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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Bank Loan Ratings | 0.00 | 45.35 | ACUITE BBB- | Stable | Downgraded | - | RBI |
| Bank Loan Ratings | 0.00 | 83.75 | - | ACUITE A3 | Downgraded | RBI |
| Total Outstanding | 0.00 | 129.10 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |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. |
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Rating Rationale |
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Acuite has downgraded the long term rating to 'ACUITE BBB-' (read as ACUITE triple B minus) from 'ACUITE BBB' (read as ACUITE triple B) and the short term rating to 'ACUITE A3' (read as ACUITE A three) from '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 to 'Stable' from 'Negative'. Rationale for downgrade The downgrade takes into account the decline in the operating performance and profitability of the company in FY2026, significantly lower than Acuite’s expectations. The downgrade also considers the stretched liquidity position of the company. The rating, however, factors in the moderate financial risk profile and established track record of operations of TML. Going forward, improvement in the operating profitability and revenue along with ease in the liquidity position will be a key rating sensitivity.
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| About the Company |
| 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 |
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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. |
| 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 has an experience of two decades in the pharmaceutical industry and is supported by a qualified team of senior management in the organization. Moderate financial risk profile The financial risk profile of TML is characterized with low gearing and healthy networth. The networth of the company stood at Rs. 398.47 Cr. on March 31, 2026. The gearing remains below unity at 0.25 times on March 31, 2026 (0.21 times in PY). TOL/TNW levels also remain low at 0.50 times on March 31, 2026 (0.46 times in PY). However, Debt-EBITDA levels stood increased at 4.36 times on March 31, 2026. The interest coverage ratio stands at 2.15 times on in FY2026. |
| Weaknesses |
| Decline in revenue and profitability
The operating revenue of the company declined to Rs. 342.24 Cr. in FY2026 from Rs. 405.51 Cr. in FY2025 on account of disruption in high margin API business owing to substandard imitation in the market. This had significantly impacted the performance of the company for three consecutive quarters ending September 2025 leading to generation of losses. The performance of the company improved from Q3 FY2026 onwards, but the impact of losses in the previous quarters has offset the profits in H2 FY2026, therefore, the overall profitability declined, significantly lower than Acuite’s projections. The EBITDA margin deteriorated to 0.11 percent in FY2026 as against 12.47 percent in FY2025. The PAT stood low at Rs. 1.14 Cr. in FY2026 from Rs. 29.83 Cr. in FY2025. The company is focusing towards optimization of its resources along with increasing the share of the hospital segment and exploring new markets. Going forward, improvement in the operating revenue with healthy profitability margins will be a key rating sensitivity. Working capital intensive operations The operations of the company are working capital intensive. The gross current assets (GCA) stood high at 325 days in FY2026 as against 270 days in FY2025 The GCA are driven by the inventory and debtor days. The debtor days stood elongated at 190 days in FY2026 from 162 days in FY2025. The inventory days stood at 87 days in FY2025 and FY2026. On the other hand, creditor days stood at 143 days in FY2026 as against 132 days in FY2025. Improvement in the working capital cycle will be a key monitorable. Highly competitive, fragmented and regulated industry
The pharmaceutical formulations industry is highly fragmented and intensely competitive due to the presence of a large number of players. As a moderate-sized participant, TML has limited bargaining power and is more susceptible to pricing pressures compared to larger and well-established players. However, its presence in the industry for over five decades has enabled it to partially mitigate competitive pressures, supported by continuous investment in research and development to enhance its product offerings. Additionally, the industry is highly regulated, with significant government intervention, and the company’s manufacturing facilities must undergo regular monitoring and approval from various global regulatory authorities. Consequently, any prohibitions or restrictions imposed by these authorities on the company’s facilities can significantly impact its operations.
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Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
| Improvement in the financial risk profile including improvement in the DSCR. Improvement in revenue and profitability leading to generation of net cash accruals higher than Rs. 30 – 35 Cr |
| Potential triggers (individual or collective) for a downward rating action: |
| Further elongation in working capital cycle Generation of net cash accruals lower than Rs. 20 Cr |
| Liquidity Position |
| Stretched |
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The liquidity position of TML is stretched. It generated net cash accruals of Rs. 11.46 Cr. on March 31, 2026 against maturing repayment obligations of Rs. 21.02 Cr. The repayments were managed through additional debt and working capital management. With expected improved in business operations, the NCAs are expected to remain in the range of Rs. 25 - 40 Cr. against repayments arising in the range if Rs. 8-20 Cr. in FY2027 and FY2028. The current ratio stood comfortable at 1.81 times on March 31, 2026. Further, the company had an unencumbered cash and bank balance of Rs. 9.15 Cr. on March 31, 2026. |
| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 26 (Actual) | FY 25 (Actual) |
| Operating Income | Rs. Cr. | 342.24 | 405.51 |
| PAT | Rs. Cr. | 1.14 | 29.83 |
| PAT Margin | (%) | 0.33 | 7.36 |
| Total Debt/Tangible Net Worth | Times | 0.25 | 0.21 |
| PBDIT/Interest | Times | 2.15 | 5.94 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any Other Information |
| FY2026 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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| 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. |
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||
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Contacts |
List of instruments and names of regulators of the instruments |
