Pasupati Acrylon's record is largely disclosed and orderly: related-party dealings are confined to small, recurring rent and grocery purchases, and no loans or advances to promoters, directors, or KMPs appear in any year reviewed. Three things deserve attention: revenue quality is clouded by unreconciled receivables and a sharp bad-debt write-off, cash conversion has been weak relative to reported profit across the cycle, and promoter control is absolute at 65.87% with near-unanimous resolutions.
Key findings
- Revenue quality is strained by unreconciled receivables and a segment recast
Minor- The company wrote off ₹2.87 crore of trade receivables as bad debt in FY2025-26, against ₹0.05 lakh the year before. Trade receivables ageing as at 31 March 2025 showed ₹1.48 crore undisputed receivables outstanding for more than six months. The company repeated the disclosure that "certain debit balances are subject to confirmation and reconciliation" in FY2025-26 and FY2024-25. - Cash generation has been weak relative to reported profit across the cycle
Minor- Cumulative operating cash flow of ₹283 crore against cumulative EBITDA of ₹473 crore over ten years gives a CFO/EBITDA ratio of 0.60x. FY2025-26 CFO was ₹51.50 crore against PAT of ₹69.91 crore, a ratio of 0.74x, and FY2024-25 was weaker at ₹6.71 crore against ₹35.38 crore. The ethanol project consumed internal accruals and term debt, with actual spend of approximately ₹188 crore against an assessed cost of ₹167 crore, and no dividend has been recommended or declared for seven straight years through FY2025-26. - Ethanol-project debt is secured by group-company collateral and locked-up cash
Minor- Indian Bank's ₹108 crore term loan is collaterally secured by a mortgage of 20 acres of leased land valued at ₹5.61 crore owned by three group companies, plus corporate guarantees from those companies aggregating ₹5.61 crore and a personal guarantee from Mr. Vineet Jain, Managing Director. The company also placed a ₹6.5 crore FDR and a ₹5.3 crore DSRA deposit with Indian Bank against the loan, and ₹17.57 crore of cash is locked up as LC/BG margin money as of 31 March 2026. CARE Ratings upgraded the company's long-term bank facilities to CARE A-; Stable on 24 June 2026. - Promoter control is absolute and board independence is procedural
Minor- Promoter and promoter group shareholding has remained unchanged at 65.87% from FY2020-21 through FY2025-26, with zero pledge as of the latest year. Mr. Vineet Jain's remuneration as Managing Director rose from ₹1.20 crore in FY2020-21 to ₹4,75,93,421 in FY2025-26, including a commission of ₹3,55,00,000. The only meaningful public dissent appears on promoter remuneration and director re-appointments, with 5.20% of public votes cast against Mr. Satya Prakash Gupta's revised remuneration at the AGM on 29 September 2022. - Auditor changed in FY2022-23 after predecessor declined re-appointment
Minor- M/s Suresh Kumar Mittal & Co. served as statutory auditors from the AGM on 27 September 2017 until the 39th AGM, and were replaced by M/s B.K. Shroff & Co. at the AGM on 29 September 2022 for a five-year term ending at the 44th AGM in 2027. The outgoing auditor was "not seeking re-appointment" as the stated reason for the change. The proposed audit fee for the incoming auditor was ₹12,00,000 versus the outgoing auditor's ₹7,00,000, with the increase attributed to "qualification, experience and market standing of the incoming firm". - Related-party dealings are confined to rent, groceries, and collateral support
Clean- The company reported no loans, investments, guarantees or securities provided under Section 186 during FY2025-26, FY2024-25, and FY2023-24. The AOC-2 disclosure lists lease rent payable to Prabhat Capital Services Limited at ₹15,400 per month plus maintenance charges, lease rent for 2.87 acres of land from Vigar Enterprises Private Limited at ₹5,000 per acre per month, and purchase of organic grocery products from Vigar Enterprises with a maximum limit of ₹12 lakh per annum. No loans or advances to promoters, directors, or KMPs appear in any year reviewed.
What to watch
- Ethanol term loan repayment. The 28 ballooning quarterly instalments began March 2026, with the next instalments due through the repayment schedule ending after the moratorium period.
- CARE Ratings review. The next rating review follows the upgrade to CARE A-; Stable / CARE A2+ on 24 June 2026.
- FY2026-27 annual results. These will show whether CFO/PAT recovers above 1.0x after the FY2025-26 ratio of 0.74x.
- Receivable reconciliation. Unconfirmed trade receivable debit balances were disclosed in the FY2025-26 Annual Report.
- 44th AGM. Statutory auditor B.K. Shroff & Co.'s five-year appointment from the 39th AGM on 29 September 2022 expires at the 44th AGM in 2027.
- 43rd AGM on 9 September 2026. Re-appointment of Mr. Satya Prakash Gupta, who retires by rotation, as Director liable to retire by rotation.
- Related party approvals. Approval of related party transactions for FY2026-27 at the 43rd AGM scheduled for 9 September 2026.
- Dividend recommendation. The next AGM dividend recommendation for FY2026-27 follows seven consecutive years of no dividend through FY2025-26.
Bottom line: This is a disclosed and audited record with no evidence of promoter self-dealing. The risk sits in three places: receivables that have gone unreconciled for five straight years, cash conversion that has lagged reported profit across the cycle, and a promoter bloc whose 65.87% holding makes every resolution a formality. Watch whether the ethanol loan's ballooning repayments are met from operating cash, and whether the receivables reconciliation finally clears.