Company borrowings doubled, with most due within a year

Company’s borrowings rose to Rs 860.654 crore at March 31, 2026 from Rs 421.643 crore at March 31, 2024, while Rs 794.368 crore, or 92.3% of the March 2026 balance, was due within one year. Company also reported Rs 725.563 crore of variable-rate borrowings, increasing its exposure to market-interest-rate changes.

How much did Company borrowings increase in two years?

Company borrowings increased by Rs 439.011 crore, or 104.1%, between March 31, 2024 and March 31, 2026. Total borrowings were Rs 746.766 crore at March 31, 2025 before rising to Rs 860.654 crore in Fiscal 2026. Company’s total debt-to-equity ratio was 0.97 at March 31, 2026, calculated against total equity of Rs 888.411 crore.

The increase was concentrated in current borrowings, defined in the capitalisation statement as borrowings due within 12 months from the balance-sheet date. Borrowings due within one year rose from Rs 368.232 crore at March 31, 2024 to Rs 666.101 crore at March 31, 2025 and Rs 794.368 crore at March 31, 2026. Borrowings due in one to five years increased from Rs 53.030 crore in 2024 to Rs 66.286 crore in 2026, while the Rs 0.381 crore amount due after five years in 2024 was no longer reported in 2025 or 2026.

Company’s March 2026 maturity profile places most of its reported balance-sheet borrowings in the next 12 months. Non-current borrowings, defined as borrowings other than current borrowings and including current maturities of long-term borrowing, accounted for Rs 66.286 crore, or 7.7%, of total borrowings. The near-term concentration will persist if working-capital borrowing remains the principal form of debt and facilities continue to carry short contractual tenors.

Why are Company borrowings mostly short-term and floating-rate?

Company says its working-capital borrowings are primarily at variable interest rates, and its working-capital facilities typically have tenors of up to 12 months. The facilities are subject to annual review and renewal by the relevant lender. In contrast, Company says its term-loan facilities typically range from 14 months to five years, linking the short maturity profile principally to working-capital funding.

Variable-rate borrowings rose to Rs 725.563 crore at March 31, 2026 from Rs 363.572 crore at March 31, 2024, an increase of Rs 361.991 crore, or 99.6%. Fixed-rate borrowings increased from Rs 75.537 crore to Rs 135.091 crore over the same period, but remained lower than variable-rate borrowings in each of the three reported years. Variable-rate borrowings represented 84.3% of total borrowings at March 31, 2026.

Company expects variable interest rates to decline and says it is therefore carrying borrowings at variable rates. The source states that term loans and working-capital facilities typically carry floating interest rates linked to a lender-specified base rate plus a spread for fund-based facilities. The expected reduction in borrowing costs depends on market rates declining and on lenders renewing working-capital facilities under terms available to Company.

How sensitive is Company to a change in interest rates?

A 0.50% change in interest rates would affect Company’s Fiscal 2026 profit by Rs 3.628 crore, based on its sensitivity analysis for loans carried at variable rates. The comparable disclosed impact was Rs 3.197 crore at March 31, 2025 and Rs 1.818 crore at March 31, 2024. The sensitivity increased as variable-rate borrowings rose from Rs 363.572 crore in 2024 to Rs 725.563 crore in 2026.

Interest and other borrowing costs in Company’s cash-flow statement rose to Rs 96.167 crore in Fiscal 2026 from Rs 72.645 crore in Fiscal 2025 and Rs 48.394 crore in Fiscal 2024. Fiscal 2026 net cash generated from operating activities was Rs 158.441 crore, compared with Rs 23.627 crore in Fiscal 2025 and Rs 29.350 crore in Fiscal 2024. Operating cash flow and interest expense are different measures, so the disclosed figures do not establish a debt-service coverage ratio.

Company also held Rs 381.886 crore of fixed-rate bank deposits at March 31, 2026, compared with Rs 273.115 crore at March 31, 2025 and Rs 201.254 crore at March 31, 2024. These deposits are fixed-rate financial assets, whereas Company identifies its working-capital obligations as the principal exposure to floating rates. The source does not quantify how changes in rates would affect deposit income or Company’s net interest expense.

Can Company meet its near-term obligations from disclosed funding sources?

Company states that it manages liquidity by estimating future cash flows and seeks to balance continuity of funding and flexibility through bank overdrafts, cash-credit facilities and bank loans. Its principal funding sources are cash generated from operations, working-capital facilities and equipment term loans. Cash and cash equivalents were Rs 172.164 crore at the end of Fiscal 2026, compared with Rs 102.845 crore at the end of Fiscal 2025.

Company’s contractual obligations due within one year totalled Rs 1,338.171 crore at March 31, 2026. That amount comprised Rs 794.368 crore of borrowings, Rs 259.399 crore of trade payables and Rs 284.404 crore of other financial liabilities. Total contractual obligations were Rs 1,458.754 crore, including Rs 120.583 crore due in one to five years and no reported amount due after five years.

Fiscal 2026 operating cash generation included working-capital movements that can affect liquidity. Changes in trade receivables were Rs 205.128 crore and changes in financial assets and other assets were Rs 313.808 crore, while changes in financial liabilities and other payables were Rs 328.525 crore. Company states that anticipated cash flows depend on factors beyond its control, including the effects of operating activities, debt repayment and debt-service obligations.

Company also discloses financing agreements containing conditions and covenants that may require lender consent before specified activities or transactions. Company says failure to obtain required consent could have significant adverse consequences. Security under borrowing arrangements may include corporate guarantees, charges over movable and immovable assets, pari passu charges over current assets, receivables and stock, and liens over fixed deposits.

Conclusion

Company’s borrowing profile changed between March 2024 and March 2026 through a 104.1% increase in total borrowings, a larger share maturing within 12 months and a near doubling of variable-rate debt. The disclosed exposure combines Rs 794.368 crore of borrowings contractually due within one year with a Rs 3.628 crore estimated effect on Fiscal 2026 profit from a 0.50% interest-rate change.

The later disclosed borrowing position to watch is July 31, 2026. Company reported Rs 386.046 crore of secured fund-based borrowings, Rs 443.442 crore of unsecured borrowings and Rs 1,016.605 crore of bank guarantees and letters of credit outstanding. The Rs 1,817.711 crore aggregate includes non-fund-based facilities and is therefore not directly comparable with March 2026 balance-sheet borrowings; facility renewal, lender consents and variable-rate movements remain the disclosed matters affecting the profile.