Press Release September 04, 2025 MEGASTAR HOSPITALS AND MEDICAL SCIENCES PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	39.81	ACUITE B+ | Stable | Assigned	-
Bank Loan Ratings	1.19	-	ACUITE A4 | Assigned
Total Outstanding	41.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has assigned long term rating of 'ACUITE B+' (read as ACUITE B plus) on the Rs. 39.81 Cr. bank facilities and short-term rating of 'ACUITE A4' (read as ACUITE A four) on the Rs. 1.19 Cr. on the bank facilities of Megastar Hospitals and Medical Sciences Private Limited. The outlook is 'Stable'. Rationale for rating The rating reflects the company’s exposure to project implementation risk for the hospital and expected leveraged capital structure. These Weaknesses are offset by the experience of the promoters and financial flexibility to infuse funds as and when required.

About the Company

­Incorporated in 2019, Megastar Hospitals and Medical Sciences Private Limited, the company has proposed to establish and operate 109 bedded multi-speciality hospital and diagnostic unit at Varanasi, Uttar Pradesh. The construction of the project would start from October 2025 and the expected completion date would be September 2026. The directors of the company are Mrs. Nisha Agrawal and Dr. Sanjeev Agarwal.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has taken standalone business and financial risk profile of Megastar Hospitals and Medical Sciences Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

­Benefits derived from promoters The directors of the company are Dr. Sanjeev Agarwal and Mrs. Nisha Agrawal. Dr. Sanjeev Agarwal has gained experience at various hospitals working in the chest and respiratory department and also provide critical care medical services. Acuite believes that his experience in the same industry supported by his team would aid the successful execution of the project going forward.

Weaknesses

­Below average financial risk profile The adjusted tangible net worth of the company improved to Rs. 8.28 Cr. in FY2025 (Provisional) as compared to Rs.0.01 Cr. in FY2024 due to unsecured loans being treated as quasi equity of Rs. 8.27 Cr, these are subordinated to bank loans. Exposure to execution risk due to early stages of project  The company is exposed to execution risk of the project and also includes cost overrun risk. The commercial operations are likely to begin from September 2026. The cost of the project is expected to be Rs. 52.26 Cr. to be funded in debt equity ratio of 0.96 times. Till date, Rs. 12.85 Cr. has been incurred with a mix of debt and unsecured loans and the loan has been sanctioned of Rs. 34 Cr. by the Union Bank of India. Acuité would continue to monitor the status of stabilization of the project and the track record of operations, once commercialised.

Rating Sensitivities

Timely completion of the project  Timely stabilisation of the project

Liquidity Position

Stretched

­The company’s liquidity is stretched as the company is in initial phase of setting up the hospital. The support of funding will come from debt and promoters fund mix. The total repayment will be done in 95 monthly instalments after moratorium period of 6 months from commercial operation date. There is financial flexibility of promoters to infuse funds in the project. The company has also received a sanction of working capital limit of Rs. 5 Cr. (secured overdraft) which is expected to fund its day-to-day operations post operationalization of the hospital.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	0.00	0.00
PAT	Rs. Cr.	0.00	0.00
PAT Margin	(%)	0.00	0.00
Total Debt/Tangible Net Worth	Times	0.96	183.28
PBDIT/Interest	Times	0.00	0.00

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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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Union Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.19 Simple ACUITE A4 | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.81 Simple ACUITE B+ | Stable | Assigned Union Bank of India Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE B+ | Stable | Assigned Union Bank of India Not avl. / Not appl. Term Loan 27 Sep 2024 Not avl. / Not appl. 31 Aug 2034 34.00 Simple ACUITE B+ | Stable | Assigned

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

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.