Jewellery maker debt fell, but 91% is due within a year

Jewellery maker reduced total borrowings from Rs 145.85 crore at March 31, 2025 to Rs 110.49 crore at June 30, 2026, but Rs 100.41 crore was contractually due within one year. The maturity profile leaves funding dependent on working-capital facilities, operating cash conversion and the ability to refinance short-term obligations.

Why is Jewellery maker debt concentrated within one year?

Jewellery maker had 90.9% of its Rs 110.49 crore borrowings due within one year at June 30, 2026. Contractual undiscounted payments, meaning the stated cash payments before discounting for time, showed Rs 100.41 crore due in less than one year and Rs 10.08 crore due in one year and more.

The short-dated obligation is broader than borrowings. Of Rs 164.27 crore of total contractual financial liabilities at June 30, 2026, Rs 149.88 crore, or 91.2%, fell due within one year. That amount included Rs 46.77 crore of trade payables and Rs 2.70 crore of other financial liabilities, in addition to the borrowing balance.

The concentration reflects Jewellery maker’s disclosed working-capital funding model. Its long-term and short-term borrowings primarily comprise secured working-capital term loans, while the business requires substantial working capital to finance inventory and receivables. Working capital is funding used for operating assets and liabilities, including stock held for production or sale and amounts due from customers.

How did Jewellery maker debt change after Fiscal 2025?

Jewellery maker’s borrowings fell by Rs 35.36 crore between March 31, 2025 and June 30, 2026. The company reported Rs 145.85 crore of borrowings at March 31, 2025, Rs 102.59 crore at March 31, 2026 and Rs 110.49 crore at June 30, 2026, showing a Rs 7.90 crore increase in the three months after fiscal year-end.

The maturity profile lengthened compared with March 31, 2025, though it remained concentrated in the near term. At March 31, 2025, Rs 145.54 crore was due within one year and Rs 3.09 lakh was due later; by June 30, 2026, the within-one-year amount had declined to Rs 100.41 crore while Rs 10.08 crore was due after one year.

Fiscal 2026 financing cash flows included a net repayment of Rs 53.96 crore of short-term borrowings, partly offset by Rs 11.51 crore of net proceeds from long-term borrowings. In the three months ended June 30, 2026, financing activities instead generated Rs 6.44 crore, principally from Rs 8.83 crore of net short-term borrowing proceeds, partly offset by Rs 1.04 crore of net long-term repayment and Rs 1.83 crore of finance costs paid.

What facilities support Jewellery maker’s short-term funding?

Jewellery maker had Rs 83.80 crore outstanding under secured fund-based working-capital facilities at June 30, 2026, against sanctioned limits of Rs 99 crore. Axis Bank accounted for Rs 31.59 crore, HDFC Bank Rs 23.88 crore, Yes Bank Rs 18.36 crore and Central Bank of India Rs 9.97 crore of those outstanding facilities.

Working-capital term loans added Rs 10.70 crore, comprising Rs 1.70 crore from Axis Bank, Rs 5.80 crore from HDFC Bank and Rs 3.20 crore from Yes Bank. The lender-wise schedule reported secured borrowings of Rs 97.16 crore and unsecured borrowings of Rs 15.58 crore, including Rs 13.08 crore from director Shailesh Sangani.

The lender-wise outstanding total of Rs 112.75 crore differs from the Rs 110.49 crore contractual-maturity total because the lender schedule includes Rs 2.25 crore of non-fund-based facilities. Those facilities are sub-limits of fund-based facilities, whereas the maturity table reports contractual undiscounted payments for borrowings.

Jewellery maker is also entitled to fully secured gold metal loan facilities outside the consortium of up to Rs 26 crore from HDFC Bank and up to Rs 16 crore from Yes Bank. The disclosed entitlements do not state that these additional limits were drawn at June 30, 2026.

How does floating-rate debt affect Jewellery maker’s refinancing need?

Jewellery maker says its primary interest-rate exposure relates to short-term debt obligations carrying floating interest rates. Its credit facilities typically carry annual rates of 4.00% to 9.55%, linked to the external benchmark lending rate, repo rate or marginal cost of fund-based lending rate, which are lending benchmarks used by banks.

The maturity profile means that the funding requirement involves principal as well as interest. Jewellery maker must repay, renew or replace Rs 100.41 crore of borrowings falling due within one year, subject to available facilities and lender terms. The company states that its credit facilities typically have tenors of approximately 12 to 60 months, but its maturity table sets out when the reported contractual payments fall due.

Finance costs declined by 3.73% to Rs 7.89 crore in Fiscal 2025 from Rs 8.20 crore in Fiscal 2024. That reduction does not determine future funding costs because Jewellery maker identifies changes in market interest rates as a risk to the future cash flows of loans and borrowings.

Can cash flow and cash balances cover Jewellery maker’s near-term obligations?

Jewellery maker reported Rs 4.94 crore of cash and cash equivalents at June 30, 2026, comprising Rs 99.50 lakh of cash in hand and Rs 3.94 crore of bank balances. The cash balance was below the Rs 100.41 crore of borrowings contractually due within one year, making the reported cash position alone insufficient to meet that maturity amount.

Operating activities used Rs 6.10 crore in the three months ended June 30, 2026 despite profit before tax of Rs 8.54 crore. The company attributed the operating outflow mainly to an Rs 8.75 crore increase in inventories, an Rs 8.87 crore increase in trade receivables and an Rs 1.86 crore increase in other current assets; an Rs 3.19 crore increase in trade payables partly offset these movements.

Operating cash flow has varied across the reported periods as working-capital balances changed. Operating activities generated Rs 17.69 crore in Fiscal 2026 and Rs 2.51 crore in Fiscal 2025, compared with an Rs 1.82 crore outflow in Fiscal 2024. Jewellery maker states that operating cash flow, net proceeds from the fresh issue and borrowings are expected to fund working-capital and capital-expenditure requirements for at least the next 12 months.

Conclusion

Jewellery maker’s lower borrowing balance does not remove its near-term refinancing requirement because Rs 100.41 crore of Rs 110.49 crore of borrowings was due within one year at June 30, 2026. The company’s liquidity position is linked to its working-capital facilities, floating benchmark-linked borrowing costs and conversion of inventory and receivables into operating cash flow.

The disclosed plan to prepay or repay certain Axis Bank, HDFC Bank and Yes Bank facilities from net proceeds is the next relevant funding development to watch. Jewellery maker also states that expanding operations will increase working-capital needs and may require further working-capital facilities or additional equity shares, while post-issue capitalisation data was not determinable at the time of disclosure.