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Investing.com -- JSW Infrastructure Limited (JSWIL) received a positive outlook revision from Moody’s Ratings while maintaining its Ba1 ratings, and was upgraded to ’BBB-’ from ’BB+’ by Fitch Ratings with a stable outlook.
Moody’s cited JSWIL’s "very strong financial performance" and expectations that financial metrics will continue to exceed upgrade thresholds. The company’s operational capacity increased from 103 MTPA to 177 MTPA between fiscal years 2020 and 2025, while throughput rose from 34 MTPA to 117 MTPA during the same period.
The rating agency noted that JSWIL’s funds from operations to debt ratio reached 40% in FY25, well above the 20-25% upgrade threshold. Despite planned capital expenditures of INR40-45 billion annually during FY26-FY28, Moody’s expects financial metrics to remain strong.
Fitch’s upgrade to investment grade reflects expectations that JSWIL’s leverage will remain below 3.5x over the medium term despite significant capital expenditure plans. The company’s gross debt to EBITDA ratio stood at 2.1x for FY25.
As India’s second-largest private port operator, JSWIL manages 10 operational ports and six under-construction facilities across India’s eastern and western coasts. The company aims to expand handling capacity to 400 million tonnes per annum by FY30.
Both rating agencies highlighted JSWIL’s cargo profile, with approximately half of volumes linked to JSW group entities. Fitch noted that third-party cargo accounted for 49% of total volume in FY25 and expects it to stabilize around 40% over the medium term.
JSWIL faces a regulatory requirement to increase public shareholdings to 25% by September 2026. Both agencies indicated that a potential equity issuance would be credit positive, enhancing liquidity and reducing debt needs for capital expenditure.
Fitch projects JSWIL’s EBITDA margin to reach 52-55% from FY28 as new greenfield ports become operational, up from around 47% in the near term.
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