Dhanush Healthcare Systems Pvt Ltd

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 21.90 Crs. of Dhanush Healthcare Systems Pvt Ltd

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	4.90	Long Term	BWR BB /Stable Assignment	RBI
Non Fund Based	16.50	Long Term	BWR BB /Stable Assignment	RBI
	(4.90)
	(4.90)
	(11.50)
	0.50	Short Term	BWR A4 + Assignment	RBI
Grand Total	21.90	(Rupees Twenty One Crores and Ninety lakhs Only)

Note:
1. Please refer to BWR website www.brickworkratings.com for the definition of the ratings
2. Refer to Annexures I, II, and III for details of rated bank loan facilities, debt instruments, and the List of Entities Consolidated RATING ACTION / OUTLOOK

Brickwork Ratings assigns the long-term and short-term ratings of BWR BB/Stable /A4+ for the Bank Loan Facilities of Rs. 21.90  Crs. of Dhanush Healthcare Systems Pvt Ltd. 

The rating reflects the directors’ extensive experience since 2008 in the healthcare and IT industries, along with a growing scale of operations supported by a strong order book of government projects. Dhanush Healthcare Systems benefits from a unique competitive edge through its integration of health-tech software with physical delivery operations, further reinforced by global validation from UNICEF and institutional credibility. Furthermore, the company maintains a moderate financial risk profile. Going forward, the company's ability to scale operations, enhance profitability, and strengthen its overall liquidity and credit profile will remain key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that Dhanush Healthcare Systems Pvt Ltd.'s business risk profile will be maintained over the medium term.  The 'Stable' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Positive' in case the revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

KEY RATING DRIVERS

Credit Strengths:

• ­­Experienced management and established track record of operations :

  Dhanush Healthcare Systems Private Limited is backed by a strong operational foundation with 18 years of experience in the IT and digital health ecosystem. The company is led by a highly qualified management team specializing in healthcare informatics, system integration, and public health frameworks. The organization's leadership is driven by Managing Director Surya Narayana Murthy Dendukuri (51) and Director-Finance Chandrima Dendukuri (54). Both executives hold Post Graduate Diplomas in Industrial Engineering (PGDIE) from the National Institute of Industrial Engineering (NITIE), now IIM Mumbai, and bring 18 years of professional expertise to the management team

• Moderate financial risk profile :

  The company has adequate liquidity with net cash accrual of Rs. 1.98  Cr as against the CPLTD of Rs. 0.06 Cr in FY2026. The Current Ratio of the company stood at 2.26 times in fy26, indicating an adequate short-term liquidity position of the company, and has Rs. 4.01 Cr of Cash and Bank Balance in FY2026. ISCR of the company stood at  4.20 times, and DSCR of the company stood at 2.03 times in FY26, indicating adequate debt servicing capacity of the company.  The average utilization of the Overdraft limit of ICICI Bank is 56.48%.  The Total Debt/TNW ratio stood at 2.93 times in FY25. And as per FY26 provisional financials, the Total debt/TNW ratio improved to 0.48 times, and the TOL/TNW ratio stood at 1.26 times, as per Fy26 provisional financials, reflecting a moderate leverage profile of the company.

• Dominance in Public-Private Partnerships (PPP) :

  Dhanush has built a powerful niche in securing and executing massive government and NGO contracts. Their solutions are tightly aligned with national programs like Ayushman Bharat and NITI Aayog initiatives, giving them long-term stability in the public infrastructure loop.

Credit Risks:

• AI risk in health care :

  If an AI learns from incomplete data, it can make incorrect diagnoses or miss subtle signs of illness. Sharing sensitive patient data with AI systems increases the risk of massive cyberattacks and privacy breaches.

• High B2G (Business-to-Government) Vulnerability :

  A heavy reliance on public health portfolios means the company is vulnerable to political shifts, changes in bureaucratic leadership, and lengthy government tendering processes. Furthermore, government contracts are notoriously associated with delayed payment cycles, which can strain working capital.

