Themis Medicare Long-Term & Short-Term Ratings Downgraded by CARE
CARE Ratings downgraded Themis Medicare's long-term bank facilities to CARE BB+; Stable (from CARE BBB-; Negative) and short-term facilities to CARE A4+ (from CARE A3). The downgrade reflects reduced operations and deteriorating profitability in FY26 and Q1FY27, with a PBILDT loss of ₹51.43 crore in Q1FY27. The company raised ₹100 crore by selling investments to support liquidity.
A downgrade in credit ratings can impact the company's borrowing costs, investor confidence, and access to capital markets, potentially affecting its future growth and operations.
The credit rating has been downgraded by CARE Ratings, indicating a negative outlook on the company's financial health and debt-paying ability.
CARE Ratings Limited has downgraded the credit ratings for the bank facilities of Themis Medicare Limited (TML). The long-term bank facilities rating has been revised to CARE BB+; Stable from CARE BBB-; Negative, with an amount of ₹77.39 crore. The short-term bank facilities rating has been downgraded to CARE A4+ from CARE A3, for an amount of ₹48.50 crore.
The downgrade is attributed to a reduction in the scale of operations and a significant deterioration in profitability margins in FY26 and Q1FY27. This decline was driven by increased competition for a high-margin product and reduced prices in the API segment. The company incurred a loss at PBILDT of ₹51.43 crore in Q1FY27 due to debtors and revenue write-offs. TML sold part of its investments in GTBL to the promoter for ₹100 crore in Q1FY27 to fund losses and debt reduction, leading to an increase in promoter share pledge to 43% as of June 30, 2026.
CARE Ratings expects profitability to remain subdued due to product mix and competition, although the funds raised from investment sales are expected to support near-term liquidity. The ratings continue to be constrained by moderate scale, weak debt coverage indicators, and working capital intensity. Strengths include experienced management, accredited manufacturing and R&D facilities, and a comfortable capital structure. The outlook remains Stable, reflecting expectations of gradual business recovery through cost-cutting measures and improved profitability.
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Themis Medicare Limited filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Themis Medicare Limited. Read the original for the full detail.