Science House Medicals Pvt. Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 119.73 Crs. of Science House Medicals Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	83.40	Long Term	BWR BBB - /Stable Assignment
Non Fund Based	36.33	Short Term	BWR A3 Assignment
Grand Total	119.73	(Rupees One Hundred Nineteen Crores and Seventy Three lakhs 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 to the bank loan facilities of Rs.119.73 Cr of Science House Medicals Pvt. Ltd.    

The rating factors in the directors’ extensive industry experience, the moderate financial risk profile of the company with enhanced working capital limits, and the current orders in hand. However, the rating is constrained by industry competition and the intensive nature of working capital operations. Going forward, the company’s ability to improve its revenue profile and strengthen its financial risk profile will remain the key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that Science House 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 DRIVERS

Credit Strengths:

• Management Experience :

  The company is led by a highly experienced board of directors. Mr. Shailendra Tiwari (47) brings approximately 25 years of expertise to the table, while Mr. Jitendra Tiwari (50) offers over two decades of specialized knowledge in the healthcare industry. They are supported by Ms. Sunayna Tiwari (46), who has 15 years of professional experience. This seasoned leadership team possesses a deep understanding of market dynamics, allowing the company to maintain robust relationships with both suppliers and customers.

• Moderate Financial Risk Profile :

  According to provisional financials for FY2026, the company reported Rs. 251.66 Cr in operating income. The OPBDIT increased to Rs. 48.62 Cr, indicating significant growth, while the operating margin improved to 19.32%, reflecting enhanced operational efficiency. Additionally, the company reported a net profit of Rs. 22.56 Cr. 

  The company's TNW (Tangible Net Worth) increased from Rs. 37.63 Cr in FY2024 to Rs. 66.29 Cr in FY2025. As per the FY2026 provisional financials, the net worth further increased to Rs. 88.85 Cr. The Total Debt/TNW ratio declined from 1.68x in FY2024 to 1.30x in FY2025, and the TOL/TNW ratio declined from 2.95x in FY2024 to 2.43x in FY2025. These figures reflect a strong net worth position and a moderate leverage profile, driven by the substantial increase in the company's capital base.

  As of FY2026, the Total Debt/TNW ratio stood at 1.45x, and the TOL/TNW ratio improved to 2.09x. The current ratio also improved from 0.92x in FY2025 to 1.24x in FY2026, reflecting an adequate short-term liquidity position. Furthermore, the ISCR improved from 2.34x in FY2025 to 5.45x in FY2026. Finally, the DSCR stood at 2.48x in FY2025 and further improved to 2.99x in FY2026, indicating the company's strong debt-servicing capacity.

   

• Current Orderbook Position :

  The company has successfully secured two major diagnostic services tenders. The first is with the State Health Society, Bihar (SHSB), Patna, Government of Bihar, to provide pathology services at designated government healthcare facilities under a hub-and-spoke model. This contract has an approved annual value of Rs.180.00 crore for a five-year term, commencing from the agreement execution date of March 7, 2026. The second tender is with the National Health Mission, Madhya Pradesh (NHM-MP), Department of Public Health & Medical Education, Government of Madhya Pradesh. This agreement carries a total contract value of Rs.500.00 crore over five years, with an expected annual value of Rs.100.00 crore.

  Driven by this robust project pipeline, the company possesses strong revenue visibility for the upcoming fiscal periods. These long-term service agreements provide a stable foundation for a projected acceleration in sales growth and an expanded market presence in the healthcare sector

• Enhanced Working Capital Limits :

  As per the sanction letter dated March 20, 2026, the HDFC Bank enhanced the working capital limits of the company. This enhancement in working capital limits will enable the company to manage its operational liquidity more effectively and support its growing scale of business.

Credit Risks:

• Government Tender Dependency :

  The company’s diagnostic service revenue depends heavily on government tenders. Consequently, any adverse changes in government policy, or failures to meet quality standards in lab maintenance and operations, could lead to a loss of contracts. Securing and maintaining these contracts remains critical to the company’s future growth

• Geographical concentration risk :

  The company primarily operates in Madhya Pradesh and Bihar. Any adverse changes in the political environment affecting the state economy or government decisions related to the healthcare segment may impact the company's sales and profitability.

• Working Capital Management :

  According to the FY2026 provisional financials, the company reports an Inventory Period of approximately 92 days, Receivables of 112 days, and Payables of 156 days, resulting in a Net Working Capital Cycle of 48 days. While a stretched working capital cycle can signal potential liquidity risks where a failure to manage funds might lead to production delays, the company’s current position is largely a result of the ongoing scale-up of multiple government laboratory projects.

  During the year, the Company significantly increased inventory levels in anticipation of execution and commissioning obligations under confirmed work orders and ongoing projects, so as to ensure uninterrupted deployment of laboratory infrastructure, consumables, and operational readiness within stipulated timelines. Such inventory positioning is project-driven and is expected to normalize progressively once the laboratories become fully operational and achieve stabilized testing volumes. Furthermore, the company has secured enhanced banking and working capital facilities to support liquidity during this expansion phase.

  With respect to receivables, a substantial portion of the delay pertains to GST components withheld by certain Government authorities pending clarification on tax applicability. The Company has since received clarification/communication from the GST Department confirming the liability of GST on the relevant services, and accordingly, the management expects release and realization of such withheld amounts in the near term. Upon clearance of these pending GST-linked receivables, the overall receivable cycle and operating cash flows are expected to improve materially, thereby normalizing the working capital cycle and payable position. Accordingly, the current working capital metrics are considered transitional and linked to project expansion and implementation timelines, rather than indicative of any structural liquidity concern.  

