Wardwizard Innovations & Mobility Ltd — Updates, 29-05-2025: Company Update

Wardwizard Innovations & Mobility Limited has announced a downgrade in its credit ratings to CRISIL BB+/Stable for long-term and CRISIL A4+ for short-term bank facilities on a total bank loan exposure of Rs 250 crore. The downgrade reflects stretched liquidity and an elongated working capital cycle, with gross current assets rising to 416 days. Revenue declined slightly to Rs 302 Cr in fiscal 2025, with a profitability margin steady at 12.34%. The company’s working capital needs have increased due to fleet operations, leading to higher reliance on unsecured vendor bill discounting and NBFC loans, raising debt and interest costs. Debt stood at Rs 196 Cr with leverage weakening and interest coverage ratio falling to 1.83x. The company plans Rs 75 Cr capex in FY26 to expand electric three-wheeler capacity, potentially funded by debt or equity, with right shares issuance of Rs 49 Cr in progress. Sales remain concentrated with promoter entities accounting for about 53% of revenue. Liquidity is stretched, with cash accrual insufficient to cover debt obligations, supported partially by promoter loans and cash reserves. Established market position and promoter experience support the business, but financial leverage, large working capital needs, and customer concentration remain key risks.