Urja Global Limited has received a credit rating reaffirmation from CARE Ratings Limited, which maintained the company's issuer rating at BB- with a stable outlook on January 08, 2026. This reaffirmation continues the rating initially assigned on December 20, 2024, reflecting both the company's operational strengths and ongoing challenges in a competitive market environment.

Financial Performance and Scale Challenges

The Urja group demonstrated significant revenue growth in FY25, with total operating income increasing by approximately 51% to ₹67.25 crore compared to ₹44.47 crore in the previous year. This growth was primarily driven by sales of electric scooters and lead acid batteries. However, CARE Ratings noted that the scale of operations remains small, which limits financial flexibility during stress periods and restricts scale benefits.

Profitability and Operational Metrics

The company's profitability margins declined in FY25, with PBILD margin falling to 2.67% from 5.31% in the previous year, and PAT margin decreasing to 2.06% from 4.58%. This decline was attributed to increased manpower and digital initiative costs. However, there was improvement in H1FY26, with PBILD margin recovering to 3.77%. The debt coverage indicators remained weak, with interest coverage of 2.85x and total debt to GCA ratio of 25.59x as of March 31, 2025.

Working Capital and Collection Challenges

One of the significant operational challenges highlighted by CARE Ratings is the company's working capital-intensive operations. The operating cycle stood at 412 days in FY25, though this was an improvement from 468 days in the previous year. The group faces collection difficulties from certain debtors in the solar panel trading segment, with approximately ₹65.00 crore outstanding from debtors for more than two years. The average collection period remained elongated at 457 days, while the creditors' period was 270 days in FY25.

Rating Strengths and Market Position

Despite operational challenges, CARE Ratings recognized several positive factors supporting the rating. The company benefits from experienced management, with Chairman Gajanand Gupta bringing chartered accountancy expertise and Managing Director Mohan Jagdish Agarwal contributing 25 years of production and marketing experience. The group maintains a diversified product portfolio encompassing e-scooters, batteries, and solar panels, supported by an established dealer network of approximately 260 dealers and distributors primarily in North India.

Industry Challenges and Future Outlook

The rating agency highlighted the competitive and fragmented nature of the industries in which Urja Global operates. The electric two-wheeler market faces intense competition from established players, while the solar industry remains fragmented with numerous competitors. Additionally, the company faces exposure to geopolitical risks, regulatory changes, and foreign exchange fluctuations, particularly given the industry's dependence on imported battery cells.

CARE Ratings maintained a stable outlook, expecting the group to sustain its operational and financial performance over the medium term, backed by the promoters' industry experience and commitment to supporting the company's liquidity position when needed.

Source: CARE Ratings Limited

Urja Global Limited has announced a significant move in the solar energy sector by entering into a joint venture agreement with Solarmint Energies Pvt Ltd. The partnership, formalized on November 20th, 2025, aims to leverage the strengths of both companies in the manufacturing, branding, marketing, and nationwide distribution of solar PV modules under the URJA brand.

Key Details of the Joint Venture

Strategic Collaboration

The joint venture combines Solarmint's manufacturing expertise with Urja's market reach, brand strength, and sales network. This strategic partnership is designed to enhance Urja Global's position in the solar energy market by leveraging Solarmint's production capabilities.

Roles and Responsibilities

• Solarmint Energies: Will manufacture URJA-branded solar panels
• Urja Global: Will handle marketing, sales, and nationwide distribution of the products

Impact on Company Structure

According to the disclosure, this contractual joint venture agreement will not result in any change in the management or control of Urja Global Limited. The company has clarified that there is no shareholding involved in the entity with whom the agreement is executed.

Financial Implications

While specific financial details were not disclosed, the agreement stipulates that pricing will be on a cost-plus-profit basis. This model suggests a balanced approach to sharing the economic benefits of the partnership.

Market Outlook

This joint venture positions Urja Global to potentially expand its footprint in the solar energy market in India. By combining manufacturing capabilities with an established brand and distribution network, the company aims to strengthen its competitive position in the renewable energy sector.

As the renewable energy landscape continues to evolve, strategic partnerships like this may play a crucial role in shaping the future of solar energy production and distribution in India.