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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 81.00 | ACUITE BBB+ | Stable | Assigned | - |
| Bank Loan Ratings | 199.40 | ACUITE BBB+ | Stable | Upgraded | - |
| Bank Loan Ratings | 3.00 | - | ACUITE A2 | Assigned |
| Bank Loan Ratings | 0.60 | - | ACUITE A2 | Upgraded |
| Total Outstanding | 284.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has upgraded its long-term rating to ‘ACUITE BBB+’ (read as ACUITE Triple B plus) from ‘ACUITE BBB’ (read as ACUITE Triple B) and short-term rating to 'ACUITE A2' (read as ACUITE A two) from 'ACUITE A3+' (read as ACUITE A three plus) on the Rs.200.00 Cr. bank facilities of Felix Healthcare Private Limited (FHPL). The outlook is ‘Stable’.
Acuite has assigned its long-term rating at ‘ACUITE BBB+’ (read as ACUITE Triple B plus) and short-term rating at 'ACUITE A2' (read as ACUITE A two) on Rs.84.00 crore bank facility of Felix Healthcare Private Limited (FHPL). The outlook is 'Stable'. Rationale for Rating The rating upgrade factors the improvement in the operating revenue increasing to Rs. 201.11 Cr. in FY25 from Rs. 174.02 Cr. in FY24. The group has demonstrated a healthy growth trajectory, registering a CAGR of ~25% over FY22–FY25, supported by operating margin of 25.10% in FY25. The rating also draws comfort from the experienced promoters with a long and established operational track record in the healthcare sector. Further, the rating derives strength from the group’s moderate financial risk profile, marked by comfortable leverage and above average debt protection metrics, along with an adequate liquidity position. However, the rating remains constrained by the working capital–intensive nature of operations, project execution risks associated with ongoing capex, and the inherent regulatory risks prevalent in the healthcare sector, along with potential reputational risks. |
| About Company |
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Noida-based Felix Healthcare Private Limited (FHPL) was incorporated in 2011 by Dr. Dharmendra Kumar Gupta and Dr. Rashmi Gupta. The company is engaged in running a 200 Bed multi-specialty hospital in Noida. FHPL’s operations began in 2015 and currently the hospital has team of 130 qualified doctors. Besides regular specialties, FHPL has a varied range of super specialty services, modular operation theatre complex with HEPA filter laminar flow and hermetically sealed doors, well equipped critical care units and haemodialysis facilities. The hospital is accredited by both NABH and NABL. The Felix group has started polyclinics at certain locations in and around Noida to provide medical services to the customers for a wider reach, it includes diagnostic centres, pharmacy and OPD. The company acquired a running hospital from Sanjeevani trust which is currently under expansion and is expected to be operational in November 2027.
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| About the Group |
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Noida based, Mylo Healthcare Private Limited (MHPL) incorporated in 2020 by Dr. Dharmendra Kumar Gupta and Dr. Rashmi Gupta. The company is currently setting up a 300 bed multi-speciality hospital in Noida which is expected to be operational by April 2027. MHPL is a wholly owned subsidiary of FHPL w.e.f. 24th August 2024.
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| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has considered consolidated financial and business risk profiles of Felix Healthcare Private Limited (FHPL) and Mylo Healthcare Private Limited (MHPL) which is a wholly owned subsidiary of FHPL. The consolidation is on account of common line of business, common management, strong operational and financial linkage wherein corporate guarantee is extended by FHPL to MHPL.
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| Key Rating Drivers |
| Strengths |
| Experienced Management and long operational record
Felix group is promoted by Dr. Dharmendra Kumar Gupta and Dr. Rashmi Gupta who have an experience of more than a decade each in the healthcare industry. The management is ably supported by their daughter and Dr. Shilpi Gupta. All of the directors of the company are practicing doctors. The promotors of the company are backed by team of 130 qualified doctors. FHPL has tie ups with most Third-Party Administrators (TPAs) in the industry and caters to corporate clients. Corporate clientele of FHPL includes Bharat Heavy Electricals Limited (B.H.E.L), National Thermal Power Corporation Limited (NTPC), Northern railways etc. Acuité believes that the group will continue to derive benefit from its experienced management and established operational track record in the medium to long term. Improvement in scale of operations The group has demonstrated an improvement in its scale of operations, as reflected in the growth in operating income, which stood at Rs. 201.11 Cr. in FY2025 as against Rs. 174.02 Cr. in FY2024. The group has registered a healthy revenue CAGR of ~25% during FY22–FY25, supported by an increase in patient footfall and improvement in overall occupancy levels. The operating profit margin of the group stood at 25.10% in FY2025, compared to 27.86% in FY2024. The moderation in operating margins in FY2025 is primarily attributable to the acquisition of a running hospital from Sanjeevani Trust, which is currently under renovation and operating at a sub-optimal scale. The PAT margin moderated to 15.55% in FY2025 from 17.12% in FY2024. Further, the group achieved operating income of Rs. 165.03 crore during 9MFY2026. Acuité expects the operating performance of the group to improve over the medium to long term, supported by ongoing capacity expansion and addition of new medical services. Moderate financial risk profile The financial risk profile of the group remains moderate, characterised by a growing net worth base, comfortable gearing and above-average debt protection metrics. The consolidated tangible net worth increased to Rs. 126.51 Cr. as on 31st March 2025, from Rs. 79.78 Cr. as on 31st March 