Press Release

Press Release

August 04, 2026

JINDAL URBAN WASTE MANAGEMENT (GUNTUR) LIMITED
Rating Upgraded

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	143.50	ACUITE A \| Stable \| Upgraded	-	RBI
Total Outstanding	0.00	143.50	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 upgraded the long-term rating of to 'ACUITE A' (read as ACUITE A) from 'ACUITE A-' (read as ACUITE A minus) on the Rs.143.50 Cr. bank facilities of Jindal Urban Waste Management (Guntur) Limited. The outlook remains 'Stable'

Rationale for upgrade
The rating upgrade takes into account the improved financial risk profile in FY2026 driven by the successful commissioning of the additional 5 MW capacity. Further, it also takes into account the debt prepayment of Rs. 5.88 Cr in July 2026 which shall further improve the debt protection metrics. The rating also factors the improved operating performance post offtake of additional power supply agreement in FY2026, in line with Acuite's expectation. Further, the rating continues to draws comfort from the presence of raw material supply agreement with the urban local bodies (ULBs) and offtake agreement with APCPDCL thereby prohibiting procurement and sales challenges. However, the rating is constrained by the revenue concentration and PLF being susceptible to the quality of waste.

About the Company

Incorporated in December, 2015; Jindal Urban Waste Management (Guntur) Limited (hereinafter referred as ‘JUWM-Guntur’) is a SPV formed by JITF Urban Infrastructure Limited (JUIL); a wholly owned subsidiary of JITF Urban Infrastructure Services Limited (JUISL). JUWM-Guntur operates a 20 MW Waste to Energy (WtE) power plant in Guntur district of Andhra Pradesh. The total project cost was Rs.361.56 Cr and it achieved its commercial operation date (COD) in October, 2021. The company has signed a 25-year power purchase agreement (PPA) with Andhra Pradesh Central Power Distribution Company Limited (APCPDCL). The company is currently managed by Mr. Pranay Kumar and Mr. Manoj Kumar Agarwal.

Unsupported Rating

Not Applicable

Analytical Approach

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

Key Rating Drivers

Strengths

Presence of reputed group and its sound track record of operations in WtE sector
JUWM-Guntur benefits from the established presence and operational experience of the P R Jindal Group in the infrastructure sector. The company is a special purpose vehicle promoted by JITF Urban Infrastructure Limited (JUIL), which is a wholly owned subsidiary of JITF Urban Infrastructure Services Limited (JUISL). These entities form part of the infrastructure vertical of the P R Jindal Group under JITF Infralogistics Limited (JIL). The group has diversified operations across municipal solid waste processing and power generation, water infrastructure, rail manufacturing, shipbuilding, and coastal and inland water transportation. JUIL has an established track record in the waste-to-energy sector, with six operational WtE projects and two new upcoming projects. The group’s experience in executing and operating WtE projects provides comfort regarding project implementation capabilities, operational know-how and sector understanding.
Further, the debt availed by JUWM-Vizag is supported by corporate guarantees from the promoter, JITF Urban Infrastructure Limited, and sponsor, Siddeshwari Tradex Private Limited (transferee company of Glebe Trading Private Limited and Danta Enterprises Private Limited), thereby providing additional comfort.

Presence of PPA, ensuring long term revenue visibility
JUWM - Guntur, has signed a 25 year power purchase agreement (PPA) with Andhra Pradesh Central Power Distribution Company Limited (APCPDCL) for 20 MW (earlier 15 MW increased to 20 MW from April 2025 onwards). Further, the company also has long term agreements with urban local bodies, ensuring continuous supply of municipal solid waste. The operating revenue of the company improved to Rs. 92.60 Cr. in FY2026 from Rs. 78.96 Cr. in FY2025 on account of increase in the power supplied to the DISCOM and healthy PLF levels. The PLF stood at 92.54 percent in FY2026. The operating margins remain at healthy levels, with EBITDA margin at 65.22 percent in FY2026 as against 62.29 percent in FY2025. PAT margin stood improved at 28.89 percent in FY2026 as against Rs. 18.79 percent in FY2025 driven by reduced finance costs. Going forward, the overall operating performance is of the company is expected to remain stable, with Q1 FY2027 PLF achieved at ~98 percent.

