Electrotherm tells NSE of Rs 56 crore loan principal default to Invent ARC

Electrotherm (India) Limited told the National Stock Exchange in a filing on 29 October 2026 that it defaulted on loan payments due on 30 September 2026. The company said it owes Rs 56.00 crore of principal and Rs 3.81 crore of interest to Invent Assets Securitisation & Reconstruction Private Limited, an asset reconstruction company.

What Happened

Electrotherm said in the filing that it was disclosing the default under a SEBI master circular dated 30 January 2026. The filing describes the obligation as a term loan and working capital loan.

The lender named is Invent Assets Securitisation & Reconstruction Private Limited, which the company describes as the assignee of debts of Allahabad Bank (now Indian Bank) and Punjab National Bank. The date of default is given as 30 September 2026.

The amount in default is Rs 56.00 crore of principal and Rs 3.81 crore of interest, both due up to 30 September 2026. The company said the amounts are as per its books on a provisional basis and are subject to confirmation from the lender.

The filing says the principal under the company's settlement with Invent ARC is Rs 180.00 crore, with a tenure of 11 years and an interest rate of 11% a year. The loan is secured.

Electrotherm said its total outstanding borrowings from banks and financial institutions were Rs 983.98 crore as at 30 September 2026, and its total financial indebtedness, including short-term and long-term debt, was Rs 997.42 crore.

The company explained in a note that it defaulted on loans to financial institutions after certain banks assigned their debts to asset reconstruction companies, and that it had entered into a settlement with the asset reconstruction company for payment of the outstanding debts on certain terms. It added that the borrowings shown exclude the interest of one unsettled lender, Rare Asset Reconstruction Limited, the assignee of Indian Overseas Bank, which the company has not provided for in its books after that lender classified the loan account as a non-performing asset.

What It Means

This is the company's own disclosure of a missed payment on a settled debt. It is not a finding by any regulator or court. The filing does not say what the company plans to do next, and it gives no reason for the missed payment beyond the explanation in its notes.

Listed companies must tell the exchanges when they default on interest or principal owed to banks or financial institutions. The figures are provisional and subject to confirmation by the lender, so they may change. The full disclosure is in the company's filing with the National Stock Exchange.

Source: Company filing on NSE