Hira Automobiles discloses Rs 16.25 crore facility default

Hira Automobiles Limited disclosed Rs 16.25 crore of defaults on bank and financial-institution facilities in its November 14, 2026 filing for the quarter ended September 30, 2026. Hira Automobiles reported Rs 61.15 crore of such facilities outstanding as on the disclosure date, making the stated default 26.57% of that amount.

How large is Hira Automobiles' disclosed default?

Hira Automobiles disclosed Rs 16.25 crore as the amount in default on loans and credit facilities from banks and financial institutions, against Rs 61.15 crore outstanding in those facilities. The default equals 26.57% of the outstanding amount when calculated from the two figures in Annexure-I. The company also stated total financial indebtedness, including short-term and long-term debt, at Rs 61.15 crore.

The Annexure-I disclosure does not identify the banks or financial institutions involved, provide dates of missed payments, separate principal from interest, or state the reason for the default. It labels both the total outstanding facilities and the default amount as being “as on date”, without specifying a separate measurement date. The filing therefore does not establish when the default first arose.

Hira Automobiles reported zero outstanding unlisted debt securities, including non-convertible debentures and non-convertible redeemable preference shares, and zero defaults in that category. The Rs 16.25 crore figure therefore relates to the bank and financial-institution facilities category. The disclosure accompanied standalone results approved by the board on November 14, 2026.

What does Hira Automobiles' balance sheet show about borrowings?

Hira Automobiles reported Rs 58.49 crore of standalone borrowings at September 30, 2026, comprising Rs 50.02 crore of current borrowings and Rs 8.48 crore of non-current borrowings. Current borrowings fell from Rs 52.69 crore at March 31, 2026, while non-current borrowings fell from Rs 9.56 crore. Combined balance-sheet borrowings consequently declined by Rs 3.76 crore over the six-month period.

The Rs 61.15 crore total financial indebtedness in Annexure-I was Rs 2.66 crore above the Rs 58.49 crore total of current and non-current borrowings on the September 30 balance sheet. Hira Automobiles did not provide a reconciliation between the two presentations. The filing does not state whether the difference arose from timing, scope or another reporting classification.

Hira Automobiles reported total assets of Rs 77.77 crore at September 30, down from Rs 84.67 crore at March 31, while total equity declined to Rs 11.42 crore from Rs 14.74 crore. Trade receivables fell to Rs 19.66 crore from Rs 22.40 crore and inventories fell to Rs 18.54 crore from Rs 18.81 crore. Cash and cash equivalents rose to Rs 2.87 crore from Rs 2.73 crore.

How did Hira Automobiles perform in the September quarter?

Hira Automobiles recorded a net loss of Rs 1.94 crore for the quarter ended September 30, 2026, compared with a Rs 1.34 crore loss in the preceding June quarter and a Rs 9.16 lakh profit a year earlier. Revenue from operations was Rs 3.50 crore, down from Rs 4.78 crore in the June 2026 quarter and Rs 26.67 crore in the September 2025 quarter.

The year-on-year comparison moved from a Rs 9.16 lakh profit in the September 2025 quarter to a Rs 1.94 crore loss in the latest quarter. Total expenses fell to Rs 5.44 crore from Rs 26.55 crore a year earlier, but revenue from operations declined by Rs 23.17 crore over the same comparison. The company reported a pre-tax loss of Rs 1.94 crore, with no exceptional items recorded.

Finance costs were Rs 1.76 crore in the September 2026 quarter, compared with Rs 1.58 crore in the June 2026 quarter and Rs 1.68 crore in the September 2025 quarter. Hira Automobiles operates in one segment, sale and service of vehicles. The results therefore do not provide separate segment revenue or profit figures for the vehicle sale and service activities.

What cash-flow and related-party information did Hira Automobiles disclose?

Hira Automobiles reported net cash flows from operating activities of Rs 5.23 crore in its unaudited cash-flow statement for the quarter ended September 30, 2026. The statement included a Rs 3.35 crore finance-cost adjustment, a Rs 2.74 crore trade-receivables adjustment and a Rs 27.37 lakh inventory adjustment in reconciling profit or loss to operating cash flows.

The cash-flow statement also included Rs 2.00 crore relating to other current financial assets and Rs 60.84 lakh of depreciation and amortisation. Hira Automobiles did not state how the reported Rs 5.23 crore operating cash flow was applied against the Rs 16.25 crore defaulted facilities. It also did not disclose a revised repayment schedule or payments made to lenders after the disclosure date.

Hira Automobiles reported Rs 9 lakh of remuneration to Rahulinder Singh Sidhu, identified as promoter and managing director, during the reporting period. It also disclosed a loan transaction of negative Rs 56.86 lakh with him, with the balance due moving from Rs 56.86 lakh at the opening to zero at the closing. The filing does not link that related-party loan movement to the facilities default.

Conclusion

Hira Automobiles disclosed a Rs 16.25 crore default, equal to 26.57% of its Rs 61.15 crore outstanding bank and financial-institution facilities, alongside a Rs 1.94 crore quarterly loss. Its September 30 balance sheet showed Rs 58.49 crore of borrowings, while Annexure-I reported Rs 61.15 crore of total financial indebtedness without reconciling the two amounts.

The unresolved matters to watch are the identity of the lenders, the dates and composition of missed payments, and whether the Rs 16.25 crore default is resolved or changes in a later filing. The company also has not explained the Rs 2.66 crore difference between the Annexure-I indebtedness total and the September 30 balance-sheet borrowing total.