Press Release July 13, 2026 INSTITUTE OF NEUROSCIENCES KOLKATA Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	850.00	ACUITE BBB- | Stable | Assigned	-	RBI
Total Outstanding	0.00	850.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

­­Acuite has assigned long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs. 850 Cr. bank facilities of Institute of Neurosciences Kolkata. The outlook is 'Stable'. Rationale for rating The rating takes into account the long track record of operations and experienced management in the healthcare sector. The revenues have increased to Rs. 262.72 Cr. in FY26(Estd.) as compared to Rs. 226.65 Cr. in FY25 along with healthy operating margins of about 21.38 percent in FY 25 as compared to 23.23 percent in FY 24. Further, the rating derives strength from the company's healthy financial risk profile, marked by improving networth, comfortable gearing and robust debt protection metrics, adequate liquidity with sufficient net cash accruals and moderate bank limit utilisation. However, the rating remains constrained by the intensive working capital cycle and project execution risks associated with ongoing capex. The company has two ongoing capex plans, first, extension of the existing hospital to 300 beds from 210 beds and second, a multi-speciality teaching hospital with 605 beds, medical college and hostel facilities by the name "Snayu Tirtha". The date of operations is expected to commence in phases and the execution risk would remain a key monitorable.

About the Company

­­Incorporated in 2005, West Bengal based Institute of Neurosciences Kolkata (I-NK) is a public private partnership project of Kolkata Municipal Corporation, Government of West Bengal and Neurosciences Foundation Bengal under the Companies Act 1956. The company is engaged in running a 210 Beds neurological hospital in Kolkata, West Bengal. It is mainly engaged in providing clinical services in the area of Neurosurgery, Neuro-medicine, Paediatric Neuro Psychiatry, Neuro Radiology, Neuro Physiotherapy among others. Additionally, it has 5 operation theatres with high end equipment, 1 Cath Lab with facilities for Digital Subtraction, Angiography, Embolization & Coiling of critical aneurysms and arterio-venous malformations. The operations are managed by Dr. Ram Prasad Sengupta , Dr. Hrishikesh Kumar  and Dr. Gour Gopal Das.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has taken standalone view of the business and financial risk profile of Institute of Neurosciences Kolkata to arrive at the rating.

Key Rating Drivers

Strengths

Experienced Management and long operational record The operations of the company are managed by Dr. R P Sengupta , Dr. Hrishikesh Kumar , Dr. Gour Gopal Das who have experience of decades in the healthcare industry. The promotors of the company are backed by team of 215 qualified doctors. It also has tie ups with Third-Party Administrators (TPAs) in the industry and caters to corporate clientele. Acuité believes that the company will continue to derive benefit from its experienced management and established operational track record in the medium. Increase in revenues with stable operating margins  The revenues of the company improved to Rs. 226.65 Cr. in FY 25 as compared to Rs. 215.72 Cr. in FY 24 on the account of increase in average revenue per operating bed. As of FY 26(Estd.), the revenues have improved to about Rs. 262.72 Cr. on the account of increase in overall occupancy and average revenue per operating bed. The operating profitability has remained stable at 21.38 percent in FY 25 as compared to 23.23 percent in FY 24. As of FY 26, it is expected to remain in the similar range.  Acuité expects the operating performance of the company is expected to improve over the medium supported by ongoing capacity expansion. Healthy financial risk profile The financial risk profile of the company is healthy marked by improving net worth, low gearing and robust debt protection metrices. The tangible net worth of the company stood at Rs. 365.92 Cr. as on March 31, 2025 as compared to Rs. 317.60 Cr. as on March 31, 2024 due to accretion to reserves. Additionally, the company maintains an asset replacement reserve of Rs. 30 Cr, hence the adjusted networth of the company is Rs. 395.92 Cr. in FY 25 as compared to Rs. 347.60 Cr. in FY 24. The gearing of the company stood at 0.29 times as on March 31, 2025. The short term borrowings comprise of OD against FD in FY 25. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 0.54 times as on March 31, 2025 as compared to 0.24 times as on March 31, 2024. The debt protection metrices of the company remain robust marked by Interest Coverage ratio (ICR) of 15.06 times as on March 31, 2025 and debt service coverage ratio (DSCR) of 15.06 times for March 31, 2025. The net cash accruals to total debt (NCA/TD) stood at 0.52 times as on March 31, 2025. Acuité believes that, notwithstanding the incremental leverage associated with the largely debt-funded capex, the company’s financial risk profile is expected to remain healthy over the medium term, supported by steady cash accruals.

