Paushak Ltd’s record is audited and disclosed, but the last two years have stretched its financial model: free cash flow turned deeply negative even as dividends continued, and returns on capital have halved. A flat revenue line, persistent governance quirks, and a handful of static tax disputes round out the picture.
Key findings
- Revenue has been flat for four years while receivable days stay near the top of the stated credit window
Minor- Revenue was ₹219 crore in FY26, ₹211 crore in FY25, ₹206 crore in FY24, and ₹212 crore in FY23, showing no growth over four years. Receivable days stood at 92, 94, 90, and 90 days respectively, consistently near the upper end of the company’s stated 30-120 day credit period. Management has acknowledged margin pressure from global oversupply, Chinese capacity build-up, and price erosion, expecting the trend to persist into FY25. - A single promoter-director’s commission requires annual special resolutions and drew institutional opposition, while executive directors turned over twice in two years
Minor- Non-executive director Udit Amin received commission averaging 2.90% of net profits annually from FY21 through FY26, requiring a special resolution each year because his pay alone exceeded half of all non-executive director remuneration. At the 50th AGM on 1 August 2023, public institutional shareholders voted 100% against his FY23 commission of ₹200 Lacs. The company cycled through three whole-time directors in one year: Abhijit Joshi resigned in April 2025, Chintan Gosaliya served from April 2025 to March 2026, and Jain Parkash was appointed from April 2026.
What to watch
- Promoter-director commission renewal. Udit Amin’s five-year authorisation to receive commission of up to 3% of net profits expires at the end of FY27, requiring shareholder approval for any renewal.
- Whole-time director term. Jain Parkash’s three-year appointment as whole-time director expires on 31 March 2029.
- Labour code provision. The additional provision of 1.01 crore for Labour Codes made in the December 2025 quarter is stated to be subject to revision.
Bottom line: This is a disclosed, audited record with a clean audit trail and no promoter pledges. The strain is financial, not forensic: free cash flow has run negative for two years while debt-funded capex compressed returns, and the payoff from that investment is not yet visible in revenue. Watch whether the capital deployed begins to convert, and keep an eye on the tax disputes and the governance vote on director commission when the current authorisation expires.