CARE Ratings Limited has upgraded Emcure Pharmaceuticals’ long-term bank facilities rating to CARE AA; Stable from CARE AA-; Stable. The agency also reaffirmed the short-term bank facilities rating at CARE A1+. This upgrade reflects Emcure’s sustained operational and financial improvements, driven by revenue growth to ₹7,902 crore in FY25 and a consistent PBILDT margin.
Credit Rating Upgrade Details
CARE Ratings Limited has upgraded the credit ratings for Emcure Pharmaceuticals’ bank facilities, citing a sustained improvement in the company’s operational and financial risk profile. The long-term bank facilities have been upgraded to CARE AA; Stable from CARE AA-; Stable. The short-term bank facilities rating is reaffirmed at CARE A1+.
Financial Performance Highlights
Emcure reported robust growth in FY25, with total revenue increasing to ₹7,902 crore, representing over 18% growth compared to the previous year. This growth was supported by a mix of portfolio expansion, strategic partnerships, and therapeutic diversification. The PBILDT margin remained steady at 18.7% and increased to 20% in Q1FY26.
Debt Reduction and Capital Structure
In FY25, the company repaid a substantial portion of its debt using proceeds from its initial public offering (IPO) in July 2024. This action further improved Emcure’s capital structure and enhanced return metrics.
Minimal Impact from US Tariff Announcement
CARE Ratings notes that the recent United States (US) government’s announcement imposing a 100% tariff on branded and patented pharmaceutical imports, effective October 1, 2025, will have minimal impact on Emcure due to the company’s limited exposure to the US market.
Acquisition of Zuventus Healthcare Stake
Emcure recently announced its proposed acquisition of a 20.42% stake in Zuventus Healthcare Limited (Zuventus), expected to strengthen Emcure’s domestic footprint in acute and chronic therapy segments.
Factors Supporting Ratings
The ratings continue to be supported by Emcure’s healthy business risk profile, geographically diversified revenue base, leadership position across key therapeutic segments, accredited manufacturing facilities, and experienced management team. Key sensitivities include:
- Significant growth in total operating income (TOI) and improvement in PBILDT margin above 22%.
- Improvement in financial risk profile with net debt to PBILDT below 0.50x.
Source: BSE
