Mandakini Memorial Hospital Pvt. Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 56.00 Crs. of Mandakini Memorial Hospital Pvt. Ltd.

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	55.50	Long Term	BWR BB /Stable Assignment	RBI
Non Fund Based	0.50	Short Term	BWR A4 Assignment	RBI
Grand Total	56.00	(Rupees Fifty Six Crores 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 has assigned the long-term rating of BWR BB/Stable and short-term rating of BWR A4 for the bank loan facilities aggregating to Rs. 56.00 Crs of Mandakini Memorial Hospital Pvt. Ltd.  

The rating derives strength from the experienced promoter group with established medical expertise, modern hospital infrastructure, improving scale of operations, increasing patient footfall, growing empanelment with TPAs/CGHS, and demonstrated promoter support through regular capital infusion and unsecured loans. However, the rating is constrained by the company's limited operational track record, ISCR and DSCR below unity, stretched liquidity, intense competition from established healthcare providers in the region, and susceptibility of the financial profile to successful ramp-up in occupancy and profitability.

The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term. BWR believes Mandakini Memorial Hospital Pvt. Ltd.’s business and financial risk profile will be maintained over the medium term. The outlook may be revised to Positive if a sustained increase in the scale of operations and higher-than-envisaged profitability result in an improved financial risk profile, leading to stronger cash accruals and improved leverage. The outlook may be revised to Negative if lower-than-expected revenue or profitability, deterioration in leverage indicators, or any stress in servicing debt obligations occur.

For assigning the rating, BWR has relied upon the projected financials for FY27 & FY28, and publicly available information and clarification provided by management.

KEY RATING DRIVERS

Credit Strengths:

• Diversified promoter group with existing presence in healthcare and allied social infrastructure: :

  The hospital is promoted by the Ranaghat-based Pal Group, which has an established presence across multiple businesses including rice milling, cold storage, agro-farming and education, along with prior exposure to healthcare through group entities such as Chirantan Netra O Swastha Sebayatan Pvt Ltd and Ranaghat Pal & Sons Healthcare Foundation. The Group has also set up an adjacent 100-seat medical college (Mandakini Institute of Medical Science), providing potential synergies in the form of clinical training tie-ups and a steady future pipeline of medical talent.

• Large-scale, well-equipped multi-speciality tertiary care hospital: :

  The company operates a 420-bed G+3 multi-speciality hospital in Ranaghat, West Bengal, with advanced medical infrastructure including a Cath Lab, CT Scan, dedicated ICU/NICU/PICU/HDU, dialysis unit and CSSD, and offers a diversified portfolio of specialities across General Medicine, General Surgery, Orthopaedics, Obstetrics & Gynaecology, Cardiology, Nephrology, Urology, Paediatrics and ENT, with a specific emphasis on geriatric care — reducing dependence on any single speciality and supporting diversified revenue generation across IPD, OPD, diagnostics and pharmacy.

• Healthy project execution and operational ramp-up: :

  The project achieved Date of Commencement of Commercial Operations (DCCO) on 16th April 2026, with all key statutory approvals (Consent to Establish, Fire NOC, Consent to Operate, Hospital Registration, Bio-Medical Waste Authorization) obtained. Revenue is projected to scale up sharply from nil during the construction phase to Rs. 32.00 crore in FY26-27, with EBITDA turning positive at Rs. 12.20 crore from a negative EBITDA of Rs. 1.57 crore in FY25-26, reflecting stabilization of operations, and margins are expected to improve further with rising occupancy and operating leverage.

Credit Risks:

• Early stage of operations with no established track record: :

  This is the maiden hospital project of the promoter group, with commercial operations having commenced only in April 2026 — around six months later than originally envisaged. The operating track record is therefore extremely limited, and the company's ability to sustain the projected occupancy ramp-up, revenue growth and margin profile over the medium term remains to be demonstrated.

• Limited prior experience of promoters in hospital operations: :

  While the promoter group is diversified and has some exposure to healthcare-related activities, none of the directors have direct experience of managing a large-scale tertiary care hospital. The company's clinical and operational success will therefore depend significantly on hired professional hospital management and consultant doctors rather than promoter-led operational expertise.

• Intense competition from an established, accredited peer hospital: :

  The company faces direct competition from Manorama Hospitex, a 494-bed, NABH and QCI-accredited multi-speciality hospital already established as the first of its kind in the district and drawing patients from a wide catchment. Mandakini will need to undertake sustained marketing, branding and clinical-quality investment to build patient trust and capture market share from this entrenched competitor.

