Press Release August 19, 2026 JIDEN FORMULATIONS PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	90.00	ACUITE BBB- | Stable | Assigned	-	RBI
Total Outstanding	0.00	90.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

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 assigned the long-term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B minus) on the Rs.90.00 crore bank facilities of Jiden Formulations Private Limited (JFPL). The Outlook is 'Stable'. Rationale for rating assigned The rating factors in the promoter group's established presence in the pharmaceutical industry and the extensive experience of the management team since 2006. The rating also considers the company's improved business profile, reflected through increase in the scale of operations and profitability during FY26 (Prov.), following the transfer of business operations from the erstwhile proprietorship concern, Globella Inc., to JFPL. Further, the rating also factors the company's moderate financial risk profile, marked by a comfortable gearing level. However, the rating is constrained by the working capital-intensive nature of operations, marked by high receivable levels. Further, the company's profitability remains susceptible to fluctuations in raw material prices and its ability to pass on increases in input costs in a timely manner, owing to intense competition in the fast-moving consumer goods (FMCG) segment.

About the Company

JFPL is a Vadodara-based company incorporated in April 2023 and promoted by Mr. Jigarkumar Bharatkumar Thakar and Mrs. Deepmala Jigar Thakar. The company is engaged in manufacturing and distribution of pharmaceuticals and personal care products. The promoters have been associated with these businesses since 2006, with operations being carried out through their proprietorship concern, Globella Inc., up to FY25. Effective from the beginning of FY26, the pharmaceutical and personal care business operations of Globella Inc. were transferred to JFPL. The company develops, markets and distributes a range of pharmaceutical and personal care products through its network of distributors, channel partners and direct sales channels.

Unsupported Rating

­Not Applicable

Analytical Approach

­­Acuite has considered the standalone business and financial risk profile of Jiden Formulations Private Limited to arrive at the rating

Key Rating Drivers

Strengths

­Established track record and experienced management The company benefits from the extensive industry experience of its promoter, Mr. Jigarkumar Bharatkumar Thakar, who has been associated with the pharmaceutical sector since 2006 through Globella Inc. and has previously worked with various companies. Under his leadership, the company has established a presence in the pharmaceutical and personal care (FMCG) segments, with a portfolio comprising over 56 pharmaceutical brands and around 400 FMCG SKUs. The business is supported by a network of distributors, channel partners and approximately 250 medical representatives, aiding market reach across pan India. The promoter's experience in product development, branding, distribution and business strategy, along with established relationships with customers and suppliers, continues to support the company's operations and growth prospects. Improved operating performance in FY26 The company witnessed a significant improvement in its operating performance during FY26 following the transfer of the pharmaceutical business from the erstwhile proprietorship concern, Globella Inc., to JFPL. The scale of operations increased substantially, with revenue rising to Rs.332.39 crore in FY26 (Prov.) from Rs.90.73 crore in FY25. Profitability indicators also strengthened during FY26 (Prov.), with the EBITDA margin improving to 8.24% from 4.68% in FY25, supported by lower selling expenses. Consequently, the PAT margin increased to 5.72% in FY26 (Prov.) from 2.79% in FY25. While profitability is expected to remain moderate due to the company's job-work-based manufacturing model, the company has been able to manage raw material price fluctuations through bulk procurement and volume-based discounts from suppliers. Moderate capital structure The company's capital structure remained moderate, supported by a net worth to Rs.52.33 crore as on March 31, 2026 (Prov.), which majorly increased in FY26 (Prov.) from Rs.13.84 crore as on March 31, 2025. The improvement was primarily driven by the retention of profits in reserves and the transfer of capital from the erstwhile proprietorship concern, Globella Inc., to JFPL in the form of interest-free unsecured loans, which have been considered as quasi-equity in line with the lender's stipulations. Additionally, the promoter infused fresh capital of Rs.5.48 crore into the business, strengthening the company's equity base. Further, the promoter is expected to infuse an additional Rs.5 crore during the current year to support the company's growth and funding requirements. The company's total debt stood at Rs.96.86 crore as on March 31, 2026 (Prov.), comprising primarily short term working capital borrowings. Therefore, the company's leverage and debt servicing indicators remained moderate, as reflected by an overall gearing ratio of 1.85x and a debt service coverage ratio (DSCR) of 3.66x as on March 31, 2026 (Prov.).

Weaknesses

Intensive working capital operations The company's working capital intensity remained high during FY26 (Prov.), as reflected by GCA days of 162 days. The elevated working capital requirement was primarily driven by high receivables and inventory levels. Debtor days for the company stood at 118 days in FY26 (Prov.), largely due to the extended credit period offered to its distributors. Further, inventory holding remained at 41days in FY26 (Prov.). On the other hand, the company procures goods from its vendors largely on a cash basis, resulting in negligible creditor outstanding at the year-end. Consequently, the company's working capital requirements is high, leading to near to full utilisation of its fund-based working capital limits during the six-month period ended June 2026. However, the company has recently availed additional working capital limits of Rs.25 crore to support its growing scale of operations and funding requirements, which is expected to ease the pressure on liquidity. Susceptibility of profitability to raw material price fluctuations The company's profitability remains exposed to fluctuations in raw material prices, particularly in its FMCG and personal care product portfolio. Given the competitive nature of the FMCG industry, the company's ability to immediately pass on increases in input costs to customers may be limited. Consequently, any significant rise in raw material prices could exert pressure on operating margins, especially during periods when price revisions lag cost increases. The company's ability to maintain profitability will remain dependent on efficient procurement practices, product mix management and timely calibration of selling prices.

Rating Sensitivities

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

­Increase in scale of operations leading to net cash accruals above Rs.35 crores Any improvement in the financial risk profile

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

Weakening in operating performance, with operating margins falling below 6%. Further elongation in working capital cycle or increased reliance on working capital borrowings, leading to deterioration in the financial risk profile

Liquidity Position

Adequate

The company's liquidity position remains adequate, driven by healthy net cash accruals of Rs.19.92 crore in FY2026 (Prov.), which sufficiently cover its repayment obligations. Going forward, net cash accruals are expected to remain healthy in the range of Rs.20-25 crore, providing a comfortable cushion against modest debt repayment commitments of less than Rs.3.00 crore. Liquidity is further supported by the promoters' demonstrated willingness to infuse funds to meet the company's growing working capital requirements. The company's current ratio stood at 1.84 times as on March 31, 2026 (Prov.), while it maintained cash and cash equivalents of Rs.1.26 crore as of the same date. Although utilisation of fund-based working capital limits remained high at around 99.7% during the six-month period ended June 2026, the recent sanction of additional working capital limits of Rs.25 crore is expected to strengthen liquidity and provide greater financial flexibility going forward.

Outlook - Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	332.39	90.73
PAT	Rs. Cr.	19.00	2.53
PAT Margin	(%)	5.72	2.79
Total Debt/Tangible Net Worth	Times	1.85	0.63
PBDIT/Interest	Times	3.66	4.88

Status of non-cooperation with previous CRA (if applicable)

­None

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 :

­Not Applicable

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Parth Patel Senior Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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