Runwal Enterprises’ net debt reached Rs 2,778.11 crore

Runwal Enterprises Limited, referred to here as Runwal Enterprises, reported net debt of Rs 2,778.11 crore at March 31, 2026, up from Rs 1,631.227 crore at March 31, 2024. Net debt increased as current borrowings rose to Rs 1,281.623 crore, even though the net-debt-to-equity ratio fell to 3.29 from 4.64 in fiscal 2025.

Why did Runwal Enterprises’ net debt reach Rs 2,778.11 crore?

Runwal Enterprises’ net debt rose because the increase in current borrowings and interest payable exceeded higher cash balances and a reduction in non-current borrowings. The company defines net debt as non-current borrowings plus current borrowings and interest payable, less cash and cash equivalents. At March 31, 2026, the calculation comprised Rs 1,627.505 crore of non-current borrowings, Rs 1,281.623 crore of current borrowings and Rs 70.246 crore of interest payable, less Rs 201.264 crore of cash.

Current borrowings were the main contributor to the fiscal 2026 increase. They rose by Rs 728.226 crore from Rs 553.397 crore in fiscal 2025, while non-current borrowings declined by Rs 131.676 crore. Interest payable increased by Rs 32.972 crore and cash and cash equivalents increased by Rs 102.072 crore, leaving net debt Rs 528.05 crore higher than the fiscal 2025 level.

How did Runwal Enterprises’ leverage ratio fall while debt increased?

Runwal Enterprises’ net-debt-to-equity ratio fell to 3.29 in fiscal 2026 because total equity rose faster than net debt. The ratio is net debt divided by total equity: net debt increased by Rs 528.05 crore from fiscal 2025, while total equity increased by Rs 359.741 crore to Rs 844.816 crore. The ratio was 4.64 in fiscal 2025 and 3.62 in fiscal 2024.

The equity movement coincided with equity attributable to owners of the parent increasing to Rs 833.537 crore in fiscal 2026 from Rs 509.626 crore in fiscal 2025. Net income attributable to owners rose to Rs 209.286 crore from Rs 78.392 crore, while restated net worth increased to Rs 768.199 crore from Rs 455.862 crore. The reported return on net worth was 27.24% in fiscal 2026, compared with 17.20% in fiscal 2025.

The lower ratio does not indicate that borrowings declined. Total borrowings, which exclude interest payable and do not deduct cash, rose in each of the three reported fiscal years: from Rs 1,783.65 crore in fiscal 2024 to Rs 2,312.578 crore in fiscal 2025 and Rs 2,909.128 crore in fiscal 2026. The March 31, 2026 capitalisation statement puts total borrowings at 3.49 times total equity of Rs 833.537 crore.

What borrowings did Runwal Enterprises report in July 2026?

Runwal Enterprises reported consolidated outstanding borrowings of Rs 2,781.741 crore at July 31, 2026, with secured term loans accounting for the largest disclosed category. This July figure is not equivalent to March 31 net debt because it is reported four months later and does not subtract cash and cash equivalents. The company said its borrowings fund capital expenditure, working-capital needs and general corporate purposes.

Secured term loans totalled Rs 1,780.737 crore at July 31, 2026, representing about 64% of the Rs 2,781.741 crore outstanding balance. Secured working-capital facilities were Rs 304.653 crore and secured non-convertible debentures were Rs 172.711 crore. Non-convertible debentures are debt instruments that cannot be converted into shares.

Unsecured intercorporate deposits were Rs 368.11 crore and compulsorily convertible debentures were Rs 150 crore at July 31, 2026. The aggregate sanctioned amount was Rs 5,025.444 crore, compared with Rs 2,781.741 crore outstanding. Disclosed interest rates ranged from 9.25% to 17.00% a year, while term loans typically had tenors of 48 to 84 months.

What security and repayment terms apply to Runwal Enterprises’ debt?

Runwal Enterprises’ secured borrowing arrangements may require charges over land, buildings, receivables, movable assets and shares of the borrower. The facilities may also require a personal guarantee from promoter Subodh Subhash Runwal. Horizon Projects Private Limited, Runwal Commercial Plaza Private Limited and Evie Construction Private Limited are named as subsidiaries that may provide corporate guarantees.

The filing describes these security requirements as indicative, meaning individual arrangements may include additional requirements. Prepayment requires prior written intimation to lenders, and certain facilities may carry a lender-discretionary charge of 1% to 2% of the prepaid amount or the outstanding balance. Borrowings are generally repayable on demand or on their due dates, typically through monthly or quarterly instalments.

The persistence of the borrowing structure depends on compliance with the relevant loan documentation. Runwal Enterprises said it had obtained the lender consents required for activities connected with the issue. Working-capital facilities are payable on demand and were described as typically having a tenor of up to 48 to 84 months.

Which lender terms could affect Runwal Enterprises’ operations?

Runwal Enterprises’ loan agreements list payment defaults, breaches of financing obligations and cross-defaults as standard events of default. A cross-default means a default under another company indebtedness can trigger a default under a relevant facility. Other listed events include insolvency proceedings, incorrect information, a material adverse change and dishonoured post-dated cheques.

A change in the control of Runwal Enterprises or its subsidiaries without prior bank consent is also identified as a default event. Certain arrangements require a detailed end-use certificate issued by a practising chartered accountant within 30 days of each loan drawdown. Following a default, lenders may set off deposits, demand immediate repayment, terminate or reduce facilities, suspend withdrawals and enforce security.

Restrictive covenants can require lender consent or intimation before investments or advances to group entities, changes in ownership, management, shareholding or capital structure, and lender-defined material projects or expansions. Dividend declarations are restricted except from the relevant year’s profits after financial commitments and necessary provisions are met. These conditions apply while Runwal Enterprises had 28 ongoing projects and 33 upcoming projects as of March 31, 2026.

Conclusion

Runwal Enterprises combined a lower fiscal 2026 net-debt-to-equity ratio with a higher absolute net-debt balance, as equity increased while borrowings continued to climb. Current borrowings rose by Rs 728.226 crore during fiscal 2026 and offset the decline in non-current borrowings, taking net debt to Rs 2,778.11 crore.

The next disclosed measure to watch is the relationship between outstanding borrowings, reported at Rs 2,781.741 crore on July 31, 2026, and the company’s cash, repayment and equity positions in later financial information. The filing also states that its terms are indicative and that additional facility-specific security, covenant and consent requirements may apply.