Pajson Agro locks in ₹27 cr from Kotak for cashew capacity push
The ₹20 cr term loan (84 months) and ₹7.5 cr working capital lift arrive as the company builds toward 55,000-tonne capacity and Q4 FY27 commercial production. The funds equal 6.3% of market cap.
— 1 earlier story on Pajson Agro India Ltd. →What's new
- Kotak Mahindra Bank extended a ₹27.5 cr credit enhancement to Pajson Agro, including a ₹20 cr term loan and ₹7.5 cr working capital increase.
- The term loan has an 84-month tenor secured by current assets and movable fixed assets.
- The financing supports a capacity expansion to 55,000 tonnes at the Andhra cashew plant, with Q4 FY27 production target.
Why this matters
This is a material financing event for a nano-cap, equal to 6.3% of market cap, from a large bank suggesting comfort with the growth plan. With a low debt/equity of 0.33 and high ROE of 46.2%, the company can absorb this debt productively.
What we're watching
- Whether the expansion stays on track for Q4 FY27 commercial production.
- The impact on debt/equity and interest costs in coming quarters.
- Any follow-up orders or moves after the recent advisor appointment.
The full read
Pajson Agro is putting capital to work. The ₹27.5 cr credit facility from Kotak Mahindra Bank — ₹20 cr as an 84-month term loan and ₹7.5 cr as a working capital lift — funds a cashew capacity expansion to 55,000 tonnes at its Andhra plant, with commercial production slated for Q4 FY27. At 6.3% of its ₹436 cr market cap, the facility is a material vote of confidence from a large bank. The company's low debt/equity of 0.33 and trailing ROE of 46.2% suggest this debt can be deployed productively. The timing aligns with its June hiring of the world's largest cashew processor as an advisor, hinting at a coordinated growth push. The open question is not whether the plant gets built, but whether demand absorbs the output.
Questions answered
- Why is this credit enhancement significant for Pajson Agro?
- At ₹27.5 cr, it's 6.3% of the company's ₹436 cr market cap, a large injection for a nano-cap. The 84-month term loan provides long-term capital for capacity expansion.
- How will this affect the company's leverage?
- Debt/equity was just 0.33 as of the latest trailing data. Adding ₹27.5 cr of debt will increase leverage, but the high ROE of 46.2% suggests efficient capital use.
- What is the capacity expansion plan?
- Pajson Agro is expanding its cashew processing plant in Andhra Pradesh to 55,000 tonnes, with commercial production guided for Q4 FY27.
- What is the working capital increase for?
- The ₹7.5 cr working capital demand loan and letter of credit enhancement will support increased raw material procurement, likely cashew imports.
- How does this funding relate to the recent advisor appointment?
- In June 2026, Pajson Agro hired the world's largest cashew processor as an advisor. This credit facility provides the capital to execute the strategic plan.
- What are the key risks to watch?
- Execution risk on the capex timeline, cashew price volatility, and nano-cap stock liquidity. The long tenor of the loan reduces near-term repayment pressure.
Pajson Agro India Ltd.
Latest quarter · Mar 2026
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All notes on PAJSON →- 19 Jun 2026 · 8:26 PM IST Pajson Agro locks in ₹27 cr from Kotak for cashew capacity push
- 15d ago Pajson Agro hires world's largest cashew processor as advisor