Press Release May 13, 2026 SKINNOVATION PRIVATE LIMITED Rating Assigned and Upgraded

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	5.00	ACUITE BBB- | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	35.00	ACUITE BBB- | Stable | Upgraded	-	RBI
Bank Loan Ratings	0.00	15.00	-	ACUITE A3 | Assigned	RBI
Total Outstanding	0.00	55.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuite has upgraded long-term rating to ‘ACUITE BBB-' (read as ACUITE triple B minus) from ‘ACUITE BB+’ (read as ACUITE double B plus) on Rs. 35.00 Cr. bank facilities of Skinnovation Private Limited (SPL). The outlook is 'Stable'. ­Further, ­Acuite has assigned the long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and the short term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 20.00 Cr. bank facilities of Skinnovation Private Limited (SPL). The outlook is 'Stable'. Rationale for Upgrade: The rating upgrade reflects the group’s sound business risk profile, supported by a consistent upward trend in operating income and sustained improvement in profitability in FY26. The upgrade also takes comfort from the group’s experienced management team and long-established operational track record. Additionally, the rating benefits from the group’s moderate financial risk profile and adequate liquidity position. The successful acquisition of Skinselect Private Limited in April 2025 further strengthens the business risk profile of the group. However, the rating remains constrained by working capital–intensive nature of operations, leading to higher reliance on bank limits, and the susceptibility of profitability to foreign exchange fluctuation risks.

About the Company

­Mumbai based, Skinnovation Private Limited (SPL) is a provider of advanced technologies and systems for the aesthetic industry in India. The company is engaged in Import, Trading & Service of Medical devices, Cosmeceutical Products & Manufacturing of Smoke Evacuator Device and was incorporated in year 2011. Mr. Kalpesh Sitaram Gawade, Mrs. Rajani Kalpesh Gawade and Mrs. Chaita Chakor Baviskar are the directors of the company.

About the Group

­Incorporated in 2021, Mumbai based, Skinselect Private Limited (SSPL) is engaged in the business of manufacturing and trading of skin and cosmetics related products. Mr. Kalpesh Sitaram Gawade and Mrs. Rajani Kalpesh Gawade are the directors of the company.

Unsupported Rating

­­Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuite has consolidated business and financial risk profiles of Skinnovation Private Limited (SPL) and Skinselect Private Limited (SSPL). Skinselect Private Limited (SSPL) became wholly owned subsidiary of Skinnovation Private Limited (SPL) w.e.f. 01st April 2025. The consolidation is on account of common management, similar line of business and operational and financial linkages.

Key Rating Drivers

Strengths

Experienced management and long operational track record The group is promoted and managed by Mr. Kalpesh Sitaram Gawade, Mrs. Rajani Kalpesh Gawade, and a team of experienced personnel. The directors possess over 20 years of experience in the aesthetic medical devices and cosmeceutical products industry. It has established long-term relationships, spanning 10-12 years, with its suppliers, supported by exclusive distribution agreements. The longstanding experience of the promoters has helped the group establish strong relationships with key suppliers and customers. Acuite believes that the group will benefit from the experienced management team to maintain its established relations with suppliers and customers. Improving Scale of Operations The group has exclusive partnerships with its overseas suppliers for imported products it sells in the domestic market. The group recorded moderate growth in revenues which stood at Rs. 128.07 crore in FY2025, as against Rs. 127.50 crore in FY2024. This growth was primarily driven by a increased product sales. The operating margin increased to 15.87% in FY2025 from 13.49% in FY2024, driven by sale of relatively high margin products. The Profit After Tax (PAT) margin increased to 7.83% in FY2025, from 6.83% in FY2024. As of March 2026 (Est.), the group has achieved Rs. 183.38 Cr. of revenues wherein SPL has contributed revenues of Rs. 155.42 Cr. and SSPL has contributed revenues of Rs. 27.96 Cr. Acuite believes that the group is likely to improve its operational scale and profitability margins steadily over the medium term.   Moderate Financial Risk Profile The financial risk profile of the group remained moderate marked by moderate gearing, moderate debt protection metrics and low net worth. The net worth of the group stood at Rs. 31.76 Cr. in FY2025, compared to Rs. 21.73 Cr. in FY2024. The increase in net-worth is due to the accretion of profits to the reserves. The total debt of the group stood at Rs. 44.28 Cr. as on 31st March 2025 as against Rs. 34.26 Cr. as on 31st March 2024. The total debt of FY25 consist of Rs. 2.69 Cr. of Long-term debt, Rs. 0.10 Cr. of USL and Rs. 39.78 Cr. of short-term debt and Rs. 1.70 Cr. of current maturities of long-term debt. The total outside liabilities to tangible net worth (TOL/TNW) ratio also improved and stood at 2.40 times as on 31st March 2025 as against 3.03 times as on 31st March 2024. The gearing (Debt-equity) of the group remained moderate at 1.39 times in FY2025, compared to 1.58 times in FY2024. Further, debt protection metrics also remained moderate, with the Interest Coverage Ratio (ICR) at 4.00 times in FY2025, compared to 3.69 times in FY2024. The Debt Service Coverage Ratio (DSCR) of the group stood at 2.14 times in FY2025, compared to 1.90 times in the previous year. The Net Cash Accruals to Total Debt (NCA/TD) stood at 0.24 times in FY2025, compared to 0.27 times in the previous year. Moreover, the directors have infused ~Rs. 9.00 Cr. in FY26 in the form of unsecured loans in order to support the growing business operations. Going forward, the financial risk profile is expected to remain in similar levels on account of steady cash accruals and no major debt-funded capex plans.

