned
Canara Bank	Not avl. / Not appl.	Term Loan	16 Sep 2025	Not avl. / Not appl.	16 Jun 2030	37.94	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Dheeraj Salian
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.

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.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.