Pakka Limited has allotted the first tranche of secured, redeemable, non-convertible debentures (NCDs) aggregating INR 375 crores on a private placement basis. This allotment, approved by the Fundraising Committee on 2nd June 2026, is part of a broader refinancing strategy to restructure existing term loan facilities. The total issue size approved by the Board on 26th May 2026 was INR 540 crores.

Tranche 1 Allotment Details

The Tranche 1 issuance is divided into a Junior Series and a Senior Series, both unlisted and unrated. The instruments were allotted to SEBI-registered Category II Alternative Investment Funds. The table below summarises the key parameters of the allotment:

Security and Allottees

The NCDs are secured by a comprehensive security package in favour of a Security Trustee. This includes an equitable mortgage of immovable properties and a hypothecation over movable fixed and non-current assets related to the New Project and the Project. Additionally, a charge is placed over all current assets, including receivables and investments, as well as insurance contracts and proceeds. The security framework also encompasses a pledge over Pledged Securities of the Issuer and Pledged Securities of Yash Agro Products Limited.

The allottees include Neo Special Credit Opportunities Fund, Neo Special Credit Opportunities Fund II, Neo Credit Opportunities Fund I, Neo Special Credit Opportunities Fund IIA, and Neo Prime Fund. Allotment for each tranche was made within 3 days of receipt of funds.

Pakka Limited released its financial performance for the fourth quarter and financial year ended March 31, 2026, highlighting mixed results across its business segments. The India Business reported a revenue of ₹104.49 Cr in Q4FY26, an 8% increase compared to ₹96.21 Cr in Q4FY25. However, Profit Before Tax (PBT) for this segment declined by 55% year-on-year to ₹5.52 Cr from ₹12.16 Cr in the same period last year. For the full financial year FY26, India Business revenue stood at ₹366.78 Cr, a 13% decrease from ₹423.17 Cr in FY25, with PBT falling by 62% to ₹25.20 Cr.

The Wrap & Carry segment showed resilience with revenue rising to ₹87.61 Cr in Q4FY26, up 4% from ₹84.63 Cr in Q4FY25. Despite the revenue growth, PBT for the segment dropped 16% year-on-year to ₹12.42 Cr. On an annual basis, Wrap & Carry revenue for FY26 was ₹303.54 Cr, a 17% decline from ₹366.56 Cr in FY25, while PBT decreased by 50% to ₹36.05 Cr.

The Food Services division reported a significant revenue surge of 46% in Q4FY26 to ₹16.87 Cr from ₹11.58 Cr in Q4FY25. However, the segment continued to incur losses, with a PBT of -₹6.91 Cr for the quarter, widening from -₹2.68 Cr in Q4FY25. For the full year FY26, Food Services revenue grew by 12% to ₹63.23 Cr, but the PBT loss expanded to -₹10.84 Cr compared to -₹4.58 Cr in FY25.

The company attributed the elevated losses in the Food Services division to manufacturing and plant-related costs amounting to ₹3 Cr, as well as one-time non-recurring items totaling ₹3 Cr. These included inventory write-offs and project development costs. Management noted that these factors are largely one-time or plant-related rather than indicative of core demand issues.

Financial Performance Summary

Strategic Outlook and Funding

Pakka Limited outlined its plan for FY26-27, focusing on the effective commissioning of Project Jagriti, building an asset-light model, and transforming the food service business. The company aims to diversify into new product categories, including delivery ranges and cutlery, and tap into the US market opportunity. Innovation highlights include a base paper pilot and NM flexibles pilot scheduled for July 2026.

Regarding funding efficacy, the company detailed a refinancing arrangement where the Neo Group replaced existing banks. The revised terms include a 4-month moratorium followed by a 12% interest rate for the next 20 months, with no principal repayment for 16 months. The effective rate of interest is 16.95%. The facilities drawn include NCDs worth ₹500 Crores, Neos equity of ₹30 Crores, and promoter equity of ₹85 Crores.