SEH AND C TRUST

Brickwork Ratings has assigned a long-term rating of BWR BBB-/Stable to SEH AND C TRUST for its Bank Loan Facilities of Rs. 190.00 crores.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	164.27	Long Term	BWR BBB - /Stable Assignment
Non Fund Based	25.73	Long Term	BWR BBB - /Stable Assignment
Grand Total	190.00	(Rupees One Hundred Ninety 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 has assigned the Long-term rating of BWR BBB- with a Stable outlook for the Bank Loan Facilities amounting to Rs. 190.00 Crores of SEH & C Trust. The rating derives comfort from moderate total operating income, comfortable capital structure and debt protection metrics, and the Trust’s established track record of over two decades in successfully managing regulated educational institutions, including CBSE schools, pharmacy, nursing, and teacher training colleges. The management team has demonstrated resourcefulness in navigating compliance with multiple regulatory bodies, providing confidence in its ability to execute the ongoing medical college and hospital project. Moderate revenue visibility, coupled with disciplined operations and credit stability, further showcases management’s strength. However, the ratings remain constrained on account of debt-funded capex, significant reliance on government grants, presence in a highly fragmented sector with a large number of players, and geographic concentration in Patna, Bihar. The ratings have been assigned a stable outlook as SEH & C Trust’s business and financial risk profile is expected to be maintained over the medium term.

KEY RATING DRIVERS

Credit Strengths:

Established Track Record and Resourceful Management :
SEH & C Trust reflects moderate credit strength through its established track record in managing regulated educational institutions, including CBSE schools, pharmacy, nursing, and teacher training colleges. The Trust’s management team brings decades of experience and has successfully navigated compliance with multiple regulatory bodies such as NCTE, PCI, and the Bihar Nurses Registration Council. This history of disciplined operations and adherence to standards provides confidence in its ability to execute the ongoing medical college and hospital project. The resourcefulness of management, reflected in moderate Revenue visibility with credit stability further stating the Management’s resourcefulness is evidenced by Operating Income of Rs 19.33 crore in FY2025 from 9.92 crore in FY 2024, supported by steady enrolments and disciplined operational execution with Operating Margin from FY 2024-25 seen to a range of 60-70% with NCA for FY 2025 Rs. 15.28 crore from FY 2024 Rs. 7.62 crore.
Moderate Financial Risk Profile :
The Estimated Net worth of Rs. 39.73 crore as on March 31st, 2025, with TOL/TNW at 0.06 times. Debt protection metrics are comfortable with estimated Interest coverage and estimated net cash accruals to total debt at 2543.03 times and 21.83 times, respectively, for fiscal 2025, with an estimated Gearing remains at 0.02 times as of March 31, 2025, driven by the healthy operating profit of 52-70 % for the past three fiscals through 2025. The financial risk profile is expected to remain moderate over the medium term.

Credit Risks:

Competition and Regulatory Exposure :
The Trust operates in highly regulated education and healthcare sectors, where compliance with NMC, PCI, and state health authorities is mandatory. Regulatory delays in approvals, faculty recruitment norms, and hospital licensing could affect project timelines and cash flows. Additionally, competition from established private medical colleges and hospitals in neighboring states may impact student enrollments and patient inflows.
Geographical Concentration :
Operations are concentrated in Bihar, with the flagship medical college and hospital project located at Belchhi. While demand is strong due to infrastructure deficits and limited medical education capacity, concentration risk arises from dependence on a single geography. Any adverse policy changes, socio-economic challenges, or slower-than-expected uptake in Bihar could materially affect revenues and debt servicing ability.
Debt-Funded Capex Risk :
The medical college and hospital project involves significant debt-funded capital expenditure, with sanctioned facilities of ~Rs 164.27 crore. While the expansion enhances long-term revenue potential, it exposes the Trust to risks of high leverage, repayment obligations, and dependence on timely project execution. Delays in commissioning, slower ramp-up of admissions or patient volumes, or cost overruns could strain liquidity and debt servicing metrics.

