Himalaya Nutravedics projects Rs 28.45 crore working capital

Himalaya Nutravedics projects net working capital of Rs 28.4466 crore at March 31, 2028, up from Rs 17.4853 crore at March 31, 2026. The increase is tied to a direct-to-consumer, or D2C, expansion that assumes 90 days of inventory, 94 days of receivables and 18 days of supplier credit, with up to Rs 13.75 crore of net issue proceeds allocated to the requirement.

Why is Himalaya Nutravedics’ working-capital need rising?

Himalaya Nutravedics’ net working-capital requirement is rising because projected current assets are increasing faster than projected current liabilities as the company adds D2C operations to its business-to-business, or B2B, distribution model. Net working capital is current assets minus current liabilities, and Himalaya Nutravedics projects it at Rs 21.9421 crore for fiscal 2027 and Rs 28.4466 crore for fiscal 2028, compared with Rs 17.4853 crore at March 31, 2026.

The increase follows a historical build-up in funds tied to short-term assets. Himalaya Nutravedics’ restated net working capital rose from Rs 2.8725 crore at March 31, 2024 to Rs 6.8593 crore at March 31, 2025 and Rs 17.4853 crore at March 31, 2026. Current assets reached Rs 20.2507 crore in fiscal 2026, including Rs 8.9155 crore of inventory and Rs 10.5869 crore of trade receivables, while current liabilities were Rs 2.7654 crore.

The fiscal 2028 projection places Rs 12.975 crore in inventory and Rs 17.42 crore in trade receivables, which together account for Rs 30.395 crore of the Rs 32.0772 crore of projected current assets. The projected rise therefore depends principally on the scale of goods held and the period required to convert sales into cash, rather than on a comparable expansion in current liabilities.

How do inventory, receivables and payables create the cash requirement?

Himalaya Nutravedics’ projected working-capital requirement arises because cash is expected to be tied up in stock for 90 days and in customer balances for 94 days, while suppliers are assumed to provide 18 days of credit. These are holding-period measures calculated using turnover ratios: inventory days use cost of goods sold relative to inventory, receivable days use revenue from operations relative to trade receivables, and payable days use cost of goods sold relative to trade payables.

The projected 90 inventory days for fiscal 2027 and fiscal 2028 are below the 101 days reported in fiscal 2026, but above the 80 days in fiscal 2025 and 88 days in fiscal 2024. Himalaya Nutravedics says inventory includes raw materials, work in progress and finished goods; fiscal 2026 inventory included Rs 6.70 crore of raw materials, Rs 1.58 crore of work in progress and Rs 64 lakh of finished goods. The company expects its own-branded portfolio, expanded active stock-keeping units, or SKUs, and D2C fulfilment requirements to require stock across multiple locations rather than a single dispatch point.

Receivable days are projected at 94 in both fiscal 2027 and fiscal 2028, versus 90 in fiscal 2026, 98 in fiscal 2025 and 39 in fiscal 2024. Himalaya Nutravedics supplies super stockists, which distribute through stockists to retailers, and the multi-tier structure requires credit periods for channel partners. E-commerce and quick-commerce platform settlements can also follow delivery confirmation, returns, platform fees and other deductions, extending the time before D2C sale proceeds are received.

Revenue from operations increased from Rs 14.4256 crore in fiscal 2024 to Rs 20.9965 crore in fiscal 2025 and Rs 43.0675 crore in fiscal 2026. Himalaya Nutravedics says its projected working-capital assumptions are based on historical trends, anticipated business growth and operational requirements. The projected asset base requires the company to maintain the assumed inventory and collection periods as it expands across 17 states and develops D2C sales through e-commerce marketplaces, quick-commerce platforms and its website.

Why does supplier credit remain limited at 18 days?

Himalaya Nutravedics projects supplier credit of 18 days in fiscal 2027 and fiscal 2028 because it plans prompt or advance payments for a significant part of its input purchases. The projected period is above the 8 days recorded in fiscal 2026, but below the 31 days in fiscal 2025 and 21 days in fiscal 2024, limiting the period in which trade payables can fund inventory purchases.

Himalaya Nutravedics says its raw-material purchases include herbal and botanical extracts, medicated oils, plant-based actives and vitamins. Suppliers of specialty or regulated inputs may operate on prompt-payment or advance-payment terms, according to Himalaya Nutravedics. The company’s stated mechanism is that timely payment supports supplier relationships, priority material allocation and continuity of supply while it adds branded products and meets D2C fulfilment commitments.

This approach means the fiscal 2028 projection includes Rs 2.60 crore of trade payables against Rs 12.975 crore of inventory and Rs 17.42 crore of receivables. Trade payables rise from Rs 69.93 lakh in fiscal 2026, but the projected increase in current liabilities does not match the expansion in current assets. The projection requires inventory to remain at 90 days, receivables to stabilise at 94 days and suppliers to continue accepting the assumed 18-day payment pattern.

How will Himalaya Nutravedics finance the projected gap?

Himalaya Nutravedics plans to finance up to Rs 13.75 crore of working-capital requirements from net proceeds of its initial public offering, or IPO, with the balance to come from internal accruals, borrowings, existing equity and bank or financial-institution funding. The deployment schedule allocates up to Rs 5 crore in fiscal 2026-27 and up to Rs 8.75 crore in fiscal 2027-28.

The fiscal 2028 projection identifies Rs 4.5916 crore of short-term bank borrowings and Rs 10.105 crore of internal accruals alongside Rs 13.75 crore of issue proceeds. Himalaya Nutravedics had an ICICI Bank Limited credit facility with a sanctioned limit of Rs 5 crore, of which Rs 4.8199 crore was utilised on August 14, 2026. The disclosed financing plan shows that issue proceeds form one component of the projected Rs 28.4466 crore working-capital position.

The projected requirement is based on management estimates of current and future financial performance, including assumptions about future events and management actions that may not occur. Himalaya Nutravedics states that cost overruns, shortfalls or changes in commercial and external conditions could require internal accruals or debt, while surplus issue funds from another stated object could be used if available. J Singh & Associates, the statutory auditor, certified the working-capital figures and assumptions in a certificate dated July 8, 2026.

Conclusion

Himalaya Nutravedics’ projected Rs 28.4466 crore working-capital requirement reflects the funding structure of its planned integrated B2B and D2C model. Inventory must be held across fulfilment and distribution locations, customers and platforms are expected to settle over 94 days, and suppliers are expected to be paid within 18 days. That combination raises current assets faster than current liabilities even though projected inventory days decline from 101 in fiscal 2026 to 90 in fiscal 2027 and fiscal 2028.

The next disclosed milestones are the planned use of up to Rs 5 crore of issue proceeds in fiscal 2026-27 and up to Rs 8.75 crore in fiscal 2027-28, alongside up to Rs 7.50 crore for branding, digital marketing and sales expansion. The matter to watch is whether D2C expansion through e-commerce marketplaces, quick-commerce platforms and the company website can operate within the assumed 90 inventory days, 94 receivable days and 18 payable days while the remaining requirement is funded through accruals and borrowings.