Sri Jagannath Transport Corporation

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 36.00 Crs. of Sri Jagannath Transport Corporation

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	19.00	Long Term	BWR BBB - /Stable Assignment
Non Fund Based	17.00	Short Term	BWR A3 Assignment
	(8.00)
Grand Total	36.00	(Rupees Thirty Six Crores Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK

Brickwork Rating has assigned the long-term ratings for bank loan facilities of Sri Jagannath Transport Corporation at BWR BBB- /Stable and the short-term rating of BWR A3 for the bank loan facilities of Rs 36 Crs.

The rating draws strength from the Experienced Partners and Long Track Record of Operations, Moderate financial risk profile, Sizeable order book ensuring revenue visibility over the medium term. However, the rating is constrained by the Moderate scale of operations with revenue concentration, Volatility in operating margin due to the tender-based nature of operations, Client Concentration Risk. 

The rating outlook has been retained as "Stable" as BWR believes that the company business risk profile will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Positive' in case the scale of operations and profitability margins, and DSCR show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down. 

For assigning the rating, BWR has relied upon the last three years of Standalone financial statements up to FY25, the projected financials for FY26, FY27 and FY28, and information and clarifications provided by the management, along with publicly available information. 

KEY RATING DRIVERS

Credit Strengths:

• Sizeable order book ensuring revenue visibility over the medium term :

  The firm's substantial order book, valued at approximately Rs 256 Crores as of March 2026 and expected to be executed over the next 12 to 24 months, offering revenue visibility. Repeat orders from Railway department East Coast Railway and steady flow of additional orders should help sustain growth over the medium term. Further, healthy relationships with major raw material suppliers ensure timely procurement and execution of projects.

• Moderate financial risk profile :

  The firm’s financial risk profile remains moderate, supported by a healthy net worth, comfortable gearing, and adequate debt protection metrics. The Adj. net worth stood at Rs 36.50 Crs as on March 31, 2025, compared to Rs 30.29 Crs as on March 31, 2024. The improvement is primarily due to the accretion of reserves. The firm maintains a comfortable capital structure, with a low reliance on external debt, which has helped keep the gearing ratio below 0.42 times over the past three fiscal years through FY25. Debt protection indicators are also at a comfortable level, with an interest coverage ratio of 1.82 times and DSCR 1.08 times, and net cash accruals to total debt at 0.12 times in FY25.

• Experienced Partners and Long Track Record of Operations :

  Sri Jagannath Transport Corporation (SJTC) has been operating in the civil construction business, specifically related to railways, giving it a significant track record of over 30 years. The partners, who have over two decades of business experience, provide the firm with strong management expertise and a deep understanding of the industry. This long operational history and seasoned management team are key credit strengths, instilling confidence in the firm's ability to successfully execute projects and navigate industry challenges.

Credit Risks:

• Moderate scale of operations with revenue concentration :

  The moderate scale of operations, as reflected in revenue of Rs 108.17 crore in FY2025, and 109.83 Crs till March 31 2026, limits benefits from economies of scale available to larger players, who also display better resilience to external shocks. Furthermore, the revenue profile is concentrated, as the firm primarily caters to state government departments in Chhattisgarh and Indian Railways, and operates largely within the state. This makes the firm more vulnerable to changes in government policies related to infrastructure development.

• Volatility in operating margin due to the tender-based nature of operations :

  Revenue and profitability entirely depend on the firm's ability to win tenders. Entities in this segment face intense competition, requiring them to bid aggressively for contracts, which restricts the operating margin to a moderate level. The operating margin has been range-bound at 8.00-8.78% over the last three years through FY2025, and is expected to be around 9% over the medium term, driven by intense competition and continued project execution. Given the cyclicality inherent in the construction industry and dependence on government authorities, the sustainability of the operating margin will remain monitorable over the medium term.

• Client Concentration Risk :

  Sri Jagannath Transport Corporation (SJTC) is exposed to a high degree of client concentration risk, with a substantial 80-90% of its total revenue comes from the various divisions of a single customer, Indian Railways. While this long-standing relationship of over three decades partially mitigates this risk, the firm's revenue and cash flow stability remain vulnerable. Any adverse changes in the client's procurement policies, delays in payments, or a reduction in contract volume could severely impact SJTC's financial performance.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, Brickwork Ratings has adopted a standalone approach and applied its rating methodology as detailed in the Rating criteria.

RATING SENSITIVITIES

Positive:

• The firm's Improvement in the scale of operations and profitability on a sustained basis, with the operating margin (OPM) rising above 9.20% and net margin (NPM) above 4.30%.
• Timely completion of the orders in hand without any time and cost overrun 

Negative: 

• Deterioration in the scale of operations and if profitability weakens, with operating margin (OPM) falling below 8.50% and net margin (NPM) dropping under 3.60%.
• Delays in the execution of ongoing orders, a reduction in fresh order inflows or a stretch in the receivables cycle of the firm.

LIQUIDITY INDICATORS - Adequate

The firm's liquidity position is adequate. The firm is marked by adequate net cash accruals of Rs. 5.00 Crs and 8.76 to cover CPLTD of Rs. 3.62 Crs and 1.42 in FY25 and FY26 (Projected). Debt coverage indicators stood low marked by 1.08 times as of March 31, 2025, However, the resourcefulness of the partners is expected to support the liquidity of the firm, and the interest coverage ratio at 1.82 times during FY25 as compared to 1.73 times during FY24. The liquidity ratios are moderate marked by a current ratio of 1.91 times as of March 31, 2025, and are expected to be at similar levels. The cash credit working capital utilization was 62.87% in the past 12 months. The cash and bank balance is Rs 0.53 Crs as of 31 March 2025. 

ABOUT THE ENTITY

Sri Jagannath Transport Corporation (SJTC) is a partnership firm based in Raipur, Chhattisgarh, founded by the Golani Family. The partners include Mr. Rajesh Golani, Mr. Mukesh Golani, Mr. Ramesh Golani, Mr. Navin Golani, Mr. Hemant Golani, and Mr. Devandra Golani. The firm specializes in the civil construction business, focusing on the construction of roads, bridges, and the repair and maintenance of railway tracks. SJTC secures its projects by bidding on tenders and executes orders primarily floated by the Indian Railways.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	60.15	74.52	108.17
EBITDA	Rs.Crs.	5.12	6.54	8.84
PAT	Rs.Crs.	2.23	2.80	4.15
Tangible Net Worth	Rs.Crs.	28.33	30.29	36.50
Total Debt / Tangible Net Worth	Times	0.32	0.42	0.42
Current Ratio	Times	4.12	7.51	1.91

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normaly stipulated for Bank loan facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Not Applicable 

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating  (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	19.00	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	17.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(8.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		36.00	(Rupees Thirty Six Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Engineering Procurement and Construction (EPC) Companies
• Infrastructure Sector

Analytical Contacts
Md Saif Ali Khan Rating Analyst saifali.k@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@brickworkratings.com
Media Contact | media@brickworkratings.com	Client Support | clientsupport@brickworkratings.com

SL.No.	Name of the Bank/Lender	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)	Complexity of the Instrument
1	ICICI Bank	Cash Credit - Sanctioned	19.00	_	19.00	Simple##
2	ICICI Bank	Bank Guarantee - Sanctioned	_	17.00	17.00	Simple##
	Sub-Limit (BG sublimit of CC ) - Sanctioned		(8.00)
Total			19.00	17.00	36.00
TOTAL (Rupees Thirty Six Crores Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.