Peshwa Wheat has 63.55% of debt payable on demand

Peshwa Wheat Limited had Rs 15.08 crore of borrowings payable on demand at March 31, 2026, representing 63.55% of total borrowings of Rs 23.74 crore. The amount comprised unsecured loans carrying nil interest, so the company’s funding position depends in part on lenders continuing to leave those loans outstanding despite its debt-equity ratio declining to 0.55 times.

Why are Peshwa Wheat borrowings payable on demand significant?

Peshwa Wheat’s payable-on-demand borrowings are significant because they accounted for nearly two-thirds of its reported debt at March 31, 2026. The company disclosed Rs 23.74 crore of aggregate outstanding borrowings, comprising Rs 8.65 crore of secured bank borrowing and Rs 15.08 crore of unsecured borrowing from others. Its certified statement of borrowings payable on demand identifies the entire Rs 15.08 crore unsecured amount as 63.55% of total borrowings.

A loan payable on demand does not have a stated fixed repayment timetable in the company’s demand-borrowing disclosure. Peshwa Wheat listed a nil interest rate against all five unsecured loans totalling Rs 15.08 crore. This means the disclosed issue is the timing at which funds may be sought back and the continued availability of lender support, rather than interest expense on these specific loans.

The company’s demand-borrowing table describes the amount as unsecured loans from directors and relatives. The underlying unsecured-loan schedule, however, names Commerciale Enterprises Pvt Ltd, Peshwa Nutrition, Peshwa Bakers, Rahat Ali Saiyed and Shehnaj as lenders. The disclosures do not explain each lender’s relationship with Peshwa Wheat or provide a separate reconciliation between the directors-and-relatives description and the named lender list.

How concentrated is Peshwa Wheat’s unsecured funding?

Peshwa Wheat’s unsecured funding was concentrated in Peshwa Nutrition and Peshwa Bakers, which together provided Rs 11.01 crore, or 72.98% of the Rs 15.08 crore unsecured-loan balance at March 31, 2026. Peshwa Nutrition was the largest individual lender at Rs 6.90 crore, equal to 45.74% of unsecured loans and 29.07% of Peshwa Wheat’s total Rs 23.74 crore borrowings.

The remaining unsecured funding came from three lenders. Peshwa Bakers provided Rs 4.11 crore, Rahat Ali Saiyed provided Rs 2.98 crore, Shehnaj provided Rs 60 lakh, and Commerciale Enterprises Pvt Ltd provided Rs 50 lakh. Each loan carried a nil interest rate according to the unsecured-loan schedule, while the company did not disclose individual repayment tenors for those facilities.

The lender concentration means continued availability of the funding is particularly linked to the decisions of the two largest named lenders. Peshwa Nutrition and Peshwa Bakers together represented Rs 11.01 crore of demand-payable funding, compared with Peshwa Wheat’s Rs 29.92 crore inventory and Rs 28.07 crore trade receivables reported at March 31, 2026. The source does not disclose a refinancing plan or conversion of the unsecured loans into fixed-tenor borrowing.

What secured borrowing facilities did Peshwa Wheat have?

Peshwa Wheat had Rs 8.65 crore of secured bank borrowings at March 31, 2026, representing the other 36.45% of total debt. Canara Bank Limited accounted for Rs 8.65 crore of the secured balance, including Rs 8.00 crore outstanding under a cash-credit facility, three vehicle loans totalling Rs 64.96 lakh, and an Axis Bank Limited warehouse-backed cash-credit balance of Rs 50,000.

Cash credit is a working-capital facility under which a borrower may draw funds subject to the sanctioned limit and facility terms. Peshwa Wheat reported the Canara Bank cash-credit balance at Rs 8.00 crore against an Rs 8.00 crore sanction on March 31, 2026. The Axis Bank warehouse facility had an Rs 5.00 crore sanction but only Rs 50,000 outstanding, so the Canara cash-credit facility accounted for most of the secured balance.

The secured facilities were backed by current and future stock, including raw material, work in progress and finished goods, as well as book debts. The disclosure also lists plant and machinery, factory land and building, a residential property in the name of director Shehnaj, and a lien of KDR as collateral. Peshwa Wheat disclosed personal guarantees from Rahat Ali Saiyad, Sadaf Saiyed and Shehnaj, while its three vehicle loans were secured against the respective vehicles and had 58 to 74 months remaining as of March 31, 2026.

Does Peshwa Wheat’s lower debt-equity ratio remove the demand-loan risk?

No. Peshwa Wheat’s debt-equity ratio declined to 0.55 times in fiscal 2026 from 0.83 times in fiscal 2025, but the ratio does not indicate when particular lenders may require repayment. The company attributed the decline primarily to an increase in shareholder equity and reserves during the year ended March 31, 2026. Total restated net worth increased to Rs 43.06 crore in fiscal 2026 from Rs 27.26 crore in fiscal 2025.

The balance-sheet data shows that short-term borrowings increased to Rs 23.19 crore at March 31, 2026 from Rs 22.13 crore a year earlier. Peshwa Wheat attributed that increase mainly to higher unsecured borrowing from related parties. Long-term borrowings rose to Rs 54.98 lakh from Rs 46.97 lakh, leaving the reported borrowing structure predominantly short term at the end of fiscal 2026.

Peshwa Wheat’s current ratio, defined as current assets divided by current liabilities, rose to 2.07 times in fiscal 2026 from 1.38 times in fiscal 2025. The company attributed the ratio movement primarily to increased current assets in March 2026. However, the source identifies Rs 29.92 crore of inventories and Rs 28.07 crore of trade receivables within the March 31, 2026 balance sheet, and it does not state a schedule for repaying, renewing or refinancing the Rs 15.08 crore demand-payable loans.

What operating trends sit alongside Peshwa Wheat’s funding reliance?

Peshwa Wheat reported revenue from operations of Rs 215.94 crore in fiscal 2026, up from Rs 171.54 crore in fiscal 2025, while profit after tax increased to Rs 15.81 crore from Rs 11.84 crore. The company said revenue growth reflected expanded market reach through increased sales to super stockists alongside direct customers. Revenue from super stockists was Rs 115.31 crore, or 53.40% of fiscal 2026 operating revenue.

Working-capital balances also expanded during fiscal 2026. Inventories rose by Rs 6.57 crore to Rs 29.92 crore, which Peshwa Wheat attributed to increased material purchases, and trade receivables rose by Rs 8.90 crore to Rs 28.07 crore because of higher sales. These movements occurred alongside Rs 23.19 crore of short-term borrowings, making the continued use of demand-payable funds relevant to the company’s disclosed operating funding structure.

Conclusion

Peshwa Wheat’s 63.55% payable-on-demand borrowing share qualifies the picture provided by its lower fiscal 2026 debt-equity ratio. The company combined Rs 15.08 crore of nil-interest unsecured loans, all payable on demand, with Rs 8.65 crore of secured bank borrowing. The debt-equity ratio fell as net worth increased, but the disclosed loan terms leave a substantial part of total borrowings dependent on lenders not demanding repayment.

The next disclosed point to watch is whether Peshwa Wheat establishes repayment tenors, refinancing, or another change in the Rs 15.08 crore funding mix, as the March 31, 2026 information contains no such plan. The company stated that no developments had come to its attention after the restated fiscal 2026 financial statements that could materially and adversely affect operations, profitability, asset values, or its ability to pay material liabilities within the next 12 months.