RATING RATIONALE
31Mar2026
PANACEA MEDICAL TECHNOLOGIES PRIVATE LIMITED
Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 80.00 Crs. of PANACEA MEDICAL TECHNOLOGIES PRIVATE LIMITED
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 60.31 | Long Term |
BWR BBB -
/Stable Assignment |
|
| Non Fund Based | 19.69 | Short Term |
BWR A3
Assignment |
|
| Grand Total | 80.00 | (Rupees Eighty Crores Only) | ||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK
Brickwork Ratings has assigned a long-term and short-term rating of BWR BBB-/Stable/A3 for the bank loan facilities of Panacea Medical Technologies Private Limited.
The rating factors in the company’s consistent revenue growth, the extensive experience of its directors, and its moderate financial profile. However, it remains constrained by exposure to intense competition, the inherent risk of rapid technological changes, and exposure to raw material price fluctuations that could impact cost structures. Going forward, the ability of the company to improve its scale of operations, the operating margin, and prudently manage its debt and inventory would be the key rating sensitivities.
The rating outlook has been assigned as "Stable" as BWR believes that Panacea Medical Technologies 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, 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 DRIVERSCredit Strengths:
-
Management Risk :
The company is led by Mr.G.V. Subrahmanyam(Co-Founder, MD & Chief Scientist) who has completed M. Tech in Aeronautical Engineering from IIT with over 30 years of experience in applied research and medical equipment development, Worked for 10 years at Hindustan Aeronautics Ltd till 1996 and then co-founded PMT driven by his passion to develop hi-tech medical equipment using cutting edge technology for the common man, supported by Mrs.Valli (Executive Director) who has completed BE in IT Management and has over 20 years of experience in operations and is a Member of BIS Medical Equipment & Hospital Planning Department (MHD 15) standards review committee and Mr.Ramann(Director - finance) is 35+ years of Tax Professional Consultant. He is responsible for all financial matters of the company and is a key investor in the company.
-
Technological Capability and R&D: :
A strong focus on innovation and product development enables a medical equipment manufacturer to continuously introduce advanced, high-quality products, enhancing both market position and pricing power.
-
Moderate Financial risk: :
For FY25, the company reported an operating income of Rs.98.78 Cr and a PAT of Rs.6.67 Cr. During the same period, net worth stood at Rs.133.75 Cr, with Total Debt/TNW and TOL/TNW ratios at 0.52x and 0.63x, respectively. Liquidity and coverage remained stable, with a current ratio of 2.05x and an ISCR of 1.48x.
-
Intense Competition: :
The medical equipment industry faces strong competition from large global companies and low cost domestic manufacturers. Global players offer advanced technology and strong brand value, while local players compete on lower prices. This puts pressure on pricing and margins, making it difficult for the company to maintain market share and profitability.
-
Working Capital Intensity: :
Long payment cycles from hospitals and government clients can delay cash inflows, putting pressure on liquidity and increasing working capital requirements.
The Company has no subsidiary, associate or joint ventures. BWR has taken a standalone approach for the bank loan rating review of the company. BWR has applied its rating methodology as detailed in the rating criteria.
RATING SENSITIVITIES
Going forward, the company’s ability to improve its revenue profile and strengthen its financial risk profile will remain the key rating sensitivities.
Positive:
- Improvement in scale of operations with operating margin improving by 20%.
- Improvement in ISCR and DSCR and Maintaining satisfactory debt protection metrics, with ISCR and DSCR at comfortable levels.
Negative:
- A decline of 15% or more in revenue, and the PAT margin falling below the 4.5%.
- Decline in the DSCR below 1.00x.
Adequate liquidity characterized by sufficient cushion in accruals vis-a-vis repayment obligations and moderate cash balance of Rs. 19.56 Crore. Its bank limits are utilized to the extent of 82% and has sought enhancement in bank lines, supported by the above unity current ratio.
The company has reported net cash accruals of Rs.13.28 Cr against a CPLTD of Rs.12.03 Cr in FY2025. For FY2026, net cash accruals are expected to Rs.11.12 Cr, with a projected CPLTD of Rs. 4.21 Cr. The company has Rs.133.75 Cr of TNW. As of FY2025, the company has a Cash and Bank Balance of Rs.19.56 Cr and Short Term Loans and Advances of Rs.10.03 Cr in FY2025. The current ratio of the company stands at 2.05 times, indicating sufficient short-term liquidity, and it is expected to improve to 6.47 times in FY2026.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Healthcare | Healthcare | Healthcare Services | Healthcare Service Provider |
Panacea Medical Technologies is a medical equipment manufacturer pioneering state-of-the-art innovations and solutions for the diagnosis and treatment of cancer.
