Press Release

Press Release

October 09, 2025

LAKSHANYA VENTURES PRIVATE LIMITED (ERSTWHILE - ENCARTA PHARMA PRIVATE LIMITED)
Rating Reaffirmed and Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	65.25	ACUITE B+ \| Stable \| Upgraded	-
Bank Loan Ratings	12.50	-	ACUITE A4 \| Reaffirmed
Total Outstanding	77.75	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has upgraded its long-term rating to 'ACUITE B+' (read as ACUITE B Plus) from ‘ACUITE D’ (read as ACUITE D) on the Rs.27.95 crore bank facilities of Lakshanya Ventures Private Limited (Erstwhile Encarta Pharma Private Limited) (LVPL). The Outlook is 'Stable'.

Acuité has also upgraded its long-term rating to 'ACUITE B+' (read as ACUITE B Plus) from ‘ACUITE C’ (read as ACUITE C) and reaffirmed its short term rating of 'ACUITE A4' (read as ACUITE A Four) on the Rs.49.8 crore bank facilities of Lakshanya Ventures Private Limited (Erstwhile Encarta Pharma Private Limited) (LVPL). The Outlook is 'Stable'.

Rationale for rating:
The rating upgrade takes into account, regularization in the banking conduct of Lakshanya Ventures Private Limited. The rating also takes into account the established track record of operations of the company, along with the long-standing experience of the promoters of more than two decades in the industry, growing scale of operations, and profitability. However, the rating remains constrained on account of moderate financial risk profile, intensive nature of working capital operations and stretched liquidity position.
Going forward, the company's ability to scale up its operations while improving its working capital cycle and capital structure will remain a key rating monitorable.

About the Company

Lakshanya Ventures Private Limited (LVPL), a Bangalore-based company was incorporated in 2001. Founded by Mr. Keerthan P, Mr. Ganesh R. Nayak and Mr. Girish M, the company is engaged in primarily four segments - Cardiac & Endovascular Implants, ICU & OT Equipment’s, Setting up of Medical Gas Pipeline and Construction of Modular Operation Theatres. The present directors of the company are Mr. Ganesh R. Nayak, Mr. Girissh Maheswarappa, Mr. Sharath S. Shetty and Mr. Pichamutal K. Premsagar.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of Lakshanya Ventures Private Limited (LVPL) to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and diversified product portfolio
LVPL promoters possess over two decades of experience in the medical equipment trading business. The company benefits from established relationships with Hospital and Medical equipment OEMs. The product portfolio contains Cardiac & Endovascular Implants, ICU & OT Equipment’s, Setting up of Medical Gas Pipeline and Construction of Modular Operation Theatres.
Acuité believes that the market potential, healthy and reputed client base and diversified product portfolio of LVPL are expected to support in improvement of business risk profile over the medium term.

Improving scale of operations:
The company's revenue increased by ~94%, reaching Rs. 153.25 Cr. in FY2025 (Prov), compared to Rs. 78.90 Cr. in FY2024. The growth was driven by the execution of various tenders from government of Karnataka, which were booked during the year. During the period FY2021- FY2023, the company received bulk orders for various medical equipment’s and implants. However, in FY2024 due to change in government, they did not float any new Tenders in all sectors of Infrastructure and Healthcare, hence the performance was subdued. The operating profit margin of the company stood at 16.19 percent in FY2025 (Prov) as against 22.11 percent in FY2024. In FY2024 the operating margins were high due to higher proportion of cardiac related consumables sold during the year, which typically carry better margins. Further, the PAT margin stood at 9.48 percent in FY2025 (Prov) against 11.25 percent in FY2024. As of September 2025, the company’s revenue stood at approximately Rs. 101 Cr. Acuite believes that the Company will maintain a steady scale of operations over the medium term.

