RATING RATIONALE

09Mar2026

SAGAR LIFE SCIENCES PRIVATE LIMITED

Brickwork Ratings assigns the long term and short term ratings of BWR BB+/Stable and BWR A4+ for the Bank Loan Facilities of Rs. 52.34 Crs. of SAGAR LIFE SCIENCES PRIVATE LIMITED

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	48.44	Long Term	BWR BB + /Stable Assignment
Fund Based	(15.50)	Short Term	BWR A4 + Assignment
Non Fund Based	3.90	Short Term	BWR A4 + Assignment
Non Fund Based	(3.50)	Short Term	BWR A4 + Assignment
Grand Total	52.34	(Rupees Fifty Two Crores and Thirty Four 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 assigns the long-term and short-term ratings of BWR BB+/Stable and BWR A4+ for the Bank Loan Facilities of Rs. 52.34 Crs. of Sagar Life Sciences Pvt. Ltd.

The Rating has factored, inter alia, the extensive experience and support of the promoters, high entry barriers, improving net worth with comfortable leverage position and location advantage of the company. The rating is constrained by the diminishing NPM, ISCR and DSCR, long receivable period and Obsolescence and high depreciation costs of the company. Going forward, the ability of the company to Improve their operational scale, profitability, strengthen liquidity and credit profile would be the key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that Sagar Life Sciences Pvt. Ltd., 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:

Locational advantage: :
The company is located in Gujarat's chemical cluster and thus has a competitive advantage in terms of availability of skilled labor, logistics, production knowledge and vendors making the company more efficient and cost effective.
Improving net worth and comfortable leverage position :
Net worth of the company is increasing Y-O-Y due to retention of profits. With present networth of Rs.35.84 Cr, DER of 1.26 the company has a comfortable position for additional borrowing for business expansion.
High entry barriers :
Entry barriers in the industry are high on account of high capital and technology requirements and also complex manufacturing process to maintain quality which limit the competitaion to some extent in the industry.
Long existence of the company and satisfactory business history :
The promotor is in the business for last 25 years and into manufacturing since 2018, thus having sufficient knowledge and depth in managing the operations and market. The company has a diverse clientele base ranging from domestic to export base.

Credit Risks:

Diminishing NPM, ISCR and DSCR :
The company has a decreasing trend in NPM, ISCR and DSCR on Y-O-Y basis, which compresses the overall liquidity position of the company.
Long receivable period and high debtors for more than 6 months :
The company has receivable period of 148 days, directly impacting the liquidity in the business. Further high incidence of debtors outstanding of Rs.4.03 Cr for more than 6 months reveals inefficiency in the business.
Obsolescence and high depreciation cost :
Due to nature of chemical industry, there is high risk of obsolescence and more of replacement costs for fixed assets due to fast wear and tear.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Sagar Life Sciences Pvt Ltd

RATING SENSITIVITIES

Positive:

Sustained improvement in scale of operations with total operating income exceeding Rs. 200.00 crores.
EBITDA margin and PAT margin improving above 15% & 8%, respectively, resulting in stronger cash accruals above Rs.9.00cr
Sustenance of debt coverage indicators i.e. ISCR and DSCR above 2.5x and 1.5x
Timely completion of the ongoing capex without cost overruns.

Negative:

PAT margin declines below 2%, impacting debt service and the need for additional working capital.
Decline in total operating income below Rs.117.00cr
Further build-up of receivables over 6 months and delayed realisation, impacting the company's liquidity.

LIQUIDITY INDICATORS - Stretched

The company’s liquidity position in FY25 remains stretched, characterised by an insufficient cushion of accruals at Rs. 3.92 crore against CPLTD of Rs. 6.61 crore. Going forward, the company projected net cash accruals of Rs. 9.49cr in FY26 against term loan repayments of Rs. 6.81cr in FY26 ensuring sufficient coverage for debt servicing. Further, the scheduled repayment obligations are expected to be met through projected internal cash accruals. The current ratio stood at 1.10x just marginally over unity. Bank limits were utilised at about 83% . The ISCR was 2.59x and the DSCR stood at 0.85x in FY25 due to insufficient profit generation and elevated term loan interest and installment repayments.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Healthcare	Healthcare	Pharmaceuticals & Biotechnology	Pharmaceuticals

