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 upgraded its long-term rating to 'ACUITE BBB+' (read as ACUITE triple B plus) from 'ACUITE BBB' (read as ACUITE triple B) on Rs.90.05 Cr. bank facilities of Adamas University (AU). The outlook remains "Stable".
Rationale for Rating The group had appealed the rating reaffirmation on the existing bank facilities to it on 7th April 2026 and had provided incremental information based on which the rating is being upgraded. The information provided clarity about the sustainability of operations over the medium term, as evidenced by strong growth in revenue and profitability margins over the past three years. It also outlined the group’s expansion plans, the launch of new work-linked programs, and the adoption of a franchise-based operating model. The rating upgrade factors in the group’s improved operating and financial performance, as reflected in its higher revenues and enhanced overall profitability margins. The rating additionally factors in the increase in overall enrolment levels across its courses, supported by an expansion in student intake capacity along with marginal revision in fees. The rating also reflects the group’s extensive experience in the education sector, which has aided the successful establishment and smooth functioning of its schools and colleges in West Bengal and has also received NAAC A Accreditation in December 2025. Moreover, the group maintains an adequate liquidity, marked by sufficient accruals against long term debt obligations and maintains unencumbered fixed deposits albeit high bank limit utilization. The current ratio remains low current ratio primarily due to advance collection of fees, which has resulted in increased current liabilities. These strengths are, however, partially offset by the highly competitive nature of the education industry.
About the Company
West Bengal – Based, Adamas University was formed in 2014. The university has 10 institutes / colleges and is engaged in providing graduate and post graduate education in various fields spread across 80 courses. The university is being run by a governing body which includes Dr. Samit Roy and Mrs Malika Roy. NAAC ranking is A which was received in December 2025.
About the Group
West Bengal – Based, Sachis Kiron Roy Memorial Trust (SKRMT) was established in 2003. The Trust is engaged in educational activities. The operations are run by Mr. Samit Roy and Mrs. Mallika Roy. There are two schools under SKRMT namely Adamas International School (AIS; ICSE Board) and Adamas World School (AWS; CBSE Board) between classes 1-12.
Unsupported Rating
Not Applicable
Analytical Approach
Extent of Consolidation
•Full Consolidation
Rationale for Consolidation or Parent / Group / Govt. Support
Acuité has taken a consolidated view of Adamas University and Sachis Kiron Roy Memorial Trust as both the entities are in the same line of business, share common management and have strong financial linkages.
Key Rating Drivers
Strengths
Experienced management
The group is run by Mr. Samit Roy and Mrs. Mallika Roy. They have been running educational institutes and trust since decades. Acuite believes their experience and the professional team will benefit the group going forward.
Increase in scale of operations supported by Healthy Occupancy and Growing Intake
The group has achieved revenues of Rs.204.02 Cr. in FY25 as against Rs.160.73 Cr. in FY24 supported by higher fee receipts. Operationally, the group continues to benefit from healthy occupancy supported by growing intake capacity. Further, the group reported revenues of Rs.232 Cr. till November 2025. The EBITDA margin stood at 27.80% in FY25 as against 25.53% in FY24 due to better absorption of fixed costs. The PAT margin stood at 30.37% in FY25 as against 15.74% in FY24 due to operating margin, benefit from other income received and tax reversal of previous years. Acuite believes that the scale of operations will increase backed by growth in student intake.
Healthy Financial Risk Profile
The financial risk profile of the group was healthy marked by increase in net worth, gearing below unity and comfortable debt protection metrics. The tangible net worth stood at Rs. 153.63 Cr. as on March 31, 2025, as compared to Rs. 100.89 Cr. as on March 31,2024 due to accretion of reserves. Gearing stood at 0.64 times in FY2025 compared to 0.89 times in FY204. The interest coverage ratio stood at 6.86 times and debt service coverage ratio stood at 5.38 times as on March 31, 2025. The TOL/TNW stood at 1.66 times as on March 31, 2025, as compared to 2.23 times as on March 31, 2024. Being part of the education sector, there will always be ongoing capex requirements to expand student intake and undertake maintenance activities. Acuite believes that the group’s financial risk profile will remain healthy over the medium term backed by steady cash accruals along with capex plans.
Weaknesses
Highly regulated and competitive industry
The education sector is highly regulated with the government deciding on the maximum student intake, fees, mandatory facilities and faculty strength. Any adverse government regulations may impact the school's revenue growth and accruals. The student-teacher ratio is within the stipulated norms for all the institutions. However, considering that they have an established brand presence and has been consistently producing academic achievements, the school/ university has been insulated from the competition to some extent.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Consistent growth in revenues by 30-40% and profitability
Sustainability of borrowings remains a monitorable, considering the group’s ongoing capex plans and impact on debt protection metrics
Potential triggers (individual or collective) for a downward rating action:
Any large debt funded capex, impacting the financial risk profile with gearing above 1.5 times
Liquidity Position
Adequate
The liquidity remains adequate marked by sufficient net cash accruals of Rs. 73.59 Cr. as on March 31, 2025, as against long term debt repayment of Rs. 5.42 Cr. over the same period. Looking ahead, net cash accruals are expected to range between Rs. 55 crore and Rs. 80 crores for FY2026–FY2027, while repayment obligations are projected to remain around Rs. 25 crores during the corresponding period. The cash and bank balances stood at Rs. 3.33 Cr. as on March 31,2025. The group also maintains free fixed deposits Rs.15.29 Cr in FY25 as against Rs.13.71 Cr in FY24. The current ratio stood low at 0.79 times as on March 31,2025 due to advance collection of fees in April and November, which has resulted in increased current liabilities. However, the average bank limit utilization for fund based stood high at ~73%. Acuite believes that going forward the liquidity position of the group will remain adequate in the near to medium term backed by sufficient accruals against debt repayment and free fixed deposits.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
204.02
160.73
PAT
Rs. Cr.
61.96
25.29
PAT Margin
(%)
30.37
15.74
Total Debt/Tangible Net Worth
Times
0.64
0.89
PBDIT/Interest
Times
6.86
4.43
Status of non-cooperation with previous CRA (if applicable)
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.
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)
Sr. No.
Company name
1
Adamas University
2
Sachis Kiron Roy Memorial Trust
Contacts
List of instruments and names of regulators of the instruments
