Press Release June 18, 2026 PRAKASH SHIKSHAN FOUNDATION 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	109.03	ACUITE BB | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	15.97	-	ACUITE A4+ | Assigned	RBI
Total Outstanding	0.00	125.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuité has assigned its long-term rating of 'ACUITE BB' (read as ACUITE Double B) and short-term rating of 'ACUITE A4+' (read as ACUITE A four plus) on the Rs. 125.00 crore bank facilities of Prakash Shikshan Foundation. The outlook is ‘Stable’. Rationale for rating assigned The rating assigned takes into account the below-average financial risk profile, marked by negative net worth and high gearing. The rating further reflects the intensive working capital requirements due to delays in government fee reimbursements, resulting in stretched liquidity as indicated by a low current ratio. However, rating derives strength from established presence and diversified course offerings of PSF. The rating also factors in the improvement in operating performance arising from the addition of new courses leading to higher student intake along with annual fee revisions. The entity remains exposed to competition from established institutions offering similar courses and to regulatory risks associated with oversight from multiple authorities.

About the Company

Prakash Shikshan Foundation (PSF) is a Section 8 company incorporated under the Companies Act, 2013 with effect from 11 December 2024. The entity was earlier operating as Prakash Shikshan Mandal (PSM), a public trust, since 2000 in the field of education. The organisation is based in Islampur, Sangli District, Maharashtra, and is promoted by the Patil family under the leadership of Hon. Nishikant Prakash Bhosale Patil. The Board of Directors of PSF are Hon. Nishikant Prakash Bhosale Patil, Mr. Sanjay Shamrao Jadhav, Smt. Shashikala Prakash Patil, Mr. Nitin Prakash Patil, Mrs. Sunita Nishikant Patil, Miss. Pranjali Nishikant Patil, Mr. Sandip Madhukar Yadav, and Mr. Sayaji Dinkar Patil.

Unsupported Rating

­Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of Prakash Shikshan Foundation to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operations supported by diversified revenue streams PSF has an established track record of operations offering diversified group of educational and healthcare institutions under the Prakash and LRP brands, spanning medical education, Ayurveda, nursing, K-12 schooling, paramedical training, hospital services, and student hostel accommodation. The flagship institution is Prakash Institute of Medical Science & Research (PIMSR), an NMC-approved MBBS college with an annual intake capacity of 150 seats and a total approved strength of 750 MBBS students over the tenure of course. Further, PSF has been recently commenced MBBS PG (MD/MS) admissions from 2025 with an intake of 47 seats in first year which enables it to expand its reach in offering different streams of education. Currently, it operates 11 institutes and has a combined strength of ~2,887 students with ~2,500 students staying in in-campus hostels for FY26. The management of the entity bears an experience of more than two decades in the education industry, thus, enabling the entity to increase its reach in the industry. Acuité believes that the established track record of operations along with introduction of new courses will enable the entity to grow over the medium term. Improvement in the operating performance While the student strength for the company have moderately improved from 2757 seats in FY24 to 2887 seats in FY26, the revenue of the company rose to Rs.134.13 Cr. in FY26 (Prov.) as compared to Rs.119.88 Cr. in FY25 and Rs.99.59 Cr. in FY24. The growth is on the back of addition of new MBBS PG course for which the first revenue was marked in FY25. The new course contributed ~16.5% in the total revenue in FY26 and the same is expected to continue, supported by the increased intake as students in the PG MBBS program advance to higher years, along with approvals for increased seat capacity which is in plan currently. Further, on an average the company also increases it courses fees by 7-10 percent per year. However, PAT levels remain low with losses incurred till FY25 due to high expenses, interest and depreciation costs.  Acuité believes, going forward, this continued momentum of increasing student strength, any addition of newer courses and fees escalations shall lead to growth in the revenue.

Weaknesses

Below average financial risk profile The financial risk profile of the company stood below average, marked by negative net worth, high gearing (debt-equity) and moderate debt protection metrics. The tangible net worth stood at Rs. (101.69) Cr. as on March 31, 2026 (Prov.). The total debt stood at Rs. 122.48 Cr. as on March 31, 2026 (Prov.) majorly constituting the debt taken for establishing the PG course infrastructure. Moreover, the debt protection metrics is marked moderate with Interest Coverage Ratio and Debt Service Coverage Ratio at 2.03 times and 1.22 times respectively in FY26 (Prov.)  Intensive working capital operations The working capital management of the company is intensive marked by gross current assets (GCA) of 207 days in FY26 (Prov.) as against 254 days in FY25. The higher GCA days are on account of higher debtors days driven by fees receivables from the government. Under some government schemes, concessions are offered to under privileged category students wherein the students only need to pay a nominal amount, and the remainder fees is received from the government to the institutes. As per management, it takes over a year to get the money from the government. Exposure to competition and regulatory risks PSF faces competition from established educational institutions offering similar courses, which may constrain scalability and profitability. The ability to attract students in line with sanctioned intake remains a challenge, alongside the need to retain qualified and experienced professionals. In addition, the education sector operates under a stringent regulatory framework, with oversight from bodies such as the National Medical Commission (NMC), Maharashtra University of Health Sciences (MUHC), Maharashtra State Board of Nursing and Paramedical Education (MSBNPE), Central Board of Secondary Education (CBSE), Indian Certificate of Secondary Education (ICSE), and Indian Council of Skill Development (ICSD). Compliance with prescribed standards requires continuous investment in infrastructure and workforce, adding to operational pressures.

Rating Sensitivities

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

Increase in number of admissions and fees leading to generation of healthy net cash accruals Improvement in financial risk profile with decline in Debt/EBITDA below 2 times

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

Decline in operating performance, leading to further stretched in liquidity affecting debt servicing. Any significant debt availed leading to deterioration in financial risk profile with Debt/EBITDA above 4 times

Liquidity Position

Stretched

The company’s liquidity position remains stretched, as reflected in its low current ratio of 0.40 times as on March 31, 2026 (Prov.) and high fund-based limits utilization with an average utilization at 97.63% over the six months ended May 2026. Moreover, net cash accruals in FY26 (Prov.) were supported by other income, standing at Rs.19.54 Cr. against long-term debt repayment obligations of Rs.12.62 Cr. Nevertheless, company had cash and bank balances at Rs.9.48 Cr. as on the year-end of FY26 (Prov.) and going forward, it is expected to generate sufficient net cash accruals in the range of Rs.20–30 Cr. during FY27 and FY28, which should adequately cover its debt obligations of ~Rs.12 Cr. over the same period.

Outlook - Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	134.13	119.88
PAT	Rs. Cr.	6.03	(8.81)
PAT Margin	(%)	4.50	(7.35)
Total Debt/Tangible Net Worth	Times	(1.20)	(1.23)
PBDIT/Interest	Times	2.03	1.14

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

­

Contacts

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

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