Dove Soft short-term borrowings rise to Rs 7.41 crore in FY26

Dove Soft Limited reported short-term borrowings of Rs 7.41 crore at 31 March 2026, up from Rs 2.49 crore a year earlier. The increase was led by an ICICI Bank overdraft of Rs 3.95 crore, compared with Rs 2.26 lakh at 31 March 2025, while reported long-term borrowings declined to Rs 1.88 crore.

Why did Dove Soft short-term borrowings rise in FY26?

Dove Soft’s short-term borrowings increased by Rs 4.93 crore in the year ended 31 March 2026, shifting the reported borrowing mix toward obligations classified as current. The Rs 7.41 crore closing balance was nearly three times the Rs 2.49 crore reported at 31 March 2025 and exceeded the Rs 2.76 crore reported at 31 March 2024. The short-term classification includes a secured bank overdraft, unsecured other borrowing and current maturities of long-term borrowings.

The secured ICICI Bank overdraft drove most of the movement, rising by Rs 3.92 crore year on year to Rs 3.95 crore. The facility represented about 53.2% of Dove Soft’s Rs 7.41 crore short-term borrowing balance at 31 March 2026. The lender schedule identifies it as a business loan carrying 9.60% interest and repayable on demand, making the lender’s continuing availability of the facility relevant to the company’s near-term funding position.

Other components moved in different directions during FY26. Unsecured other short-term borrowings declined to Rs 9.87 lakh from Rs 1.22 crore, while current maturities from other financial institutions rose to Rs 2.04 crore from Rs 1.01 crore. Current maturities from banks and non-banking financial companies, or NBFCs, fell to Rs 1.33 crore from Rs 1.46 crore. The disclosed FY26 components total Rs 7.4141 crore, compared with the reported Rs 7.4142 crore total, a difference of Rs 1,000.

How much of the FY26 increase came from the ICICI Bank overdraft?

The ICICI Bank overdraft accounted for about 79.7% of Dove Soft’s Rs 4.93 crore increase in short-term borrowings in FY26. Its balance rose from Rs 2.26 lakh at 31 March 2025 to Rs 3.95 crore at 31 March 2026, after standing at Rs 96.36 lakh at 31 March 2024. The three reporting dates show that use of the facility fell sharply in FY25 before increasing materially in FY26.

Dove Soft’s lender schedule describes the ICICI Bank facility as secured and states that it is repayable on demand. Unlike the term loans included in the long-term borrowing note, the overdraft schedule does not give an end date or a fixed repayment period. The distinction is material because the largest component of FY26 short-term borrowings was a demand facility rather than a loan with a disclosed instalment schedule.

Dove Soft recorded finance cost of Rs 1.21 crore in FY26, compared with Rs 98.81 lakh in FY25 and Rs 30.30 lakh in FY24. Finance cost therefore increased by Rs 22.26 lakh from FY25 alongside the increase in short-term borrowings. The accounts disclose the ICICI overdraft’s 9.60% interest rate, but do not allocate the Rs 1.21 crore total finance cost among the overdraft, vehicle loans, business loans and other facilities.

What happened to Dove Soft’s long-term borrowings and maturities?

Dove Soft’s reported long-term borrowings fell by Rs 4.57 crore to Rs 1.88 crore at 31 March 2026 from Rs 6.45 crore at 31 March 2025. The long-term borrowing note deducts current maturities, which are portions of loans due within the current period, from the long-term classification. This presentation permits a lower long-term balance and a higher short-term balance at the same reporting date.

Current maturities recorded within short-term borrowings totalled Rs 3.37 crore in FY26, comprising Rs 1.33 crore from banks and NBFCs and Rs 2.04 crore from other financial institutions. The long-term borrowing note reports current maturities of Rs 3.3684 crore, while the short-term note shows Rs 3.3683 crore, a Rs 1,000 rounding difference. In FY25, current maturities were Rs 2.47 crore, so the amount classified as current rose by about Rs 90.32 lakh.

The detailed lender schedule reported Rs 5.25 crore of term and other listed loan balances at 31 March 2026, down from Rs 8.91 crore in FY25. The FY26 amount broadly reconciles between Rs 1.88 crore classified as long term and Rs 3.37 crore classified as current maturities. Scheduled loan balances consequently declined by Rs 3.66 crore, although the proportion classified as due in the current period increased.

What does the borrowing shift show about Dove Soft’s liquidity?

Dove Soft ended FY26 with Rs 1.74 crore of cash and cash equivalents against Rs 7.41 crore of reported short-term borrowings. Cash increased from Rs 1.31 crore at 31 March 2025, but the Rs 43.26 lakh increase was smaller than the Rs 4.93 crore rise in short-term borrowings. The FY26 cash balance comprised Rs 1.65 crore held with banks and Rs 9.53 lakh of cash on hand.

The restated cash flow statement reported net cash generated from operating activities of Rs 12.64 crore in FY26, compared with net cash used in operating activities of Rs 5.52 crore in FY25. It also reported net cash used in financing activities of Rs 8.55 crore in FY26, following Rs 21.69 crore generated from financing activities in FY25. The supplied notes do not specify how much of the FY26 financing cash outflow related to the ICICI overdraft.

Working-capital balances increased at 31 March 2026. Trade receivables rose to Rs 137.64 crore from Rs 86.81 crore, an increase of Rs 50.83 crore, while trade payables rose to Rs 58.91 crore from Rs 30.73 crore, an increase of Rs 28.18 crore. The cash flow statement separately reports a Rs 5.30 lakh increase in receivables and a Rs 28.18 crore increase in payables, so the restated statements use classifications that should not be treated as a complete cash-conversion calculation without further disclosure.

Conclusion

Dove Soft’s FY26 borrowing profile changed principally because its ICICI Bank overdraft increased to Rs 3.95 crore and became the largest part of Rs 7.41 crore in short-term borrowings. At the same time, reported long-term borrowings fell to Rs 1.88 crore as Rs 3.37 crore of loan maturities were classified as current, reducing the reported scheduled loan balance while increasing current obligations.

The next reporting update should show whether Dove Soft’s ICICI Bank demand overdraft remains at a similar balance, is repaid or is replaced by another funding source. It should also show the progression of the Rs 3.37 crore of current maturities and any change in the relationship among cash of Rs 1.74 crore, receivables of Rs 137.64 crore and short-term borrowing obligations.