   

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone approach for 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 operating income by 30%, and an operating margin maintained at satisfactory levels, along with enhanced cash accruals and a stronger cash and cash equivalent position.
• Maintaining satisfactory debt protection metrics, with ISCR and DSCR at comfortable levels, and an improvement in the current ratio above 1.40x will be positive for the ratings

Negative:

• A decline of 10% or more in revenue, and the PAT margin falling below the 8.00%.
• Decline in the ISCR below 1.50x and DSCR falling below 1.35x will be negative for the ratings.
• Any lag in the financial closure for working capital shall be negative for ratings.

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterised by a sufficient cushion in accruals vis-a-vis repayment obligations and a moderate net cash accruals of Rs. 38.78 Crore. No Capex is envisaged in the near future. Its bank limits are utilised to the extent of around 77.00% and has sought enhancement in bank lines, supported by the above unity current ratio.

The Company had net cash accruals of Rs. 38.78 Cr against a CPLTD of Rs. 6.12 Cr in FY2025. And as per FY2026 provisional financials, the company has cash accruals of Rs. 32.57 Cr against a CPLTD of Rs. 6.12 Cr. The Current ratio of the company stood at 1.24x as per FY2026 Provisional financials, indicating an adequate short-term liquidity position. The company has reported Rs.66.29 Cr of TNW in FY2025, as per the provisional financials of FY2026, the net worth of the company further increased to Rs.88.85 Cr. The Total Debt/TNW ratio declined from 1.68x in FY2024 to 1.30x in FY2025, and the TOL/TNW ratio declined from 2.95x in FY2024 to 2.43x in FY2025, reflecting a strong networth position and the moderate leverage profile of the company. The decline in these ratios is due to the substantial increase in the company's net worth. As per FY2026 provisional financials, the Total Debt/TNW  ratio stood at 1.45x, and the TOL/TNW ratio improved to 2.09x. The DSCR of the company stood at 2.48x in FY2025 and further improved to 2.99x as per FY2026 provisional financials, indicating a strong debt servicing capacity of the company.

ABOUT THE ENTITY

Science House Medicals Private Limited is a diagnostics company based in Bhopal, Madhya Pradesh. Established in 1994, it is one of India's leading companies in the distribution of world-class medical and pathological equipment, as well as providing diagnostic services to government healthcare facilities, private hospitals, and laboratories.

It serves as a distributor for several notable brands, including Biomerieux India, Siemens Health Care, Randox Laboratories, Mindray Medical, Meril Diagnostics, Biosystems Diagnostics, and Bioread Laboratories, among others. Currently, the company has over 2,000 employees and has offices spread across 8 states. The directors of the company are Mr. Jithendra Tiwari and Mr. Shailendra Tiwari.

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 operational efficiency, specifically targeting energy optimization and carbon footprint reduction. Key waste management efforts are directed at paper and electronic waste (e-waste), while water conservation and regulatory compliance are maintained through structured monitoring.

Social: The workforce strategy centers on well-being and equity. The company prioritizes fair wages, health and safety (including remote work), and gender diversity. Growth is driven by structured employee training and career development programs.

Governance: The framework is built on transparency and integrity. It emphasizes board independence, ethical conduct via a strict code of conduct, and robust anti-corruption policies. A critical focus is placed on cybersecurity and data privacy to ensure business continuity and protect sensitive client information.

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.	194.30	282.40	251.66
EBITDA	Rs.Crs.	19.38	24.01	48.62
PAT	Rs.Crs.	14.96	28.66	22.56
Tangible Net Worth	Rs.Crs.	37.63	66.29	88.85
Total Debt / Tangible Net Worth	Times	1.68	1.30	1.45
Current Ratio	Times	1.33	0.92	1.24

KEY COVENANTS OF THE FACILITY RATED

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
IVR	Infomerics has downgraded the long-term rating to IVR BB-/Negative and reaffirmed the short-term rating at IVR A4 and continues the ratings assigned to the bank facilities of Science House Medicals Private Limited (SHMPL) in the ISSUER NOT COOPERATING category because of a lack of adequate information for rating review from the company, and hence the uncertainty around its credit risk.	03Sep2025

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	83.40	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	36.33	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		119.73	(Rupees One Hundred Nineteen Crores and Seventy Three lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Services Sector
• Trading Entities

Analytical Contacts
Krishnappa Murugesh Ratings Analyst krishnappa.m@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@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	HDFC Bank	Term Loan - Out-standing	2.27	_	2.27	Simple##
2	HDFC Bank	Term Loan - Out-standing	1.65	_	1.65	Simple##
3	HDFC Bank	Term Loan - Out-standing	1.48	_	1.48	Simple##
4	HDFC Bank	Cash Credit - Sanctioned	78.00	_	78.00	Simple##
5	HDFC Bank	Bank Guarantee - Sanctioned	_	26.33	26.33	Simple##
6	HDFC Bank	Bank Guarantee - Sanctioned	_	10.00	10.00	Simple##
Total			83.40	36.33	119.73
TOTAL (Rupees One Hundred Nineteen Crores and Seventy Three 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.