Paluck Technologies cut bank debt as director and relative loans rose

Paluck Technologies Limited cut bank term, vehicle and working-capital borrowings from Rs 39.72 crore at March 31, 2023 to Rs 7.91 crore at February 28, 2026, while unsecured loans from directors and relatives rose from Rs 28.65 lakh to Rs 5.26 crore. The full director-and-relative balance was classified as current maturity at February 2026.

How did Paluck Technologies shift debt toward director and relative loans?

Paluck Technologies shifted its funding mix away from bank borrowings and toward unsecured loans from directors and relatives over the four reported balance-sheet dates. Bank term loans declined from Rs 32.08 crore at March 31, 2023 to Rs 3.82 crore at February 28, 2026, while vehicle loans declined from Rs 38.86 lakh to Rs 4.91 lakh. Over the same period, loans from directors and relatives increased by Rs 4.97 crore, from Rs 28.65 lakh to Rs 5.26 crore.

The balance-sheet classification shows why the change is more than a simple fall in total debt. At February 28, 2026, the Rs 5.26 crore of unsecured loans from directors and relatives appeared within long-term borrowings before an equal Rs 5.26 crore deduction for current maturities. The same Rs 5.26 crore was then included in short-term borrowings, meaning the full reported balance was classified within Paluck Technologies' 12-month operating cycle.

How far have Paluck Technologies' bank borrowings fallen?

Paluck Technologies' bank borrowings fell by Rs 31.81 crore between March 31, 2023 and February 28, 2026, based on term loans, vehicle loans, cash-credit facilities and other short-term bank borrowings. The reduction came principally from bank term loans, which fell by Rs 28.26 crore, while the cash-credit facility declined by Rs 2.99 crore over the same period.

Paluck Technologies recorded net repayments of long-term borrowings in each of the latest three reporting periods. Its cash-flow statement showed net repayment of Rs 9.86 crore in the year ended March 31, 2024, Rs 7.53 crore in the year ended March 31, 2025, and Rs 2.32 crore in the 11 months ended February 28, 2026. Net short-term borrowing repayments were Rs 10.19 lakh, Rs 5.03 crore and Rs 1.99 crore, respectively, following a Rs 10.99 crore net increase in the year ended March 31, 2023.

What does the current classification mean for Paluck Technologies' debt profile?

Paluck Technologies had Rs 9.30 crore of short-term borrowings at February 28, 2026, of which Rs 5.26 crore, or about 57%, was current maturities of long-term borrowings. That current-maturity amount exactly matched the disclosed unsecured loans from directors and relatives. The remaining Rs 4.04 crore consisted of a Rs 3.97 crore cash-credit facility and Rs 6.69 lakh of other short-term bank borrowings.

A current liability is classified within the company's normal operating cycle, which Paluck Technologies defines as 12 months under Schedule III of the Companies Act, 2013. The presentation therefore places the director-and-relative loans among obligations classified within that cycle rather than among non-current liabilities. The supplied statements do not disclose the loans' interest rates, repayment terms or renewal arrangements.

What other balance-sheet movements affect Paluck Technologies' current obligations?

Paluck Technologies reported current assets of Rs 59.96 crore at February 28, 2026 against current liabilities of Rs 19.17 crore, compared with Rs 54.52 crore and Rs 28.12 crore, respectively, at March 31, 2025. Inventory rose to Rs 29.99 crore from Rs 28.80 crore, while trade receivables increased to Rs 27.53 crore from Rs 22.49 crore. These two categories totalled Rs 57.52 crore, or about 96% of current assets at February 2026.

The concentration of current assets in inventory and receivables means their conversion into cash affects the company's ability to meet liabilities classified as current. The cash-flow statement recorded a Rs 5.04 crore increase in trade receivables and a Rs 1.19 crore increase in inventory during the 11 months ended February 28, 2026, both reducing operating cash flow. Despite those movements and a Rs 10.25 crore reduction in trade payables, operating activities generated Rs 6.90 crore of net cash after income taxes during the period.

Why did Paluck Technologies report higher finance costs?

Paluck Technologies reported finance costs of Rs 2.69 crore for the 11 months ended February 28, 2026, compared with Rs 1.87 crore for the full year ended March 31, 2025. The accounting policy defines borrowing costs as interest, amortisation of ancillary borrowing-arrangement costs and certain foreign-currency exchange differences. The supplied financial statements do not split finance costs between bank facilities and loans from directors and relatives.

The period comparison is not like for like because the February 2026 period covers 11 months and the March 2025 period covers 12 months. Finance costs were Rs 2.84 crore in the year ended March 31, 2024 and Rs 3.96 crore in the year ended March 31, 2023, when bank borrowings were higher. The statements establish an increase from the immediately preceding full year, but do not state the reason for that increase or the rates charged on any borrowing category.

Conclusion

Paluck Technologies' reported reduction in bank facilities was substantial, with bank borrowings falling to Rs 7.91 crore at February 28, 2026 from Rs 39.72 crore at March 31, 2023. Its funding composition also changed: unsecured loans from directors and relatives reached Rs 5.26 crore and accounted for about 57% of the Rs 9.30 crore short-term borrowing total. Inventory and receivables totalled Rs 57.52 crore at the latest balance-sheet date.

The next update to watch is whether Paluck Technologies discloses repayment, refinancing or other terms for the Rs 5.26 crore classified as current maturities. The restated summary statements were prepared for the proposed small and medium enterprise initial public offering and cover the 11 months ended February 28, 2026, so a later financial update could show whether the classification and funding mix change.