Bajaj Healthcare Limited has informed the Exchange about Credit Rating- Revision
BAJAJHCARE · price
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India Ratings and Research (Ind-Ra) has revised the outlook on Bajaj Healthcare's bank facilities to Stable from Negative, while affirming the long-term rating at IND A-. The company also got a fresh IND A-/Stable rating assigned to a new term loan of INR84.4 crore. Working capital limits have been significantly reduced, with fund-based limits cut from INR219.25 crore to INR156.55 crore and non-fund-based limits cut from INR91.3 crore to just INR2.4 crore. The outlook improvement is backed by a 14% revenue growth in 9MFY25 to INR388 crore, gross margins expanding to 50% from 46%, and a sharp drop in net leverage to 2.2x in 1HFY25 from 4.3x in FY24, helped by INR205 crore raised through a preferential equity issue. The company also withdrew its long-term issuer rating at its own request.
This is a credit-positive development. Moving the outlook from Negative to Stable signals improving financial health, supported by stronger margins, lower debt, and fresh equity. Shareholders can expect reduced default risk and potentially better borrowing terms, though the company still carries some risk from a stretched working capital cycle of 181 days and regulatory exposure across global markets.