Press Release

Press Release

March 02, 2026

NITIKA PHARMACEUTICAL SPECIALITIES PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	31.10	ACUITE BBB- \| Stable \| Assigned	-
Bank Loan Ratings	32.50	-	ACUITE A3 \| Assigned
Total Outstanding	63.60	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned its long-term rating of ‘ACUITÉ BBB-' (read as ACUITE triple B minus) on the Rs. 31.10 Cr. bank facilities and short term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs.32.50 Cr. bank facilities of Nitika Pharmaceutical Specialities Private Limited (NPSPL). The outlook is ‘Stable’.

Rationale for rating
The rating reflects the company’s established operational track record, experienced management and diversified excipient portfolio. The rating also factors in steady growth in revenue, stable profitability, and a moderate financial risk profile. The ongoing capacity expansion and government-linked technology support are expected to strengthen business risk profile. However, the rating is constrained by working-capital intensity marked by high reliance on bank limits, and elongated receivable cycles. The rating also constrained due to susceptibility of profitability to volatility in raw material prices and competitive industry.

About the Company

Established in 1991 under the Nitika Chemicals, and later incorporated in 2011, as a Nitika Pharmaceutical Specialities Private Limited (NPSPL), is a Maharashtra-based company engaged in the manufacturing of high-quality pharmaceutical excipients, specializing in lubricants such as Magnesium Stearate, antacid actives, and mineral salts. The enterprise was founded by Ravleen Singh Khurana, who played a pivotal role in establishing and expanding the company’s excipient manufacturing capabilities. Currently, the directors of the company are Mr. Ravleen Singh Khurana, Mr. Manojkumar Badrinarayan Agrawal and Mr. Parvinder Singh. NPSPL operates three manufacturing facilities located at Butibori, Waddhamna, and Uppalwadi in the Nagpur district of Maharashtra, each catering to distinct excipient categories.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered standalone business and financial risk profiles of Nitika Pharmaceutical Specialities Private Limited (NPSPL) to arrive at the rating

Key Rating Drivers

Strengths

Experienced management and long operational track record
The company benefits from over three decades of operational experience in the pharmaceutical excipients industry, having begun its journey in 1991 under the Nitika Chemicals. The company is led by an experienced management team comprising Mr. Ravleen Singh Khurana, Mr. Manojkumar Badrinarayan Agrawal and Mr. Parvinder Singh, who collectively bring deep technical, operational, and strategic expertise. Over the years, Nitika has built strong customer relationships, a diversified product portfolio, and a robust export presence, reflecting its established industry position.

Stable scale of operations and profitability:
The company recorded consistent growth in scale, with operating income rising to Rs 111.17 crore in FY2025, up from Rs 80.64 crore in FY2024 and Rs 59.89 crore in FY2023, reflecting a healthy three-year growth trajectory. This expansion was driven by higher volumes across MCC, magnesium stearate, SSF, PEGs and specialty customised excipients, along with deeper penetration in export markets. Of the FY2025 revenue, exports contributed Rs 55.85 crore (50.80%), while domestic sales accounted for Rs 54.09 crore (49.20%), indicating a balanced mix. The company also reported net sales of Rs 109.24 crore during 10MFY26, with a PAT of Rs 7.89 crore, reflecting continued stability in operating performance. In terms of profitability, margins remained stable, with EBITDA margin at 15.04% in FY2025, compared to 15.66% in FY2024 and 11.93% in FY2023, supported by improved operating leverage and an enhanced product mix led by MCC and premium-grade lubricants. PAT margin also remained consistent at 6.19% in FY2025, against 7.08% in FY2024 and 4.41% in FY2023, despite higher interest cost. Acuite believes the company’s operating performance is expected to remain steady over the medium term, supported by capacity expansion at Butibori "Plant 2" and the expected scale-up of new product lines.