• High Customer Concentration Risk :

  Their revenue model is anchored to a few large-scale public initiatives (e.g., specific state contracts in Uttar Pradesh or Andhra Pradesh). The expiration, cancellation, or loss of even a single major government tender during a political transition can result in material downside risk to their cash flow.

ANALYTICAL APPROACH - Standalone

 For arriving at its ratings, BWR has considered the standalone performance of  Dhanush Healthcare Systems Pvt Ltd. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Going forward, the ability of the company to improve its revenue and financial risk profile would remain the key rating moniterables.
 

Positive: 

• Improvement in operating income by 30% and achieves an operating margin of more than 12%, along with enhanced cash accruals and a stronger cash and cash equivalents position.
• Significant strengthening of debt protection metrics and capital structure, driven by efficient working capital management.

Negative:

• A decline of 20% or more in revenue due to adverse market conditions or operational inefficiencies, and with EBITDA and PAT margins dropping under current levels.
• A significant weakening of debt protection coverages and liquidity buffers, or a stretched working capital cycle.
   

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterised by a sufficient cushion in accruals vis-a-vis repayment obligations and a moderate net cash balance of Rs. 4.01 Crore. No Capex plans are envisaged in the near future. Its bank limits are utilised to the extent of around 56.48%and has sought enhancement in bank lines, supported by the above unity current ratio.

The company has adequate liquidity with net cash accrual of Rs. 1.98  Cr as against the CPLTD of Rs. 0.06 Cr in FY2026. The Current Ratio of the company stood at 2.26 times in FY26, indicating an adequate short-term liquidity position of the company, and has Rs. 4.01 Cr of Cash and Bank Balance in FY2026. ISCR of the company stood at  4.20 times, and DSCR of the company stood at 2.03 times in FY26, indicating adequate debt servicing capacity of the company.  The average utilization of the Overdraft limit of ICICI Bank is 56.48%. Taking all the above points into consideration, the company's liquidity position is defined as Adequate.

 

ABOUT THE ENTITY

Dhanush Healthcare Systems Private Limited is a global health-technology organization that provides digital solutions and services for the healthcare industry. Founded in 2008, the company maintains key operations across India, Africa (including Kenya), and Australia, and employs a robust pool of over 1,000 healthcare and technology experts. Under the founding leadership of Surya Narayan Murthy Dendukuri and Chandrima Dendukuri (CEO and Managing Director), the company's registered head office is strategically located in Begumpet, Hyderabad, Telangana.

The promoter group demonstrates strong financial flexibility, supported by key corporate shareholders including LCGC. They are high-net-worth promoters with a 50% stake and a track record of consistent support for the organization.

Over the past five years, the company has collaborated closely with the Ministry of Health and Family Welfare (Government of India), UNICEF, and the UN Global Innovation Center to develop and deploy primary healthcare screening services worldwide. The company has extensive expertise in healthcare technology and innovative solutions across Africa and Australia.  The company contributes to India's national development in a formal and structured manner by operating as a specialized partner within the public healthcare ecosystem.

India Entry & Government Projects: Their pivot into the Indian public healthcare sector was sparked by a UNICEF recommendation following their successful telemedicine work in Uganda. This led to their first major Indian government contract in 2015: the Mother and Child project.
Andhra Pradesh Projects (UPSC & RBSK): In 2016, they launched the Electronic Urban Primary Healthcare Centers (UPSC) project in AP, modernizing 29 centers with biometrics and telemedicine. This increased daily patient footfall from 25 to up to 200 people per center. In 2018, they initiated the Rashtriya Bal Swasthya Karyakram (RBSK) project, managing a mobile medical unit (MMU) fleet of 57 existing units & will be increased to192 units in the near future, to screen children across 13 districts & equipped with 450 Mobile Health Teams (MHTs). They are covering remote and rural places where the people are the beneficiaries who don't have medical facilities. They are bidders for tenders from the government, and after successful bidding, they deliver specialized programs like mobile-based health services  (MMUs, MHTs, MVUs, Hearse vans), Mother & child wellness (ANMOL), Telemedicine & Running PHCs ( PHC upgrade), Health & Wellness centres (sub centres), hospital information management system ( HIMS), Child screening ( RBSK), Vmed - telemedicine-based video consultation. which is equipped with an MMU Portable ECG machine, Digital X-ray / Portable Ultrasound unit, Phlebotomy (blood draw) station, Ophthalmic (eye test) or Dental equipment they require to provide screening and first aid in case of any complication; they are directly referring patients to the primary health care centre 

