Jain Irrigation Systems Limited has informed the Exchange about Credit Rating
JISLDVREQS · price
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ICRA has downgraded and withdrawn the credit rating for Jain Irrigation Systems' Non-Convertible Debentures worth Rs. 787.24 crore from BBB-(Negative) to BB+(Negative). The rating was withdrawn at the company's request after receiving NOCs from all lenders. ICRA cited continued delays in recovery of overdue receivables (Rs. 196 crore), stretched working capital cycle, and concerns about upcoming debt repayments of Rs. 689 crore due in FY2027 (Rs. 241 crore in September 2026 and Rs. 448 crore in March 2027). The company's liquidity remains stretched with fund-based limits almost fully utilized. JISL disputes the downgrade, stating the rating contract had already expired on April 3, 2026, and they have a valid existing rating from CRISIL. The company claims it remains regular in servicing its debt obligations and is focusing on working capital improvement, receivables recovery, and monetization of non-core assets.
The downgrade to BB+ (junk territory) signals elevated credit risk and could increase borrowing costs for JISL. While the rating has been withdrawn, the downgrade reflects ongoing liquidity stress and raises concerns about the company's ability to meet sizeable debt repayments due in FY2027. Investors in the NCDs should monitor the company's progress on asset monetization and receivables recovery.