Rating Rationale

Brickwork Ratings has assigned a long-term rating of BWR BBB/Stable to the bank loan facilities of Rs.23.60 crore of Anlon Healthcare Ltd.(Erstwhile Anlon Healthcare Pvt. Ltd.).

The rating factors in the management's extensive experience in the pharmaceutical industry, significant growth in scale of operations, improved profitability margins, a robust capital structure with low leverage, and healthy debt-coverage metrics. However, the rating is constrained by intense market competition, strict regulatory compliance risks (including quality norms and government price controls)

The rating outlook has been assigned as "Stable" as BWR believes that Anlon Healthcare Ltd.(Erstwhile Anlon Healthcare Pvt. Ltd.)'s business risk profile will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of a 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.

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

• Management Experience :

  The company is led by Mr. PunitKumar Rameshbhai Rasadia (Managing director, aged 40 years) is a Post Graduate with 16 years of experience. Mr.Meet Atulkumar Vachhani (Whole time Director, aged 46 years) has 20+ years of experience, Ms.Mamata PunitKumar Rasadia (Non-Executive Director, aged 39 years) is a post graduate with 2 years of experience). The Board is strengthen by indipendent Directors including Mr. Krishna Murty Kannepalli (aged 70 years), a CA with 25 years of experience, Mr. Anandbhai Natwarlal Katkoria (aged 70 years) with 36 years of experience, Mr.Kishan Vinodkumar Raja (aged 39 years ) a CA with 14 years of experience. The Key managerial personnel include Ms.Amita Chhaganbhai Pragada (Company Secretary, aged 37 years) with 7 years of experience and Mr.Naimish Dilipbhai Bhatt (Chief Financial Officer, aged 39 years) with 18 years of experience. Overall the management team's combined expertise and experience support effective governance and operational efficiency of the company.

• Established Customer Base & Diversified product portfolio :

  Long-term relationships with domestic and export clients including formulation companies, provide revenue visibility and stability. Presence across multiple bulk drugs and intermediates reduces dependency on a single product and mitigates concentration risk.

• Moderate Financial risk :

  For FY26, the company reported an operating income of Rs. 176.54 Cr and a PAT of Rs. 27.81 Cr. During the same period, its net worth stood at Rs. 209.77 Cr, with Total Debt/TNW and TOL/TNW ratios of 0.22x and 0.45x, respectively. Liquidity and coverage remained stable, featuring a current ratio of 2.57x, an ISCR of 10.67x, and a DSCR of 5.45x.

  Anlon Healthcare Limited successfully completed its Rs. 121.03 crore IPO in late August 2025, drawing high investor demand with an overall subscription rate over 7x (led by retail at 47x). By listing on the BSE and NSE on September 3, 2025, the company effectively secured the growth capital needed to clear debt, expand manufacturing, and scale its API operations.

• Regulatory Risk :

  The pharmaceutical industry operates under stringent regulatory frameworks across domestic and international markets. Any non compliance with standards such as GMP or adverse observations from regulatory authorities can result in warning or suspension of manufacturing facilities. This can severely impact revenues, reputation and export opportunities.

• Technological Obsolescence Risk :

  Rapid advancements in pharmaceutical process and continuous innovation requirements may render existing products or manufacturing process less competitive. Failure to invest adequately in research and development can impact long-term growth in market position.

Going forward, the ability of the company to improve its operational scale, profitability, strengthen liquidity, and credit profile would be the key rating sensitivities.

Positive:

• The rating may be upgraded if the company achieves the projected revenues more than 270 Crs for FY2027, while improving net profitability margins over 18%, along with an improvement in its liquidity profile.
• Improvement in the leverage ratios and maintaining the current ratio at a satisfactory level.

Negative:

• The ratings could be downgraded if there is a decline in the revenue & profit margins below 10%.
• Increase in the overall gearing and weakening of the debt protection metrics.
   

