Leben Laboratories Pvt. Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 52.00 Crs. of Leben Laboratories Pvt. Ltd.The total bank-rated fund-based facilities of Rs. 52.00 crores comprise long-term facilities of Rs. 28.00 crores and short-term facilities of Rs. 24.00 crores. The long-term allocation includes Rs. 25.00 crores Term Loan from Axis Bank Ltd. and Rs. 2.00 crore Cash Credit from Axis Bank, along with a sanctioned term loan from Union Bank of India of Rs 0.66 Crores and a proposed term loan of Rs 0.34 Crores with Union Bank of India. The short-term allocation consists of Rs 24.00 packing credit with Union Bank of India.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	28.00	Long Term	BWR BBB - /Stable Assignment
	24.00	Short Term	BWR A3 Assignment
	(20.00)
	(2.15)
	(2.15)
	(2.86)
Grand Total	52.00	(Rupees Fifty Two Crores Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK

Brickwork Ratings has assigned a long-term rating of BWR BBB-/Stable and a short-term rating of BWR A3 for the bank facilities of Leben Laboratories Private Limited.

The rating factors in the company's established market presence, the sustained fiscal commitment and strategic support from its promoters, a focused expansion in diversified export territories ensuring a resilient revenue stream, and a consistently healthy interest coverage ratio. However, the rating remains constrained by the risks inherent in its long-cycle working capital requirements. Going forward, the ability of the company to balance its operational growth with a disciplined financial profile, prudently manage its long-cycle working capital requirements, and sustain its comfortable debt protection metrics would be the key rating sensitivities.

The rating outlook has been assigned as  Stable as BWR believes that Leben Laboratories Private Limited'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

KEY RATING DRIVERS

Credit Strengths:

• Seasoned Leadership Team :

  The Shah family boasts an extensive track record of over 40 years in the pharmaceutical formulation industry, demonstrating a steadfast commitment to excellence and innovation. This substantial experience has enabled the company to cultivate robust, longstanding relationships with international distributors, fostering a collaborative network that enhances global outreach. Additionally, the Shah family's deep understanding of the complex regulatory frameworks that govern the pharmaceutical sector has positioned the company as a leader in navigating these challenges. This expertise not only ensures compliance but also enhances the company's ability to introduce high-quality products to diverse markets worldwide.

• Diverse Geographic Presence :

  Leben Laboratories Pvt. Ltd. has established a robust export-oriented business model, deriving a significant portion of its operations from international markets, particularly in vital regions such as Africa and Southeast Asia. This strategic approach not only enhances its market presence but also reduces dependence on the Indian domestic market. By focusing on global opportunities, Leben effectively shields itself from potential fluctuations and uncertainties associated with local policy changes. This commitment to international growth positions the company favorably on the global stage, ensuring greater resilience and long-term sustainability.

• Regulatory Approvals :

  Leben Laboratories Pvt. Ltd. operates with a strong foundation of global regulatory credibility, having its manufacturing facilities rigorously audited and certified by multiple international authorities. These certifications include FDA (Food and Drug Administration), WHO-GMP (World Health Organization – Good Manufacturing Practices), ISO (International Organization for Standardization), EFDA (Ethiopian Food and Drug Authority), NDA (National Drug Authority, Uganda), NMRA (National Medicines Regulatory Authority, Sri Lanka), PPB (Pharmacy and Poisons Board, Kenya), and ZAMRA (Zambia Medicines Regulatory Authority).

Credit Risks:

• Strategic Positioning in a Competitive Environment :

  Leben Laboratories Pvt. Ltd. operates as a mid-sized entity within the competitive landscape of the Indian pharmaceutical industry, where it is significantly overshadowed by larger pharmaceutical giants. This positioning presents a unique set of challenges, particularly in the domain of generic medicines. The market is characterized by intense competition from a mix of both organized and unorganized players, which puts substantial pressure on pricing strategies. As a result, Leben's ability to influence pricing,"its "bargaining power",is considerably constrained. This competitive environment necessitates that Leben continually seek innovative approaches to differentiate its products and optimize operations to maintain its market share and ensure sustainable growth amidst fierce rivalries.

