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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 45.35 | ACUITE BBB | Negative | Reaffirmed | Stable to Negative | - |
| Bank Loan Ratings | 83.75 | - | ACUITE A3+ | Reaffirmed |
| Total Outstanding | 129.10 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed its long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) and its short-term rating of ‘ACUITE A3+’ (read as ACUITE A three plus) on the Rs. 129.10 Cr bank facilities of Themis Medicare Limited (TML). The outlook is revised from ‘Stable’ to 'Negative.' |
| About the Company |
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Themis Medicare Limited (TML) was founded in the year 1969 by Dr. Shantilal D. Patel as a joint venture with Gedeon Richter Plc. Hungary. Based out of Gujarat, the company is engaged in manufacturing, marketing and distribution of active pharmaceutical ingredients (APIs), bulk drugs and formulations. The company also has its own research & development facility. Further, the company has also ventured into the hospital segment, where critical drugs used in hospitals are directly supplied to them. The operations are managed by the MD; Mr. Sachin Dinesh Patel. |
| About the Group |
| Themis Medicare Limited along with its subsidiaries, associates and JVs are referred together as the Themis group. The group was promoted by Dr. Shantilal D. Patel in 1969 and is engaged in manufacturing of APIs, bulk drugs and formulations. The group has its head office in Mumbai with its manufacturing units located in Hyderabad, Haridwar and Vapi. |
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has considered the consolidated financial and business risk profile of Themis Medicare Limited including its subsidiaries and associates as against standalone approach previously. |
| Key Rating Drivers |
| Strengths |
| Established track record of operations and extensive experience of management in the pharmaceutical industry
Incorporated in the year 1969, the company has an established operational track record of more than five decades in the pharma industry. The company has its manufacturing facilities at Haridwar, Hyderabad and Vapi. Along with manufacturing, the company also has a research & development facility (R&D) at Vapi which focuses on development of new chemicals and processes for both API & intermediates and fermentation technology whereas their Haridwar R&D facility concentrates on new drug delivery systems. It caters to both domestic as well as international markets with exports primarily to European and African countries. It was founded by Dr. Shantilal D. Patel as a joint venture with Gedeon Richter Plc. Hungary and is currently managed by Dr. Sachin Patel who holds a Doctorate in Biological Chemistry from Christ’s College, University of Cambridge, UK and has a rich experience of two decades in the pharmaceutical industry and is supported by a qualified team of senior management in the organization.
Healthy financial risk profile The financial risk profile of the company continues to remain healthy with low gearing, healthy networth and comfortable debt protection indicators. The networth improved to Rs. 402.05 Cr. on March 31, 2025 as against Rs. 377.11 Cr in FY2024, due to accretion to reserves. The gearing and TOL/TNW levels continue to remain below unity at 0.21 times (0.25 times in PY) and 0.46 times (0.50 times in PY) respectively on March 31, 2025. Further, while the long-term debt obligations increased in FY25 owing to capex plans and profitability declined, the coverage indicators deteriorated but remained comfortable with interest coverage ratio and debt service coverage ratio at 5.94 times (8.01 times in PY) and 1.57 times (2.67 times in PY) respectively in FY2025.
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| Weaknesses |
| Subdued operating performance While the revenues registered a stable growth in FY25 at Rs. 405.51 Cr. in FY2025 as against Rs. 381.76 Cr. in FY2024, however, the operating margin declined to 12.10 percent in FY2025 from 13.93 percent in FY2024 (19.95 percent in FY2023). This was majorly on account of increase in the employee cost due to investment in building teams for the hospital segment. There was also increase in other expenses due to incremental travel and marketing costs. Furthermore, the company’s performance has been significantly affected in the past two quarters with revenues reported at Rs. 97.58 Cr. in Q1FY2026 (Rs. 71.70 Cr. in Q4FY2025) as against Rs. 122.99 Cr. in Q1FY2025 and operating & net losses of Rs. 10.08 Cr. (Rs 5.78 Cr.) & Rs. 14.22 Cr. (Rs. 9.66 Cr.) respectively in Q1FY2026 (Q4FY2025). This is due to disruption of one of its high margins businesses owing to substandard imitation in the market. Additionally, there was delay in completion of some export orders, which were completed in Q2 FY2026. Working capital intensive operations The operations of TML are working capital intensive as evident from the high gross current asset (GCA) levels of 274 days in FY2025. The GCA days are mainly driven by inventory levels and debtor levels which stood at 86 days and 162 days respectively in FY2025. The creditor levels stood at 142 days in FY2025. Further, the average bank limit utilisation stood moderate at ~80 percent for the last six months ended June 2025. Highly competitive and fragmented industry The pharmaceutical formulations industry has a large number of players which makes this industry highly fragmented and intensely competitive. TML being a moderate sized player, has limited bargaining power and susceptibility to pricing pressure is also higher compared to well-established and larger players. However, the company's presence of over five decades in the industry has enabled it to partially offset competitive pressures. Further, it undertakes regular research and development to improve its product offerings. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The adequate liquidity position of TML is supported by generation of net cash accruals (NCA) of Rs. 39.76 Cr. against maturing repayment obligations of Rs. 21.66 Cr. in FY2025. Going forward the NCAs are expected to remain in the range of Rs. 27 – 31 Cr. for FY2026 and FY2027 against maturing repayments of Rs. 21 – 18 Cr. for the same period. The current ratio stood healthy at 1.92 times on March 31, 2025. The bank limit utilisation stood moderately high at 80 percent for the last six months ended June 2025. The company also had an unencumbered cash and bank balance of Rs. 12.84 Cr. on March 31, 2025. |
| Outlook: Negative |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 405.51 | 381.76 |
| PAT | Rs. Cr. | 29.83 | 43.52 |
| PAT Margin | (%) | 7.36 | 11.40 |
| Total Debt/Tangible Net Worth | Times | 0.21 | 0.25 |
| PBDIT/Interest | Times | 5.94 | 8.01 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any Other Information |
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FY2025 values are based on abridged financials. |
| 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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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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