JPASSOCIAT - JP Associates

📊 NSE: JPASSOCIAT 🏢 Construction 📅 Last Updated: 12/14/2025 8:41

💰 Financial Performance

Revenue Growth by Segment

Total revenue declined by 21.74% to INR 3,406.89 Cr in FY 2024-25. Segment performance was mixed: Construction revenue fell 24.15% to INR 1,604.89 Cr; Cement revenue dropped sharply by 72.9% to INR 171.64 Cr; Real Estate revenue decreased 14.92% to INR 835.35 Cr; while Hotels/Hospitality grew 16.57% to INR 421.14 Cr.

Geographic Revenue Split

The company operates across 9 states in India and has a presence in 2 international countries. Exports contribute 0% to the total turnover, indicating a purely domestic revenue base for its products and services.

Profitability Margins

Profitability has severely deteriorated. Net Profit Margin plummeted from -35.29% to -144.81% in FY 2024-25. This was driven by a massive increase in exceptional losses, which rose from INR 668.98 Cr to INR 3,787.01 Cr, representing a 466% increase in non-recurring hits to the bottom line.

EBITDA Margin

EBIDTA stood at INR 279.26 Cr for FY 2024-25, a 7.7% decrease from INR 302.54 Cr in the previous year. The operating profit margin declined from -2.46% to -14.74%, reflecting higher operating losses and the inability to cover fixed costs on a shrinking revenue base.

Capital Expenditure

Not explicitly disclosed in available documents; however, the company is currently focused on asset divestment rather than expansion, including a proposed sale of cement and power assets to Dalmia Group for an enterprise value of INR 5,666 Cr.

Credit Rating & Borrowing

The company carries a 'CARE D' (Default) rating across all long-term and short-term bank facilities and NCDs. Total financial indebtedness reached INR 55,371.21 Cr as of November 5, 2025, with the company failing to service restructured debt since December 2018.

⚙️ Operational Drivers

Raw Materials

Specific raw material names and their percentage of total costs are not disclosed in the provided documents, though the business segments (Cement and Construction) typically rely on limestone, coal, steel, and bitumen.

Capacity Expansion

Current installed cement capacity is approximately 28 MTPA (consolidated as of 2017). However, the company is reducing capacity through the planned sale of 9.4 MnTPA cement and 6.7 MnTPA clinker capacity to the Dalmia Group to reduce debt.

Manufacturing Efficiency

Capacity utilization metrics are not provided, but the Cement segment reported a substantial loss of INR 326.37 Cr, suggesting very low efficiency or significant idle capacity.

📈 Strategic Growth

Growth Strategy

The primary strategy is the execution of a Corporate Insolvency Resolution Process. A resolution plan submitted by Adani Enterprises Limited was approved by the Committee of Creditors (CoC) in November 2025. Additionally, the company is pursuing a slump sale of cement and power assets to Dalmia Group for INR 5,666 Cr to deleverage.

Products & Services

The company provides EPC (Engineering, Procurement, and Construction) services, cement manufacturing, hotel and hospitality services, real estate development, fertilizer manufacturing, and sports initiatives.

Brand Portfolio

Jaypee, Jaypee Greens, and Jaypee Hotels.

Market Share & Ranking

The company identifies as a leader in EPC contracting and was historically one of the leading cement manufacturers in India with 28 MTPA capacity.

Strategic Alliances

The company has historically performed EPC contracts in consortium with large foreign-based companies and maintains the ability to form JVs for large-scale infrastructure projects.

🌍 External Factors

Industry Trends

The infrastructure sector remains critical to India's growth, and the sports sector is viewed as lucrative due to India's young demographic. However, the industry is currently seeing consolidation through IBC-led resolutions.

Competitive Landscape

Key competitors include other large-scale EPC and cement firms; the company is currently being acquired/restructured by Adani Enterprises and selling assets to Dalmia Group.

Competitive Moat

The company's moat lies in its proven track record in complex civil engineering projects like hydro-power and river valley projects. However, this moat is currently weakened by the default status and lack of liquidity.

Macro Economic Sensitivity

The company is highly sensitive to India's infrastructure spending and economic headwinds, which have contributed to its current financial distress.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily governed by the Insolvency and Bankruptcy Code (IBC) 2016. The company was admitted to CIRP by the NCLT on June 3, 2024, following a Section 7 petition.

Taxation Policy Impact

The company reported a tax expense of INR 3.63 Cr for FY 2024-25 despite massive losses.

Legal Contingencies

The company is involved in a major insolvency case before the NCLT. As of December 2025, it has held 25 meetings of the Committee of Creditors. All lender claims (totaling INR 55,371.21 Cr) are currently under verification by the Resolution Professional.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the final NCLT approval and implementation of the Adani Enterprises resolution plan. Failure to execute this could lead to liquidation. The debt-to-equity ratio of 23.64 indicates extreme insolvency risk.