Jain Irrigation Systems Limited (JISL) has announced that ICRA Limited has withdrawn the credit rating assigned to the company's Non-Convertible Debentures (NCDs) totaling ₹787.24 Crores. This withdrawal was made at the request of the company, following a 'No Objection Certificate' from all lenders, and in accordance with ICRA's policy on rating withdrawals. JISL stated that it did not accept the new rating and that the rating contract had expired on April 3, 2026, rendering a new rating unnecessary as the company already holds a valid rating from CRISIL sufficient for its lenders and regulatory compliance. The company has registered a protest with ICRA regarding the withdrawal, asserting that it has no relevance. JISL continues to service its debt obligations regularly and is focusing on improving its working capital cycle, recovering receivables, monetizing non-core assets, and strengthening its liquidity. Initiatives include enhancing banking facilities and implementing monetization measures to support future debt servicing. ICRA's rationale for the downgrade and withdrawal noted a delay in the recovery of overdue receivables and a stretched working capital cycle, which constrained cash flow generation. While JISL has met its debt servicing obligations, significant repayments are due in FY2027. The company's plan to meet these through IOR recovery, land parcel sale, faster project receivable recovery, and government incentives has progressed slower than anticipated. ICRA highlighted that the company is exploring options to raise fresh debt to pay off unsustainable debt, with discussions ongoing for Q1 FY2027. The company's established market position, promoter experience, and diversified product range are considered strengths, while working capital intensity, raw material price volatility, seasonality in agriculture, and government policies are noted as challenges. JISL's liquidity position remains stretched with fully utilized fund-based limits.
