Jayaswal Neco Industries Limited has informed the Exchange about Credit Rating
JAYNECOIND · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 1.9 pts less than Nifty Microcap 250 and 2.0 pts less than its Iron & Steel Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
Minute windows have no benchmark: there is no intraday index history to compare against.
India Ratings and Research has upgraded Jayaswal Neco Industries' Long-Term Issuer Rating by two notches, from IND BBB- to IND BBB+, with a Stable outlook. The upgrade follows the sanction of a ₹2,300 crore secured NCD/term loan from Tata Capital to refinance the company's high-cost existing debentures at a lower interest rate of 12.5% (down from 17.5%) over 72 monthly instalments. The rating also reflects better-than-expected debt reduction of around ₹409 crore during April 2024-June 2025, with net debt falling to ₹2,480 crore and net adjusted leverage improving to 1.97x in Q1FY26 from 2.78x in FY25. Operating performance has improved post blast furnace modernisation, with Q1FY26 EBITDA margin rising to 19.1% from 15.7% in FY25. As part of the refinancing, 100% of promoter shareholding (55.2%) will be pledged with the new lender, with 50% to be released after 50% repayment.
This is a positive development for shareholders — the two-notch upgrade signals improving creditworthiness and is expected to lower future borrowing costs. The refinancing significantly reduces interest expense (from 17.5% to 12.5%) and extends the debt tenor, strengthening the balance sheet. However, risks remain, including the company having no banking credit relationships, stretched liquidity, and an ongoing legal case related to the coal block scam that will continue to be monitored.