Emerald Leisures receives Rs 65 crore of Rs 105 crore NCDs

Emerald Leisures Limited received Rs 65 crore in the first tranche of a planned Rs 105 crore secured non-convertible debenture issue during August 2026. The company allotted Rs 55 crore and Rs 10 crore of debentures on August 4 and August 11, respectively, and expects the remaining Rs 40 crore within six months.

What are Emerald Leisures' NCD terms?

Emerald Leisures issued secured, unlisted, unrated, redeemable non-convertible debentures, or NCDs, through a private placement to Lighthouse Canton Alternative Asset Management Private Limited. The debentures were issued at par, with each instrument having a face value of Rs 10 lakh, and the first Rs 65 crore was received under Tranche 1.

The first allotment covered 550 NCDs aggregating to Rs 55 crore on August 4, 2026. A second allotment of 100 NCDs, aggregating to Rs 10 crore, followed on August 11, 2026. The filing identifies the instruments as non-convertible, meaning it does not provide for conversion into equity shares.

The disclosure does not state the NCD coupon rate, maturity date, repayment timetable, security provided or financial covenants. It therefore establishes the amount, issue dates and broad form of the funding, but not the detailed cost or repayment terms of the Rs 105 crore programme.

How did the NCD funding affect Emerald Leisures' borrowings?

Emerald Leisures' non-current borrowings were Rs 105.8585 crore at September 30, 2026, compared with Rs 53.8837 crore at March 31, 2026. The Rs 51.9748 crore increase occurred in the half year that included the Rs 65 crore NCD receipt, although the balance sheet does not separately reconcile every movement in borrowings.

Current borrowings declined to Rs 83.0258 crore at September 30 from Rs 93.8384 crore at March 31. Combined current and non-current borrowings consequently rose to Rs 188.8843 crore from Rs 147.7221 crore, an increase of Rs 41.1622 crore across the six-month period.

The cash-flow statement reported net proceeds from long-term borrowings of Rs 49.8635 crore for the half year ended September 30, 2026. It also recorded a net reduction of Rs 4.0625 crore in short-term borrowings and interest paid of Rs 0.8325 crore, while net cash generated from financing activities was Rs 3.8094 crore.

What will Emerald Leisures use the Rs 105 crore for?

Emerald Leisures says the Rs 105 crore NCD proceeds are intended for real estate business, capital expenditure, business expansion, refinancing of existing borrowings, working-capital requirements and general corporate purposes. The company has not assigned a fixed rupee amount from the Rs 105 crore programme to any individual use.

The disclosed uses include real estate, which is one of Emerald Leisures' operating segments alongside hospitality. Real-estate segment revenue was Rs 2.0425 crore for the half year ended September 30, 2026, up from Rs 1.4048 crore in the corresponding half year ended September 30, 2025, an increase of Rs 0.6377 crore.

Capital work-in-progress was Rs 79.7203 crore at September 30, 2026, compared with Rs 20.7172 crore at March 31, 2026. Property, plant and equipment moved in the opposite direction, falling to Rs 57.8913 crore from Rs 58.6339 crore; the filing does not link the August NCD proceeds directly to the increase in capital work-in-progress.

What do Emerald Leisures' half-year results show?

Emerald Leisures reported a standalone net loss of Rs 5.3793 crore for the half year ended September 30, 2026, compared with a loss of Rs 5.6683 crore in the corresponding 2025 period. The loss narrowed by Rs 0.289 crore as total income increased to Rs 14.4993 crore from Rs 7.8038 crore.

Finance costs were Rs 2.5622 crore for the September 2026 half year, compared with Rs 2.3186 crore a year earlier. The increase of Rs 0.2436 crore came during the period of the NCD issue, but the filing does not identify how much of the finance cost related specifically to the August 2026 debentures.

Total segment revenue was Rs 6.8036 crore for the half year ended September 30, 2026, against Rs 6.6443 crore a year earlier. The Rs 0.1593 crore increase was supported by the rise in real-estate segment revenue, while the filing presents the debt issue separately and does not attribute segment performance to the financing.

What does Emerald Leisures' September balance sheet show?

Emerald Leisures reported total assets of Rs 139.7052 crore at September 30, 2026, compared with Rs 99.9894 crore at March 31, 2026. Current assets increased to Rs 71.7333 crore from Rs 37.7974 crore, while cash and cash equivalents rose to Rs 66.67 lakh from Rs 17.04 lakh.

Inventories rose to Rs 49.1296 crore at September 30 from Rs 36.2981 crore at March 31. Other current assets increased to Rs 8.6758 crore from Rs 40.54 lakh, but the company does not provide a transaction-level allocation connecting these changes to the Rs 65 crore received under Tranche 1.

Total equity was negative Rs 83.8819 crore at September 30, compared with negative Rs 79.3351 crore at March 31. The auditor drew attention to management's impairment assessment of non-financial assets, while noting management's view that no impairment was required at September 30 because the cash-generating unit's recoverable value exceeded its carrying value; the review conclusion was not modified on that matter.

Conclusion

The Rs 65 crore first tranche gives Emerald Leisures a material part of its planned Rs 105 crore financing programme, while non-current borrowings increased by Rs 51.9748 crore during the half year ended September 30, 2026. The company reported higher total income and a narrower standalone half-year loss, but its combined borrowings increased to Rs 188.8843 crore and total equity remained negative Rs 83.8819 crore.

The next disclosed milestone is the expected receipt of the remaining Rs 40 crore within six months. The filing also makes the deployment of funds relevant to upcoming disclosures, because management has identified real estate, capital expenditure, refinancing, working capital, expansion and general corporate purposes without disclosing allocations among those categories.