JK Tyre & Industries Ltd. announces that India Ratings and Research (Ind-Ra) has affirmed the company’s long-term and short-term credit ratings at IND AA- / IND A1+. This follows the merger of its subsidiary, Cavendish Industries Limited (CIL), into JK Tyre. Ind-Ra has withdrawn CIL’s earlier ratings and confirmed no impact on JK Tyre’s credit profile due to the consolidated analytical approach. The company’s strong market position in tires and improved performance are key rating drivers.
Credit Rating Affirmation and Rating Withdrawal
JK Tyre & Industries Ltd. has been informed by India Ratings and Research (Ind-Ra) that the ratings assigned to the bank facilities of its former subsidiary, Cavendish Industries Limited (CIL), have been withdrawn. This action is a consequence of CIL’s merger into JK Tyre & Industries Ltd., effective December 22, 2025, as per the Hon’ble National Company Law Tribunal’s order dated November 20, 2025. All of CIL’s assets, liabilities, rights, and obligations have been transferred to and vested in JK Tyre & Industries Ltd., making CIL’s former credit facilities now obligations of the parent company.
Ratings for the Merged Entity
Following the merger, Ind-Ra has affirmed the rating of IND AA- / Stable / IND A1+ for the long-term and short-term bank facilities and instruments of the merged entity, JK Tyre & Industries Ltd. This rating affirmation is based on the understanding that the merger has no adverse impact on the Company’s credit profile, as Ind-Ra’s analytical approach for the Company is consolidated, which inherently includes CIL’s financial standing. The rating action on the bank facilities and fixed deposits for the merged entity are as follows:
Bank Facility Ratings
- Bank Loan Facilities: Rated IND AA- / Stable / IND A1+ and the action was Assigned / Affirmed.
- Fixed Deposits: Rated IND AA- / Stable and the action was Affirmed.
Rationale for Rating Action
The affirmation of ratings for JK Tyre & Industries Ltd. is primarily driven by the Company’s robust market position in the truck and bus tire segment, encompassing both bias and radial tires, as well as its significant presence in passenger car radial tires. An improving product mix, featuring a higher contribution from margin-accretive products, further supports the rating. The Company has demonstrated improved capacity utilization across its product categories and geographies. Consolidated revenue has grown at a Compound Annual Growth Rate (CAGR) of 11% over the period of FY20-FY26. Additionally, the Company’s operating performance showed improvement in FY26, with credit metrics remaining stable. While near-to-medium term capex plans might elevate consolidated leverage ratios, it is considered unlikely to breach any negative trigger thresholds.
JK Tyre & Industries Ltd. received confirmation of these ratings on June 11, 2026, at 7:53 P.M.
Source: BSE
