| Presence of reputed group and its sound track record of operations in WtE sector
JUWM-Vizag 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
The company has healthy revenue visibility, supported by a 25-year power purchase agreement with Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL) for its 15 MW capacity. In addition, the company has entered into long-term concession agreements of 25 years with the urban local bodies for the supply of municipal solid waste. The company’s operating revenue moderated to Rs. 65.48 Cr in FY2026 from Rs. 73.83 Cr in FY2025, mainly due to lower plant load factor during the year, as scheduled maintenance activity was undertaken. The lower power generation, along with higher maintenance expenses, also impacted profitability. As a result, the operating margin declined to 50.23 percent in FY2026 from 65.51 percent in FY2025. Going forward, the company’s operating performance is expected to improve with an increase in PLF, Q!FY2027 PLF was at ~96 percent. Further, the company is undertaking capex to increase the plant’s power generation capacity by 6 MW, taking the total capacity to 21 MW. The expanded capacity is expected to be commissioned from October 2026 onwards, which is expected to improve the overall operating performance of the company over the medium term.
Healthy financial risk profile
The financial risk profile of JUWM – Vizag is healthy, with low gearing, healthy net worth and adequate debt protection indicators. The net worth of the company stood at Rs. 156.52 Cr on March 31, 2026 post profit accretion and distribution of dividends. The gearing continues to remain below unity at 0.87 times in FY2026. The TOL/TNW levels remain moderate at 1.25 times in FY2026. Further, the coverage ratios are adequate, with interest coverage ratio (ICR) at 2.48 times and debt service coverage ratio (DSCR) at 1.54 times in FY2026. However, Debt-EBITDA levels stood high at 3.88 times in FY2026 (2.79 times in PY).
Going forward, reduction the Debt-EBITDA levels will be a key monitorable.
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| Revenue concentration and high receivable period
The revenues of company remain concentrated with supply agreement with one off taker only keeping it exposed to counterparty risks. The receivable period of the company stood moderate at 80 – 90 days in FY2026 though improving from around 120 – 160 days in FY2024 and FY2023, post registration in the PRAAPTI Portal I.e. Payment Ratification and Analysis in Power Procurement for bringing Transparency in Invoicing; which has enabled faster collection. However, despite a high working capital cycle of 134 days in FY2026, the company has funded the working capital gap through its internal accruals, keeping its reliance on external working capital funds at a minimum.
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.
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