• Comprehensive Assessment of Foreign Exchange Vulnerability :

  The company has a significant international presence, engaging in the export of its products to various foreign markets. As its primary operating costs are denominated in Indian Rupees (INR), the company's profit margins are particularly vulnerable to fluctuations in the exchange rate. This sensitivity means that any shifts in the exchange rate can greatly impact the overall profitability of the company, making it crucial to monitor and manage foreign exchange risks effectively. Understanding these dynamics is vital for maintaining stable financial performance and ensuring long-term success in global markets.

• Regulatory & Compliance Risks :

  Operating in the pharmaceutical sector entails a rigorous adherence to stringent quality standards, as companies face comprehensive audits from regulatory bodies. These audits are crucial for ensuring that products comply with the safety and efficacy requirements expected in the market. Any adverse observations from international regulators could have significant repercussions, such as potential export bans that would severely limit the company’s ability to distribute products globally. Additionally, these findings could incur substantial compliance costs, which may encompass remedial actions, extensive retraining of personnel, and upgrades to quality control procedures. As a result, it is imperative for the company to consistently uphold high quality and operational practices to protect its reputation, financial stability, and competitive edge in the ever-evolving global pharmaceutical landscape

ANALYTICAL APPROACH - Standalone

As part of its credit rating assessment, BWR has conducted a comprehensive evaluation based on the standalone performance of Leben Laboratories Pvt. Ltd as outlined in the Rating Criteria, ensuring a systematic and objective approach to the rating process.

RATING SENSITIVITIES

Going forward, the ability of the company to sustain revenue growth, strengthen profitability, and maintain prudent leverage will remain the key rating sensitivities.

Positive Factors:

• Achieving the revenues and profitability at 10% over and above the Company's projections for FY27

• Strengthening of coverage metrics, with ISCR consistently above 2.00x and DSCR above 1.20x, reflecting comfortable debt servicing ability.

Negative Factors:

• Decline in OPBDIT margin below 12%, Weakening of liquidity profile as reflected in current ratio falling below 2.00x.

• Increase in leverage, with Total Debt/TNW rising above 1.80x

• A shortage of foreign exchange reserves and an extension of the working capital cycle beyond 180 days.

LIQUIDITY INDICATORS - Adequate

Adequate liquidity is characterized by a sufficient buffer in accruals relative to repayment obligations. The company reported net cash accruals of Rs 8.61 crore in FY2025; for FY2026, it is at Rs 8.04 crore. In FY2027, accruals are expected to strengthen significantly to Rs 22.43 crore, providing a comfortable cushion over repayment obligations. Investments are primarily funded through long-term borrowings, which stood at Rs 81.67 crore in FY2026. It is projected to decrease to Rs 79.27 crore in FY2027, indicating a commitment to repayment discipline. The Total Debt to TNW ratio improved from 1.78x in FY26 to 1.34x in FY25. Coverage indicators remain adequate, with the Interest Service Coverage Ratio (ISCR) at 2.95x in FY2025 and 2.79x in FY2026. It is projected to improve to 3.49x in FY2027. The Debt Service Coverage Ratio (DSCR) is at 1.40x in FY2025 and 1.26x in FY2026. It is expected to recover to 1.51x in FY2027. The current ratio is at 2.19x in FY2026. It is projected to improve further to 2.51x in FY2027, reflecting sufficient short-term liquidity to meet obligations.

