Press Release April 02, 2026 SCOTT EDIL PHARMACIA LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	187.18	ACUITE A | Stable | Reaffirmed	-
Bank Loan Ratings	49.00	-	ACUITE A1 | Reaffirmed
Total Outstanding	236.18	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­A­cuité has reaffirmed the long-term rating of 'ACUITE A' (read as ACUITE A) and the short term rating of 'ACUITE A1' (read as ACUITE A one) on the Rs.236.18 Crore bank facilities of Scott Edil Pharmacia Limited. The outlook is "Stable". Rationale for Rating The rating continues to factor in the experienced management and the group’s established track record of operations. Further, the group has demonstrated improvement in its scale of operations, with revenues increasing to Rs. 836.90 Cr. in FY25 from Rs. 783.90 Cr. in FY24. The group has further achieved revenues of Rs. 882.17 Cr. during 9MFY26 (before inter-company transaction adjustments). In addition, the financial risk profile of the group remains healthy, marked by healthy gearing, which stood at 0.74 times as on March 31, 2025. However, the above strengths are partly offset by intensive working capital requirements, as reflected in gross current asset (GCA) days of 177 days in FY25. Moreover, volatility in raw material prices and exposure to foreign exchange fluctuations remain key sensitivity factors over the near to medium term.

About the Company

­­­Based in Himachal Pradesh, Scott Edil Pharmacia Limited (SEPL) was incorporated in 2003 by Mr. B. K. Agarwal, Mr. Sanjeev Agarwal and Mrs. Vaishali Agarwal. The company manufactures generic medications, as well as pharmaceutical items like injections, syrups, ointments, and eye drops.

About the Group

­Scott Edil Group (SEG) comprises of Scott Edil Pharmacia Limited (SEPL) and Scott Edil Advance Research Laboratories and Education Limited (SEARLE). The group is promoted by Mr. B.K. Agarwal, Mr. Sanjeev Agarwal and Mrs. Vaishali Agarwal. The group is engaged in the manufacturing of generic drugs, eye drops, syrups, capsules, tablets and medicinal ointments with its manufacturing facilities at Baddi, Himachal Pradesh. The group markets its products under 485 brands through a pan-India distribution network of authorized distributors and stockiest. SEG also undertakes contract manufacturing for marquee players like Abbott Healthcare Limited, Alembic Pharmaceuticals Limited and Lupin Limited among others and also caters to central government institutions. Further, the group also caters to the export market to countries like Yemen, Turkey, Jordan, Afghanistan, Iran, and Panama, among others.

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 the financial and business risk profiles of Scott Edil Pharmacia Limited (SEPL) Scott Edil Advance Research Laboratories and Education Limited (SEARLE) together referred as Scott Edil Group (SEG). The consolidation is on account of the common management, similarities in the line of business and presence of significant operational and business synergies.