Weaknesses

Working capital intensive operations The operations of the group remained working capital intensive, marked by a Gross Current Asset (GCA) of 266 days in FY2025 compared to 225 days in FY2024. The GCA days comprise of high inventory and debtors’ levels. The debtor days stood at 136 days as of March 31, 2025, compared to 115 days as of March 31, 2024. The inventory days for the group stood at 137 days in FY2025 compared to 115 days in FY2024. Additionally, creditor days stood at 99 days in FY2025, compared to 102 days in the previous year. Furthermore, reliance on working capital limits remained high, with utilization at around 97.01 percent over the 06 months ending April 2026. Acuite believes that the working capital operations of the group will continue to remain moderately intensive on the back of elongated collection period. Profitability is susceptible to foreign exchange fluctuations The group imports over 80 per cent of its purchases from South Korea, Israel, China, and Spain thus is exposed to fluctuations in foreign exchange rates. The group does not use hedging mechanism however covers the exposure whenever required. SPL booked forex losses to the tune of Rs. 0.43 Cr. and Rs. 0.50 Cr. in FY25 and FY24 respectively. Thus, the group remains vulnerable to the risk of exchange rate fluctuations, which likely to have an impact on group's profitability over the medium term.

Rating Sensitivities

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

Significant improvement in the group’s operating scale on a sustained basis Improvement in financial risk profile Improvement in working capital cycle below 120 days on a sustained basis

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

­ Significant decline in revenue below Rs. 100.00 Cr. or profitability margins Further elongation in working capital cycle exerting pressure on liquidity

Liquidity Position

Adequate

­­The liquidity position of the group is adequate marked by net cash accruals (NCAs) of Rs. 10.75 Cr. as on FY2025 against repayment obligations of Rs. 1.98 Cr. over the same period. Going forward, the NCAs are expected to remain in the range of Rs. 15.00 – 20.00 Cr. against maturing obligations of Rs. 1.00 – 2.00 Cr. for FY2026 and FY2027. The current ratio stood comfortable at 1.28 times on March 31, 2025 as compared to 1.26 times as on March 31, 2024. The group had an unencumbered cash and bank balance of Rs. 1.41 Cr. on March 31, 2025. Furthermore, reliance on working capital limits remained high, with utilization at around 97.01 percent over the 06 months ending April 2026. Acuité believes that the liquidity of the group is likely to remain adequate over the medium term on account of steady cash accruals, moderate current ratio albeit 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.	128.07	127.50
PAT	Rs. Cr.	10.03	8.71
PAT Margin	(%)	7.83	6.83
Total Debt/Tangible Net Worth	Times	1.39	1.58
PBDIT/Interest	Times	4.00	3.69

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 • Trading Entities: https://www.acuite.in/view-rating-criteria-61.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 12 Feb 2025 Cash Credit Long Term 10.00 ACUITE BB+ | Stable (Assigned) Cash Credit Long Term 25.00 ACUITE BB+ | Stable (Assigned)

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

­ Sr. No. Company Name 1 Skinnovation Private Limited 2 Skinselect Private Limited

Contacts

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

List of instruments and names of regulators of the instruments

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In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators. 4 There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. 5 These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.   B. Other activities:   Sr. No. Activity Name Regulator of the activity 1 Monitoring Agency SEBI 2 Research activities, incidental to rating, such as research for Economy, Industries and Companies 6 Not applicable 6 permitted by SEBI vide SEBI Master Circular for CRAs. 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