Moderate Financial Risk Profile:
The financial risk profile of the company improved yet remained moderate marked by moderate net worth, debt protection metrics & low gearing. The tangible net worth of the company stood at Rs. 104.15 Cr. as on March 31st, 2025 (Prov) against Rs. 89.62 Cr. as on March 31st, 2024, owing to accretion of profit into reserves. The gearing level of company stood below unity at 0.49 times as on March 31, 2025 (Prov), as compared to 0.62 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 0.94 times as on March 31, 2025 (Prov) as against 1.10 times as on March 31,2024. The debt protection metrices of the company remain moderate marked by Interest Coverage ratio of 3.69 times in FY2025 (Prov) as against 2.64 times in FY2024 and debt service coverage ratio (DSCR) of 1.78 times for March 31, 2025 (Prov) as against 1.63 times in FY2024. The net cash accruals to total debt (NCA/TD) stood at 0.35 times as on March 31, 2025 (Prov) as compared to 0.20 times as on March 31, 2024.
Acuité believes that going forward the financial risk profile is expected to improve on account of steady accruals generation and in absence any further major debt funded capex over the medium term.

Weaknesses

Intensive nature of working capital operations:
The working capital management of the company is intensive in nature marked by Gross Current Assets (GCA) of 285 days as on March 31,2025 (Prov) as compared to 471 days as on March 31,2024. The GCA days are primarily driven by debtor days which stood at 261 days in FY2025 (Prov) as against 450 days in FY2024. The clientele of the company includes only government entities and due to procedural aspects, the debtor days tend to get elongated. The company offers a credit period ranging from 90 to 120 days. However, since collections are largely dependent on government clearance and processes , some receivables extend beyond 180 days. The inventory days stood at 16 days in FY2025 (Prov) as compared to 24 days in FY2024. Further, the creditor days stood at 103 days in FY2025 (Prov) as compared to 239 days in FY2024. Intensive working capital operations have led to high dependency on its fund based working capital limits. The average utilization of working capital limits remained high with average utilisation of fund-based limits at ~ 98.59% over the last five months ending Jun 2025.
Acuite believes that the company’s ability to restrict further elongation of working capital cycle will remain a key rating monitorable.

Rating Sensitivities

Improvement in scale of operation while maintaining its profitability and capital structure.
Further elongation of working capital cycle.

Liquidity Position

Stretched

The company’s liquidity position is stretched as the company’s reliance on working capital borrowings is high, marked by average utilization of fund based working capital limits of ~98.59% during the last five months period ended Jun 2025. The company’s cash accruals are sufficient to meet its repayment obligation. The company generated net cash accruals of Rs. 16.55 Cr. in FY2025 (Prov) as against its maturing debt obligations of Rs.6.40 Cr. in the same tenure. In addition, it is expected to generate cash accrual in the range of Rs. 19.00 – Rs. 23.00 Cr. as against maturing repayment obligations in the range of Rs. 3.65 Cr. over the medium term. The cash and bank balances of the company stood at Rs. 0.24 Cr. as on March 31, 2025 (Prov). The current ratio stood at 1.64 times as on March 31, 2025 (Prov), as compared to 1.50 times as on March 31, 2024. Further, the working capital management of the company is intensive marked by high albeit improving Gross Current Assets (GCA) of 285 days in FY2025 (Prov) as against 471 days in the previous year.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	153.25	78.90
PAT	Rs. Cr.	14.53	8.88
PAT Margin	(%)	9.48	11.25
Total Debt/Tangible Net Worth	Times	0.49	0.62
PBDIT/Interest	Times	3.69	2.64