ANALYTICAL APPROACH

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

RATING SENSITIVITIES

Positive Triggers:

• A significant and sustained increased in scale of operations, with TOI crossing Rs. 40 crore on the back of healthy and improving bed occupancy across IPD, OPD, diagnostics and pharmacy.
• Operating margin sustained above 45%, in line with or ahead of the 38.12% built into current projections, along with PAT turning and remaining positive on a sustained basis beyond the FY26-27 turnaround year.
• Improvement in debt protection metrics ahead of the current projected trajectory — DSCR sustaining above 1.0x at least a year earlier than currently projected (FY26-27), along with Total Debt/TNW moderating below 2.0x.

Negative Triggers:

• Operating margin falling below 30% or continued net losses extending beyond FY26-27, indicating the pre-operational loss phase has not genuinely stabilized as projected.
• Current ratio remaining below 1.0x in FY27 and FY28.
• If there is any interest in the unsecured loan in the future, i.e, it is a key monitorable.

LIQUIDITY INDICATORS - Stretched

Liquidity is stretched, as reflected in an extremely low current ratio of 0.04x in FY26 (Prov.), primarily due to project-stage trade payables and other current liabilities coming due before commercial operations. However, the current ratio is projected to strengthen to 1.04x in FY27 as cash flow from hospital operations normalizes. Cash and bank balances remained modest at Rs. 0.28 crore as of March 31, 2026 (Prov.). Net Cash Accruals (NCA) remained negative at (-)Rs. 4.38 crore in FY26 (Prov.) due to expensed pre-operative overheads during the pre-COD phase. Post-COD, the company has projected cash accruals of Rs. 7.55 crore in FY27. Liquidity remains exposed to the working-capital-intensive nature of hospital operations, with receivables from insurance companies, TPAs, and government healthcare schemes leading to elongated realization cycles.

ABOUT THE ENTITY

Mandakini Memorial Hospital Private Limited is an active, unlisted non-government private company incorporated on March 21, 2024, operating a prominent multi-speciality healthcare facility in West Bengal, India. The corporate entity backs the Mandakini Memorial Hospital, a multi-speciality medical center located in the Nadia district. Promoted by the region’s multi-business Pal Group, the company was formed to establish and manage modern healthcare and diagnostic facilities.

 

ESG Profile

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

Environmental: The company focuses on complying with applicable environmental regulations for healthcare facilities, including biomedical waste management through authorized agencies and adherence to statutory environmental norms. Further, no material environmental non-compliance or penalties were reported

Social: Ensuring the safety and well-being of patients, staff, and the community is paramount in healthcare waste management. By prioritizing proper handling procedures, facilities can significantly reduce the risk of spreading infections and diseases. To achieve this, it is essential to conduct regular training and awareness programs for healthcare staff that focus on effective waste segregation and disposal. Employee capability development remains a priority, supported by training programmes and structured career progression initiatives.

Governance: Governance considerations highlight the institution’s adherence to regulatory and ethical standards.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)	FY 26 - 27 (Projected)
Operating Revenue		Not Available	Not Available	32.00
EBITDA		-0.30	-1.57	12.20
PAT		-0.40	-7.29	2.88
Tangible Net Worth		8.79	14.07	19.20
Total Debt / Tangible Net Worth		1.48	3.46	2.64
Current Ratio		0.61	0.04	1.04

KEY COVENANTS OF THE FACILITY RATED

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

NIL

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

Facilities	Current Rating  (2026)			2026 (History)		2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	55.50	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		56.00	(Rupees Fifty Six Crores Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Divyanshu Pandey Ratings Analyst divyanshu.p@brickworkratings.com	Shyam Sunder Narang shyam.n@brickworkratings.com
1-860-425-2742 | media@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	Indian Bank	Term Loan - Sanctioned	15.92	_	15.92	Simple##
2	Indian Bank	Term Loan - Sanctioned	32.58	_	32.58	Simple##
3	Indian Bank	Bank Guarantee - Sanctioned	_	0.50	0.50	Simple##
4	State Bank Of India (SBI)	Cash Credit - Sanctioned	7.00	_	7.00	Simple##
Total			55.50	0.50	56.00
TOTAL (Rupees Fifty Six Crores Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf.

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