Ajwa Projects Limited's debt mix relied on unsecured funding

Ajwa Projects Limited reported total debt of Rs 13.84 crore at June 30, 2026, of which Rs 9.63 crore, or about 70%, was unsecured. The largest disclosed balances were a Rs 3.93 crore Colama Commercial Co. Ltd working-capital term loan and Rs 3.93 crore of loans from directors and related parties.

How did Ajwa Projects' debt mix change by June 2026?

Ajwa Projects' total debt increased to Rs 13.84 crore at June 30, 2026 from Rs 12.52 crore at March 31, 2026. The June 30 statement classified Rs 4.22 crore as secured borrowings and Rs 9.63 crore as unsecured borrowings, making unsecured facilities the larger component of the funding mix.

The supplied loan schedule does not state that Ajwa Projects prepaid particular loans, identify loans priced at 16% to 22%, or describe a refinancing transaction. It does disclose a mix of working-capital term loans, cash-credit and overdraft facilities, inventory finance and loans from directors as of June 30, 2026. Therefore, the available information supports an assessment of the debt structure, but not a conclusion about the replacement of specified earlier loans.

Total debt had already risen from Rs 7.96 crore at March 31, 2025 to Rs 12.52 crore at March 31, 2026, before reaching Rs 13.84 crore three months later. Over the same two full financial years, interest expense declined to Rs 1.33 crore in FY 2026 from Rs 1.48 crore in FY 2025, a change the disclosure does not attribute to any individual lender or facility.

What made up Ajwa Projects' unsecured funding?

Ajwa Projects' largest individual outstanding loan at June 30, 2026 was the Rs 3.93 crore unsecured term loan from Colama Commercial Co. Ltd. Colama sanctioned Rs 4.80 crore on July 18, 2025 for working capital, with a 36-month tenure and a 14% interest rate.

The Colama agreement required 36 monthly equated monthly instalments, or EMIs, of Rs 17.42 lakh. It did not allow full or partial prepayment until the third EMI was repaid; thereafter, part payment was allowed once a year subject to approval. The Colama balance fell to Rs 3.88 crore at September 30, 2026 from Rs 3.93 crore at June 30, 2026.

Loans from directors and related parties totalled Rs 3.93 crore at June 30, 2026, nearly matching the Colama balance. Zarinabegum Khan accounted for Rs 3.36 crore, Mohd Khurshid Alam Khan for Rs 47.32 lakh and Heena Md Khurshid Khan for Rs 9.87 lakh; all three unsecured business loans were repayable on demand and had no disclosed interest rate.

The remaining named unsecured facilities included inventory finance from L&T Finance and Mintifi Finserve Private Limited. Their combined June 30 balance was Rs 1.76 crore, comprising Rs 85.83 lakh from L&T and Rs 90.61 lakh from Mintifi, while the unsecured total of Rs 9.63 crore also included the Colama and director-related balances.

Why did Ajwa Projects use inventory finance alongside term loans?

Ajwa Projects used inventory finance with repayment periods shorter than the 36-month Colama term loan. L&T Finance sanctioned a Rs 1.50 crore short-term inventory financing facility on August 20, 2025 for dealer financing, with Rs 85.83 lakh outstanding on June 30, 2026 at 13% interest.

Each L&T drawdown was repayable within a maximum of 90 days, and the facility had no repayment or prepayment charges. The L&T balance increased to Rs 1.20 crore at September 30, 2026, showing that utilisation could change within the sanctioned facility as dealer-finance requirements changed.

Mintifi sanctioned a Rs 1 crore short-term inventory financing loan on July 31, 2025 and disbursed it on August 4, 2025. Its Rs 90.61 lakh June 30 balance carried 11.5% interest, had a three-month tenure and was designated for working-capital supply-chain use; Mintifi disclosed nil charges for repayment or prepayment from Ajwa Projects' own funds.

