Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has reaffirmed its long-term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B minus) and short-term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs.22.04 Cr. bank facilities of JDS Transformers Industries Private Limited (JTIPL). The outlook is revised to ‘Positive’ from ‘Stable’. Acuité has assigned its short-term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs.17.50 Cr. bank facilities of JDS Transformers Industries Private Limited (JTIPL).
Rationale for rating reaffirmation and revision in outlook The revision in the outlook from Stable to Positive factors in the expected equity infusion in FY2027 strengthening the financial risk profile and expected scaling up of operations on the back of envisaged expansion in the product profile. Further, the rating reaffirmation factors in the steady improvement in the company's operating performance and moderate financial risk profile, characterized by modest net worth and comfortable debt protection metrics. The rating also draws strength from the promoters' extensive industry experience, long track record of operations, and efficient working capital management. However, these strengths are partly constrained by the susceptibility of profitability to fluctuations in raw material prices in an intensely competitive capital goods industry.
About the Company
JDS Transformers Industries Private Limited (JTIPL) was incorporated in 1999 in Nagpur, Maharashtra, for the manufacturing of transformers. Prior to starting transformer production in July 2015, the company was involved in the manufacturing and supply of aluminium conductors. Since July 2015, JTIPL has been manufacturing distribution transformers, power transformers, and solar inverter duty transformers. Initially in 2019, the focus was on 200 kVA distribution transformers, but since 2022, the company has shifted its focus to 5–10 MVA power transformers, further the company is undergoing setting up of solar transformers which is expected to be operationalised by end of FY2027. The directors of the company includes Ms. Daksha Jyotindra Patel and Ms. Rina Sahaj Patel.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered standalone business and financial risk profile of JTIPL to arrive at the rating.
Key Rating Drivers
Strengths
Established track record of operations along with experienced management JTIPL began its operations with the manufacturing and supply of aluminium conductors and having over a decade of presence in this industry. JTIPL is a part of the JDS Group, which also includes KJV Alloy Conductors Private Limited and Vidarbha Alloy Conductors. KJV Alloy Conductors specializes in the production of various types of conductors such as AAC, ACSR, AAAC, and ABC, serving both domestic and international markets. The group companies share common promoters. The promoters of the company Ms. Daksha Patel and Ms. Rina Patel bring over three decades of industry experience. This extensive experience coupled with established track record of operations have helped the company to forge healthy relationships with its customers and suppliers. Acuité believes that the management's extensive experience will continue to play a pivotal role in strengthening the company's business risk profile.
Sustained improvement in revenues and profitability JTIPLs scale remained modest however, the company has demonstrated steady growth with revenues reported at Rs.175.70 Cr. in FY2026 (Prov.) as against Rs.116.16 Cr. in FY2025 and Rs.76.82 Cr. in FY2024 driven by a higher volume of orders and its timely execution and increased focus on power transformers. The operating profit margin also improved to 5.30 percent in FY2026 (Prov.) as against 4.90 percent in FY2025. Further, the PAT Margin improved to 3.32 percent in FY2026 (Prov.) compared to 2.98 percent in FY2025. Further, the company has generated a revenue of Rs.55.67 crores in Q1FY27 and are targeting to close the year at around Rs.200 crores. Acuite believes that the operating performance of the company would improve steadily in near to medium terms on the back of commencement of solar transformer unit.
Efficient Working capital operations The working capital operation of the company remained efficient in nature, with Gross Current Assets (GCA) of 67 days in FY2026 (Prov.), compared to 70 days in FY2025. The inventory levels stood at 37 days in FY2026 (Prov.) as against 39 days in FY2025. The debtor days stood at 32 days in FY2026 (Prov.) as against 21 days in FY2025. The creditor days stood at 39 days in FY2026 (Prov.) as against 43 days in FY2025. The company's fund-based limit were maximum utilized at an average of ~55.81 percent for last 6 months ended June 2026 and non-fund-based limits being utilised at 58.92 per cent for 5 month ended July 2026. Going ahead, the ability of the company to maintain efficient working capital operations will remain a key monitorable.
