Urja Global Limited has informed the Exchange about Credit Rating
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CARE Ratings has reaffirmed Urja Global's issuer rating at CARE BB- with a Stable outlook, unchanged from the earlier rating issued on December 20, 2024. CARE BB- falls in the speculative (below investment-grade) category, indicating significant credit risk. Revenue grew sharply by about 51% to Rs. 67.25 crore in FY25, driven by e-scooter and lead-acid battery sales, and stood at Rs. 34.51 crore in H1FY26. However, profitability weakened — PBILDT margin dropped from 5.31% to 2.67% in FY25 (though it improved to 3.77% in H1FY26), and debt coverage metrics deteriorated with TD/GCA worsening to 25.59x. The group also faces a stretched working capital cycle of 412 days, with about Rs. 65 crore stuck in receivables for over two years, and tight liquidity with only Rs. 0.40 crore cash on hand as of September 2025. Strengths include experienced management, a diversified product portfolio (e-scooters, batteries, solar panels), an expanding dealer network of about 260 distributors, and a comfortable capital structure with low overall gearing of 0.31x.
No rating change means the immediate stock impact is limited, but the reaffirmed CARE BB- rating signals continued credit risk and weak debt coverage, which could keep borrowing costs high and limit fundraising options. Shareholders should watch for sustained improvement in profitability and recovery of old receivables, as any further deterioration could trigger a downgrade.