Nupur Recyclers Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

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Nupur Recyclers' record is mixed: six years of clean audit opinions sit alongside a persistent gap between reported profit and cash generation, and a web of related-party loans and guarantees that the company itself flags. The headline "negative net debt" position depends on counting deposits as offsets while the company has guaranteed ₹20 crore of subsidiary borrowings and committed to a ₹50 crore uncollateralised guarantee for an unrated private firm. Promoter shareholding rose steadily with zero pledge, and tax disputes are under appeal, but the cash-flow shortfall and off-balance-sheet obligations warrant close reading.

Key findings

  1. Related-party loans and guarantees are large, recurring, and approved without independent review Major - The company granted loans to subsidiaries aggregating ₹55.67 crore in FY2025-26, with ₹32.51 crore outstanding, including interest-free loans to Nupur Business & Consulting (₹63.66 lakh) and Nupur Extrusion (₹2.51 crore). It also borrowed from related parties at up to 19% interest. A notice dated 17-Jun-2026 sought omnibus approval for FY 2026-27 inter-corporate loans up to ₹50 crore and guarantees up to ₹25 crore, and a guarantee of up to ₹25 crore for Tycod Autotech was proposed on September 6, 2025, without a credit rating.
  2. The "negative net debt" claim counts deposits as offsets while guarantees sit off-balance-sheet Major - Net debt is defined as short-term borrowings less cash, fixed deposits, and margin money, giving a negative figure in all years presented. But the group also gave corporate guarantees of ₹10 crore each to TATA Capital and HDFC Bank for subsidiary borrowings, and a corrigendum dated 23 Sep 2025 commits to a ₹50 crore guarantee for Tycod Autotech with no commission and only "mutual understanding" for recovery. Interest coverage fell from 35.67 in FY24 to 13.43 in FY25.
  3. Operating cash flow has failed to cover reported profit in three of four years Major - Cumulative CFO over FY23-FY26 was ₹-29 crore against cumulative PAT of ₹56 crore, a CFO/PAT ratio of -0.51x. FY25 CFO was ₹-18.67 crore against PAT of ₹16.27 crore, and FY24 CFO was ₹-11.07 crore against PAT of ₹8.62 crore. Only FY26 saw CFO exceed PAT, at ₹18.31 crore versus ₹16.48 crore.
  4. Income tax demands of ₹3.49 crore are under appeal Minor - A demand for AY 2022-23 of ₹1.30 crore and for AY 2020-21 of ₹2.18 crore, the latter arising from a search at past lenders' premises, are both under appeal with CIT(A). A subsidiary, Frank Metals, faces a ₹44.10 lakh demand for AY 2024-25, also under appeal.
  5. The subsidiary structure is a fast-changing chain of recently acquired entities Minor - All subsidiaries existing as at 31.03.2024 were acquired in FY2023-24 itself. An overseas vehicle, Danta LLC, was acquired on 12.09.2022 and sold on 30.09.2023. By FY 2025-26, the company had two material subsidiaries: Frank Metals and Tycod Autotech.
  6. Promoters increased their stake through market purchases with zero pledge Clean - Promoter/PAC shareholding rose from 72.53% as of 07/07/2023 to 73.12% as of 30/06/2026. Rajesh Gupta bought 44,500 shares on 26-May-2026 for ₹25.84 lakh, and Rajesh Gupta and PACs declared no encumbrance during FY ended 31-Mar-2026.

What to watch

Bottom line: This is a disclosed and audited record with real cash generation in the latest year. The risk sits in the related-party channel, where loans and guarantees are large relative to the company's scale, and in the persistent gap between reported profit and operating cash flow. Watch whether the ₹50 crore Tycod guarantee and the omnibus RPT approvals translate into actual exposures, and whether the tax appeals resolve favourably.