Vedant Poly Fabs Borrowings Rose More Than Threefold in FY26

Vedant Poly Fabs Limited reported total borrowings of Rs 46.8154 crore at March 31, 2026, up from Rs 13.3185 crore a year earlier, as total income reached Rs 115.3147 crore and profit after tax reached Rs 10.9662 crore. Short-term borrowings represented Rs 34.8262 crore, or 74.39% of FY26 borrowings.

How quickly did Vedant Poly Fabs’ income and profit grow?

Vedant Poly Fabs increased total income to Rs 115.3147 crore in FY26 from Rs 81.5797 crore in FY25 and Rs 49.7292 crore in FY24. The restated financial statements define total income as restated revenue from operations plus restated other income. The FY26 total was therefore Rs 33.735 crore above FY25 and more than double the FY24 level.

Profit rose faster than income over the same three years. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased from Rs 1.4805 crore in FY24 to Rs 8.3009 crore in FY25 and Rs 19.1769 crore in FY26. Profit after tax rose from Rs 63.59 lakh in FY24 to Rs 4.5606 crore in FY25 and Rs 10.9662 crore in FY26.

Vedant Poly Fabs reported basic and diluted earnings per share of Rs 10.01 for FY26, compared with Rs 4.24 in FY25 and Rs 0.59 in FY24. The company defines earnings per share as restated profit for the period divided by the restated weighted average number of equity shares outstanding. Total share capital was Rs 14.7252 crore at March 31, 2026, compared with Rs 10.8545 crore at March 31, 2025 and Rs 10.80 lakh at March 31, 2024.

Why did Vedant Poly Fabs’ borrowings rise more than threefold in FY26?

Vedant Poly Fabs’ borrowings rose more than threefold because total borrowings increased to Rs 46.8154 crore at March 31, 2026 from Rs 13.3185 crore at March 31, 2025. The company defines total borrowings as restated long-term borrowings plus restated short-term borrowings. Borrowings had also risen from Rs 6.3524 crore at March 31, 2024 to Rs 13.3185 crore in FY25.

The largest movement was in short-term borrowings, which climbed to Rs 34.8262 crore in FY26 from Rs 11.2668 crore in FY25 and Rs 3.0959 crore in FY24. Long-term borrowings moved from Rs 3.2565 crore in FY24 to Rs 2.0517 crore in FY25, before increasing to Rs 11.9892 crore in FY26. As a result, short-term debt accounted for 74.39% of FY26 total borrowings, compared with 84.60% in FY25.

Total income and debt both expanded in FY26, but the restated summary does not allocate individual borrowing facilities to customers, packaging products or billet-strip trading. Vedant Poly Fabs manufactures flexible packaging materials for business-to-business customers and also trades billet strips on a bill-to-ship basis without holding inventory at its facility. The document does disclose that the proposed offer proceeds include funding for incremental working capital and repayment or prepayment of certain borrowings.

What does Vedant Poly Fabs’ short-term debt concentration mean?

Vedant Poly Fabs had Rs 34.8262 crore of short-term borrowings against Rs 11.9892 crore of long-term borrowings at March 31, 2026. The classification shows that most of the Rs 46.8154 crore borrowing balance was recorded in the short-term category. Whether that composition changes will depend on operating funding needs, facility terms and the proposed use of offer proceeds, none of which are quantified by facility in the supplied summary.

Vedant Poly Fabs’ restated net worth reached Rs 42.257 crore at March 31, 2026, compared with Rs 15.421 crore at March 31, 2025 and Rs 3.8578 crore at March 31, 2024. FY26 total borrowings of Rs 46.8154 crore exceeded FY26 net worth, whereas FY25 borrowings of Rs 13.3185 crore were below FY25 net worth. The company defines net worth as restated equity share capital plus reserves and surplus, making it a balance-sheet measure rather than cash available for debt repayment.

The company also disclosed a Rs 1.40 crore bank guarantee as a contingent liability and commitment at March 31, 2026. A contingent liability is disclosed separately from borrowings and is not included in the Rs 46.8154 crore total-borrowings figure. The statutory auditor had no qualifications that required effect in the restated financial statements, but the summary does not disclose future interest costs, renewal terms or repayment schedules.

How does Vedant Poly Fabs plan to use offer proceeds?

Vedant Poly Fabs proposes to use Rs 17.593 crore of net proceeds for incremental working-capital requirements, Rs 8 crore for prepayment or repayment of certain secured or unsecured outstanding borrowings, and Rs 6.5129 crore for plant and machinery. The working-capital allocation is the largest quantified object and is Rs 9.593 crore greater than the proposed debt-repayment allocation. Amounts for general corporate purposes and offer-related expenses were not specified in the supplied table.

The proposed Rs 8 crore repayment or prepayment amount is lower than the Rs 46.8154 crore of total borrowings reported at March 31, 2026. The offer document does not identify the facilities to be repaid, whether they are short-term or long-term, or their balances when proceeds are deployed. The stated effect on borrowing levels therefore depends on the facilities selected and on borrowing changes after March 31, 2026.

The Rs 6.5129 crore capital-expenditure proposal is for purchase and installation of plant and machinery at Vedant Poly Fabs’ existing manufacturing facility. The company makes multilayer low-density films, shrink films, barrier films, printed laminates, and milk and oil pouches through extrusion, printing, lamination, slitting and pouching. The supplied summary does not state capacity additions, utilisation levels or completion timelines for the proposed machinery.

Conclusion

Vedant Poly Fabs’ FY26 financial summary combines higher income and profit with a substantially larger borrowing base. Total income rose from Rs 49.7292 crore in FY24 to Rs 115.3147 crore in FY26, while profit after tax increased from Rs 63.59 lakh to Rs 10.9662 crore. Over the same period, total borrowings increased from Rs 6.3524 crore to Rs 46.8154 crore, driven mainly by short-term borrowings.

The next disclosed point to watch is the proposed deployment of Rs 17.593 crore for incremental working capital, Rs 8 crore for debt repayment or prepayment, and Rs 6.5129 crore for plant and machinery. The offer document leaves unresolved which borrowing facilities would be repaid and how working-capital funding would affect the Rs 34.8262 crore short-term borrowing balance reported at March 31, 2026.