Himalaya Nutraveds’ debt is almost all cash-credit funding

Himalaya Nutraved(s) India Limited had Rs 5.32 crore of outstanding borrowings on August 14, 2026, of which Rs 4.82 crore, or 90.6%, was ICICI Bank Limited cash credit. The cash-credit facility was 96.4% drawn against its Rs 5 crore sanction, making working-capital funding the main component of Himalaya Nutraveds’ debt.

Why is Himalaya Nutraveds’ debt almost all cash-credit funding?

Himalaya Nutraveds’ borrowings were concentrated in cash credit because Rs 4.82 crore was outstanding under the ICICI Bank Limited facility as of August 14, 2026, against aggregate borrowings of Rs 5.32 crore. Cash credit is a bank facility available within a sanctioned limit and is commonly used to fund working-capital requirements. The company says its loans have been availed for purposes including working capital and capital expenditure.

The remaining Rs 50.27 lakh in the aggregate borrowing table was a secured vehicle loan, and the company reported nil unsecured borrowings. The capitalisation statement at March 31, 2026 showed the same short-term orientation: short-term debt was Rs 4.59 crore of total debt of Rs 5.13 crore, while long-term debt including current maturities was Rs 54.02 lakh. The company defines short-term borrowings as amounts repayable within 12 months of the balance-sheet date.

The August 14, 2026 facility-level table lists the vehicle-loan outstanding at Rs 53.26 lakh, rather than Rs 50.27 lakh in the aggregate borrowing table. The aggregate total of Rs 5.32 crore reconciles to Rs 4.82 crore of cash credit plus Rs 50.27 lakh of vehicle debt. The supplied disclosure does not explain the Rs 2.99 lakh difference.

How fully was Himalaya Nutraveds’ cash-credit facility used?

Himalaya Nutraveds had drawn Rs 4.82 crore from the Rs 5 crore ICICI Bank Limited cash-credit sanction on August 14, 2026, leaving Rs 18.01 lakh undrawn. The 96.4% utilisation means that continued funding capacity depends on the sanctioned line remaining available and on the level of current assets securing it.

ICICI Bank Limited sanctioned the facility on June 12, 2026, after taking over the cash-credit line previously availed from The Cosmos Co-operative Bank Limited. Himalaya Nutraveds states that no dues were outstanding to The Cosmos Co-operative Bank Limited in relation to that earlier facility. The new line was availed under the Credit Guarantee Fund Trust for Micro and Small Enterprises, or CGTMSE, scheme, and the loan documents were executed on July 30, 2026.

The disclosed interest rate was the repo rate plus a 4% spread, equal to 9.25% at the stated date. The facility table describes the cash credit as repayable on demand, while also containing wording on monthly instalments. The prospectus says loan approvals and sanctions were valid at the red herring prospectus date or, where expired, renewal applications had been made or were being processed.

What security supports Himalaya Nutraveds’ cash-credit funding?

Himalaya Nutraveds secured the ICICI Bank Limited cash-credit facility through hypothecation of all current assets. Hypothecation gives the lender security over specified assets while those assets remain with the borrower. The company reported current assets of Rs 21.70 crore at March 31, 2026.

The ICICI Bank Limited line also has personal guarantees from Bohit Asawa, Chanda Asawa, Divya Asawa and Rama Raju Pemsatsa. Separately, the Mercedes Benz Financial Services Private Limited vehicle-loan sanction was Rs 70.80 lakh and was secured by hypothecation of a Mercedes Benz car. The vehicle loan carried a disclosed interest rate of 8.54% and was repayable in 35 monthly instalments, followed by a final instalment.

Current liabilities were Rs 7.90 crore at March 31, 2026, producing a current ratio of 2.75 times from Rs 21.70 crore of current assets. The current ratio, defined as current assets divided by current liabilities, was 2.67 times in fiscal 2025 and 1.12 times in fiscal 2024. Himalaya Nutraveds attributed the fiscal 2025 movement to higher credit terms that increased receivables to support revenue growth.

How has Himalaya Nutraveds’ debt changed across reported periods?

Himalaya Nutraveds’ total debt increased to Rs 5.13 crore in fiscal 2026 from Rs 1.76 crore in fiscal 2025, according to its restated ratio statement. Shareholders’ equity plus reserves and surplus increased to Rs 16.38 crore from Rs 6.76 crore over the same period. Total debt-to-equity was therefore 0.31 times in fiscal 2026, compared with 0.26 times in fiscal 2025 and 2.39 times in fiscal 2024.

The ratio comparison reflects movements in both debt and equity. Himalaya Nutraveds said it repaid all unsecured loans in fiscal 2025, citing that repayment as the reason for the change in the debt-equity ratio from fiscal 2024. As of August 14, 2026, the indebtedness table classified all Rs 5.32 crore of reported borrowings as secured and showed no unsecured borrowing.

Interest cost was Rs 34.95 lakh in fiscal 2026, compared with Rs 31.89 lakh in fiscal 2025 and Rs 18.37 lakh in fiscal 2024. Revenue from operations rose to Rs 43.07 crore in fiscal 2026 from Rs 21.00 crore in fiscal 2025, while net working capital increased to Rs 13.80 crore from Rs 5.71 crore. The company said the earlier working-capital increase was driven by higher receivables and inventory to support sales growth.

Conclusion

Himalaya Nutraveds’ August 14, 2026 borrowing structure was chiefly working-capital based rather than long-term: ICICI Bank Limited cash credit represented Rs 4.82 crore of Rs 5.32 crore in aggregate borrowings. The March 31, 2026 capitalisation statement also recorded Rs 4.59 crore of short-term debt within Rs 5.13 crore of total debt, while the cash-credit facility was secured by all current assets and four personal guarantees.

The next disclosed items to watch are the continued availability or renewal of the ICICI Bank Limited facility, which was nearly fully drawn after its June 12, 2026 sanction, and any clarification of the vehicle-loan balance. The aggregate borrowing table reports Rs 50.27 lakh for that loan, whereas the facility-level table reports Rs 53.26 lakh.