Orchid Pharma Limited has received a credit rating downgrade from CARE Ratings Limited, with the agency revising the company's long-term bank facilities rating to CARE BBB+ with Stable outlook from the previous CARE A- rating. The rating action, communicated through a letter dated April 1, 2026, affects the company's total banking facilities worth Rs. 366.50 crore.

Rating Action Details

CARE Ratings has taken comprehensive rating actions across Orchid Pharma's various banking facilities. The rating agency downgraded long-term facilities while reaffirming short-term ratings and removed all facilities from Rating Watch with Developing Implications.

Facility Breakdown

The total banking facilities of Rs. 366.50 crore are distributed across multiple banks and facility types. HDFC Bank Limited provides the majority of the facilities, including term loans of Rs. 142.50 crore with a tenor of 6 years including a 12-month moratorium period.

Long-Term Facilities (Rs. 207.50 crore)

• Term Loans: Rs. 142.50 crore from HDFC Bank with repayment in 20 equal consecutive quarterly instalments
• Cash Credit: Rs. 65.00 crore from HDFC Bank

Short-Term Facilities (Rs. 84.00 crore)

• Non-Fund Based Limits: Rs. 84.00 crore from HDFC Bank for LC with sublimits for SBLG/BG

Combined Facilities (Rs. 75.00 crore)

• Fund/Non-Fund Based: Rs. 75.00 crore from Yes Bank for CC/PCFC/WCDL/LC/BG/LCBD

Basis for Rating Review

CARE Ratings based its rating committee review on several key factors including the company's operational and financial performance for FY25 (Audited) and 9MFY26 (Provisional). The rating action also considered the final order on scheme of amalgamation being reserved for final pronouncement by NCLT and the completion of acquisition of assets related to own molecule.

Regulatory Compliance

The company has informed the stock exchanges about this rating update in compliance with Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was sent to both NSE and BSE on April 2, 2026, with the complete CARE rating letter attached for reference.

Orchid pharma Limited has announced a significant development in its ongoing merger proceedings, informing stock exchanges that the National Company Law Tribunal (NCLT) order on its amalgamation scheme has been reserved for formal pronouncement.

NCLT Order Status Update

The company filed an official communication on March 18, 2026, under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The update pertains to the scheme of amalgamation between Dhanuka Laboratories Limited and Orchid Pharma Limited, involving their respective shareholders and creditors.

Regulatory Compliance and Next Steps

The notification was made in compliance with SEBI Master Circular dated January 30, 2026, and represents a continuation of earlier intimations regarding the merger petition pending with the NCLT. The company has committed to providing further updates to stock exchanges and making information available on its website upon receiving the copy of the NCLT order.

Corporate Structure Details

Under the proposed scheme, Dhanuka Laboratories Limited will serve as the amalgamating company, while Orchid Pharma Limited will be the amalgamated company. The arrangement encompasses both companies' shareholders and creditors, indicating a comprehensive corporate restructuring initiative.

The formal pronouncement of the NCLT order will mark a crucial milestone in the amalgamation process, with stakeholders awaiting the tribunal's decision on this corporate restructuring proposal.