CRISIL has assigned a 'CRISIL B+/Stable' rating to Jagatjit Industries' bank loan facilities worth ₹47 crore. The company reported a profit of ₹9.89 crore in FY26, a turnaround from a loss, but faced declining revenues and high debt.
Jagatjit Industries Gets CRISIL B+/Stable Rating for Bank Loans
CRISIL Ratings has assigned a 'CRISIL B+/Stable' rating to Jagatjit Industries Limited's bank loan facilities totaling ₹47 crore.
FY 2026 Operating Income: ₹253.53 crore
FY 2026 Profit After Tax: ₹9.89 crore
Reader Takeaway: Turnaround to profit amidst revenue decline; high debt remains a concern.
What just happened
CRISIL has rated Jagatjit Industries' ₹47 crore bank loan facilities as 'CRISIL B+/Stable'. This rating considers the company's operational experience but highlights a weak financial risk profile due to high debt.
Why this matters
The rating indicates the company's creditworthiness for its borrowings. A 'Stable' outlook suggests stability in its credit profile, but the 'B+' grade points to significant financial risks, primarily high leverage.
The backstory
Jagatjit Industries has a history of managing debt and regulatory challenges in the spirits industry. The company reported a significant loss of ₹23.45 crore in FY 2025. Despite a recent return to profitability, the financial health remains a key focus.
What changes now
The rating provides an independent assessment of the company's ability to service its debt. It may influence future borrowing costs and investor perception. The company's management expects margins to recover to 3-4% in fiscal 2027.
Risks to watch
- Regulatory Environment: The spirits and wine industry faces stringent regulations from state and central governments, impacting operations and profitability.
- Financial Health: High gearing and weak cash flow from operations continue to pose risks.
Peer comparison
While not specified in the filing, companies in the alcoholic beverage sector often navigate similar regulatory landscapes. However, Jagatjit's high Adjusted Debt/Adjusted Net worth ratio of 5.70 times in FY26 indicates a significantly higher leverage than many industry peers might maintain.
Context metrics (time-bound)
- Operating Income: Declined from ₹491.52 crore in FY 2025 to ₹253.53 crore in FY 2026.
- Profit After Tax: Improved to ₹9.89 crore in FY 2026 from a loss of ₹23.45 crore in FY 2025.
- PAT Margins: Improved to 3.90% in FY 2026 from -4.77% in FY 2025.
- Adjusted Debt/Adjusted Net Worth: Improved to 5.70 times in FY 2026 from 7.52 times in FY 2025.
- Interest Coverage: Remained negative at -1.31 times in FY 2026.
- Bank Limit Utilization: Averaged 92.36% for the 12 months ended March 31, 2026, indicating stretched liquidity.
What to track next
Investors should monitor the company's ability to sustain profitability, manage its high debt levels, and improve cash flow from operations. The trend in interest coverage and debt ratios will be crucial.