S. K. Offset Limited borrowings were 1.75 times equity at March 2026

SK Offset reported Rs 34.58 crore of total borrowings against Rs 19.78 crore of shareholders’ funds at March 31, 2026, resulting in a debt-equity ratio of 1.75 times. Its largest disclosed facility, a Rs 15 crore Bank of India overdraft, had Rs 14.99 crore outstanding and was repayable on demand.

Why did SK Offset borrowings exceed equity at March 2026?

SK Offset’s capitalisation statement reported borrowings exceeding shareholders’ funds by Rs 14.80 crore at March 31, 2026. Total borrowings were Rs 34.58 crore, comprising Rs 19.59 crore of long-term borrowings including current maturities and Rs 14.98 crore of short-term borrowings. Shareholders’ funds were Rs 19.78 crore, consisting of Rs 5.42 crore of issued, subscribed and fully paid share capital and Rs 14.36 crore of reserves and surplus.

SK Offset defines debt-equity as total debt divided by net worth, with total debt including long-term borrowings, short-term borrowings and current maturities of long-term debt. On that definition, debt-equity was 1.75 times and long-term borrowings to equity were 0.99 times at March 31, 2026. The distinction is material because short-term borrowings are repayable within 12 months of the balance-sheet date, while long-term borrowings are other debts and include current maturities.

How dependent was SK Offset on the Bank of India overdraft?

SK Offset’s financial indebtedness schedule listed the Bank of India overdraft as its sole short-term working-capital facility at March 31, 2026. The facility had a sanctioned amount of Rs 15 crore and Rs 14.99 crore outstanding, compared with the Rs 14.98 crore short-term-borrowing figure in the capitalisation statement. The overdraft carried an annual interest rate of 8.25% and was repayable on demand rather than under a stated fixed repayment period.

The Bank of India overdraft represented about 43.3% of the Rs 34.58 crore total borrowings in the capitalisation statement. SK Offset also reported a separate Bank of India business term loan with Rs 3.01 crore outstanding and a working-capital term loan, or WCTL, with Rs 2.85 crore outstanding. The three Bank of India facilities totalled Rs 20.85 crore, or about 60.3% of total borrowings using the capitalisation-statement total.

The disclosed security for the Bank of India overdraft extended beyond operating assets. It included hypothecation, a lender’s charge over assets that remain in the borrower’s possession, of current assets and plant and machinery; a 15% cash margin through a term deposit receipt for bank-guarantee amounts; and mortgages over a residential building of Neelam Agarwal and industrial land and building of Pradeep Agarwal and Ayush Agarwal. SK Offset also disclosed assignments of life-insurance policies of four directors or related individuals and personal guarantees of directors.

What made up SK Offset’s long-term borrowing balance?

SK Offset’s Rs 19.59 crore long-term borrowing balance was led by five Electronica Finance Limited loans with aggregate outstanding balances of Rs 10.66 crore at March 31, 2026. These loans represented about 54.4% of long-term borrowings. Individual outstanding balances ranged from Rs 27.88 lakh to Rs 4.15 crore, while disclosed interest rates ranged from 11.19% to 14.00% and stated terms ranged from 12 to 72 months.

Bank of India’s Rs 3.01 crore term loan and Rs 2.85 crore WCTL contributed a further Rs 5.86 crore. The Bank of India term loan had a stated repayment period of 68 months, while the WCTL had a 60-month period. SK Offset also reported Rs 28.33 lakh of vehicle-loan balances across HDFC Bank, State Bank of India and ICICI Bank, secured by the financed vehicles or related vehicle mortgage arrangements.

Unsecured funding was also included in the long-term total. Six body-corporate lenders had combined outstanding balances of Rs 1.85 crore, including Rs 1.08 crore owed to Glix Commercial Private Limited and Rs 48.50 lakh to Monterry Sales Private Limited. Two unsecured loans from relatives of directors totalled Rs 22.74 lakh, comprising Rs 20 lakh from Suresh Kumar Gupta and Rs 2.74 lakh from Pradeep Agarwal and Sons; both were stated as repayable on demand.

How did SK Offset’s leverage change from fiscal 2024 to fiscal 2026?

SK Offset’s reported debt-equity ratio declined to 1.75 times in fiscal 2026 from 4.49 times in fiscal 2025 and 3.21 times in fiscal 2024. Because the measure divides total debt by net worth, a change in either borrowing or shareholders’ funds affects the ratio. Net worth increased to Rs 19.78 crore at March 31, 2026 from Rs 7.20 crore a year earlier and Rs 4.58 crore at March 31, 2024.

SK Offset reported profit after tax of Rs 7.48 crore in fiscal 2026, compared with Rs 1.54 crore in fiscal 2025 and Rs 72.04 lakh in fiscal 2024. Revenue from operations increased to Rs 66.67 crore in fiscal 2026 from Rs 48.20 crore in fiscal 2025. The current ratio, defined as total current assets divided by total current liabilities, was 1.23 times in fiscal 2026, compared with 1.21 times in fiscal 2025.

What borrowing terms could affect SK Offset’s funding flexibility?

SK Offset states that working-capital limits should be renewed within 12 months from the sanction date. That condition applies alongside the Bank of India overdraft’s on-demand repayment status and the Rs 14.99 crore amount outstanding under that facility at March 31, 2026. SK Offset also states that it submits quarterly stock statements to lenders for working-capital facilities and that those statements agreed with its books and records without material discrepancies.

Prepayment or closure charges may apply when loans or limits are repaid through own funds or taken over by another bank or financial institution. The disclosed terms specify a charge of 3% plus goods and services tax for loans or limits above Rs 1 crore, while micro and small enterprises are listed as having nil charges. For operative limits, charges are calculated on sanctioned limits; for term loans, they are calculated on the outstanding balance plus any undisbursed loan amount.

Conclusion

SK Offset’s March 2026 debt profile combined Rs 34.58 crore of borrowings, a 1.75-times debt-equity ratio and substantial reliance on Bank of India facilities. The Rs 14.99 crore overdraft was nearly fully drawn, while its security package included current assets, plant and machinery, specified properties, life-insurance policies and directors’ personal guarantees.

The disclosed later development is SK Offset’s proposed listing on the BSE SME platform. The board resolved on April 20, 2026 to propose the issue, and shareholders authorised the initial public issue on April 22, 2026. The capitalisation statement left post-issue borrowing and shareholders’ funds figures to be updated at the prospectus stage, leaving the post-issue capital structure unresolved.