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
26 May 2025	Bank Guarantee (BLR)	Short Term	7.75	ACUITE A4 (Reaffirmed)
	Letter of Credit	Short Term	4.75	ACUITE A4 (Reaffirmed)
	Stand By Line of Credit	Long Term	3.00	ACUITE C (Downgraded from ACUITE B+ \| Stable)
	Working Capital Term Loan	Long Term	1.71	ACUITE C (Downgraded from ACUITE B+ \| Stable)
	Term Loan	Long Term	0.63	ACUITE C (Downgraded from ACUITE B+ \| Stable)
	Proposed Long Term Loan	Long Term	0.56	ACUITE C (Downgraded from ACUITE B+ \| Stable)
	Cash Credit	Long Term	20.00	ACUITE C (Downgraded from ACUITE B+ \| Stable)
	Term Loan	Long Term	36.50	ACUITE D (Downgraded from ACUITE B+ \| Stable)
	Term Loan	Long Term	2.85	ACUITE D (Downgraded from ACUITE B+ \| Stable)
04 Apr 2024	Bank Guarantee (BLR)	Short Term	7.75	ACUITE A4 (Upgraded from ACUITE D)
	Letter of Credit	Short Term	4.75	ACUITE A4 (Upgraded from ACUITE D)
	Cash Credit	Long Term	20.00	ACUITE B+ \| Stable (Upgraded from ACUITE D)
	Term Loan	Long Term	36.50	ACUITE B+ \| Stable (Upgraded from ACUITE D)
	Stand By Line of Credit	Long Term	3.00	ACUITE B+ \| Stable (Upgraded from ACUITE D)
	Term Loan	Long Term	2.85	ACUITE B+ \| Stable (Upgraded from ACUITE D)
	Working Capital Term Loan	Long Term	1.71	ACUITE B+ \| Stable (Upgraded from ACUITE D)
	Term Loan	Long Term	0.63	ACUITE B+ \| Stable (Upgraded from ACUITE D)
	Proposed Long Term Loan	Long Term	0.56	ACUITE B+ \| Stable (Upgraded from ACUITE C)
21 Sep 2023	Proposed Long Term Loan	Long Term	0.06	ACUITE C (Downgraded from ACUITE B+)
	Proposed Long Term Loan	Long Term	0.50	ACUITE C (Assigned)
	Cash Credit	Long Term	20.00	ACUITE D (Downgraded from ACUITE B+)
	Term Loan	Long Term	36.50	ACUITE D (Assigned)
	Stand By Line of Credit	Long Term	3.00	ACUITE D (Assigned)
	Term Loan	Long Term	2.85	ACUITE D (Downgraded from ACUITE B+)
	Working Capital Term Loan	Long Term	1.71	ACUITE D (Downgraded from ACUITE B+)
	Term Loan	Long Term	0.63	ACUITE D (Downgraded from ACUITE B+)
	Bank Guarantee (BLR)	Short Term	7.75	ACUITE D (Downgraded from ACUITE A4)
	Letter of Credit	Short Term	4.75	ACUITE D (Downgraded from ACUITE A4)
09 Aug 2023	Bank Guarantee (BLR)	Short Term	7.75	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Letter of Credit	Short Term	4.75	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Proposed Bank Guarantee	Short Term	5.25	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Cash Credit	Long Term	20.00	ACUITE B+ (Reaffirmed & Issuer not co-operating*)
12 May 2022	Bank Guarantee/Letter of Guarantee	Short Term	7.75	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Letter of Credit	Short Term	4.75	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Proposed Bank Guarantee	Short Term	5.25	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Cash Credit	Long Term	20.00	ACUITE B+ (Reaffirmed & Issuer not co-operating*)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.75	Simple	ACUITE A4 \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE B+ \| Stable \| Upgraded ( from ACUITE C )
State Bank of India	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.75	Simple	ACUITE A4 \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	17.12	Simple	ACUITE B+ \| Stable \| Upgraded ( from ACUITE C )
State Bank of India	Not avl. / Not appl.	Term Loan	29 Oct 2022	Not avl. / Not appl.	30 Oct 2032	26.67	Simple	ACUITE B+ \| Stable \| Upgraded ( from ACUITE D )
State Bank of India	Not avl. / Not appl.	Term Loan	14 Dec 2021	Not avl. / Not appl.	14 Dec 2026	1.28	Simple	ACUITE B+ \| Stable \| Upgraded ( from ACUITE D )
State Bank of India	Not avl. / Not appl.	Term Loan	31 Jul 2021	Not avl. / Not appl.	25 Jul 2026	0.18	Simple	ACUITE B+ \| Stable \| Upgraded ( from ACUITE C )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Sahil Sawant
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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