Strong liquidity characterized by a sufficient cushion in accruals vis-a-vis repayment obligations and a moderate cash and bank balance of Rs.3.41 Crore. Its bank limits are utilized to the extent of 76.74% & supported by the above unity current ratio.

The company recorded net cash accruals of Rs. 30.92 Cr as against the CPLTD of Rs. 1.80 Cr in FY2026. The company has Rs.3.41 Cr of Cash and Bank Balance and Rs. 209.77 Cr of Tangible Net Worth in FY 2026. The current ratio of the company stood at 2.57 times in FY 2026, indicating that the company has enough short-term liquidity to meet its short-term obligations. ISCR and DSCR stood at 10.67 times and 1.03 times, respectively, in FY 2026, reflecting adequate capacity to meet both interest and principal repayment obligations.

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

Environmental (E): Anlon Healthcare embeds environmental stewardship into its daily operations through green chemistry and efficient manufacturing processes. By designing chemical synthesis to maximize atom economy and eliminate hazardous reagents and solvents, the company lowers raw material costs, reduces regulatory burdens, and minimizes ecological risks. Its sustainability framework focuses on process optimization, solvent recovery, energy conservation, and transitioning to eco-friendly fuel sources to lower its carbon and environmental footprint.

Social (S): The company emphasizes human safety, public health, and workforce well-being across its operations. Anlon Healthcare maintains strict workplace safety systems that achieved a zero-fatality record in FY 2025–26, while enforcing a formal Policy on Prevention of Sexual Harassment to protect its 119 employees. Beyond the workplace, the company advances public health by manufacturing high-purity APIs and key pharmaceutical intermediates compliant with global standards (such as WHO-GMP, FDA, and PMDA), while actively contributing to local communities through CSR investments in education, health, and community development.  

Governance (G): Governance at Anlon Healthcare is built on transparent decision-making, rigorous compliance, and independent oversight. The company's Board of Directors includes Executive, Non-Executive, and Independent Directors who oversee specialized bodies such as the Audit, Risk Management, Nomination and Remuneration, and Stakeholders' Relationship Committees. To protect stakeholder interests, Anlon enforces a robust Vigil Mechanism / Whistle Blower Policy, maintains formal controls for Related Party Transactions, and aligns its quality and financial reporting with international pharmacopoeial and regulatory standards. 

Anlon Healthcare Limited, incorporated in 2013 and headquartered in Rajkot, Gujarat, is a research-driven manufacturer of Active Pharmaceutical Ingredients (APIs), Bulk Drugs, and advanced pharmaceutical intermediates. The company operates from its registered office in Rajkot and its manufacturing facility at Pipaliya, Gondal Road, Rajkot, serving domestic and international customers with quality-focused manufacturing solutions. Anlon Healthcare Limited is listed on BSE & NSE in September 2025. Mr. Punitkumar Rameshbhai Rasadia is the managing director, qualified with a Ph.D in chemistry and chemical processes. & Mr. Meet Atulkumar Vachhani is the whole-time director of the company.

Anlon is among the few Indian manufacturers of products such as Loxoprofen Sodium Dihydrate, Ketoprofen, and Dexketoprofen Trometamol, which are widely used in pain management and anti-inflammatory therapies which comply with the regulatory requirements of leading health authorities such as FDA, PMDA, KFDA, cGMP, and WHO-GMP. 

The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated. It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's credit rating. It also does not indicate the complexity associated with analysing an entity's financial, business, industry risks or complexity related to the structural,transactional or legal aspects. Details on the complexity levels of the instruments are available on BWR's website Complexity Levels.

Not Applicable

BWR Board of Directors have no influence over rating decisions, nor do they sit on the rating committee or review, discuss or evaluate any credit rating during the Board meetings.

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI]. BWR is the 5th agency to get a credit rating registration in India in 2009 and its corporate office in Bengaluru. It has a country-wide presence with representatives in 150+ locations. Canara bank is an institutional investor in Brickwork.

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