Key Rating Drivers

Strengths

­Established track record of operation and established relationship with its reputed clientele Scott Edil Group (SEG) was promoted by Mr. B.K. Agarwal who has been associated with the pharmaceutical business for over four decades. Prior to the incorporation of SEG, Mr. B.K. Agarwal and his family was engaged in the retail chain of pharmacies in Punjab region. SEG is present across 24 states in India via a network of distributors and stockiest. The group has wide variety of around 700 generic drug brands in its product portfolio. SEG also caters to a wide range of reputed industrial clients. SEG undertakes contract-manufacturing of both generic and patented drugs for players. Further, the group also caters to state and central government to health departments, public dispensaries, government funded hospitals. and it supplies essential drugs and pharmaceutical combinations to these institutions – both to meet their day-to-day demand and under specific health schemes of the central and state governments. Acuité believes that the long operational track record of the group coupled with the extensive experience of the management will continue to benefit the group going forward, resulting in steady growth in the scale of operations. Improvement in scale of operations The group has demonstrated improvement in its scale of operations, marked by growth in net revenue from operations by ~6.76%, which stood at Rs. 836.90 Cr. in FY25 as against Rs. 783.90 Cr. in FY24. The operating performance has also improved, with operating margins increasing to 12.35% in FY25 from 10.45% in FY24, primarily driven by higher average realisations for its products. Consequently, the net margin improved to 6.53% in FY25 from 5.41% in FY24. Further, the group has reported revenues of Rs. 882.17 Cr. in 9MFY26 (before inter-company transaction adjustments). Acuite believes that the group is expected to sustain improvement in its scale of operations and profitability over the near to medium term, supported by better price realisations. Healthy Financial Risk Profile The group’s financial risk profile remains healthy, marked by a healthy net worth, gearing, and comfortable debt protection indicators. The total tangible net worth stood at Rs. 297.14 Cr. as on March 31, 2025, against Rs. 242.16 Cr. as on March 31, 2024, with the increase attributable to profit accretion to reserves. Gearing improved to 0.74 times in FY25 from 0.93 times in FY24. The total outside liabilities to tangible net worth also improved, standing at 1.55 times in FY25 as compared to 1.95 times in FY24. Debt protection metrics remained comfortable, with interest service coverage ratio (ISCR) and debt service coverage ratio (DSCR) at 5.58 times and 2.64 times, respectively, in FY25, against 6.26 times and 2.85 times in FY24. The group is currently undertaking a capex of ~Rs. 50.22 Cr. for setting up a new manufacturing unit for product diversification, which is proposed to be funded through a mix of internal accruals and external debt. Acuite believes that the financial risk profile of the group is expected to remain at similar levels over the medium term.

Weaknesses

Intensive working capital operations The group continues to have intensive working capital requirements, as reflected in elevated gross current asset (GCA) days, which stood at 177 days in FY25 as against 182 days in FY24. The high working capital intensity is primarily attributable to elevated debtor levels and other current assets. Debtor days increased to 99 days in FY25 from 93 days in FY24, while inventory holding days stood at 58 days in FY25 as compared to 55 days in FY24. Acuite believes that the working capital intensity of the group is likely to remain at similar levels over the near to medium term, due to the inherent nature of its operations. ­Intense competition and regulated pharmaceutical industry The group is exposed to intense competition from organized and unorganized players. However, SEG has more than a decade experience and has been able to establish itself in the Indian pharmaceutical industry. Further, SEG is exposed to regulatory risk in the domestic as well as overseas (Middle East, African and European countries) markets. However, the same is mitigated to an extent since the company has been dealing with these countries for more than five years.

Rating Sensitivities

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

­Growth in the scale of operations by 40% with improving profitability margins. Improvement in financial risk profile

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

­Any large debt funded capex, impacting the financial risk profile and liquidity DSCR falling below 2 times

Liquidity Position

Strong

The group’s liquidity position remains strong, marked by healthy net cash accruals of Rs. 66.52 Cr. during FY25 against long-term debt repayment obligations of Rs. 13.54 Cr. over the same period. The cash and bank balances stood at Rs. 0.33 Cr. as on March 31, 2025. The current ratio stood at 1.13 times as on March 31, 2025. The average utilisation of fund-based working capital limits stood at 73.88%, while non-fund-based limits were utilised at 26.39% over the last twelve months ended December 2025. Acuite believes that the liquidity position of the group is expected to remain strong, supported by steady net cash accruals against scheduled debt repayments, albeit with some moderation on account of debt-funded capex plans over the medium term.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	836.90	783.90
PAT	Rs. Cr.	54.65	42.44
PAT Margin	(%)	6.53	5.41
Total Debt/Tangible Net Worth	Times	0.74	0.93
PBDIT/Interest	Times	5.58	6.26

