The Company’s Borrowings Rose 43% as Current Debt Rose 58%

The Company’s total borrowings rose 43% from Rs 77.928 crore in Fiscal 2024 to Rs 111.115 crore in Fiscal 2026. Current borrowings, or debt due within one year, rose 58% from Rs 42.574 crore in Fiscal 2025 to Rs 67.461 crore in Fiscal 2026, while non-current borrowings increased 14% to Rs 43.654 crore.

Why did The Company’s Fiscal 2026 borrowings rise 43%?

The Company’s Fiscal 2026 borrowing increase was concentrated in current borrowings, which rose by Rs 24.887 crore from Fiscal 2025, compared with a Rs 5.437 crore increase in non-current borrowings. Total borrowings increased by Rs 30.324 crore from Rs 80.791 crore in Fiscal 2025 to Rs 111.115 crore in Fiscal 2026. The 43% comparison is against the reported Fiscal 2024 total of Rs 77.928 crore, an increase of Rs 33.187 crore over two years.

The reported progression shows a 4% increase in total borrowings between Fiscal 2024 and Fiscal 2025, followed by a 38% increase in Fiscal 2026. Current borrowings rose 58% from Rs 42.574 crore in Fiscal 2025 to Rs 67.461 crore in Fiscal 2026, whereas non-current borrowings rose 14% from Rs 38.217 crore to Rs 43.654 crore. The Company says its principal capital requirement is working capital to maintain and scale inventory, funded principally by operating cash, bank borrowings, unsecured loans from promoters and working-capital optimisation.

The Fiscal 2024 figures contain a presentation difference. In the financial-indebtedness table, current and non-current borrowings total Rs 77.428 crore, Rs 0.50 crore below the stated total-borrowings figure of Rs 77.928 crore. The contractual-obligations table separately lists Fiscal 2024 borrowings due within one year at Rs 36.835 crore, rather than the Rs 36.335 crore current-borrowings figure in the financial-indebtedness table.

How did current debt change The Company’s repayment profile?

The Company’s repayment profile shifted towards debt due within one year because current borrowings accounted for 61% of reported Fiscal 2026 borrowings, up from 53% in Fiscal 2025. That share is calculated from Rs 67.461 crore of current borrowings against reported total borrowings of Rs 111.115 crore in Fiscal 2026. The higher current component means a greater portion of the reported debt balance falls due during the next 12 months rather than in later periods.

The contractual maturity schedule reports Rs 69.107 crore of total financial liabilities due within one year as at March 31, 2026, compared with Rs 43.330 crore at March 31, 2025. This schedule uses contractual undiscounted payments, meaning payments stated before discounting to present value. Borrowings made up Rs 67.461 crore of the Fiscal 2026 amount due within one year, while trade payables represented Rs 9 lakh, other financial liabilities Rs 75.6 lakh and lease liabilities Rs 0.80 crore.

Liabilities falling due after one year also increased, but by less than the near-term amount. Financial liabilities due after one year were Rs 51.325 crore at March 31, 2026, compared with Rs 38.217 crore at March 31, 2025, including Rs 43.654 crore of non-current borrowings and Rs 7.671 crore of lease liabilities in Fiscal 2026. Total contractual financial liabilities consequently increased 48% to Rs 120.432 crore from Rs 81.547 crore a year earlier.

What cash-flow conditions accompanied The Company’s borrowing increase?

The Company generated Rs 19.111 crore from financing activities in Fiscal 2026 while using Rs 14.730 crore in operating activities. Net cash used in operating activities widened from Rs 9.864 crore in Fiscal 2025, despite Fiscal 2026 profit before tax of Rs 140.334 crore. The difference reflects cash absorbed by working-capital movements and direct taxes rather than the accounting profit measure alone.

Trade receivables increased by Rs 120.627 crore during Fiscal 2026, the largest stated operating cash outflow in the working-capital adjustments. The Company also recorded an inventory increase of Rs 4.575 crore and direct taxes paid, net of refunds, of Rs 38.476 crore. The Company states that its customer credit period generally ranges from 30 to 60 days, making receivables collection relevant to the conversion of revenue into cash available for obligations.

Financing cash flow in Fiscal 2026 included Rs 24.887 crore of proceeds from current borrowings and Rs 39.688 crore of proceeds from non-current borrowings. These inflows were partly offset by Rs 34.252 crore of non-current borrowing repayments, Rs 6.033 crore of finance costs, Rs 0.507 crore of principal lease-liability repayments and Rs 4.673 crore of share-issue transaction costs. Cash and cash equivalents at the end of Fiscal 2026 were Rs 10.4 lakh, compared with Rs 9.6 lakh at the end of Fiscal 2025.

What affects The Company’s ability to meet current debt obligations?

The Company’s ability to meet its obligations depends on operating cash generation, collections, access to borrowing facilities and working-capital management. The Company defines liquidity risk as the risk of being unable to meet financial obligations when due, and it grants customers credit periods generally ranging from 30 to 60 days. Management says it monitors rolling liquidity forecasts that include undrawn borrowing facilities, cash and cash equivalents, and expected cash flows.

Interest-rate movements are relevant because the Company says its exposure primarily relates to floating-rate borrowings. As at Fiscal 2026, the reported total-borrowings-to-equity ratio was 0.47, while total reported borrowings were Rs 111.115 crore at March 31, 2026. Fixed-rate deposits with banks and loans do not, according to the disclosure, create significant interest-rate exposure, unlike floating-rate debt.

The later disclosed debt balance provides an additional date-specific measure to monitor. As of July 31, 2026, The Company reported total borrowings of Rs 127.407 crore, Rs 16.292 crore above the March 31, 2026 reported total. The Company also states that it had no contingent liabilities under Indian Accounting Standard 37, which governs provisions, contingent liabilities and contingent assets, and no material off-balance-sheet arrangements for Fiscal 2024 through Fiscal 2026.

Conclusion

The Company’s reported borrowing growth in Fiscal 2026 was driven more by current debt than non-current debt, increasing the amount scheduled within one year. That shift occurred while operating cash flow remained negative at Rs 14.730 crore and receivables rose by Rs 120.627 crore, making cash conversion and access to facilities central to the stated liquidity framework.

The next points to watch are The Company’s disclosed plan to fund inventory and working capital through operating cash, bank borrowings, promoter unsecured loans and working-capital optimisation, and the later Rs 127.407 crore borrowing figure as of July 31, 2026. The source presents different Fiscal 2024 current-borrowing amounts in its financial-indebtedness and contractual-obligations tables, making future reconciliation of debt reporting relevant.