Paluck Technologies projects Rs 62.85 crore working capital

Paluck Technologies projects working-capital requirements of Rs 62.85 crore at March 31, 2027, compared with Rs 52.27 crore at March 31, 2026. The increase is driven chiefly by projected trade receivables of Rs 38.48 crore and inventory of Rs 38.12 crore, while Paluck Technologies plans to apply up to Rs 10 crore of net proceeds to working capital.

Why does Paluck Technologies project Rs 62.85 crore of working capital by Fiscal 2027?

Paluck Technologies projects Rs 62.85 crore of working capital at March 31, 2027 because projected current assets of Rs 77.94 crore exceed projected current liabilities of Rs 15.09 crore. Working capital in this calculation is current assets less current liabilities. The Fiscal 2027 requirement is Rs 10.58 crore, or about 20%, above the unaudited Rs 52.27 crore estimated for March 31, 2026.

Paluck Technologies’ requirement had already increased from Rs 31.54 crore at March 31, 2023 to Rs 36.57 crore at March 31, 2025, before reaching Rs 49.09 crore at February 28, 2026. The Board approved the estimates for Fiscal 2026 and Fiscal 2027 through a January 14, 2026 resolution, while the working-capital table is supported by a statutory auditor certificate dated June 20, 2026. The Fiscal 2027 figure is provisional rather than an audited closing balance.

What will tie up more cash in inventory and receivables?

Paluck Technologies expects inventory and trade receivables to account for Rs 76.60 crore, or about 98% of projected current assets, at March 31, 2027. Inventory is projected to rise by Rs 6 crore from Rs 32.12 crore at March 31, 2026 to Rs 38.12 crore, while trade receivables are projected to rise by Rs 7.61 crore from Rs 30.87 crore to Rs 38.48 crore. Those two categories are therefore the principal uses of short-term operating cash in the projection.

The estimates assume that inventory holding will be 110 days in Fiscal 2027, following 112 days in Fiscal 2026 and 95 days in the 11 months ended February 28, 2026. Trade-receivable holding is expected to reach 111 days in Fiscal 2027, compared with 107 days in Fiscal 2026 and 88 days in the 11-month period. Paluck Technologies states that inventory levels depend on demand and delivery schedules, while its customer credit terms vary between export and domestic sales.

The period comparison shows a material change from Fiscal 2024, when inventory holding was 63 days and receivable holding was 57 days. Inventory days are projected to decline slightly from 112 to 110 between Fiscal 2026 and Fiscal 2027, but receivable days are projected to extend by four days from 107 to 111. That distinction matters because projected receivables of Rs 38.48 crore are Rs 36 lakh higher than projected inventory despite the inventory cycle being one day shorter.

How does Paluck Technologies plan to fund the Fiscal 2027 requirement?

Paluck Technologies plans to fund Rs 10 crore of its Fiscal 2027 working-capital requirement from initial public offering (IPO) net proceeds and Rs 52.85 crore from bank, financial-institution and non-banking financial company borrowings, including bill discounting, and/or internal accruals. The proposed net-proceeds component represents about 16% of the Rs 62.85 crore requirement. The remaining funding pattern means the projection continues to depend predominantly on financing facilities and cash generated internally.

The stated funding requirement is linked to an outstanding order book of Rs 20.89 crore as of the prospectus date, certified by the statutory auditor. Paluck Technologies says the order book provides revenue visibility and requires adequate working capital for execution across construction-equipment rental, logistics and telecom-engineering operations. The plan also envisages deeper engagement with infrastructure developers, engineering, procurement and construction contractors, telecom operators and original equipment manufacturer partners.

The proposed working-capital use sits alongside a plan to use Rs 3.10 crore of net proceeds for full or partial repayment or prepayment of specified borrowings. Paluck Technologies reported total outstanding fund-based borrowings of Rs 13.17 crore as of February 28, 2026. The specified repayment list includes Rs 1.64 crore for an HDFC Bank overdraft facility, which had a balance of Rs 3.98 crore at March 31, 2026 and was used for day-to-day liquidity requirements.

What assumptions could change Paluck Technologies’ working-capital outcome?

Paluck Technologies’ Fiscal 2027 calculation assumes trade payables of Rs 12.92 crore and short-term provisions and other current liabilities of Rs 2.17 crore. Trade-payable days are projected at 58 days, up from 56 days in Fiscal 2026 but below the 59 days reported in Fiscal 2025. Paluck Technologies says it expects quicker vendor settlements to enable cash discounts, which expands the amount of working capital required because less supplier credit is retained.

The projection must therefore hold on demand, delivery schedules, customer collections, creditor payment cycles and access to its stated funding sources. At February 28, 2026, Paluck Technologies reported current assets of Rs 58.96 crore and current liabilities of Rs 9.87 crore, producing Rs 49.09 crore of working-capital requirements. A shift in any of the operating-cycle assumptions used to move from that position to the March 2027 projection would change the required cash or financing.

Paluck Technologies also disclosed that none of its issue objects had been appraised by a bank, financial institution or independent third party. Paluck Technologies says funding requirements and deployment are based on management estimates and available quotations, and may change with interest-rate structures, financial condition, commercial conditions, external circumstances, business or strategy. The Audit Committee and Board are to monitor use of issue funds, with half-yearly disclosures to the Audit Committee and annual statements certified by statutory auditors until proceeds are fully used.

Conclusion

Paluck Technologies’ Fiscal 2027 working-capital projection describes a business expected to carry more cash in stock and, particularly, customer balances. The projected Rs 10.58 crore rise from Fiscal 2026 combines a Rs 13.92 crore increase in current assets with a Rs 3.34 crore increase in current liabilities, leaving a larger net funding requirement despite higher projected trade payables.

The next measures to watch are the disclosed Fiscal 2027 holding assumptions of 110 inventory days, 111 receivable days and 58 payable days, as well as the planned Rs 10 crore net-proceeds contribution. Paluck Technologies’ subsequent half-yearly Audit Committee disclosures and auditor-certified annual utilisation statements are the stated mechanisms for showing whether proceeds were used for the approved purpose and whether the provisional funding plan was followed.