Press Release

Press Release

April 07, 2026

ADAMAS UNIVERSITY
Rating Assigned, Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	70.05	ACUITE BBB \| Stable \| Assigned	-
Bank Loan Ratings	20.00	ACUITE BBB \| Stable \| Reaffirmed	-
Bank Loan Ratings	30.00	Not Applicable \| Withdrawn	-
Total Outstanding	90.05	-	-
Total Withdrawn	30.00	-	-

Rating Rationale

Acuite has reaffirmed its long-term rating of 'ACUITE BBB' (read as ACUITE triple B) on Rs.20.00 Cr. bank facilities of Adamas University (AU). The outlook remains "Stable".
Further, Acuite has withdrawn its long-term rating of Rs.30 Cr. bank facility without assigning any rating of Adamas University (AU) as the instruments are fully paid. The rating has been withdrawn on account of the request received from the issuer, and the NDC (No Dues Certificate) received from the banker. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.

Acuite has assigned its long term rating to 'ACUITE BBB' (read as ACUITE triple B) of Rs. 70.05 Cr. bank facilities of Adamas University (AU). The outlook is "Stable".

Rationale for Rating
The rating factors in a stable operational profile, supported by higher student intake and marginal fee revisions across the group in 8MFY26. Profitability has improved in FY25 due to better cost absorption and the benefit of other income; however, the sustainability of these margins remains a key sensitivity. 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. The financial risk profile remains moderate, supported by an increase in net worth and a comfortable capital structure, although borrowings will continue to be a key monitorable as capex remains ongoing. The Liquidity of the group remains adequate, marked by sufficient accruals against long term debt obligations, free fixed deposits, low current ratio and high bank limit utilization. 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 Dr. Samit Roy and Mrs Malika Roy.

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 the 2 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, Mrs. Mallika Roy and Mrs. Aroti 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

The group has achieved revenues of Rs.204.02 Cr in FY25 as against Rs.160.73 Cr in FY24 supported by increase in no. of admissions. 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.

Moderate Financial Risk Profile

The financial risk profile of the group remains moderate 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 moderate in medium term backed by steady cash accruals along with debt funded 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 debt-funded 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. 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 at 0.79 times as on March 31,2025. The average bank limit utilization for fund based is ~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, free fixed deposits albeit low current ratio and high bank limit utilization.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

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)

Not Applicable

Any Other Information

None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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
11 Feb 2025	Secured Overdraft	Long Term	5.70	ACUITE BBB \| Stable (Assigned)
	Secured Overdraft	Long Term	0.90	ACUITE BBB \| Stable (Assigned)
	Secured Overdraft	Long Term	5.00	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	25.00	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	5.00	ACUITE BBB \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	8.40	ACUITE BBB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.30	Simple	ACUITE BBB \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.70	Simple	ACUITE BBB \| Stable \| Reaffirmed
BANK OF INDIA (BOI)	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.90	Simple	ACUITE BBB \| Stable \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB \| Stable \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Term Loan	31 Jul 2025	Not avl. / Not appl.	30 Jun 2031	12.10	Simple	ACUITE BBB \| Stable \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Term Loan	31 Jul 2025	Not avl. / Not appl.	30 Jun 2031	11.05	Simple	ACUITE BBB \| Stable \| Assigned
INDUSIND BANK LIMITED	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Dec 2031	25.00	Simple	ACUITE Not Applicable \| Withdrawn
INDUSIND BANK LIMITED	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Dec 2031	5.00	Simple	ACUITE Not Applicable \| Withdrawn
AXIS BANK LIMITED	Not avl. / Not appl.	Term Loan	31 Aug 2025	Not avl. / Not appl.	31 Aug 2032	45.00	Simple	ACUITE BBB \| Stable \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Term Loan	31 Jul 2025	Not avl. / Not appl.	31 Dec 2030	4.00	Simple	ACUITE BBB \| Stable \| Assigned

*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

Mohit Jain
Chief Analytical Officer - Rating Operations

Manvi Khaitan
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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