The disclosed terms show distinct funding mechanisms rather than one uniform working-capital product. Colama required monthly instalments over 36 months, while L&T linked repayment to individual drawdowns of up to 90 days and Mintifi had a three-month tenure. Continued use of the inventory facilities depends on repayment within those stated timeframes and continuing drawdowns under their facilities.

What secured borrowings supported Ajwa Projects' working capital?

Ajwa Projects' Rs 4.22 crore of secured borrowings at June 30, 2026 was led by an IndusInd Bank cash-credit or overdraft balance of Rs 2.90 crore. The Rs 3.05 crore facility carried 9.15% interest and was repayable on demand for working-capital requirements.

An IndusInd Bank Emergency Credit Line Guarantee Scheme, or ECLGS, working-capital term loan had Rs 66 lakh outstanding at June 30, 2026. The loan was sanctioned on June 22, 2026, carried 9% interest, had a 48-month repayment period and a 12-month moratorium, and was secured against specified residential and commercial properties of a director.

The secured group also included a Punjab National Bank overdraft of Rs 33.18 lakh at 9.30%, secured against fixed deposits, and vehicle and machine loans. An earlier IndusInd working-capital term loan had Rs 9.38 lakh outstanding at June 30, 2026 but no balance at September 30, 2026, according to the subsequent loan schedule.

Did lower finance cost offset Ajwa Projects' higher debt?

Ajwa Projects recorded lower interest expense in FY 2026 despite higher year-end debt. Interest expense was Rs 1.33 crore for the year ended March 31, 2026, compared with Rs 1.48 crore for FY 2025, while total debt rose by Rs 4.56 crore to Rs 12.52 crore from Rs 7.96 crore.

The reduction in interest expense cannot be assigned solely to the facilities listed at June 30, 2026. The Colama, L&T and Mintifi facilities were sanctioned or disbursed between July and August 2025, while the Rs 66 lakh ECLGS facility was disbursed on June 30, 2026. The disclosure provides facility rates and dates but does not provide a lender-by-lender interest-cost reconciliation.

The three-month period ended June 30, 2026 recorded interest expense of Rs 29.71 lakh, which was not annualised and is not directly comparable with the FY 2026 amount of Rs 1.33 crore. During that three-month period, Ajwa Projects reported revenue from operations of Rs 12.41 crore and profit after tax of Rs 1.56 crore.

Debt relative to equity changed only marginally between the two reported balance-sheet dates. Ajwa Projects reported a debt-equity ratio of 0.71 at March 31, 2026 and 0.72 at June 30, 2026, as net worth increased from Rs 17.71 crore to Rs 19.27 crore. The company defines the ratio as total long-term and short-term borrowings divided by total equity, including share capital and reserves and surplus.

What will determine Ajwa Projects' funding position next?

Ajwa Projects' funding position will depend on scheduled repayments, the availability of revolving facilities and the use of director-related loans repayable on demand. At September 30, 2026, director and related-party balances had increased to Rs 4.40 crore from Rs 3.93 crore at June 30, while Colama's balance had declined to Rs 3.88 crore.

The September 30, 2026 loan schedule does not provide a total-debt figure, so it does not establish whether overall borrowings increased or declined after June 30. It does show L&T's balance rising to Rs 1.20 crore and Mintifi's balance rising to Rs 99.88 lakh, alongside the repayment of the Rs 9.38 lakh earlier IndusInd working-capital term-loan balance.

Conclusion

Ajwa Projects' June 30, 2026 debt mix was centred on unsecured funding, which accounted for Rs 9.63 crore of its Rs 13.84 crore total borrowings. The Rs 3.93 crore Colama loan, Rs 3.93 crore in director-related funding and Rs 1.76 crore of inventory-finance balances explain most of that unsecured component, while secured bank facilities continued to support working-capital needs.

The next disclosed developments to watch are repayment under Colama's 36-month schedule, utilisation and repayment of L&T's 90-day drawdowns, and movements in loans repayable on demand from directors and related parties. The September 30, 2026 update shows shifts among those facilities but leaves the overall debt position unresolved because it does not disclose total borrowings for that date.