Jain Irrigation Systems Limited has announced the withdrawal of its credit rating for Rs. 787.24 crore in Non-Convertible Debentures (NCDs). The company requested the withdrawal from ICRA Limited following the completion of the rating contract on April 3, 2026. Jain Irrigation maintains that it continues to operate under valid existing ratings from CRISIL and remains committed to regular debt servicing, focusing on monetization of assets and strengthening its liquidity position.
Withdrawal of Credit Rating
Jain Irrigation Systems Limited has formally notified the withdrawal of the [ICRA]BB+(Negative) credit rating previously assigned to its NCD program. The action follows a request from the company and the receipt of No Objection Certificates (NOCs) from all relevant lenders. The company expressed its formal protest regarding the downgrade, noting that the rating contract had already concluded on April 3, 2026, rendering the new rating unnecessary.
Current Financial Position
Despite the rating action, the company remains regular in servicing its debt obligations. Management is actively focused on improving the working capital cycle, accelerating the recovery of receivables, and monetizing non-core assets. As of March 31, 2026, the company reported a free cash balance of approximately Rs. 80 crore. To further support liquidity, the company has secured a Rs. 35 crore fund-based facility from UCO Bank in January 2026 and is in the final stages of securing an additional Rs. 100 crore from other lenders.
Strategic Outlook and Debt Management
The company is currently in discussions with potential partners to raise fresh debt during Q1 FY2027 to retire unsustainable debt obligations. Key factors for future success include the anticipated monetization of land parcels, with an expected inflow of Rs. 80 crore by the end of May 2026, and improved receivable recoveries. The company continues to prioritize the strengthening of its liquidity profile while focusing on high-growth retail segments to ensure long-term stability.
Source: BSE
