We wish to inform you that CRISIL RATINGS LIMITED has upgraded the credit Rating of the Bank Facilities of Asarfi Hospital Limited.

असफ(cid:334) हॉ(cid:729)ीटल सबके िलए (cid:738)ा(cid:726) AHL/AO/2026/1410 Date: 08 October 2026 The Listing Department BSE Limited P. J. Towers, Dalal Street, Mumbai – 400 001 Sub: Intimation regarding Upgradation of Credit Rating under Regulation 30 of SEBI LODR Regulations, 2015 Scrip Code: 543943 Dear Sir/Madam, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that CRISIL Ratings Limited has upgraded the credit rating of the bank facilities of Asarfi Hospital Limited as under: Particulars Rating Action Total Bank Loan Facilities ₹60 Crore (enhanced from ₹46.5 Crore) Long-Term Rating CRISIL BBB/Stable (upgraded from CRISIL BBB-/Stable) Short-Term Rating CRISIL A3+ (assigned) The upgrade reflects improvement in the Company's scale of operations, higher ARPOB and occupancy, stable operating margins, healthy financial risk profile and adequate liquidity. The detailed Rating Rationale issued by CRISIL Ratings Limited is enclosed for your information and record. Thanking you, Yours faithfully, For Asarfi Hospital Limited CS Sudipa Singh Company Secretary & Compliance Officer Encl.: Rating Rationale issued by CRISIL Ratings Limited Asarfi Hospital Limited Baramuri, P.O.: B Polytechnic, Dhanbad 828 130 || CIN: L85110JH2005PLC011673 Branch Office: Khatal Road, Dhaiya, ISM, Dhanbad 826004 || www.asarfihospital.com Phone: 7808368888, 9234302735 || Email: info@asarfihospital.com Asarfi Hospital Limited Rating upgraded to 'Crisil BBB / Stable'; 'Crisil A3+ ' assigned to Bank Debt; rated amount enhanced for Bank Debt Rating Action Total Bank Loan Facilities Rs.60 Crore (Enhanced from Regulator Of Instrument Rated Rs.46.5 Crore) Long Term Rating Crisil BBB/Stable (Upgraded RBI from 'Crisil BBB- / Stable') Short Term Rating Crisil A3+ (Assigned) RBI Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million Refer to annexure for Details of Instruments & Bank Facilities Detailed Rationale Crisil Ratings has upgraded its rating to Crisil BBB/Stable to the bank facilities of Asarfi Hospital Limited (AHL). The rating upgrade reflects improvement in scale of operation supported by 32% increment in ARPOB along with higher occupancy level (42% in FY26 from 30% in FY25) in cancer unit. The improvement in the business risk profile is further supported by stable operating margin of 20-21% in the last four fiscal ending in FY26 which led to increase in NCA to Rs 28 crore in FY26 from Rs 23 crore. Financial Risk Profile is marked by comfortable capital structure with gearing and TOL/TNW below 1 time with healthy interest coverage ratio over 8 times in FY26. Bank Limit utilization remains at around 77% with RO of Rs 8.5 crore along with minimum of Rs 10-12 crore maintained in the form of FD to support liquidity risk profile. Improvement in the scale of operation along with sustenance operation margin at around ~20% will support the credit profile of AHL. The rating reflects AHL's established market position and extensive industry experience of the promoters, healthy financial risk profile and sound operating efficiencies. These strengths are partially offset by its geographic concentration in revenue and working capital intensive operations. Analytical Approach For arriving at the ratings, Crisil Ratings has combined the business and financial risk profile of AHL with its wholly owned subsidiary Asarfi Educational Foundation (AEF). Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation Key Rating Drivers - Strengths Established market position & extensive industry experience of the promoters: AHL has strong presence in Dhanbad, Jharkhand, owing to robust infrastructure facilities and affordable pricing. The hospital is first and only in the Dhanbad region to offer advanced medical care with full-fledged High Dependency Unit, Emergency Department, Outpatient Consultation, CCU, ICU, NICU, SICU, Labor Room, Neurosurgery and a world class Cardiac unit, all under one roof. The hospital has a moderate occupancy of 56-60% in the last four fiscals. In 2024, AHL’s Cancer unit was started, which is now the first dedicated comprehensive cancer care hospital under one roof and since the unit is 1 out of 4 cancer hospital in the state of Jharkhand, it improves AHL’s market position. This has supported the revenue growth over 40% with AHL booking revenue of Rs 172 crore in FY26 from Rs 121 crore in FY25. Similar growth in projected in FY27 with Q1-FY27 recording revenue of Rs 47 crore. Further, it also benefits from the promoters' experience of over two decades, their strong understanding of market dynamics, and healthy relations with customers and suppliers and will continue to support the business. Healthy financial risk profile and moderate operating efficiency: AHL’s capital structure has been at healthy level due to lower reliance on external funds yielding gearing of and low total outside liabilities to adj tangible networth (TOL/ANW) of 0.58 times and 0.97 times for year ending on 31st March 2026. AHL’s debt protection measures have also been at healthy level due to leverage and healthy profitability. The interest coverage and net cash accrual to total debt (NCATD) ratio are at 8.43 times and 0.50 times for fiscal 2026. AHL’s debt protection measures are expected to remain at similar level over medium term supported by operating margin at around 20-21% in FY26. Key Rating Drivers - Weaknesses Geographic concentration in revenue: Hospital is based of Dhanbad, Jharkhand. The geographical concentration restricts the hospital's customer base and renders it vulnerable to the dynamics of a single market. Operations are localised, compared with other corporate hospitals. This is unlike other major players who have presence across India and abroad and therefore command strong brand loyalty across country and overseas. The image-sensitive nature of the healthcare industry further aggravates the risks related to being in a single location. Hence, business risk profile will remain exposed to the risk of geographical concentration in revenue and intensifying competition over the medium term. Working capital intensive operations: Gross current assets were at 150 days over the three fiscals ended March 31, 2026. Its intensive working capital management is reflected in its gross current assets (GCA) and it arises from its high debtor over 115 days. This is on account of revenue generated from PSUs, or government departments Central /State Govt Schemes. Around 50-55% revenue is derived from the mentioned sectors which led to higher outstanding debtors more than six months. Debtors more than six months have also improved from around Rs 2.24 crore to be around Rs 9.58 crore as of March-26 due to better realization of funds. Improvement in the working capital cycle will remain key monitorable over the medium term Liquidity: Adequate Bank limit utilisation is moderate at around 77 percent for the past twelve months ended July 2026. Cash accruals are expected to be over Rs 28 crore which are sufficient against term debt obligation of Rs 8.5 crore over the medium term. Current ratio was healthy at 1.45 times on March31, 2026. Free cash and bank balance of around Rs 10-12 crore as on March 31, 2026 supporting the liquidity profile. Low gearing and moderate net worth support its financial flexibility and provides the financial cushion available in case of any adverse conditions or downturn in the business. Outlook Stable Crisil Ratings believes AHL will continue to benefit from the extensive experience of its promoter, and established relationships with clients Rating sensitivity factors Upward factors  Improvement in revenue supp [Showing first 8,000 characters — download PDF for full document]