Patspin India discloses ₹34.34 Cr of bank-loan defaults — over 60% of borrowings, 1.7× its market cap
The company told the BSE it defaulted on ₹23.33 Cr of principal and ₹11.01 Cr of interest owed to Central Bank of India, SBI and Karur Vysya Bank as of September 30, 2026.
MICRO-CAP
by market cap ≈ ₹19.8 Cr
₹34.34 Cr
as of Sep 30, 2026
₹56.67 Cr
= total financial indebtedness
₹6.40
Oct 7 · −1.2% on the day
−37.3%
high ₹10.20 (Oct 30, 2025)
₹2.54 Cr
revenue ₹11.01 Cr
On October 7, Patspin India told the BSE it is in default on ₹34.34 crore of bank obligations — ₹23.33 crore of principal and ₹11.01 crore of interest — owed to Central Bank of India, State Bank of India and Karur Vysya Bank, with the date of default stated as September 30, 2026. The company put its total outstanding borrowings, and its total financial indebtedness, at the same figure: ₹56.67 crore. At the October 7 close of ₹6.40, the market values the entire company at roughly ₹19.8 crore — so the defaulted amount alone is about 1.7 times the market capitalisation, and the full debt load is nearly 2.9 times it.
What the October 7 filing states
Defaults disclosed on ₹34.34 Cr owed to three banks
Filed at 11:51 IST under SEBI's circular of November 21, 2019 on disclosure of defaults on loans from banks and financial institutions, and signed by CFO T Ravindran. The filing names Central Bank of India, State Bank of India and Karur Vysya Bank as the lenders, states the date of default as September 30, 2026, and breaks the default into ₹23.33 crore of principal and ₹11.01 crore of interest. Total outstanding borrowings from banks: ₹56.67 crore. The filing states the company has no unlisted debt securities (NCDs or NCRPS) outstanding.
Read:The default covers 60.6% of everything the company owes its banks, and it spans all three named lenders rather than a single facility. With total indebtedness at ₹56.67 crore against a market capitalisation of about ₹19.8 crore, the balance sheet question now sits well ahead of the operating one.
BSE filing, Oct 7, 2026 — disclosure of defaultsThe filing's annexure breaks the September 30 position down by lender, under a column the filing heads "WCTL O/s". Central Bank of India is the largest exposure at ₹33.00 crore outstanding, followed by State Bank of India at ₹20.77 crore and Karur Vysya Bank at ₹2.91 crore. Each lender shows both interest and principal in default — this is not one missed instalment at one bank.
Converted to ₹ crore from the rupee figures in Annexure I of the October 7 filing (e.g. interest payable to Central Bank of India of ₹6,43,85,360, i.e. ₹6.44 crore). "WCTL O/s" is the filing's own column heading for the outstanding amount.
Two things stand out in the structure of the disclosure. First, the default is not a sliver of the debt — at ₹34.34 crore against ₹56.67 crore outstanding, 60.6% of the company's entire bank borrowing is in default, interest and principal combined. Second, the filing states that total financial indebtedness equals the bank borrowings — there are no bonds or other listed debt behind this. Whatever resolution comes, it runs through these three banks.
Eight straight quarters of losses
The quarterly numbers explain how the balance sheet got here. Every one of the eight quarters in the available data — from Q2 FY25 through Q1 FY27 — is a loss, and they add up to roughly ₹21.4 crore of cumulative net losses, including ₹11.40 crore across the four quarters of FY26 alone. Against that, revenue has been stuck in a ₹10.6–13.8 crore per quarter band, while the interest line has run at ₹1.60–1.88 crore every quarter — around 15% of revenue going to service debt before any other cost. A company losing ₹2.5–3.2 crore a quarter on an ₹11 crore revenue base, per the filed numbers, does not generate the cash to cover ₹23.33 crore of principal repayments — the September 30 default is the arithmetic catching up.
A thin stock that barely reacted
6.4
−37.3% from the high; low ₹5.14 set Sep 24, 2026
The market's response to the disclosure was close to nothing: the stock closed the October 7 session at ₹6.40, down 1.2% from the previous close, on just 912 shares traded. That is less a verdict than a feature of the stock — daily volumes in the series frequently run below 5,000 shares, and the stock had already drifted from ₹7.11 in mid-July to a 52-week low of ₹5.14 on September 24, well before the default was disclosed. At these volumes, the price is a thin signal; the filings are the real information channel here.
What else the recent filings record
Board approved Q1 FY27 unaudited standalone results — net loss of ₹2.54 Cr on revenue of ₹11.01 Cr. Filed after market close.
Company intimated that promoter Ankur Patodia sold his entire holding of 400 shares in an open-market sale on August 18 at ₹6.49 per share, for a total consideration of ₹2,575.74.
Trading window closed from October 1 until 48 hours after the results for the quarter and half year ended September 30, 2026; the board-meeting date was to be intimated in due course.
35th AGM held. The same evening, the company announced the demise of Chairman Emeritus B K Patodia, founder of the GTN Group, and stated he would cease to be part of "Promoter" of the company under Regulation 31A(6)(c).
Default disclosure filed at 11:51 IST under SEBI's circular of November 21, 2019, stating the date of default as September 30, 2026.
The sequencing matters more than any single item. The default date — September 30 — is the last day of the quarter whose results are now pending, and the trading window has been closed since October 1 for exactly that reporting cycle. The Q2 FY27 numbers, whenever the board meets, will be the first accounts drawn up after the default crystallised. The other September event is contextual rather than financial: the death of founder and Chairman Emeritus B K Patodia on September 28, with Umang Patodia continuing as Chairman and Managing Director per the FY26 annual report. The August sale by promoter Ankur Patodia, for its part, was a 400-share holding worth ₹2,575.74 — a footnote in size, recorded here because it is in the filings.
The filings that would change the picture
Q2 FY27 results
The quarter ended on the default date itself. The board-meeting date is yet to be intimated; the results and any auditor commentary will be the first full accounting of the position.
Default updates
Whether subsequent disclosures show the ₹34.34 Cr default amount growing, shrinking, or being regularised is the single most important number from here.
Lender or company action
Any filing recording steps by Central Bank of India, State Bank of India or Karur Vysya Bank, or a repayment, settlement or restructuring intimation from the company.
Shareholding pattern
Promoter holding stood at 65.00% (2,00,96,918 shares) as of June 30, 2026. The next quarterly pattern will reflect the reclassification following B K Patodia's demise.
The October 7 filing converts what the P&L has implied for two years into a formal, lender-named default record: ₹34.34 crore unpaid against ₹56.67 crore of total debt, at a company the market values at about ₹19.8 crore. Eight consecutive loss-making quarters, an interest bill absorbing roughly 15% of revenue, and a default spanning all three of its banks describe a balance sheet problem that operations, at their current run-rate, do not resolve on their own.
The disclosure quantifies a stress that was already formally on the record. The auditor's review accompanying the Q1 FY27 results on August 10 noted the company's bank accounts have been classified sub-standard since March 31, 2021, flagged a material going-concern uncertainty, and recorded that lenders have issued notices under Sections 13(2) and 13(4) of the SARFAESI Act and petitioned the Debt Recovery Tribunal, while a restructuring proposal — backed by a TEV study the bankers commissioned, which confirmed its viability — remains pending, with lenders asking the company to clear past dues first. What the October 7 filing adds is the precise default position as of September 30; whether the restructuring advances or recovery proceedings do is the open question into the Q2 FY27 results, whose board date is yet to be announced. In a stock that traded 912 shares on disclosure day, position sizing and exit liquidity deserve as much attention as the fundamentals.
Informational and educational content only. Not investment advice.