Emerald Leisures maps Rs 48.50 crore for property plans

Emerald Leisures Limited proposes to deploy Rs 48.50 crore of rights-issue net proceeds for incremental working capital in Fiscal 2027 and Fiscal 2028, supporting a planned 1.75 lakh-square-foot Chembur residential tower and a 51% interest in a Mahim cluster-development limited liability partnership.

How much working capital will Emerald Leisures fund?

Emerald Leisures plans to use Rs 48.50 crore of net proceeds for incremental working-capital requirements across Fiscal 2027 and Fiscal 2028. Its board approved the projected requirements through a resolution dated October 1, 2026, and the company says internal accruals would fund the balance not met by the rights issue.

The proposed rights-issue contribution is Rs 13.9038 crore in Fiscal 2027 and Rs 34.5962 crore in Fiscal 2028. Borrowings are assumed at Rs 12 crore in each year, while internal accruals are projected at Rs 11.9374 crore in Fiscal 2027 and Rs 22.0592 crore in Fiscal 2028. Together, these funding sources match forecast net working capital of Rs 37.8412 crore and Rs 68.6554 crore, respectively.

Working capital is one of several stated uses for the net proceeds. Emerald Leisures also proposes to use Rs 25 crore in Fiscal 2027 to redeem 25 lakh non-convertible, non-cumulative, participating, redeemable preference shares, or NCPRPS, and Rs 25 crore to repay or prepay certain borrowings. As of the draft letter of offer, Rs 50 crore of NCPRPS remained outstanding and no amount had been deployed for their redemption.

Which property projects are driving Emerald Leisures' plan?

Emerald Leisures identifies a proposed redevelopment of company-owned land at Chembur, Mumbai, as an initial real-estate development initiative. The proposed residential tower has estimated saleable area of about 1.75 lakh square feet, though the filing does not provide a construction start date, project cost, completion schedule or expected sales value.

The company has also entered a partnership with Gala Group to explore cluster development at Mahim, Mumbai. Emerald Leisures holds a 51% interest in the limited liability partnership, or LLP, associated with that initiative. It says it is evaluating further development opportunities in suitable locations, but does not name other sites or disclose commitments for additional projects.

The filing links the Rs 48.50 crore requirement to construction and development work, materials procurement, payments to contractors and consultants, professional and technical fees, project-management costs, statutory charges and planning expenses. Emerald Leisures says project expenditure can precede customer collections, which may be tied to construction milestones and applicable payment schedules.

How do Fiscal 2027 and Fiscal 2028 working-capital forecasts compare?

Emerald Leisures forecasts net working capital of Rs 37.8412 crore in Fiscal 2027 and Rs 68.6554 crore in Fiscal 2028, an increase of Rs 30.8142 crore. The largest movement is in other current assets, projected to rise by Rs 28.7393 crore from Rs 31.6542 crore to Rs 60.3935 crore, primarily for anticipated advances and other operating-related balances.

The projected position is above the latest standalone audited figures. Net working capital was Rs 11.4837 crore in Fiscal 2026, Rs 5.4461 crore in Fiscal 2025 and negative Rs 10.7952 crore in Fiscal 2024. Total current assets rose to Rs 32.1881 crore in Fiscal 2026 from Rs 23.7821 crore in Fiscal 2025, while current liabilities increased to Rs 20.7044 crore from Rs 18.3360 crore.

Inventories are forecast at Rs 27.6642 crore in both Fiscal 2027 and Fiscal 2028, below Rs 31.1640 crore reported in Fiscal 2026. Trade receivables are projected at Rs 0.7595 crore in Fiscal 2027 and Rs 2.3773 crore in Fiscal 2028. The company attributes the much larger other-current-assets estimates to the projected scale of operations and related advances.

What operating assumptions support Emerald Leisures' forecast?

Emerald Leisures assumes a shorter inventory holding period of 151 days in Fiscal 2027 and 53 days in Fiscal 2028, compared with 689 days in Fiscal 2026. Inventory days had increased from 26 days in Fiscal 2024 to 557 days in Fiscal 2025, which the company attributes to accumulated inventory and the timing of procurement relative to order execution.

The trade-receivables cycle is estimated at four days in Fiscal 2027 and five days in Fiscal 2028, versus 13 days in Fiscal 2026, 12 days in Fiscal 2025 and 15 days in Fiscal 2024. Trade-payable days are projected to decline from 37 days in Fiscal 2026 to 29 days and 14 days, respectively, based on anticipated supplier terms and procurement requirements.

Other financial liabilities are projected to fall from Rs 16.4309 crore in Fiscal 2026 to Rs 14.9326 crore in Fiscal 2027 and Rs 12.1386 crore in Fiscal 2028. Other current liabilities are estimated at Rs 2 crore and Rs 2.47 crore, while provisions are maintained at Rs 4.83 lakh in both forecast years. The filing associates the financial-liability reduction with expected repayments and settlements of obligations.

How will Emerald Leisures oversee the use of proceeds?

Emerald Leisures reported aggregate outstanding borrowings of Rs 83.6090 crore as of September 30, 2026, and proposes to apply Rs 25 crore of net proceeds to selected repayment or prepayment. The listed loans are inter-corporate deposits repayable on demand, carrying interest rates of 10% or 12%, and were stated to have been used for general corporate purposes in a November 5, 2026 certificate from P G Bhagwat LLP.

Pending use, Emerald Leisures says it may temporarily invest net proceeds in deposits with scheduled commercial banks. It says the proceeds will not be used for dealing in shares of other listed companies, equity-market investments, or inter-corporate deposits to related parties. The company also states that funds will not finance, provide loans to, or acquire shares of promoter-group or group-company entities.

Brickwork Ratings India Private Limited has been appointed monitoring agency for the issue's gross proceeds. Emerald Leisures says it will hold net proceeds in a separate bank account, place monitoring reports before its audit committee, and disclose actual use and any deviations to stock exchanges each quarter until all proceeds are used. The filing also says none of the stated uses has been appraised by an agency or financial institution.

Conclusion

The Rs 48.50 crore working-capital allocation sets out Emerald Leisures' funding framework for a proposed real-estate expansion centred on a 1.75 lakh-square-foot Chembur tower and a 51%-owned Mahim LLP. Forecast net working capital rises from Rs 37.8412 crore in Fiscal 2027 to Rs 68.6554 crore in Fiscal 2028, principally reflecting projected growth in other current assets.

The next disclosed milestones are deployment during Fiscal 2027 and Fiscal 2028 under the October 1, 2026 board-approved plan and quarterly reporting on use of proceeds. Investors can also watch whether actual rights-issue funding of Rs 13.9038 crore and Rs 34.5962 crore, annual borrowings of Rs 12 crore, and internal accruals follow the stated funding mix.