India Ratings upgrades Jayaswal Neco Industries to 'IND BBB+'; Outlook Stable

India Ratings and Research (Ind-Ra) has upgraded Jayaswal Neco Industries Limited's (JNIL) Long-term Issuer Rating by two notches to 'IND BBB+' from 'IND BBB-'. The Outlook is Stable.

The upgrade reflects the sanction approval for refinancing JNIL's high-cost non-convertible debentures (NCDs) at a lower cost and better terms, resulting in a higher-than-Ind-Ra-expected improvement in the credit profile and enhanced financial flexibility in FY27. The rating reflects Ind-Ra's expectation that JNIL will exercise the early repayment option and fully redeem the high-cost outstanding debentures on 14 December 2025, along with the final interest due. The rating also reflects a higher-than-Ind-Ra-expected debt reduction in FY25 and 1QFY26, due to the prepayment of principal and interest accrued but not due from April 2024-June 2025 using cash accruals, resulting in an improved credit profile.

The rating reflects Ind-Ra's expectation of JNIL's improved operational and financial profile in FY26 due to increased capacity utilisation and higher sales volumes. This is driven by the timely completion and ramp-up of capex related to blast furnace (BF) maintenance and upgrades, along with the general repairs carried out in FY25. The rating continues to reflect JNIL's established operational track record along with its strong market position in the domestic alloy steel manufacturing industry. The rating considers the company's integrated nature of operations including captive iron ore mines, captive power and a high proportion of value-added products. However, the rating is constrained by the company's low financial flexibility, given the lack of banking credit relationships. JNIL's ability to successful tie-up funds from domestic lenders will be a key monitorable. Furthermore, the agency will continue to monitor the ongoing legal case regarding the coal block scam and any potential adverse rulings against the promoters.

Shares of Jayaswal Neco Industries Limited was last trading in BSE at Rs. 62.55 as compared to the previous close of Rs. 63.41. The total number of shares traded during the day was 2698669 in over 6497 trades.

The stock hit an intraday high of Rs. 63.70 and intraday low of 61.83. The net turnover during the day was Rs. 168938581.00.

Source : Equity Bulls

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