Detailed Rationale Due to inadequate information, Crisil Ratings, in line with SEBI guidelines, had migrated the rating of Jay Bharat Spices Private Limited (JBSPL) to ‘Crisil B/Stable/Crisil A4 Issuer Not Cooperating'. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, Crisil Ratings is migrating the ratings on bank facilities of JBSPL to ‘Crisil BBB-/Stable/Crisil A3’ from 'Crisil B/Stable/Crisil A4 Issuer Not Cooperating'.
The rating continues to reflect the extensive experience of the promoters of JBSPL in the spices industry, the company’s established brand, longstanding relationships with customers and suppliers, its efficient working capital cycle and comfortable debt protection metrics. These strengths are partially offset by susceptibility to volatility in raw material prices and exposure to intense competition in a highly fragmented industry and a levered capital structure. |
Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profile of JBSPL. |
Key Rating Drivers - Strengths Extensive experience of the promoters and established brand: Presence of around three decades in the spices industry has enabled the promoters to establish strong recall value for its Bharat Masala brand and build longstanding relationships with customers and suppliers. These factors should continue to support the business. The company has strong presence in Odisha and has been gradually diversifying to other states of India. JBSPL has recorded a turnover of Rs 572.97 crore until December 31, 2025. The company's operating revenues have grown by CAGR of 20.57% in the last five fiscals to Rs 663.44 crores in fiscal 2025 and is expecting to close fiscal 2026 at an estimated topline of over Rs 760 crore. On the back of established brand recall in Odisha market and greater market penetration in other geographies coupled with operation of the new capex expected in August 2027, revenue profile is expected to improve over the medium term. Operating profitability and sales, going forward, shall remain supported by healthy capacity utilisations and healthy realisations.
Efficient working capital cycle: Gross current assets are expected to remain around ~41-44 days over the three fiscals ended March 31, 2026, driven by efficient inventory policy and receivables collection cycle. Driven by fast realization from debtors and efficient inventory management, working capital operations are expected to continue to remain prudent over the medium term.
Comfortable debt protection metrics: JBSPL’s debt protection measures have been at comfortable level despite leverage due to moderately healthy profitability. The interest coverage and net cash accrual to total debt (NCATD) ratio were at 6.19 times and 0.37 times for fiscal 2025. JBSPL debt protection measures are expected to remain comfortable over the medium term. |
Key Rating Drivers - Weaknesses Susceptibility to volatility in raw material prices: Key raw materials include agricultural products such as raw spices. The company is susceptible to any sharp fluctuation in raw material prices, which depend on inflation, monsoon and government policies, as any increase in input cost cannot be entirely passed on to customers immediately, given the competitive environment. Further, the company operates in a competitive and fragmented industry and hence sustenance of revenue growth and maintenance of stable operating profitability amid business cycles remain critical.
Levered capital structure: JBSPL has a levered capital structure marked by extensive reliance on working capital limits and ongoing capital expenditure (capex). The company is currently undertaking a capex of around Rs. 80 Cr for a cornstarch plant (with a capacity of 45000 MT) and expansion of the existing pasta plant (15000 MT), expected to be operational by August 2026, funded by debt of around Rs. 51 Cr and the remaining through internal accrual and unsecured loan of around Rs.6 Cr till March 2026. This has resulted in an expected gearing ratio and Total Outside Liabilities to Tangible Networth (TOL/TNW) ratio to remain around 1.5-2.0 times and the TOL/TNW ratio around 2.50-3.50 times; commencement of operations and utilization of the new capex shall remain a key monitorable. |
Liquidity Adequate Bank limit utilisation is high at around 88.19 percent for the past twelve months ended January 2026. Cash accruals are expected to be over Rs 20-30 crore which shall be sufficient against annual term debt repayment obligation of Rs 7-13 crore per annum over the medium term. In addition, it will act as cushion to the liquidity of the company. |
Outlook Stable Crisil Ratings believe JBSPL will continue to benefit from its strong and established brand, the extensive experience of its promoters and steady demand for spices. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company The company is engaged in manufacturing of spices and food products such as turmeric powder, chilli powder, cumin powder, coriander powder, curry powder, chicken masala, meat masala etc. under brand name ‘Bharat Masala’. JBSPL has an installed capacity of 28080 MT of grinding and processing of spices, 60000 MT of papads, appalam and similar food products and 10560 MT of macaroni, noodles and pasta. The company is currently undergoing capex for a cornstarch plant (with a capacity of 45000 MT) and expansion of the existing pasta plant (15000 MT). |
Key Financial Indicators
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Status of non cooperation with previous CRA JBSPL has not cooperated with CARE Ratings Limited which has classified it as non-cooperative vide release dated 28-Aug-2025. The reason provided by CARE Ratings Limited is non-furnishing of information for monitoring of ratings.
Also, JBSPL has not cooperated with ICRA Limited which has classified it as non-cooperative vide release dated 17-July-2017. The reason provided by ICRA Limited is non-furnishing of information for monitoring ratings. |
Any other information: Not applicable |
Note on complexity levels of the rated instrument: Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
Annexure - Details of Instrument(s)
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* - Issuer did not cooperate; based on best-available information
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| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||
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Criteria Details
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