Weaknesses
Moderate Financial Risk Profile
The financial risk profile of the company remained moderate, albeit constrained by its modest net worth, moderate debt levels, and dependence on promoter support for strengthening its capital structure. The company's net worth improved to Rs.18.82 crore as on March 31, 2026 (Prov.) from Rs.9.02 crore as on March 31, 2025, due to accretion of profits to reserves. The company had total debt of Rs.6.54 crore as on March 31, 2026 (Prov.), comprising long-term debt of Rs.3.43 crore and short-term debt of Rs.3.11 crore. The company is also undertaking capex towards the installation of a solar transformer facility, which is expected to be operationalised by March 2027. While the gearing ratio remained comfortable at 0.35 times as on March 31, 2026 (Prov.), the capital structure continues to derive support from unsecured loans extended by the directors/members amounting to Rs.3.96 crore, which are treated as quasi-equity. Further, the debt protection indicators remained comfortable with interest coverage ratio (ICR) at 7.41 times in FY2026 (Prov.) as against 11.70 times in FY2025. The debt service coverage ratio (DSCR) stood at 4.83 times for FY2026 (Prov.) as against 3.86 times for FY2025. The NCA to Total Debt ratio stood at 1.00 times in FY2026 (Prov.) from 1.08 times in FY2025.
Acuite believes that the financial risk profile of the company would remain moderate on the back of its modest net worth base and absence of any major debt-funded capex.
Susceptibility of Profitability to Fluctuations in Raw Material Prices and Intense Industry Competition The profitability of JDS Transformers Industries Private Limited remains susceptible to fluctuations in the prices and availability of key raw materials such as copper, aluminium, transformer oil, and CRGO steel, which constitute a major portion of its production cost. Any adverse movement in raw material prices may impact the company's operating margins, particularly in a competitive bidding environment. Further, the transformer manufacturing industry is highly fragmented and intensely competitive, with the presence of numerous organized and unorganized players leading to pricing pressures and limited bargaining power. Consequently, the company's ability to sustain profitability remains dependent on effective cost management, operational efficiency, and its ability to maintain a competitive position in the industry.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Significant improvement in the scale of operation surpassing the revenue by Rs.250 crores
Improvement in the financial risk profile
Maintaining efficient working capital cycle
Potential triggers (individual or collective) for a downward rating action:
Significant decline in revenue and profitability with net cash accruals falling below Rs.5 crores.
Significant increase in debt levels leading to deterioration in financial risk profile.
Elongation in working capital cycle, exerting pressure on liquidity.
Liquidity Position
Adequate
The liquidity position remains adequate, evidenced by sufficient net cash accruals offsetting maturing debt obligations. Net cash accruals stood at Rs.6.50 crores in FY2026 (Prov.) as against repayment debt obligation of Rs.0.30 crores. Further the net cash accruals are expected to be in the range of Rs.9-11 crores against repayment debt obligation of Rs.0.83 crores during FY2027-28. The cash and bank balance stood at Rs. 0.14 Cr. as on 31st March 2026(Prov.) The current ratio has stood at 1.34 times on March 31, 2026 (Prov.). The company's fund-based limit were maximum utilized at an average of ~55.81 percent for last 6 months ended June 2026 and non-fund-based limits being utilised at 58.92 per cent for 5 month ended July 2026. Acuite believes the liquidity position of the company may continue to remain adequate with steady cash accruals.
Outlook: Positive
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
175.70
116.16
PAT
Rs. Cr.
5.84
3.46
PAT Margin
(%)
3.32
2.98
Total Debt/Tangible Net Worth
Times
0.35
0.42
PBDIT/Interest
Times
7.41
11.70
Status of non-cooperation with previous CRA (if applicable)
ACUITE BBB- | Positive | Reaffirmed | Stable to Positive
Not Applicable
Not avl. / Not appl.
Proposed Long Term Bank Facility
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
0.28
Simple
ACUITE BBB- | Positive | Reaffirmed | Stable to Positive
AXIS BANK LIMITED
Not avl. / Not appl.
Term Loan
Unlisted
RBI
29 Apr 2025
Not avl. / Not appl.
01 May 2030
3.26
Simple
ACUITE BBB- | Positive | Reaffirmed | Stable to Positive
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
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