Super Iron Foundry Gets ₹4.47 Cr Loan to Boost Working Capital

Super Iron Foundry Ltd. announced on March 30, 2026, it secured a term loan from Poonawalla Fincorp. The ₹4.47 crore loan will support working capital for the company and its subsidiaries.

The loan has a 180-month (15-year) repayment term. Company property serves as collateral.

What just happened

Super Iron Foundry Ltd. announced on March 30, 2026, it secured a term loan from Poonawalla Fincorp. The ₹4.47 crore loan will support working capital for the company and its subsidiaries.

The loan has a 180-month (15-year) repayment term. Company property serves as collateral.

Why this matters

This financing provides Super Iron Foundry with more cash to manage daily operations and inventory.

However, pledging property as collateral increases the company's financial leverage, putting the asset at risk if the company defaults.

The backstory

Kolkata-based Super Iron Foundry, a maker of iron and steel castings, has raised funds previously.

In January 2026, it secured ₹6.10 crore from Axis Finance and SBI. Before that, in December 2025, it arranged ₹54.80 crore in multiple banking facilities with UCO Bank.

Historically, the company's working capital management has drawn scrutiny, with past reports noting moderate limit use and periods of tight cash flow.

The company also completed an IPO in March 2025, raising ₹68.05 crore.

What changes now

• Increased Debt: Total debt will rise by ₹4.47 crore.
• Pledged Asset: A part of the company's property is now used as collateral.
• Improved Liquidity: The funds should boost short-term financial flexibility.
• Enhanced Leverage: The debt-to-equity ratio is likely to increase.

Risks to watch

• Financial Leverage: More debt raises financial leverage and could increase interest costs.
• Property Risk: The pledged property could be seized if the company defaults.
• Working Capital Management: Efficiently managing working capital will be key to servicing this new debt.

Peer comparison

Super Iron Foundry operates in the foundry and casting sector, with peers like Nelcast Ltd., Bharat Forge Ltd., Electrosteel Castings Ltd., and Sundaram Clayton Ltd. These companies face similar challenges with raw material costs, operations, and capital management.

Context Metrics

• As of March 2025, Super Iron Foundry had total borrowings of ₹14.09 crore.
• For the 12 months ending August 2024, average utilization of fund-based working capital limits was about 89%.

What to track next

• Loan Use: Track how effectively the ₹4.47 crore is used for working capital.
• Financial Ratios: Monitor changes to debt-to-equity, interest coverage, and liquidity ratios.
• Operational Performance: See if better working capital leads to improved sales and profits.
• Property Status: Watch for any future announcements about the pledged property.