India Ratings Assigns Jay Ushin's Bank Loan Facilities 'IND BBB'/Stable

India Ratings Assigns Jay Ushin's Bank Loan Facilities 'IND BBB'/Stable​

India Ratings and Research (Ind-Ra) has issued credit ratings for Jay Ushin Limited’s (JUL) bank loan facilities. The rating action, released on April 14, 2026, assigns ratings of IND BBB/Stable for the long-term tranche and IND BBB/Stable/IND A3+ for the short-term facilities.

According to the rating details, the total bank loan facilities rated amount to Rs. 1,580 Million.

Analysis and Outlook​

Ind-Ra conducted a standalone view of Jay Ushin Limited while assigning the rating. The agency highlighted that the rating reflects the company's strong market presence in the Indian four-wheeler (4W) and two-wheeler (2W) auto-ancillary market. This market strength is supported by solid business tie-ups with established original equipment manufacturers (OEMs) and an improvement in its premium product mix across the passenger vehicles (PVs) space.

The rating also acknowledges the improvement in the company's credit metrics and stable operating performance recorded in the ninth months of FY26, positioning JUL for sustained long-term growth. Furthermore, the technical collaboration with its joint venture partner, U-Shin Limited, is expected to continue supporting advanced automotive component development and future product enhancements.

Key Rating Drivers​

Ind-Ra identified the following key factors driving the assessment:

Strengths:

• A diversified product base.
• Steady growth in the scale of operations.
• Consistent improvement in credit metrics.

Weaknesses:

• Modest EBITDA margins.
• High customer concentration.
• Vulnerability to raw material price volatility.

Product Diversification:
JUL maintains a well-diversified product offering, dealing in various categories such as lock sets for 4Ws and 2Ws, door latches and heat control panels for 4Ws, and combination switches for 2Ws. The largest segment by revenue is lock sets and components, which accounted for a 56% revenue share in FY25. Since all product segments are power-train agnostic, the risk associated with the transition to electric vehicles (EVs) is noted as limited.

Operational Growth:
The company's revenue has shown consistent improvement from FY21 to FY25, achieving a Compound Annual Growth Rate (CAGR) of 10% over the period. Revenue reached INR 8,552 million in FY25, narrowing to INR 7,015 million in the nine months of FY26. The revenue growth is attributed to a substantial increase in realisations per unit across all product segments.

Credit Metric Improvement:
JUL's credit metrics demonstrated consistent improvement through FY25 to 9MFY26. The net adjusted leverage (net adjusted debt including lease liabilities/EBITDA) improved to 3.46x in 9MFY26 (compared to 3.77x in FY25 and 5.77x in FY24). Similarly, the interest coverage ratio improved to 2.51x in 9MFY26 (up from 2.25x in FY25 and 1.83x in FY24).

Company Performance Indicators​

The following table outlines key financial indicators for Jay Ushin Limited:

*Includes lease liabilities

Profitability and Margins​

The EBITDA margins for JUL have fluctuated, hovering between 3.5%-4.5% over FY22-9MFY26. The margin moderated to 3.67% in 9MFY26 (FY25: 4.35%; FY24: 3.52%). This profile is largely defined by the company's business model, which focuses on supplying to OEMs and lacks exposure to the higher-margin aftermarket segment, coupled with intense competitive pressure in highly commoditised product categories.

Liquidity Position​

From a liquidity perspective, JUL reported cash and cash equivalents of INR 9 million in 9MFY26 (FY25: INR 2 million; FY24: INR 1 million). The company also reported positive cash flow from operations in FY25 at INR 174 million, up from a negative INR 156 million in FY24. The free cash flow also turned positive at INR 48 million in FY25.

Funding Plans​

JUL has planned annual capex of INR 180 million in FY26 and FY27. The company has scheduled term debt repayments totaling INR 263 million in FY26, INR 237 million in FY27, and INR 181 million in FY28, which are expected to be met from internal accruals.

In addition to the rating details, a comprehensive breakdown of the bank facilities rated by the issuer was provided:

Stock Price Movement​

At the close of trade today, Jay Ushin Ltd shares settled at ₹897.75, ticking up 5.53% for the day. The stock fluctuated throughout the session, moving between an intraday low of ₹891.00 and a high of ₹934.00.

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