Lincoln Pharmaceuticals Limited (LPL) has received a confirmation of its credit rating from CRISIL Limited. The long-term bank facilities have been reaffirmed at CRISIL A/Stable, and the short-term bank facilities have been reaffirmed at CRISIL A1. These ratings were confirmed by CRISIL on January 9, 2026.

The ratings reflect the promoters' extensive experience in the pharmaceutical industry, the group's established market position, and a healthy financial risk profile. Strengths include a widespread geographical reach, a diverse clientele and product base, and strong promoter experience of over three decades. LPL derives 60-65% of its revenue through exports and has over 1,700 registered products across more than 15 therapeutic segments. Revenue increased at a CAGR of 10% in the five fiscals through 2024, growing 14% year-on-year to ₹623 crore in fiscal 2025. The group is expected to grow 7-8% annually over the medium term, with plans for new product launches and market expansion, including entry into the European market.

The group's financial risk profile is robust, with consolidated net worth at ₹671 crore and nil debt as of March 31, 2025. Interest coverage stood at a comfortable 91.01 times in fiscal 2025. However, the ratings are partially offset by working capital-intensive operations, with gross current assets expected to be sizeable due to receivables and inventory. The group also faces exposure to regulatory risks and intense competition in the pharmaceutical sector. Additionally, the extension of sizeable loans and advances to affiliates and individuals (amounting to ₹141 crore as of March 31, 2025) is a monitorable factor.

CRISIL believes the Lincoln group will continue to benefit from its established market presence and healthy financial risk profile. The outlook is stable, with upward factors including a 20% CAGR revenue increase and improved geographical diversification, while downward factors include operating profitability below 13% or a stretched working capital cycle.