Healthy financial risk profile
The financial risk profile of JUWM-Guntur remains healthy with healthy networth, low gearing and comfortable debt protection metrics. The tangible net worth stood at Rs. 173.30 Cr. on March 31, 2026 post profit accretion and distribution of dividends. The gearing continues to remain below unity and improved marginally to 0.73 times in FY2026 (0.86 times in PY). The Debt-EBITDA levels also improved to 1.99 times in FY2026 from 2.69 times in FY2025. The TOL/TNW levels remain moderate at 1.12 times in FY2026 (1.23 times in PY). Further, interest coverage ratio (ICR) stood at 4.61 times and debt service coverage ratio (DSCR) stood at 2.12 times in FY2026.
The financial risk profile is expected to remain healthy, in the absence of debt funded capex plans over the medium term.

Weaknesses

Revenue concentration and moderate receivable period
The revenues of company remain concentrated with supply agreement with one offtaker only keeping it exposed to counterparty risks. Further, the receivable period of the company stood moderate and improved at 89 days in FY2026 from 94 days in FY2025 and 118 days in FY2024, post the company’s registration in the PRAAPTI Portal I.e. Payment Ratification and Analysis in Power Procurement for bringing Transparency in Invoicing; which has enabled faster collection.

Susceptibility of PLF to waste quality
Degradation in waste quality occurs when the waste received holds moisture and consist of dust especially in monsoon and winter season which creates issues in absorption of the heat present. This affects the PLF generations and thereby hampers the operating performance. However, as per conditions of concession agreement, the company is eligible to claim compensation from ULBs for the loss of production/revenue.

Rating Sensitivities

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

Reduction in Debt-EBITDA levels below 1 times
Reduction in the working capital cycle

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

Sustained PLF levels of less than 80 percent leading to decline in the operating performance
Increase in debt levels or working capital cycle impacting financial risk profile or liquidity

Liquidity Position

Adequate

JUWM – Guntur has an adequate liquidity position, with generation of net cash accruals (post dividend distribution) of Rs. 26.69 Cr against repayment obligations of Rs. 11.92 Cr in FY2026. The NCAs are expected to remain in the range of Rs. 22 – 28 Cr against maturing repayment obligations of 13 – 15 Cr for FY2027 and FY2028. The current ratio stood healthy at 2.39 times on March 31, 2026. The unencumbered cash and bank deposits stood at Rs. 17.53 Cr on March 31, 2026. Additionally, the average fund-based utilization stood below 1 percent for the last twelve months ended May 2026, which provides additional liquidity cushion.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	92.60	78.96
PAT	Rs. Cr.	26.75	14.84
PAT Margin	(%)	28.89	18.79
Total Debt/Tangible Net Worth	Times	0.73	0.86
PBDIT/Interest	Times	4.61	2.91

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
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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	Term Loan	Long Term	60.58	ACUITE A- \| Stable (Assigned)
	Term Loan	Long Term	11.16	ACUITE A- \| Stable (Assigned)
	Term Loan	Long Term	34.64	ACUITE A- \| Stable (Assigned)
	Term Loan	Long Term	31.24	ACUITE A- \| Stable (Assigned)
	Covid Emergency Line.	Long Term	5.88	ACUITE A- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
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.	5.88	Simple	ACUITE A \| Stable \| Upgraded ( from ACUITE A- )
Indian Renewable Energy Development Agency Ltd. (IREDA)	Not avl. / Not appl.	Term Loan	Unlisted	RBI	12 Jun 2018	Not avl. / Not appl.	31 Dec 2032	60.58	Simple	ACUITE A \| Stable \| Upgraded ( from ACUITE A- )
Indian Renewable Energy Development Agency Ltd. (IREDA)	Not avl. / Not appl.	Term Loan	Unlisted	RBI	13 Sep 2021	Not avl. / Not appl.	30 Sep 2037	11.16	Simple	ACUITE A \| Stable \| Upgraded ( from ACUITE A- )
Indian Renewable Energy Development Agency Ltd. (IREDA)	Not avl. / Not appl.	Term Loan	Unlisted	RBI	27 Feb 2023	Not avl. / Not appl.	31 Mar 2037	34.64	Simple	ACUITE A \| Stable \| Upgraded ( from ACUITE A- )
Indian Renewable Energy Development Agency Ltd. (IREDA)	Not avl. / Not appl.	Term Loan	Unlisted	RBI	05 Jun 2024	Not avl. / Not appl.	30 Sep 2037	31.24	Simple	ACUITE A \| Stable \| Upgraded ( from ACUITE A- )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kruti Patel
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

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

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	SEBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts	SEBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs)	RBI
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁶	Not applicable

⁶ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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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