Weaknesses

Intensive Working Capital Cycle The working capital cycle of the company is intensive as reflected by Gross Current Assets (GCA) of 233 days for March 31, 2025 as compared to 264 days for March 31, 2024. The debtor period stood at 34 days as on March 31, 2025 as compared to 35 days as on March 31, 2024. Further, the inventory days of the company stood at 9 days as on March 31, 2025 as compared to 9 days in FY2024. The other current assets majorly comprises of the lien marked FDs for FY 25 and FY 24. The creditors stood at 135 days as on March 31, 2025 as compared to 96 days as on March 31, 2024. Acuité believes that the working capital operations of the company is expected to remain in similar range over the medium term. Project risk associated with funding and timely execution of ongoing capex programmes The company is exposed to project execution and commercialization risk due to multiple ongoing capital expenditure projects. The company is undertaking expansion of its existing hospital by increasing bed capacity to 300 beds from 210 beds, adjacent to its current hospital. Further, the overall project cost is Rs. 90 Cr. to be funded by way of debt and balance is promoters contribution. The expected date of operations is by the end of FY 2028. Further, the company has a large size project comprising of a multi-speciality teaching hospital vertical "Snayu Tirtha" of 605 Beds, a medical college with phased students intake and hostel facilities. The location of the project is at Rajarhat, West Bengal. The overall cost of project is Rs. 1442 Cr. to be funded by way of term loan of Rs. 850 Cr. and balance would be promoters contribution in the form of donations and internal accruals. The teaching hospital is expected to commence its operations by the end of FY 28 and the medical college and hostel facilities to commence from FY 2030. As of March 2026, Rs. 212 Cr, (14% of the project cost) has been incurred.  Acuité believes that timely completion and commercialisation of the ongoing projects, along with the successful ramp-up of operations and generation of expected cash flows, will remain key rating sensitivities, notwithstanding the long-term benefits expected from capacity expansion.

Rating Sensitivities

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

­­Sustained revenues and operating profitability in the medium term. Timely funding and completion of the capex plans

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

­­Elongation of working capital cycle Any time/cost overrun in the capex in near to medium term. Generation of sufficient net cash accruals to repay the debt obligation.

Liquidity Position

Adequate

­­The company has adequate liquidity marked by net cash accruals of Rs 56.33 Cr. as on FY2025 as against no long-term debt repayment over the same period. Going forward, the net cash accruals would range in Rs. 54 Cr- Rs. 59 Cr. as against debt obligation of Rs. 5.48 Cr. and Rs. 5.94 Cr. in the next two years. The term loan of Rs. 850 Cr. is yet to be sanctioned, any change in the terms and conditions in the sanction terms would remain a key monitorable. The cash and bank balance stood at Rs. 27.47 Cr. as on March 31, 2025 and Rs. 27.01 Cr. as on March 31, 2024. Further, the current ratio of the company  stood at 1.10 times as on March 31, 2025 as compared to 5.79 times as on March 31, 2024.  Acuité believes that the liquidity of the company is to remain adequate over the near to medium term on account of steady cash accruals, albeit debt funded capex plans over the medium term.

Outlook: Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	226.65	215.72
PAT	Rs. Cr.	47.99	55.30
PAT Margin	(%)	21.18	25.63
Total Debt/Tangible Net Worth	Times	0.29	0.00
PBDIT/Interest	Times	15.06	354.76

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 • 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:Not Applicable

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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