ABOUT THE ENTITY

Established in 1989, Leben Laboratories Pvt. Ltd. (LLPL) is a privately held pharmaceutical company headquartered in Mumbai, Maharashtra, India. With over three decades of experience, the company specializes in the development and manufacturing of a wide range of pharmaceutical products. Leben Laboratories not only serves the domestic market but also distributes its products to more than 18 countries around the globe. The company is dedicated to innovation and research, which drives its commitment to excellence in the pharmaceutical industry. The company has various specialties, including Antibiotics, Anti-allergic, Anti-inflammatory, Analgesic, Anti-hypertensive, Anti-pyretic, Antacids, Anti-infective, Anti-malarial, Antiseptic, Disinfectants, Respiratory, Haematinic, Multivitamins, etc.

The company continuously invests in modern technology, advanced manufacturing practices, and rigorous quality control systems to meet international standards. Its focus on sustainable growth and patient-centric solutions has positioned it as a reliable partner in the pharmaceutical sector.

ESG Profile

The company demonstrates an adequate ESG profile based on its environmental, social, and governance practices.

Environmental: Environmental risks are driven by high water usage, waste generation, and reliance on energy-intensive processes, making disclosures on water consumption, waste-management practices, renewable energy share, and emissions levels particularly important.

Social: Social factors hinge on adherence to labour laws, accident prevention frameworks, and human-capital development, with metrics such as workforce mix, which comprises of 247 workers and 132 executives, bringing the total no. of employees to 379.

Governance: Governance assessment focuses on board independence, committee effectiveness, and robustness of compliance systems, supported by readily available disclosures on board structure, audit mechanisms, and risk-management practices.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	130.24	148.15	167.08
EBITDA	Rs.Crs.	18.29	17.66	23.43
PAT	Rs.Crs.	7.24	6.41	7.49
Tangible Net Worth	Rs.Crs.	49.28	55.87	65.79
Total Debt / Tangible Net Worth	Times	1.29	1.55	1.68
Current Ratio	Times	2.34	2.41	2.19

KEY COVENANTS OF THE FACILITY RATED

In adherence to the implied covenants as specified in the sanction letter of the banks

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
CRISIL	The downgrade of Leben Laboratories Pvt. Ltd.'s bank facilities by CRISIL stems from the non-availability of requisite information, following the company's lack of cooperation in the rating process.	30Jun2026
CRISIL	The downgrade of Leben Laboratories Pvt. Ltd's bank facilities by CRISIL is becuase the requisite information needed to conduct the rating exercise or did not provide the No Default Statements (NDS) for the last three months and is therefore classified as 'non-cooperative '.	29Oct2025

ANY OTHER INFORMATION

CRISIL Ratings has reaffirmed its "CRISIL BBB-/Stable/CRISIL A3" ratings on the bank facilities of Leben Laboratories Pvt Ltd (LLPL) dated August 6th,2024.

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	28.00	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Fund Based	ST	24.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	ST	(20.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(2.15)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(2.15)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(2.86)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		52.00	(Rupees Fifty Two Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Manufacturing Company

Analytical Contacts
Dhairya Haresh Rupreja Ratings Analyst dhairya.r@brickworkratings.com	Mukesh Kumar Verma Associate Director mukesh.verma@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	Axis Bank Ltd.	Term Loan - Sanctioned	25.00	_	25.00	Simple##
2	Axis Bank Ltd.	Cash Credit - Sanctioned	2.00	_	2.00	Simple##
3	Union Bank of India	Packing Credit (PC) - Sanctioned	_	24.00	24.00	Simple##
	Sub-Limit (Bank Guarantee) - Sanctioned		(2.15)
	Sub-Limit (CEL) - Sanctioned		(2.86)
	Sub-Limit (FDBP/FUDBP/FDBP) - Sanctioned		(20.00)
	Sub-Limit (Import LC) - Sanctioned		(2.15)
4	Union Bank of India	Term Loan - Sanctioned	0.66	_	0.66	Simple##
5	Union Bank of India	Term Loan - Proposed	0.34	_	0.34	Simple##
Total			28.00	24.00	52.00
TOTAL (Rupees Fifty Two Crores 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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