Dudani Retail’s IPO-adjusted debt-equity ratio falls to 0.09

Dudani Retail Limited projects that its total debt-equity ratio will decline to 0.09 after adjustment for the proposed initial public offering (IPO), from 0.47 before the issue at March 31, 2026. The capitalisation statement shows total debt falling to Rs 1.82 crore from Rs 4.82 crore while shareholders’ funds rise to Rs 20.84 crore from Rs 10.30 crore.

How would Dudani Retail’s IPO-adjusted debt-equity ratio change?

Dudani Retail’s IPO-adjusted total debt-equity ratio would decline by 0.38 points to 0.09 from 0.47. The prospectus defines the debt-equity ratio as total borrowings divided by total net worth, and its capitalisation statement uses restated figures as at March 31, 2026.

The post-issue ratio reflects changes in both debt and equity. Total debt is shown at Rs 1.82 crore after the proposed issue adjustment, Rs 3 crore below the pre-issue amount of Rs 4.82 crore. Shareholders’ funds are shown rising by Rs 10.54 crore to Rs 20.84 crore from Rs 10.30 crore.

The capitalisation statement identifies the adjusted debt and equity outcome but does not specify in that section how proposed-issue proceeds would be allocated between debt reduction and other uses. The 0.09 figure is therefore an adjusted capitalisation measure, rather than a reported ratio from an already completed post-issue balance sheet.

What borrowings make up Dudani Retail’s Rs 4.82 crore debt?

Dudani Retail reported Rs 4.82 crore of fund-based debt at March 31, 2026, comprising Rs 4.17 crore of secured loans and Rs 65 lakh of unsecured loans. The indebtedness statement reported no non-fund-based loans, so the secured portion represented about 87% of total borrowings at that date.

The secured balance was outstanding under a Rs 4.75 crore CGTMSE Hybrid Cash Credit Limit from Kotak Mahindra Bank. The facility was sanctioned on November 12, 2025 for working capital, with Rs 4.17 crore outstanding on March 31, 2026, leaving Rs 58.05 lakh below the sanctioned limit.

The remaining Rs 65 lakh was an unsecured Kotak Mahindra Bank business loan sanctioned on March 23, 2026. The loan carried interest at 12.50% per year and was repayable in 48 monthly equated monthly instalments, or EMIs, of Rs 1,72,770 each. Its sanctioned and outstanding amounts were both Rs 65 lakh on March 31, 2026.

Dudani Retail confirmed in the indebtedness statement that the loans listed had been used for their sanctioned purposes. The certificate also states that no new loan was availed after March 31, 2026 until its signing on September 10, 2026, across secured, unsecured and non-fund-based categories.

What security supports Dudani Retail’s largest borrowing?

Dudani Retail’s Rs 4.17 crore Kotak Mahindra Bank cash-credit balance is secured by all present and future current assets of the company and a Jaipur property owned by Mrs. Sushila Dudani. The company reported current assets of Rs 16.55 crore at March 31, 2026 in its restated mandatory accounting ratios.

The collateral property is Plot No. E-29B, Sumitra Path, Bani Park, Jaipur, Rajasthan 302016. Mr. Akshay Dudani, Mrs. Charu Dudani and Mrs. Sushila Dudani have provided personal guarantees for the cash-credit facility, according to the stated principal terms.

The cash-credit facility carries interest at RPRR plus 2.60% per year and has a validity or review period of 12 months. The prospectus does not define RPRR or disclose the resulting all-in rate as at March 31, 2026, so continuation on the disclosed terms is subject to the lender’s review and the facility conditions.

How does the proposed issue change Dudani Retail’s debt mix?

Dudani Retail’s proposed-issue adjustment reduces short-term debt by Rs 3 crore while leaving long-term debt at Rs 65 lakh. Short-term debt is shown declining to Rs 1.17 crore after the issue adjustment from Rs 4.17 crore before it, while long-term debt remains Rs 65 lakh in both columns.

The prospectus defines short-term debt as debt expected to be paid or payable within 12 months, excluding instalments of term loans repayable within 12 months. It defines long-term debt as debt other than short-term debt, including instalments of term loans repayable within 12 months when grouped under other current liabilities.

The classification means the Rs 65 lakh Kotak business loan is shown as long-term debt in the capitalisation statement, while the cash-credit balance is represented within short-term debt. Before the issue adjustment, short-term debt accounted for Rs 4.17 crore of the Rs 4.82 crore total, making the reported debt position predominantly short term.

After adjustment, the residual Rs 1.82 crore of total debt consists of Rs 1.17 crore of short-term debt and Rs 65 lakh of long-term debt. The lower 0.09 debt-equity ratio therefore depends on the disclosed short-term debt reduction as well as the increase in shareholders’ funds to Rs 20.84 crore.

How does the 2026 debt position compare with earlier years?

Dudani Retail’s total borrowings increased to Rs 4.82 crore in the year ended March 31, 2026 from Rs 4.03 crore in the year ended March 31, 2025 and Rs 3.53 crore in the year ended March 31, 2024. Over the same period, total net worth increased to Rs 10.30 crore in 2026 from Rs 8.40 crore in 2025 and Rs 6.62 crore in 2024.

The reported debt-equity ratio declined to 0.47 in 2026 from 0.48 in 2025 and 0.53 in 2024, despite the increase in borrowing. The lower ratio reflected the rise in total net worth, which the prospectus defines for this measure as equity share capital plus reserves and surplus.

Restated profit after tax was Rs 1.90 crore in 2026, compared with Rs 1.78 crore in 2025 and Rs 99.38 lakh in 2024. The historical debt-equity figures are reported financial ratios, whereas the 0.09 ratio is specifically presented as adjusted for the proposed issue.

Conclusion

Dudani Retail’s capitalisation statement combines a Rs 3 crore reduction in short-term debt with a Rs 10.54 crore increase in shareholders’ funds, producing the disclosed post-issue debt-equity ratio of 0.09. At March 31, 2026, the company’s borrowing stack was concentrated in the Rs 4.17 crore Kotak Mahindra Bank working-capital facility, which was secured by current assets, property collateral and personal guarantees.

The next item to watch is completion of the proposed issue because the capitalisation statement presents post-issue figures as adjustments rather than completed financial results. The September 10, 2026 indebtedness certificate reported no new borrowing after March 31, 2026, while the Kotak cash-credit facility remains subject to a 12-month review period and its stated security conditions.