Infrx Renewable debt includes director loans and guarantees

Infrx Renewable Limited reported Rs 6.99 crore of borrowings at March 31, 2026, including Rs 1.59 crore of unsecured 12% business loans from two directors. Its Rs 5.40 crore of secured bank borrowing was backed by company assets, fixed deposits, personal guarantees and property or leasehold security provided by named parties.

How much of Infrx Renewable’s debt came from directors?

Infrx Renewable’s unsecured director loans represented Rs 1.59 crore, or 22.7%, of its Rs 6.99 crore total borrowings at March 31, 2026. Secured borrowings were Rs 5.40 crore, or 77.3% of total debt, comprising facilities from State Bank of India and ICICI Bank Limited. The financial indebtedness schedule separates the secured and unsecured balances, while the capitalisation statement reports the same total-debt figure.

The unsecured balance comprised Rs 42.20 lakh from Bhavik Tarunkumar Gandhi and Rs 1.16 crore from Bhargav Ashvibnhai Vacchani. Both business loans carried 12% annual interest, had no security listed and carried a stated repayment schedule of 2.5 years. The Rs 1.16 crore facility accounted for 73.4% of unsecured borrowings, concentrating most of this funding category in one disclosed lender.

What do the director loans mean for Infrx Renewable’s funding?

The director loans mean part of Infrx Renewable’s borrowings carries defined interest and repayment obligations to the two lenders listed in the March 31, 2026 schedule. They are unsecured, meaning no security was stated in the borrowing table, but they are debt rather than equity and are repayable under the disclosed 2.5-year schedules. Their continuation, repayment or refinancing is therefore subject to the applicable loan terms.

Infrx Renewable’s capitalisation statement classified Rs 3.97 crore as short-term debt and Rs 3.02 crore as long-term debt at March 31, 2026. The company defines short-term debt as amounts expected to be paid within 12 months, excluding term-loan instalments repayable within 12 months. Its long-term debt definition includes those term-loan instalments when grouped under short-term borrowings, so the classification is not a simple contractual maturity breakdown of every instalment.

How are Infrx Renewable’s SBI borrowings secured?

Infrx Renewable had a Rs 3.02 crore State Bank of India term-loan balance at March 31, 2026, against a Rs 3 crore sanctioned limit dated August 20, 2025. The stated interest rate is the Reserve Bank of India repo rate plus 2.65%. Primary security includes hypothecation, a charge over assets while the borrower retains possession, of plant and machinery, receivables and other current assets.

The State Bank of India security also includes leasehold rights over 3.30 acres at Village Bhadla, Taluka Jasdan, District Rajkot. The listed landholders are Batukhbai Nagjibhai Sagpariya, Hansaben Batukhbai Sagpariya, Gitaben Batukhbai Sagpariya and Bhavin Batukhbai Sagpariya. The facility is covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises, or CGTMSE, scheme, and names Bhargv Ashvinbhai Vacchani, Bhavik Tarunkumar Gandhi and Khushboo Bhargv Vacchani as third-party guarantors.

The State Bank of India repayment schedule comprises 173 monthly instalments starting on April 1, 2026 and ending on August 1, 2040. It includes 36 monthly instalments of Rs 1.50 lakh through March 2029, 24 instalments of Rs 2.50 lakh through March 2031, 72 instalments of Rs 2 lakh through March 2037, 40 instalments of Rs 1 lakh through July 2040, and a final Rs 2 lakh instalment.

How do ICICI facilities use company assets and personal security?

Infrx Renewable’s ICICI Bank cash-credit outstanding was Rs 2.38 crore at March 31, 2026, within a Rs 4.60 crore sanctioned limit dated May 9, 2025. Cash credit is a revolving working-capital borrowing facility. The stated rate is the repo rate plus 3.75%, and the security schedule records exclusive charges over Infrx Renewable’s current assets and fixed deposits.

The ICICI cash-credit facility also has an exclusive charge over an office property at S. R. No. 122, Shawshat SPA, Office No. 307, Mokaji CIR, Nana Mava Main Road, Rajkot. The property security providers are listed as Bhargv Ashvinbhai Vacchani and Ashvinbhai Gordhanbhai Vacchani. The cash-credit personal-guarantee schedule names Ashwinbhai Gordhanbhai Vacchani, Bhargv Ashvinbhai Vacchani, Khushpoo Bhargv Vacchani and Bhavik Tarunkumar Gandhi.

ICICI also provided a Rs 35 lakh performance bank-guarantee limit, with no outstanding amount shown at March 31, 2026. A performance bank guarantee is a non-fund-based facility, under which the bank issues a guarantee rather than immediately advancing cash. Its security uses the same Rajkot property and exclusive charges over Infrx Renewable’s current assets and fixed deposits; its guarantee list includes Ashwinbhai Gordhanbhai Vachhani, Bhargv Ashvinbhai Vachhani, Khushboo Bhargav Vachhani and Bhavik Tarunkumar Gandhi.

The ICICI arrangement began with former partnership firm M/s Infrx International at a Rs 93 lakh limit on December 8, 2023. After the entity became Infrx Renewable Limited in September 2024, ICICI increased the cash-credit limit to Rs 2 crore on January 16, 2025 and then Rs 4.60 crore on May 9, 2025, alongside the Rs 35 lakh performance guarantee. The disclosed progression shows that the facility expanded after the corporate conversion.

How did Infrx Renewable’s debt position change in FY 2025-26?

Infrx Renewable reported a debt-to-equity ratio of 0.44 times in financial year 2025-26, compared with 1.60 times in financial year 2024-25. The company defines this ratio as long-term debt plus short-term debt divided by equity. The change measures borrowings relative to equity under that definition; it does not measure interest coverage, cash flow or the security available to lenders.

At March 31, 2026, shareholders’ funds were Rs 15.77 crore, consisting of Rs 1.25 crore in equity share capital and Rs 14.52 crore in restated reserves and surplus. Net worth was Rs 1.89 crore at March 31, 2025 and Rs 15.77 crore at March 31, 2026. Against Rs 6.99 crore of debt, the capitalisation statement showed total debt to shareholders’ funds of 0.44 times and long-term debt to shareholders’ funds of 0.19 times.

Conclusion

Infrx Renewable’s March 31, 2026 debt structure combined Rs 1.59 crore of unsecured director loans with Rs 5.40 crore of secured bank facilities. The bank facilities were supported not only by Infrx Renewable’s current assets, plant and machinery and fixed deposits, but also by a 3.30-acre leasehold security, a Rajkot office property and guarantees from named individuals.

The next disclosed debt milestones are the State Bank of India instalments running from April 1, 2026 to August 1, 2040 and the 2.5-year repayment schedules on the director loans. Infrx Renewable’s board approved an initial public offering on May 11, 2026, and shareholders approved the proposal on May 13, 2026; the capitalisation statement models unchanged Rs 6.99 crore debt and Rs 54.19 crore of post-offer shareholders’ funds.