2024, driven by profit accretion, infusion of funds by promoters and treatment of unsecured loans from promoters/directors as quasi-equity. The debt-equity ratio stood moderate at 0.97 times as on March 31, 2025, compared to 0.90 times in the previous year, while the TOL/TNW moderated to 1.25 times from 1.27 times over the same period due to ongoing debt funded capex. The debt protection metrics remain comfortable, with the interest coverage ratio improving to 17.16 times in FY2025 from 11.20 times in FY2024, and the DSCR improving to 3.37 times in FY2025 from 2.71 times in FY2024. The group is currently undertaking a capex for expanding of bed capacity from 200 beds to 900 beds which includes expansion setting up a new hospital tower adjacent to the existing hospital, increasing bed capacity for new hospital which acquired from Sanjeeveni under FHPL and the development of a new hospital under Mylo Healthcare Private Limited, with a total project cost of approximately Rs. 378.64 Cr., to be funded through term loans of around Rs. 273.99 Cr. and the balance through internal accruals and promoter contributions. Acuité believes that, notwithstanding the incremental leverage associated with the largely debt-funded capex, the group’s financial risk profile is expected to remain moderate over the medium term, supported by steady cash accruals. |
| Weaknesses |
| Intensive Working capital operations
The working capital management of the group is intensive in nature marked by high Gross Current Asset (GCA) days of 186 days as on March 31, 2025 as against 166 days as on March 31, 2024. The high GCA days are on account of the debtor period. The debtor’s days stood high at 145 days as on March 31, 2025 as compared to 128 days as on 31st March 2024. The debtor’s days are stretched as FHPL patients has registered with most of the TPAs in the industry as well as cater to government agencies, and now the payments are made in the given time frame. However, the inventory period stood comfortably at 7 days in March 31, 2025, as against 5 days as on March 31, 2024. Acuité believes that the working capital operations of the company will remain at the same level due to the nature of the business. Project risk associated with timely completion and commercialisation of ongoing capex The group is exposed to project execution and commercialization risk due to multiple ongoing capital expenditure projects. Felix Healthcare is undertaking expansion of its existing hospital by increasing bed capacity to 400 beds from 200 beds, adjacent to its current facility. The project, initially expected to be completed by December 2025, was delayed due to the imposition of GRAP restrictions in the Delhi NCR region, which limited construction activities. Consequently, the revised commercial operation date stands at October 2026. Further, the overall project cost has escalated to Rs. 147.09 crore from Rs. 134.90 crore. which will be managed by internal accruals / promoter contribution. As on December 31, 2025, the project was ~55.29% complete. In addition, Felix Healthcare has acquired a running hospital from Sanjeevani Trust, where the initial expansion plan was revised from 70 beds to 130 beds, and subsequently further enhanced to 200 beds. Owing to the change in scope, the total project cost increased to Rs. 102.62 crore from Rs. 55.88 crore. Of the revised cost, Rs. 73.90 crore is to be funded through a term loan from Bank of India, while the balance is being met through internal accruals and promoter/director contributions. The hospital is expected to commence operations by October 2027. As on December 31, 2025, the project was ~51.10% complete. Further, the group, through its subsidiary Mylo Healthcare Private Limited (MHPL), is setting up a 300-bed multi-speciality hospital in Noida. The project was originally expected to be operational by April 2026, but has also witnessed delays due to GRAP-related construction restrictions. The revised commercial operation date is April 2027. The total project cost stands at Rs. 128.93 crore, funded through term loans of Rs. 98.15 crore, with the balance funded by internal accruals and promoter support. As on December 31, 2025, the project was ~40.70% complete. 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. Risk associated with regulatory framework in healthcare sector The healthcare sector functions under multiples layers of regulations of government and professional bodies. In view of the Covid-19 pandemic, regulatory restrictions and state intervention in the normal operations of hospitals has increased. Additionally, the hospital faces intense competition from several players in the city from small players as well as large players. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Adequate |
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The group’s liquidity position is adequate marked by net cash accruals of Rs.37.21 Cr as on March 31, 2025 as against long term debt repayment of Rs.8.95 Cr. over the same period. The cash and bank balances of the company stood at Rs.0.35 Cr as on March 31, 2025. The current ratio stood at 1.64 times as on March 31, 2025. The fund-based limit utilisation of FHPL stood low at 40.93 percent over the last six months ended January, 2026. Acuité believes that the liquidity position of the company will remain adequate on account of healthy net cash accruals against matured debt obligations albeit debt funded capex plans over the medium term.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 201.11 | 174.02 |
| PAT | Rs. Cr. | 31.27 | 29.79 |
| PAT Margin | (%) | 15.55 | 17.12 |
| Total Debt/Tangible Net Worth | Times | 0.97 | 0.90 |
| PBDIT/Interest | Times | 17.16 | 11.20 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not Applicable
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| Any Other Information |
| None |
| Applicable Criteria |
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• 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 |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||
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