The company is a technology-based company with a team of proficient, purposeful, and motivated engineers, with expertise in advanced medical equipment design, constantly at work to develop exemplary products. The company's Research and Development center in Bengaluru is supported by the state-of-the-art manufacturing facility. The company has a 3.0acre manufacturing facility in Malur, Karnataka. The Directors of the company are Mr.G.V. Subrahmanyam, Mrs.Valli and Mr.Ramann. The company has a highly talented and skilled workforce of 310+ employees.
Certifications:
The Company is certified by ICMED 13485 Plus, ISO 13485: 2016, ISO 45001: 2018, ISO 27001, ISO 14001: 2015 ZED Silver and FDA.
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 optimizing energy consumption across its operations, with total energy usage . Initiatives to reduce its carbon footprint include. Waste management practices cover paper and electronic waste, with % of total waste. Water consumption during the period stood at, supported by conservation and treatment measures. The company reported instances of environmental non-compliance or penalties during the period.
Social : From a social perspective, the company employed people as ofand emphasizes fair wages, competitive benefits, and employee well-being. Health and safety policies apply across both office-based and remote work environments with recordable incidents reported during the year. Diversity and inclusion efforts are reflected in gender diversity and inclusive hiring initiatives. Employee capability development remains a priority, supported by training programmes and structured career progression initiatives.
Governance: From a governance standpoint, the company’s framework includes the effectiveness of investor and stakeholder grievance-redressal mechanisms, the structure and independence of the board independent directors and a maximum tenure o and adherence to regulatory and ethical standards. Workforce governance policies promote fairness and equity across the organization. Ethical conduct is guided by a documented code of conduct and anti-corruption policies, with confirmed violations reported during the period. Data security and cybersecurity are assessed based on the presence of governance policies, oversight mechanisms, and internal controls intended to safeguard sensitive information, ensure compliance with applicable regulations, maintain client trust, and support business continuity.
KEY FINANCIAL INDICATORS (Standalone)| Key Parameters | Units |
FY 22 - 23 (Audited - Annual) |
FY 23 - 24 (Audited - Annual) |
FY 24 - 25 (Audited - Annual) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | 84.78 | 97.65 | 98.78 |
| EBITDA | Rs.Crs. | 20.87 | 24.27 | 19.52 |
| PAT | Rs.Crs. | 8.06 | 5.64 | 6.67 |
| Tangible Net Worth | Rs.Crs. | 80.54 | 84.91 | 133.75 |
| Total Debt / Tangible Net Worth | Times | 0.72 | 0.79 | 0.52 |
| Current Ratio | Times | 1.83 | 1.52 | 2.05 |
The terms of sanction include covenants normaly stipulated for such facilities.
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 | 60.31 |
BWR BBB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Non Fund Based | ST | 19.69 |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Grand Total | 80.00 | (Rupees Eighty Crores Only) | |||||||
| Analytical Contacts | |
|---|---|
|
Soumya R Gadanchi Ratings Analyst soumya.r@brickworkratings.com |
Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | Customer Support | CustSupport@brickwrokratings.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 | Export Import Bank of India | Term LoanSanctioned | 5.10 | _ | 5.10 | Simple## |
| 2 | SIDBI | Term LoanSanctioned | 5.58 | _ | 5.58 | Simple## |
| 3 | State Bank Of India (SBI) | Cash CreditSanctioned | 7.00 | _ | 7.00 | Simple## |
| 4 | State Bank Of India (SBI) | Cash CreditProposed | 25.01 | _ | 25.01 | Simple## |
| 5 | State Bank Of India (SBI) | Term LoanSanctioned | 1.86 | _ | 1.86 | Simple## |
| 6 | State Bank Of India (SBI) | Term LoanSanctioned | 0.76 | _ | 0.76 | Simple## |
| 7 | State Bank Of India (SBI) | Bank GuaranteeSanctioned | _ | 14.00 | 14.00 | Simple## |
| 8 | State Bank Of India (SBI) | Letter of CreditSanctioned | _ | 5.00 | 5.00 | Simple## |
| 9 | State Bank Of India (SBI) | Forward ContractSanctioned | _ | 0.69 | 0.69 | Simple## |
| 10 | Union Bank of India | Cash CreditSanctioned | 15.00 | _ | 15.00 | Simple## |
| Total | 60.31 | 19.69 | 80.00 | |||
| TOTAL (Rupees Eighty 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.
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
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