Praxis Home Retail Limited has entered into a loan agreement with CMS IT Services Private Limited to secure an unsecured loan facility of ₹14.50 crore. The funds, intended for working capital requirements and general corporate purposes, may be drawn in one or more tranches on or before March 31, 2027. This financial arrangement provides the retailer with liquidity to manage operational expenses and strategic initiatives.

The inter-corporate loan carries an interest rate of 11% per annum and has an initial tenure of six months. The agreement includes a provision for extending this period subject to a mutual written agreement between the parties involved. As per the disclosures, the total amount sanctioned under this facility is ₹14.50 crore, with the company currently having drawn ₹4 crore against this limit.

Key Loan Details

The following table outlines the specific terms and current status of the loan facility:

The transaction was disclosed to the stock exchanges in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing confirmed that CMS IT Services Private Limited is not related to the promoter or promoter group of Praxis Home Retail Limited, and the transaction is not classified as a related party transaction.

Praxis Home Retail reported a net loss of ₹6,661.49 lakh for the financial year ended March 31, 2026, widening from a net loss of ₹3,497.85 lakh in the previous year. The company’s statutory auditors, Singhi & Co., highlighted a material uncertainty regarding the entity's ability to continue as a going concern, citing a negative net worth of ₹7,715.22 lakh and cash losses of ₹4,058.31 lakh for the year. Despite these conditions, the financial statements were prepared on a going concern basis based on management's assessment.

Revenue from operations for FY26 fell to ₹9,566.21 lakh from ₹11,896.96 lakh in the prior year. Total income also decreased to ₹10,752.07 lakh from ₹15,811.65 lakh in FY25. The company reported an exceptional item of ₹560 lakh for the year, primarily comprising a provision for expected credit loss (ECL) of ₹10,100 lakhs towards a security deposit receivable from a related party, netted off against waivers of inter-corporate deposits.

Financial Performance

The company’s total expenses for FY26 stood at ₹16,853.57 lakh, a reduction from ₹19,309.50 lakh in the previous year. Finance costs increased to ₹2,117.85 lakh from ₹1,671.54 lakh, while depreciation and amortization expenses decreased to ₹2,064.02 lakh from ₹2,745.48 lakh. The basic and diluted earnings per share (EPS) for the year were reported at ₹(4.03), compared to ₹(2.74) in FY25.

Liquidity and Capital Structure

The company raised ₹4,958.00 lakhs via a rights issue during the year, which was utilized for repayment of trade payables and general corporate purposes. Additionally, waivers of inter-corporate deposits and accrued interest totaling ₹9,540.00 lakhs were recorded. As of March 31, 2026, the company’s current liabilities exceeded its current assets by ₹5,994.33 lakhs. Cash and cash equivalents improved to ₹768.64 lakh from ₹172.14 lakh in the previous year.

Regulatory and Legal Matters

The company received a notice under the Insolvency and Bankruptcy Code, 2016 from an operational creditor, M/s. Koncepts Interior, regarding an alleged claim of ₹107 Lakhs. The matter is pending hearing before the National Company Law Tribunal (NCLT). Additionally, the Resolution Professional of Future Enterprises Limited (FEL) filed an interlocutory application claiming lease rentals of ₹4,577.35 lakhs, which the company is contesting. The auditors noted that the company had completed reconciliations and settlements of outstanding trade payables and assessed impairment of assets during the year.