Moderate financial risk profile
The company’s financial risk profile remains moderate, supported by steady improvement in net worth, a gradually strengthening capital structure, and adequate coverage indicators. As of March 31, 2025, the net worth increased to Rs 39.11 crore, improving from Rs 21.37 crore in FY2024 and Rs 15.67 crore in FY2023, aided by healthy profit accretion and quasi-equity infusion of Rs 9.86 crore during FY2025. Total debt stood at Rs 57.57 crore in FY2025 (comprising long-term borrowings of Rs 32.51 crore, short-term borrowings of Rs 21.77 crore, and current maturities of Rs 3.29 crore), broadly in line with Rs 59.71 crore in FY2024. As a result, the gearing improved to 1.47x in FY2025, compared to 2.79x in FY2024 and 2.79x in FY2023, driven by the strengthening net worth base. Debt protection indicators remain adequate, with the Interest Coverage Ratio (ICR) at 3.73x in FY2025, against 4.40x in FY2024 and 3.68x in FY2023, reflecting stable operating profitability despite incremental finance costs. The DSCR stood at 1.37x in FY2025, compared to 2.88x in FY2024 and 2.77x in FY2023, reflecting higher repayment obligations during FY25. The TOL/TNW ratio improved to 2.35x in FY2025, from 3.80x in FY2024 and 3.60x in FY2023, supported by increased net worth and a more balanced funding mix. The Debt/EBITDA also improved to 3.19x in FY2025, from 4.63x in FY2024 and 6.07x in FY2023. The company is undertaking a significant capex programme at Butibori, where Plant 2 comprises seven production lines covering MCC Sphere, magnesium stearate, SSF, simethicone, CCS, MGP and DCP grades. The total planned outlay stands at Rs 43.64 crore across FY26–FY27, of which Rs 33.42 crore is being funded through TDB and the balance Rs 10.22 crore through internal accruals and quasi equity. Overall, Acuité expects the company’s financial risk profile to remain moderate, over the medium term owing to capex and high reliance on working capital borrowings.

Weaknesses

Intensive working capital operations:
The operations of the company are working capital intensive, reflected in Gross Current Asset (GCA) of 156 days in FY2025, improving from 170 days in FY2024 and 142 days in FY2023. Inventory holding days improved to 12 days in FY2025, compared to 15 days in FY2024 and 21 days in FY2023, indicating efficient inventory planning and faster conversion cycles. Debtor days moderated to 123 days in FY2025, compared with 134 days in FY2024, though higher than 80 days in FY2023, owing to the company’s growing share of export revenues and the longer credit terms extended to overseas customers and large domestic formulators. Creditor days increased to 195 days in FY2025, rising from 179 days in FY2024 and 119 days in FY2023, highlighting stronger supplier support and improved credit terms. This continues to act as a working-capital cushion and partially offsets elongated receivables. Overall, the working capital cycle remains negative at –60 days in FY2025, compared to –30 days in FY2024 and –18 days in FY2023, aided by efficient inventory management and extended supplier credit. The company’s fund-based working capital limit utilisation remained high at ~85.96% over the 12 months ending December 2025, reflecting continued dependence on bank lines due to the receivable-heavy nature of operations and limited short-term liquidity buffer. Going forward, maintaining timely collections and sustaining supplier credit will remain essential for preserving the current working-capital efficiency.

Susceptibility to fluctuations in raw-material prices, intense competition, and regulatory risks:
The company remains exposed to volatility in key raw-material prices such as fatty acids and specialty chemicals, which may affect margins given limited pricing flexibility in certain product lines. However, the company is able to pass on the incremental RM cost to its end customers to an extent. The excipients industry is highly competitive, with strong domestic and global players exerting pricing pressure across core products like MCC, magnesium stearate, and SSF. Further, operations are subject to stringent regulatory and pharmacopeial compliance requirements across multiple export markets, making the business sensitive to evolving quality standards and audit-related risks.

Rating Sensitivities

Consistent improvement in revenues and profitability.
Elongation in working capital requirements
Improvement in working capital cycle

Liquidity Position:

Adequate

The company's liquidity remains adequate, supported by steady cash accruals of Rs 10.44 crore in FY2025 against repayment obligations of Rs 6.33 Cr, providing satisfactory coverage. As of March 31, 2025, the company held unencumbered cash and bank balances of Rs 0.89 crore, with a current ratio of 0.82x, indicating a limited short-term liquidity cushion. The average utilisation of fund-based working capital limits remained high at ~85.96% over the 12 months ending December 2025, driven by elongated receivables and sustained reliance on working-capital lines. Acuite expects liquidity to remain Adequate, supported by stable accruals and healthy order flow, though working-capital intensity will continue to weigh on near-term liquidity flexibility.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	111.17	80.64
PAT	Rs. Cr.	6.88	5.71
PAT Margin	(%)	6.19	7.08
Total Debt/Tangible Net Worth	Times	1.47	2.79
PBDIT/Interest	Times	3.73	4.40

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

None

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 :

Not Applicable

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
BANK OF INDIA (BOI)	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A3 \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	PC/PCFC	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A3 \| Assigned
BANK OF INDIA (BOI)	Not avl. / Not appl.	PC/PCFC	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	17.50	Simple	ACUITE A3 \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.06	Simple	ACUITE BBB- \| Stable \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Term Loan	30 Nov 2023	Not avl. / Not appl.	31 Oct 2030	12.88	Simple	ACUITE BBB- \| Stable \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Term Loan	31 Oct 2023	Not avl. / Not appl.	30 Sep 2031	18.16	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Dharmavarapu Sai Kiran
Senior 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.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.