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
Acuite has reaffirmed the short term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 73.00 Cr. bank facilities of Jyotindra International (JI).
Further, Acuite has assigned the long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and the short term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 13.00 Cr. bank facilities of Jyotindra International (JI). The outlook is 'Stable'
Rationale for reaffirmation
The rating reaffirmation considers the efficient working capital operations and stable operating performance. The rating also draws comfort from the established track record of operations and experienced management. However, the rating is constrained on account of moderate financial risk profile and volatility in the operating performance due to the agro-based nature of product.
About the Company
Established in 1973, Jyotindra International (JI) is a Gujarat-based partnership firm promoted by late Mr. Jyotindra Modh and family. The firm is engaged in processing of psyllium husk and psyllium husk powder from psyllium seeds (Isabgul seeds). The firm has its own manufacturing facility located at Palanpur, Gujarat with an installed processing capacity of 7,500 MTPA. The firm exports around 70 percent of its produce to the countries like UK, Europe, Spain, Brazil, USA, China, etc. and sells around 30 percent in domestic market. Currently, the operations of JI is managed by Mr. Dhaval R Modh, Mr. Rajendra N.Modh, Mrs. Alkaben R. Modh and Mrs. Urmilaben J. Modh.
About the Group
Ispasen Remedies Private Limited (IRPL)
Gujarat based Ispasen Remedies is a sister concern of JI. The firm was incorporated in 2014 and is engaged in processing of psyllium husk and psyllium husk powder from psyllium seeds (Isabgul seeds). In August 2022, the firm was converted into a private limited company. IRPL caters to local market in Gujarat and has installed capacity of 3,000 MTPA. Mrs. Urmilaben J. Modh and Mrs. Ruchi Dhaval Modh are the current directors of the firm.
Jyotindra Industries Private Limited (JIPL)
Jyotindra Industries Private Limited (JIPL) is also a sister concern of JI. It was incorporated in 2020 in Gujarat, however, the operations commenced from FY2023 onwards. JIPL is engaged in processing of psyllium husk and psyllium husk powder from psyllium seeds (Isabgul seeds) and has a manufacturing capacity of 10,000 MTPA. It exports majority of its produce to countries like Brazil, Germany, Thailand, Malaysia, Indonesia, etc. Mr. Dhaval R Modh and Mrs. Ruchi Dhaval Modh are the directors of the company.
Unsupported Rating
Not Applicable
Analytical Approach
Extent of Consolidation
•Full Consolidation
Rationale for Consolidation or Parent / Group / Govt. Support
Acuite has considered the consolidated business and financial risk profiles of Jyotindra International (JI), Ispasen Remedies Private Limited (IRPL) and Jyotindra Industries Private Limited (JIPL). The consolidation is on account of common management, similar line of business, operational and financial linkages. Further, Jyotindra International has provided corporate guarantee to debt availed by Jyotindra Industries Private Limited.
Key Rating Drivers
Strengths
Established track record of operations and experienced management
JI has an operational track record of over five decades in manufacturing and processing of psyllium husk and powder. The group was established in 1972 by late Mr. Jyotindra Modh and is currently managed by the second generation of the Modh family. The promoters have an experience around four decades during which they have established healthy relationships with their customers and suppliers.
Acuité believes that JI will continue to benefit from its experienced management and established track record of operations.
Stable operating performance though vulnerable to fluctuation in realization prices
The operations of the group have remained stable for the last three years, while they remain susceptible to fluctuations in the realization prices. The revenue improved to Rs. 366.35 Cr. in FY2025 from Rs. 334.96 Cr. in FY2024 and Rs. 287.16 Cr. in FY2023. However, the revenue moderated in FY2026 due to decline in realization prices and weak export demand from the US. However, despite decline in the topline, the operating margins stood stable ~4 - 5 percent supported by reduced material prices. Additionally, the group has installed at 4MW solar plant for power supply to DISCOMs, which will generate additional income for the group from FY2027 onwards.
Efficient working capital cycle
The group has an efficient working capital cycle. The gross current assets (GCA) days improved to 64 days in FY2025 from 93 days in FY2024. The reduction in GCA days is driven by improvement in the inventory and receivable position. The inventory days improved to 42 days in FY2025 from 59 days in FY2024. Similarly, the debtor days improved to 21 days in FY2025 from 30 days in FY2025. On the other hand creditor days stood at 1 for FY2025. The average bank limit utilization stood low at ~32 percent for the last six months ended January 2026. However the utilization is expected to increase during the peak season (April - October) owing to bulk procurement of raw material by the group.
Weaknesses
Moderate financial risk profile
The financial risk profile of the group stood moderate, marked by low networth, moderate gearing and average debt protection metrics. The tangible networth of the group stood at Rs. 31.14 Cr. on March 31, 2025 as against Rs. 26.11 Cr. on March 31, 2024. Gearing improved but remained high at 1.62 times in FY2025 (2.81 times in FY2024), while Debt-EBITDA levels stood at 3.00 times (5.17 times in PY). However, the coverage indictors also stood adequate with interest coverage ratio (ICR) of 2.73 times and debt service coverage ratio (DSCR) of 2.19 times in FY2025. In FY2026, the group had undertaken capex to install solar rooftop plant funded by long term debt of Rs. 8.00 Cr; this has increased the debt levels, thereby, keeping the financial risk moderated over the near to medium term.
Highly competitive and fragmented industry affected by agro-climatic risks
Psyllium is a highly climate sensitive crop and vulnerable to premature/unseasonal rains along with pest attacks and infections. Any disruption can affect the production causing supply volatility and price fluctuations. This affects the availability of the seed in the market for further processing. In FY2024, due to low production of crop, the realization prices had increased sharply. From FY2025, the material availability has been adequate, leading to stabilization in the realization prices. Therefore, operating performance of industry players remains vulnerable to the availability of sufficient crop and demand in the market. Further, the group operates in a fragmented industry and faces high competition from various players, which pressurizes the margins.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Improvement in operating performance with net cash accruals higher than Rs. 15.00 Cr
Maintenance of efficient working capital cycle
Potential triggers (individual or collective) for a downward rating action:
Decline in operating performance leading to generation of net cash accruals below Rs. 5.00 Cr
Significant increase in debt levels, leading to deterioration in the financial risk profile
Liquidity Position
Adequate
The adequate liquidity position of the group is marked adequate by net cash accruals (NCAs) of Rs. 9.69 Cr. against repayment obligations of Rs. 1.09 Cr. in FY2025. Going forward, the NCAs are expected to remain in the range of Rs. 8 – 10 Cr. against maturing obligations of Rs. 2 – 3 Cr. for FY2026 and FY2027. The current ratio stood comfortable at 1.57 times on March 31, 2025. The group had an unencumbered cash and bank balance of Rs. 0.11 Cr. on March 31, 2025. Further, the average bank limit utilization stood at ~32 percent for the last six months ended January 2026.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
366.35
334.96
PAT
Rs. Cr.
7.59
5.09
PAT Margin
(%)
2.07
1.52
Total Debt/Tangible Net Worth
Times
1.62
2.81
PBDIT/Interest
Times
2.73
2.24
Status of non-cooperation with previous CRA (if applicable)
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.
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)
Sr. No
Company Name
1
Jyotindra International
2
Ispasen Remedies Private Limited
3
Jyotindra Industries Private Limited
Contacts
List of instruments and names of regulators of the instruments