ANALYTICAL APPROACH - Standalone

To arrive at its ratings, BWR has considered the standalone performance of SEH & C Trust. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Positive:
Timely Project Implementation signifying the successful completion of the medical college and hospital within the scheduled date, without major cost overruns or delays.
Revenue Diversification & Growth signifying sustained growth in operating income beyond Rs 30–35 crore annually from FY27 onwards, supported by higher enrollment, improved course utilization, and incremental healthcare revenues.

Negative:
Execution Delays or Cost Overruns signifying any significant delay in medical college or hospital beyond the scheduled completion date or escalation of project costs, leading to higher leverage and repayment stress, which might lead to negative rating action.
Revenue and Debt Servicing Risks signifying that a fall in revenue or margins, or stress in debt servicing during the ramp-up phase, will be negative for the ratings and might lead to negative rating action.

LIQUIDITY INDICATORS - Adequate

The trust’s liquidity profile remains adequate, supported by healthy operating cash accruals and minimal existing debt. High cash accruals owing to very healthy margins of around 70% and a steady collection efficiency during the last 12 months also support liquidity. As of March 26, cash and cash equivalents of Rs 5.25 crores, and debt servicing requirement over the next one year is around 0.20 crores, indicating a comfortable liquidity position.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Consumer Discretionary	Consumer Services	Other Consumer Services	Education

The entity, SEH & C Trust, was incorporated on 13th August 2010 in Patna Bihar; Since inception it manages CBSE-affiliated schools and operates higher education institutions offering Bachelor of Education and Diploma in Education programs in compliance with multiple regulatory bodies. Further, the entity is presently executing a Medical College and Hospital Project at Belchhi, Bihar. The proposed Medical College & Hospital (multi-speciality) would have 650 beds & 150 MBBS seats in the annual intake in its first phase.

ESG Profile

The institution demonstrates an adequate ESG profile based on its environmental, social, and governance practices. For educational institutions, governance is a key factor influencing the overall ESG assessment.

Environmental: Environmental aspects reflect the institution’s commitment to sustainability and resource efficiency. These may include energy-efficient campus buildings, use of renewable energy sources such as solar or wind, waste reduction and recycling programs, water conservation measures, and sustainable procurement practices, including digital education tools to reduce paper consumption.

Social: Social factors indicate the institution’s focus on inclusive and safe learning environments. Key elements may include equitable access to education for all socio-economic groups, including marginalized or differently-abled students, promotion of diversity and inclusion among staff and students, and employee health and safety initiatives.

Governance: Governance considerations highlight the institution’s adherence to regulatory and ethical standards. These may include compliance with educational laws and standards, accreditation and licensing status, effective grievance-redressal mechanisms, independence and diversity of the governing board, and oversight of academic quality and faculty accountability.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	9.10	9.92	19.33
EBITDA	Rs.Crs.	5.93	7.31	14.90
PAT	Rs.Crs.	6.15	7.62	15.28
Tangible Net Worth	Rs.Crs.	17.53	24.87	39.73
Total Debt / Tangible Net Worth	Times	Not Available	Not Available	0.02
Current Ratio	Times	4.24	7.00	12.05

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for bank loan 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	164.27	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	LT	25.73	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		190.00	(Rupees One Hundred Ninety Crores Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Shalaka Shashikant Keer Ratings Analyst shalaka.k@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

SEH AND C TRUST

ANNEXURE-I

Details of Bank Facilities rated by BWR

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	State Bank Of India (SBI)	Term Loan - Sanctioned	99.50	_	99.50	Simple##
2	State Bank Of India (SBI)	Term Loan - Sanctioned	64.77	_	64.77	Simple##
3	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	25.00	_	25.00	Simple##
4	State Bank Of India (SBI)	Bank Guarantee - Proposed	0.73	_	0.73	Simple##
Total			190.00	0.00	190.00
TOTAL (Rupees One Hundred Ninety 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.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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