Injecto Polymers Limited short-term debt rises 81% in FY2026

Injecto Polymers Limited funded a larger working-capital position with short-term borrowings that rose 80.65% to Rs 156.95 crore in FY2026 from Rs 86.88 crore in FY2025. Inventory increased 89.13% to Rs 140.22 crore and trade receivables rose 79.49% to Rs 64.26 crore over the same period.

Why did Injecto Polymers’ short-term debt rise 81%?

Injecto Polymers said short-term borrowings increased because of higher working-capital requirements for business operations. The company defines short-term borrowings as obligations due for repayment within 12 months of the reporting date. The balance increased by Rs 70.07 crore in FY2026, from Rs 86.88 crore in FY2025 to Rs 156.95 crore.

The FY2026 rise followed a 66.11% increase in FY2025, when short-term borrowings climbed from Rs 52.30 crore in FY2024. Over two financial years, the balance increased by Rs 104.65 crore. Long-term borrowings, defined as obligations due after 12 months, moved in the opposite direction, declining from Rs 31.05 crore in FY2024 to Rs 8.24 crore in FY2026 after loan repayments and, in FY2025, the conversion of compulsorily convertible debentures into equity.

Injecto Polymers reported an additional Rs 60.06 crore of borrowings, net of repayments, from banks and financial institutions during FY2026, as well as Rs 9.04 crore of unsecured loans from others. The unsecured-loan movement included Rs 17.09 crore from related parties and repayment of Rs 8.04 crore of inter-corporate borrowings. The reported changes show that the expanded operating asset base was accompanied by greater use of short-term funding while long-term borrowing declined.

How did inventory increase Injecto Polymers’ funding requirement?

Injecto Polymers’ inventory nearly doubled to Rs 140.22 crore at March 31, 2026, from Rs 74.14 crore a year earlier, an increase of Rs 66.08 crore. The filing defines inventory as goods held for sale, goods in production, or materials and supplies consumed in production. The 89.13% inventory increase exceeded the 43.62% rise in revenue from operations, which reached Rs 375.53 crore in FY2026.

Trading goods accounted for the largest absolute inventory increase, rising Rs 36.49 crore to Rs 58.90 crore. Raw materials increased Rs 18.98 crore to Rs 26.84 crore, while finished goods increased Rs 14.88 crore to Rs 49.65 crore. Work in progress, representing goods still in production, declined by Rs 2.64 crore to Rs 4.82 crore.

Inventory holding days rose to 126 days in FY2026 from 97 days in FY2025. The measure is calculated as average inventory divided by cost of goods sold per day. Raw-material days rose from 9 to 20, finished-goods days from 42 to 50, and trading-goods days from 34 to 48, increasing the period for which cash remained invested in stock.

Injecto Polymers attributed the raw-material increase to mitigating supply-chain disruptions. It said the higher finished-goods balance was a planned build-up to support product availability and distribution, while trading-goods stock was held for market requirements and distribution channels. Continued sales and replenishment consistent with those plans would be needed for the inventory build to convert into cash.

What changed in Injecto Polymers’ receivables and collections?

Injecto Polymers’ trade receivables increased 79.49% to Rs 64.26 crore at March 31, 2026 from Rs 35.80 crore at March 31, 2025. Trade receivables are amounts due from customers for goods sold or services rendered in the normal course of business. The Rs 28.46 crore increase added to the cash tied up in inventory during the same period.

Receivables outstanding for more than six months increased to Rs 7.29 crore in FY2026 from Rs 9.79 lakh in FY2025, an increase of Rs 7.19 crore. The movement reversed the prior year’s change, when this ageing category had declined from Rs 3.18 crore in FY2024 to Rs 9.79 lakh in FY2025. Receivables outstanding for no more than six months increased 59.56% to Rs 56.97 crore in FY2026.

Trade receivable days increased to 49 days in FY2026 from 47 days in FY2025. The filing calculates the metric as average trade receivables divided by revenue from operations, multiplied by 365 days, and attributes the increase to FY2026 revenue growth and the timing of customer collections at the reporting-date end. The two-day movement in the overall measure contrasts with the increase in the more-than-six-month category, making collections from that ageing bucket material to cash conversion.

What secures Injecto Polymers’ short-term funding?

Injecto Polymers’ disclosed bank facilities are secured in several cases by current assets, plant and machinery, land and buildings, fixed deposits, and personal or corporate guarantees. A cash-credit facility is a bank working-capital line repayable on demand under the disclosed terms. For Kotak Mahindra Bank’s cash-credit facility, the filing describes a first pari passu charge, meaning an equal-ranking security interest shared with other lenders, over current assets and movable fixed assets.

Trade payables increased 84.42% to Rs 28.73 crore in FY2026 from Rs 15.58 crore in FY2025, while payable days remained 21 days in both years. Injecto Polymers attributed the increase to higher procurement for expanded production. The ability to fund operations through short-term facilities therefore depends on lender access, the value and availability of charged assets, inventory movement, customer collections and payment of obligations due within 12 months.

The company’s FY2026 finance cost was Rs 12.28 crore, compared with Rs 9.45 crore in FY2025, while revenue from operations increased by Rs 114.05 crore. Finance cost represented 3.27% of FY2026 total income of Rs 375.83 crore, compared with 3.61% of FY2025 total income of Rs 261.85 crore. These reported ratios reflect higher funding costs in rupee terms alongside a larger income base.

Conclusion

Injecto Polymers’ FY2026 growth coincided with a substantial working-capital expansion: inventory increased Rs 66.08 crore, receivables increased Rs 28.46 crore and short-term borrowings increased Rs 70.07 crore. Revenue from operations rose Rs 114.05 crore to Rs 375.53 crore, but the balance-sheet change shows that short-term debt increased as operating assets expanded and long-term borrowings fell.

The disclosed later development is the partial commencement of Phase III at Unit I, adding 1,200 metric tonnes of capacity after March 31, 2026. The board stated that no circumstance had arisen that materially adversely affected profitability, asset value or the ability to pay material liabilities during the following 12 months. Future inventory days, more-than-six-month receivables, current debt maturities and short-term facility use will indicate whether the larger working-capital position converts into cash.