SAGAR LIFE SCIENCES PRIVATE LIMITED is a Private Ltd company incorporated on 11 May 2007, having its Registered address and Manufacturing facility at Plot No. 3045, 3124 & 3125 GIDC Panoli, Ankleshwar, Gujarat, India - 394116. Started as Rajeev Chlorides & Carbonics Pvt Ltd in the year 1988 for Manufacturing Calcium Chloride with an annual capacity of 600 MT per annum with 1 manufacturing facility. In the year 2004-05, it acquired two more manufacturing facilities for Calcium Chloride manufacturing. It also diversified into biopesticides and organic chemistry. In the year 2010, it acquired Sky Life Science and created Sagar Life Sciences Private Limited. All manufacturing facilities were combined into Sagar Life Sciences Pvt Ltd and started building up Teams across the organisation and Product Portfolio diversification. Started market penetration from 2018 across India and also overseas markets like Germany, USA, Japan etc. Production capacity was 20 KL. Subsequently, capacity was increased from 132 KL to 250 KL over the period till 2023.

Sagar Life Sciences Pvt Ltd is a prominent supplier to the pharmaceutical industry, specialising in the production of intermediates and fine chemicals. The company focuses on delivering high-quality chemical solutions tailored to meet the diverse needs of its clients within the pharmaceutical sector with products like ETHYL ISOTHIOCYNATE, PARA AMINO BENZOIC ACID, 2-AMINO-3,5-DIBROMO BENZALDEHYDE [ADBA], SODIUM ACETATE ANHYDROUS, and N, N''-DIISOPROPYLCARBODIIMIDE (DIC).

ESG Profile

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

Environmental: Environmental risks are driven by waste generation and reliance on energy-intensive processes, making disclosures on waste-management practices renewable energy share and emissions levels particularly important.

Social: Social factors hinge on adherence to labour laws, accident prevention frameworks, and human-capital development, with metrics such as workforce mix, safety performance and training initiatives offering insights into operational resilience.

Governance: Governance assessment focuses on board independence, committee effectiveness, and robustness of compliance systems, supported by readily available disclosures on board structure, audit mechanisms and risk-management practices.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited - Annual)	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)
Operating Revenue	Rs.Crs.	64.26	80.17	82.10
EBITDA	Rs.Crs.	5.42	7.66	6.93
PAT	Rs.Crs.	1.47	2.50	0.95
Tangible Net Worth	Rs.Crs.	9.85	30.85	35.84
Total Debt / Tangible Net Worth	Times	3.04	0.91	1.27
Current Ratio	Times	1.17	1.22	1.10

KEY COVENANTS OF THE FACILITY RATED

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Nil

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	48.44	BWR BB+/Stable (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	ST	(15.50)	BWR A4+ (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	3.90	BWR A4+ (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(3.50)	BWR A4+ (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		52.34	(Rupees Fifty Two Crores and Thirty Four lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Harish R Ratings Analyst harish.r@brickworkratings.com	Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

SAGAR LIFE SCIENCES PRIVATE LIMITED

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	ICICI Bank	Term Loan - Sanctioned	2.45	_	2.45	Simple##
2	ICICI Bank	Working Capital Term Loan - Sanctioned	3.14	_	3.14	Simple##
3	ICICI Bank	Cash Credit - Sanctioned	15.50	_	15.50	Simple##
	Sub-Limit (WCDL - Sublimit of CC) - Sanctioned		(15.50)
4	ICICI Bank	Letter of Credit - Sanctioned	_	3.90	3.90	Simple##
5	Punjab National Bank	Cash Credit - Sanctioned	11.75	_	11.75	Simple##
	Sub-Limit (LC - Sublimit of CC) - Sanctioned		(3.50)
6	Punjab National Bank	Term Loan - Out-standing	3.71	_	3.71	Simple##
7	Punjab National Bank	Term Loan - Out-standing	11.89	_	11.89	Simple##
Total			48.44	3.90	52.34
TOTAL (Rupees Fifty Two Crores and Thirty Four 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.

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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Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.

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