Spectraa projects ₹63.9466 crore working-capital gap for Fiscal 2027

Spectraa Technology Solutions Limited, referred to here as Spectraa, projects a ₹63.9466 crore working-capital gap for Fiscal 2027, compared with ₹25.5291 crore at March 31, 2026. Spectraa proposes to use up to ₹9.50 crore of IPO proceeds for the requirement, while its forecast retains 150-day customer receivables and assumes lower supplier-credit days.

Why is Spectraa’s working-capital gap projected to reach ₹63.9466 crore?

Spectraa’s working-capital gap is projected to rise by ₹38.4175 crore to ₹63.9466 crore in Fiscal 2027. Working capital is current assets less current liabilities, representing funds tied up in short-term operating assets after short-term obligations are deducted. Spectraa’s board approved the Fiscal 2027 projection through resolutions dated March 13, 2026 and September 8, 2026.

Estimated current assets are ₹146.8996 crore for Fiscal 2027, up from ₹78.6863 crore at March 31, 2026, while current liabilities are projected at ₹82.9530 crore against ₹53.1572 crore. Trade receivables, inventories and short-term loans and advances account for the main projected increase in current assets. Spectraa says it needs working capital for materials including sheet metal, copper sheet, pipes and tubes, as well as inventory for urgent project requirements.

The ₹9.50 crore IPO allocation represents about 14.9% of the projected Fiscal 2027 gap. Spectraa plans to fund the remaining ₹54.4466 crore, or about 85.1%, through internal accruals, short-term borrowings and/or external sources. The projection therefore depends on both IPO funding and the availability of operating cash generation or external financing.

How do delayed customer payments increase Spectraa’s funding requirement?

Delayed customer payments keep Spectraa’s cash tied up in trade receivables despite milestone-based contracts. Milestone payments are contractual payments due when specified project stages are completed. Spectraa states that customer payments have been delayed in practice, causing funds to remain in receivables.

Trade-receivable days, calculated as average trade receivables divided by revenue from operations over 365 days, were 100 days in Fiscal 2024, 178 days in Fiscal 2025 and 152 days in Fiscal 2026. Spectraa estimates 150 days for Fiscal 2027, a two-day reduction from Fiscal 2026 but still 50 days higher than Fiscal 2024. The plan consequently assumes only a limited improvement in collections.

The Fiscal 2027 future-working-capital table estimates trade receivables of ₹71.9178 crore, compared with ₹42.7747 crore at March 31, 2026. A separate key-parameters table lists Fiscal 2027 trade receivables at ₹79.1778 crore, a ₹7.26 crore difference. Spectraa does not explain the difference within the supplied disclosure, leaving the projected receivables balance unresolved.

Why does Spectraa expect inventory funding to increase?

Spectraa expects inventory days to increase to 60 in Fiscal 2027 from 46 days in Fiscal 2026. Inventory days are average inventory at the balance-sheet date divided by revenue from operations over 365 days. The company reported 38 inventory days in Fiscal 2024, 48 days in Fiscal 2025 and 46 days in Fiscal 2026.

Projected inventory is ₹28.7671 crore for Fiscal 2027, compared with ₹10.3064 crore at March 31, 2026 and ₹15.2943 crore at March 31, 2025. That forecast reverses the ₹4.9879 crore inventory decline between Fiscal 2025 and Fiscal 2026. Spectraa attributes the projected increase to expected revenue growth and its order book of ₹81.2961 crore as of August 25, 2026.

Spectraa identifies mild steel and stainless steel as major raw materials requiring ready availability for current and expected orders. It estimates a 45-to-60-day conversion period from raw material to work-in-progress and finished goods after tank-drawing approval. The 60-day inventory assumption must therefore hold alongside projected orders, material procurement and production schedules, while Spectraa also cites steel-price volatility as a reason to maintain stock.

Will lower supplier credit widen Spectraa’s cash-cycle requirement?

Spectraa forecasts a material reduction in trade-payable days, reducing the supplier-credit offset available against receivables and inventory. Trade-payable days were 173 in Fiscal 2024, 193 in Fiscal 2025 and 235 in Fiscal 2026. The Fiscal 2027 projection is 150 days, an 85-day reduction from Fiscal 2026.

Trade-payable days are calculated as average trade payables divided by total purchases over 365 days. Spectraa says higher order-book levels and customer receivables increased payable days through Fiscal 2026 because supplier payments were aligned with customer collections. It also links longer payment cycles to its move toward higher-margin turnkey projects, which generally have longer execution periods and milestone-based customer payments.

Projected trade payables are ₹31.3864 crore for Fiscal 2027, below ₹34.1836 crore at March 31, 2026. Other current liabilities are projected to rise to ₹51.4167 crore from ₹18.7821 crore and include customer advances, statutory dues, net current-tax liabilities and employee-related payables. Spectraa says it is undertaking measures to streamline working-capital management and improve collection efficiency, but discloses no target beyond the 150-day payable and receivable estimates.

How will Spectraa fund and monitor the Fiscal 2027 requirement?

Spectraa plans to fund ₹9.50 crore of its Fiscal 2027 working-capital requirement from IPO proceeds and ₹54.4466 crore from internal accruals, short-term borrowings and/or external sources. At March 31, 2026, its ₹25.5291 crore working-capital gap was funded through ₹13.8609 crore of short-term borrowings and ₹11.6682 crore of internal accruals. At March 31, 2025, the ₹16.3799 crore gap included ₹13.4532 crore of short-term borrowings and ₹2.9266 crore of internal accruals.

Spectraa ordinarily funds most working-capital needs through internal accruals and bank working-capital facilities. It may also draw on an overdraft or cash-credit facility for ongoing operations before the offer is completed, with amounts used for existing projects to be repaid from net offer proceeds. Spectraa states that it has not obtained a credit rating.

Informatics Valuation and Rating Limited will monitor use of net proceeds under Regulation 262 of the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations. The monitoring agency is to report quarterly until proceeds are fully used, while Spectraa will disclose quarterly proceeds application to its audit committee or board. The proposed working-capital object has not been financially appraised by a bank or financial institution.

Conclusion

Spectraa’s Fiscal 2027 working-capital projection is driven by three linked assumptions: receivables remain at 150 days, inventory rises to 60 days and trade payables decline to 150 days. The ₹63.9466 crore gap is therefore connected to the timing difference between procurement, project execution, supplier payments and customer collections, rather than inventory expansion alone.

The disclosed plan makes collection efficiency, supplier payment timing and funding of the remaining ₹54.4466 crore central items to watch. Later quarterly monitoring reports should show how Spectraa deploys IPO proceeds, while an update would be needed to reconcile the two disclosed Fiscal 2027 trade-receivables figures of ₹71.9178 crore and ₹79.1778 crore.