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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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 03 Jan 2025 Cash Credit Long Term 44.00 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Working Capital Term Loan Long Term 0.87 ACUITE A | Stable (Assigned) Cash Credit Long Term 24.00 ACUITE A | Stable (Assigned) Working Capital Term Loan Long Term 3.09 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Cash Credit Long Term 15.00 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Cash Credit Long Term 6.00 ACUITE A | Stable (Assigned) Term Loan Long Term 39.79 ACUITE A | Stable (Assigned) Working Capital Term Loan Long Term 3.52 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Term Loan Long Term 6.00 ACUITE A | Stable (Assigned) Proposed Long Term Bank Facility Long Term 1.65 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Proposed Long Term Bank Facility Long Term 6.99 ACUITE A | Stable (Assigned) Working Capital Term Loan Long Term 0.18 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Working Capital Term Loan Long Term 0.17 ACUITE A | Stable (Assigned) Working Capital Term Loan Long Term 5.79 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Working Capital Term Loan Long Term 22.21 ACUITE A | Stable (Assigned) Working Capital Term Loan Long Term 1.09 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Working Capital Term Loan Long Term 1.86 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Working Capital Term Loan Long Term 1.97 ACUITE A | Stable (Assigned) Letter of Credit Short Term 15.00 ACUITE A1 (Upgraded from ACUITE A2+) Letter of Credit Short Term 20.00 ACUITE A1 (Upgraded from ACUITE A2+) Letter of Credit Short Term 17.00 ACUITE A1 (Assigned) 06 Oct 2023 Working Capital Term Loan Long Term 0.18 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 44.00 ACUITE A- | Stable (Reaffirmed) Working Capital Term Loan Long Term 3.09 ACUITE A- | Stable (Reaffirmed) Working Capital Term Loan Long Term 5.79 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 15.00 ACUITE A- | Stable (Reaffirmed) Working Capital Term Loan Long Term 4.38 ACUITE A- | Stable (Reaffirmed) Working Capital Term Loan Long Term 1.40 ACUITE A- | Stable (Reaffirmed) Working Capital Term Loan Long Term 1.86 ACUITE A- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 0.48 ACUITE A- | Stable (Reaffirmed) Letter of Credit Short Term 15.00 ACUITE A2+ (Reaffirmed) Letter of Credit Short Term 20.00 ACUITE A2+ (Reaffirmed)

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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 State Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A1 | Reaffirmed State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 64.00 Simple ACUITE A | Stable | Reaffirmed Bank Of Baroda Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE A | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Derivative Exposure Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE A1 | Reaffirmed State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A1 | Reaffirmed Bank Of Baroda Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A1 | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 16.00 Simple ACUITE A | Stable | Reaffirmed Bank Of Baroda Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Mar 2033 6.00 Simple ACUITE A | Stable | Reaffirmed UCO BANK Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 04 Sep 2034 1.16 Simple ACUITE A | Stable | Reaffirmed UCO BANK Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 04 Sep 2034 1.84 Simple ACUITE A | Stable | Reaffirmed UCO BANK Not avl. / Not appl. Term Loan 17 Jul 2024 Not avl. / Not appl. 31 Jul 2031 3.00 Simple ACUITE A | Stable | Reaffirmed UCO BANK Not avl. / Not appl. Term Loan 25 Nov 2024 Not avl. / Not appl. 30 Nov 2031 8.80 Simple ACUITE A | Stable | Reaffirmed UCO BANK Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Aug 2032 0.57 Simple ACUITE A | Stable | Reaffirmed KOTAK MAHINDRA BANK LIMITED Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Mar 2033 27.50 Simple ACUITE A | Stable | Reaffirmed Bank Of Baroda Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Mar 2030 0.87 Simple ACUITE A | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Nov 2027 2.03 Simple ACUITE A | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Mar 2026 0.27 Simple ACUITE A | Stable | Reaffirmed Bank Of Baroda Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Jun 2028 1.97 Simple ACUITE A | Stable | Reaffirmed Bank Of Baroda Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Apr 2029 0.17 Simple ACUITE A | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Mar 2033 28.00 Simple ACUITE A | Stable | Reaffirmed

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No.  Company name 1 Scott Edil Advance Research Laboratories And Education Limited 2 Scott Edil Pharmacia Limited

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg 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.