Press Release

Press Release

May 27, 2026

PIMPRI CHINCHWAD EDUCATION TRUST
Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	67.00	ACUITE BBB+ \| Stable \| Reaffirmed	-	RBI
Total Outstanding	0.00	67.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE BBB+’ (read as ACUITE triple B plus) on Rs. 67.00 Cr. bank facilities availed by Pimpri Chinchwad Education Trust (PCET). The outlook is ‘Stable’.

Rationale for rating
The rating reaffirmation considers the long track record along with established position of the trust, constituting varied institutes and courses, which results in diversified revenue streams. The rating factors in significant improvement in the operating income in FY25 along with stable margins owing to continuous increase in the number of enrolments, steady increment in fees and establishment of Pimpri Chinchwad University (PCU). Further, the rating also factors in the healthy financial risk profile and strong liquidity of the trust. However, these strengths are partly offset by the timely completion of Phase two capex at PCU without cost overruns, growing competition in the field of education and various regulatory risks associated with the business.

About the Company

Established in 1990, Pimpri Chinchwad Education Trust (PCET) is a Pune, Maharashtra based organisation engaged in providing education from primary to PhD through various schools, colleges and university. The trust has three campuses namely Akurdi Campus, Ravet Campus and PCU campus, all situated in Pune. The trust operates 9 colleges, 1 CBSE school, 1 university with 11 institutes and hostels. Currently, the board of trustees includes Mr. Dnaneshwar P. Landge, Mr. Harshwardhan S. Patil, Mr. Shantaram D. Garade, Mrs. Padmatai M. Bhosale and Mr. Vitthal S. Kalbhor.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of PCET to arrive at the rating.

Key Rating Drivers

Strengths

Experienced board of trustees along with established track record of operations
PCET has an established track record of operations offering varied courses across different institutes. The trustees have an experience of over three decades in the education industry leading to a strong reputation in the industry. The founding members of the trust are Late. Shri. Shankarrao B. Patil, Late. Smt. Lilatai Shankarrao Patil, Shri. Dnyaneshwar P. Landge, Shri. Vitthal S. Kalbhor, Shri. Shantaram D. Garade and Late. Shri. Bhaijan Kazi. The institutes offer courses in the field of engineering, management, polytechnic, architecture & designing, pharmacy, law, media, etc. PCET has various affiliations and accreditations with organizations/institutes like NAAC, AICTE, SPPU, NABET, NBA, CBSE, MSBTEM, etc. The institutes have a combined strength of ~23,000 students, 1,200+ faculty members, 60,000+ Alumni’s and have assisted in providing more than 36,000 placements over the years. The organisation has expanded its operations through the establishment of PCU in FY24 which offers various new courses under one umbrella.
Acuité believes that the established track record of operations along with introduction of new courses and establishment of university will enable the entity to grow over the medium term.

Increasing enrolments leading to continuous growth in revenue
The revenue of the trust improved significantly to Rs. 281.68 Cr. in FY25 as compared to Rs. 222.80 Cr. in FY24 on the back of establishment of PCU leading to increasing admissions along with increments in the tuition and hostel fees. The EBITDA margin stood marginally moderated to 25.36 percent in FY25 as compared to 26.31 percent in FY24 on account of increase in the administrative cost and advertisement spending regarding PCU, expected to remain in similar range in the medium term. This positive trend on admissions along with steady margins shall remain a key rating sensitivity.

Healthy financial risk profile
The financial risk profile of the trust remains healthy, marked by healthy net worth, low gearing (debt-equity) and healthy debt protection metrics. The tangible net worth stood at Rs. 336.28 Cr. as on March 31, 2025, as compared to Rs. 283.38 Cr. as on March 31, 2024, improved on account of accretion of profits to trust funds. The total debt of the trust stood at Rs. 30.67 Cr. in FY25 (Rs. 38.67 Cr in FY24), consisting of long-term borrowings availed for capex for setting up PCU. Therefore, the gearing (debt-equity) stood low at 0.09 times in FY25 (0.14 times in FY24). Moreover, the debt protection metrics are marked healthy with debt service coverage ratio of 8.33 times in FY25 (10.30 times in FY24). Further, the entity has availed sanctions of Rs. 30 Cr. of term loan (out of which Rs. 10 Cr. disbursed as of March 2026) for setting up phase II of PCU which is expected to be operational from July 2026, timely completion of which shall remain monitorable.

Weaknesses

Exposure to intense competition
PCET is exposed to intense competition from various reputed educational institutes providing the similar courses which may continue to limit scalability and profitability. Given the competition, the ability of the trust to attract requisite students in tune with its sanctioned intake will be a key rating monitorable. Further, PCET also faces the risk related to qualified and experienced professional in the field of education.

Risk from stringent regulatory framework
The education industry is highly regulated, and it is crucial to adhere to certain infrastructure and operating standards established by regulatory organizations. Various state and central bodies, including AICTE, NBA, NAAC, CBSE, and SPPU, among others, prescribe a regulatory framework for PCET based on the professional courses that are being offered. Thus, continual investment in the workforce and infrastructure is required to run operations efficiently.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Significant increase in number of admissions leading to operating revenue above Rs. 350-400 Cr.

Potential triggers (individual or collective) for a downward rating action:

Decline in operating performance
Any significant debt availed leading to deterioration in financial risk profile with gearing rising above 1.00 times

Liquidity Position

Strong

The trust’s liquidity position is strong marked by sufficient net cash accruals of Rs. 74.37 Cr. in FY25 as against maturing debt obligations of Rs. 8.00 Cr. over the same period. The trust is estimated to generate net cash accruals in the range of Rs. 80-100 Cr. for FY26-FY28 against its maturing debt obligations in the range of Rs. 12.00-19.00 Cr. for the same period. Further, the current ratio stood healthy at 5.77 times as on March 31, 2025. Further, the liquidity is supported by cash and bank balances of Rs. 16.42 Cr. as on March 31, 2025, along with liquid investments in the form of fixed deposits amounting to Rs. 25.64 Cr. as on March 31, 2025.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	281.68	222.80
PAT	Rs. Cr.	52.90	40.50
PAT Margin	(%)	18.78	18.18
Total Debt/Tangible Net Worth	Times	0.09	0.14
PBDIT/Interest	Times	71.86	18.80

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
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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
03 Mar 2025	Term Loan	Long Term	37.00	ACUITE BBB+ \| Stable (Assigned)
03 Mar 2025	Proposed Long Term Bank Facility	Long Term	30.00	ACUITE BBB+ \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Term Loan	Unlisted	RBI	31 Jan 2023	Not avl. / Not appl.	31 Jan 2029	37.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 Jun 2025	Not avl. / Not appl.	30 Jun 2031	30.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Akshit Agrawal
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

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

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	SEBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts	SEBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs)	RBI
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁶	Not applicable

⁶ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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.