Over the years, the company has served more than 150 major clients around the world. For the past five years, they have partnered with prominent organizations like UNICEF, the United Nations Global Innovation Center, and the Indian Ministry of Health to design and launch primary healthcare and medical screening programs across the world and India. 

IT services: To support these initiatives, the company has created a full suite of digital solutions, including mobile apps and software that help community health workers and local clinics track patient wellness, screen for non-communicable diseases, and manage healthcare delivery. At present, they have contracts for 11 projects of differeent states in India. Also, their export business includes providing IT services to Kenya. 

ESG Profile

The company's ESG profile demonstrates a Adequate profile across environmental, social, and governance dimensions, aligned with the operational characteristics of the services sector.

Environmental: the company focuses on its environmental responsibility, on logistics optimization, and the reduction of healthcare-associated travel footprints. By procuring custom vehicle fleets tailored to navigate rugged terrains, they ensure asset longevity and safety while minimizing field operational waste.

Social: From a social perspective, the social pillar defines the company's core mission of driving massive public health access for underserved communities. Through the operations of 57 Mobile Medical Units (MMUs) acting as moving clinics in Chhattisgarh, Haryana, and Andhra Pradesh and widespread child screenings.

Governance: From a governance standpoint, Dhanush Healthcare Systems maintains a highly transparent and structured approach to fiscal responsibility and regulatory compliance. They ensure strong accountability by maintaining strict operational separation from independent related-shareholder entities and preserving compliant, in-house sourcing pipelines that leverage "reliever" doctor ecosystems to guarantee zero gaps in government health service deliveries.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)	FY 25 - 26 (Provisional - Annual)
Operating Revenue	Rs.Crs.	18.62	22.43	26.79
EBITDA	Rs.Crs.	1.89	2.17	2.74
PAT	Rs.Crs.	0.19	1.15	1.42
Tangible Net Worth	Rs.Crs.	10.19	11.34	12.76
Total Debt / Tangible Net Worth	Times	2.69	2.93	0.48
Current Ratio	Times	4.17	6.06	2.26

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include covenants normally stipulated for such facilities.

 unsecured loan of Rs 176Mn, treated as quasi-equity, should not be withdrawn during the currency of the ICICI Bank facility.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating  (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	4.90	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	LT	16.50	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	LT	(4.90)	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
		(4.90)	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
		(11.50)	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	0.50	BWR A4+ (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		21.90	(Rupees Twenty One Crores and Ninety lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Service Sector Company

Analytical Contacts
Meena N P Ratings Analyst meena.np@brickworkratings.com	Jayanthi Yogeesh Senior Manager - Ratings jayanthi.y@brickworkratings.com
Media Contact | media@brickworkratings.com	Client Support | clientsupport@brickworkratings.com

SL.No.	Name of the Bank/Lender	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)	Complexity of the Instrument
1	ICICI Bank	Over Draft - Sanctioned	4.90	_	4.90	Simple##
	Sub-Limit (Bank Guarantee(Performance)) - Sanctioned	(4.90)
	Sub-Limit (Bank Guarantee(Performance) 1) - Sanctioned	(4.90)
2	ICICI Bank	Bank Guarantee - Sanctioned	16.50	_	16.50	Simple##
	Sub-Limit (Bank Guarantee(Financial)) - Sanctioned	(11.50)
3	ICICI Bank	Derivative Limit	_	0.50	0.50	Simple##
Total			21.40	0.50	21.90
TOTAL (Rupees Twenty One Crores and Ninety lakhs Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

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