Electrotherm (India) Limited Discloses Default on Loan Repayments for Q4FY26
Electrotherm (India) Limited disclosed default on Rs 24.00 crore principal and Rs 4.68 crore interest payments to Invent Assets Securitisation & Reconstruction Private Limited for Q4FY26. The company's total outstanding borrowings from banks and financial institutions stand at Rs 985.72 crore, with total financial indebtedness at Rs 1,000.21 crore as of 31 March 2026. The disclosure was made pursuant to SEBI Master Circular and signed by CFO Amit Kumar Patwarika.
*this image is generated using AI for illustrative purposes only.
Electrotherm (India) Limited has disclosed a default on payment of interest and repayment of principal amount on loans from banks and financial institutions for the quarter ended 31 March 2026. The disclosure was made pursuant to the SEBI Master Circular dated 30 January 2026, with the company submitting the details to both BSE Ltd. and National Stock Exchange of India Ltd. The disclosure was signed by Amit Kumar Patwarika, Chief Financial Officer, on 30 April 2026.
Default Details
The default occurred on 31 March 2026, involving term loan and working capital loan obligations. The lender is Invent Assets Securitisation & Reconstruction Private Limited, which is the assignee of debts of Allahabad Bank (now Indian Bank) and Punjab National Bank. The current default amount comprises principal of Rs 24.00 Crores and interest of Rs 4.68 Crore, both due up to 31 March 2026.
Loan Obligations
The principal obligation, as per settlement with Invent ARC, stands at Rs 180.00 Crores with a tenure of 11 years and an interest rate of 11% per annum. The loan is classified as secured. The company has entered into a settlement with the ARC for payment of outstanding loans and debts on certain terms and conditions.
| Particulars | Details |
|---|---|
| Name of Listed Entity | Electrotherm (India) Limited |
| Date of Default | 31-03-2026 |
| Nature of Obligation | Term Loan & Working Capital Loan |
| Lender | Invent Assets Securitisation & Reconstruction Private Limited |
| Principal Default | Rs. 24.00 Crores |
| Interest Default | Rs. 4.68 Crore |
| Total Principal Obligation | Rs. 180.00 Crores |
| Tenure | 11 years |
| Interest Rate | 11% p.a. |
| Security Status | Secured |
Financial Position
As of 31 March 2026, the total outstanding borrowings from banks and financial institutions amount to Rs 985.72 Crore on a provisional basis. The total financial indebtedness of the listed entity, including both short-term and long-term debt, stands at Rs 1,000.21 Crore. These figures are based on the company's books of accounts and are subject to confirmation from lenders.
The company noted that certain banks have assigned their loans and debts to Assets Reconstruction Companies (ARC). The outstanding amount shown excludes uncharged interest and accounts for settlement amounts already paid. Additionally, interest from unsettled lender Rare Asset Reconstruction Limited (assignee of Indian Overseas Bank) has not been provided in the books of accounts after the loan was classified as Non-Performing Assets (NPA).
Historical Stock Returns for Electrotherm
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.71% | -6.03% | +26.10% | -22.94% | -32.25% | +487.07% |
Will Electrotherm's default trigger similar payment issues with other lenders given its total debt burden of over Rs 1,000 crore?
How might this default impact Electrotherm's ability to secure new financing or refinance existing debt in the current market environment?
What are the potential consequences if Electrotherm fails to resolve the outstanding issues with Rare Asset Reconstruction Limited?
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