Recommendations
Curated action items and next steps from the Ekara expert team.
From our experts · Updated regularly
Immediate (Day 1 – Week 4)
Cash protection mode
Target: Maintain minimum ₹25–30L liquidity. Create 13-week rolling cash flow (weekly inflow, outflow, minimum buffer).
- Stop all non-essential spending
- Freeze new hiring
- Freeze new software capex
- No expansion spending
Fix gross margin
Current ~3–4%. Target minimum 7–8%. Even 2% improvement on scale can reduce loss significantly.
- Increase selling price by 1–2%
- Renegotiate supplier contracts
- Remove low-margin SKUs
- Introduce service commission layer where applicable
Fix receivable cycle
Target: Reduce receivable days to < 30 days. Freeing ₹40L+ improves liquidity immediately.
- No new dispatch without 30% advance
- Incentive for early payment; penalize delayed payments
- Appoint receivable collection lead
Reduce operating expenses
Audit direct expense, employee cost, admin overhead. Even 5% OPEX reduction can save ₹25–30L annually.
- Remove duplicate software and non-performing vendors
- Plug unnecessary logistics leakages
Restructure borrowings
Avoid high-interest NBFC loans. Prefer working capital CC limit or equity raise (e.g. ₹50–75L). Debt on negative profit increases risk.
- Apply for working capital CC limit
- Evaluate equity raise for runway
Structural (3–12 months)
Shift to hybrid model
Add value-added processing, branding, tech subscription or recurring revenue to stabilize margins.
Margin discipline policy
Minimum gross margin rule: no transaction below 6% unless strategic client.
Strengthen financial controls
Monthly MIS, SKU-level margin sheet, client profitability sheet, cash conversion cycle tracker.
Recommended priority order
From our experts · 28 Jan 2026
- Cash flow control (Week 1)
- Margin improvement (Month 1)
- Receivable discipline (Month 1–2)
- Cost restructuring (Month 2)
- Capital restructuring (Month 3)