Advit Jewels equity proceeds lift cash to Rs 52.73 crore

Advit Jewels Limited reported Rs 165.73 crore of net proceeds from equity-share issues in the half year ended 30 September 2026, helping lift cash and cash equivalents to Rs 52.73 crore from Rs 0.26 crore at 31 March 2026. The financing inflow also accompanied Rs 60.44 crore of short-term borrowing repayments, despite a Rs 32.82 crore operating cash outflow.

How did Advit Jewels fund its liquidity in the first half?

Advit Jewels funded its first-half cash position mainly through Rs 165.73 crore of net proceeds from issuing equity shares. Net cash from financing activities was Rs 102.53 crore in the half year ended 30 September 2026, compared with a Rs 6.36 crore outflow in the corresponding half year ended 30 September 2025. That financing inflow offset cash used in operations and investing activity.

Equity share capital rose to Rs 45.81 crore at 30 September 2026 from Rs 32.01 crore at 31 March 2026, while other equity increased to Rs 233.45 crore from Rs 60.58 crore. Total equity therefore rose by Rs 186.67 crore to Rs 279.26 crore. The statement of cash flows records the equity proceeds net of share-issue expenses.

Advit Jewels also disclosed a private placement of 18.32 lakh equity shares at Rs 125 each, aggregating to Rs 22.90 crore, allotted on 13 May 2026. The filing says Rs 6.32 crore of those proceeds had been used for general corporate purposes during the period and Rs 18.58 crore remained unutilised at 30 September 2026.

How much did Advit Jewels reduce short-term borrowings?

Advit Jewels repaid Rs 60.44 crore of short-term borrowings on a net basis in the half year ended 30 September 2026, leaving Rs 1.10 crore outstanding at period end. The balance was Rs 61.54 crore at 31 March 2026. The cash-flow repayment and balance-sheet reduction are both disclosed in the half-year statements.

The repayment exceeded the Rs 6.50 crore shown as utilised from initial public offering proceeds for repayment or prepayment of certain borrowings by 30 September 2026. The filing does not identify the funding sources or timing for the difference between that disclosed IPO utilisation and the total short-term borrowing repayment. It also records Rs 0.56 crore of long-term borrowing repayments and Rs 1.96 crore of interest and other finance charges paid.

Long-term borrowings declined to Rs 8.93 crore at 30 September 2026 from Rs 9.49 crore at 31 March 2026. Total liabilities fell to Rs 20.57 crore from Rs 79.17 crore, while current liabilities declined to Rs 10.46 crore from Rs 68.42 crore. Trade payables to creditors other than micro and small enterprises, however, rose to Rs 1.73 crore from Rs 0.88 crore.

Why did Advit Jewels report an operating cash outflow despite profit?

Advit Jewels recorded a Rs 32.82 crore operating cash outflow because working-capital movements exceeded cash generated from its reported profit. Profit before tax rose to Rs 25.47 crore in the half year ended 30 September 2026 from Rs 19.24 crore a year earlier, and operating profit before working-capital changes was Rs 27.86 crore. Cash generated from operations was nevertheless negative Rs 29.26 crore before tax payments.

Inventory absorbed Rs 31.35 crore of cash, compared with a Rs 20.70 crore cash release in the half year ended 30 September 2025. Trade receivables absorbed Rs 12.95 crore, although this was below the Rs 34.41 crore absorbed in the prior-year period. Other current assets used a further Rs 13.84 crore, reversing a Rs 0.10 crore release in the earlier half year.

Trade payables provided Rs 0.88 crore of cash and other current liabilities provided Rs 0.65 crore, but these inflows did not offset increases in current assets. Net income taxes paid were Rs 3.56 crore, against Rs 4.15 crore in the corresponding 2025 half year. Revenue from operations increased to Rs 94.13 crore from Rs 73.46 crore, while profit after tax rose to Rs 20.95 crore from Rs 15.91 crore.

What cash and bank balances did Advit Jewels hold at September 2026?

Advit Jewels held Rs 52.73 crore of cash and cash equivalents at 30 September 2026, compared with Rs 0.26 crore at 31 March 2026 and Rs 0.46 crore at 30 September 2025. The half-year increase was Rs 52.47 crore, following financing inflows of Rs 102.53 crore and combined operating and investing outflows of Rs 50.06 crore.

The closing cash-and-equivalent balance comprised Rs 0.19 crore of cash on hand, Rs 32.74 crore in current or overdraft accounts, and Rs 19.80 crore in fixed deposits with original maturities of three months or less. Advit Jewels separately reported Rs 13.32 crore of other bank balances on its balance sheet. The cash-flow statement records Rs 13.32 crore invested in bank deposits with original maturities exceeding three months.

Current assets rose to Rs 275.66 crore at 30 September 2026 from Rs 151.41 crore at 31 March 2026. Besides cash and cash equivalents, the closing balance included inventories of Rs 169.55 crore, trade receivables of Rs 21.95 crore and other current assets of Rs 17.78 crore. Capital work in progress also increased to Rs 5.34 crore from Rs 2.27 crore.

How had Advit Jewels used its disclosed IPO proceeds by September?

Advit Jewels reported Rs 165.16 crore of IPO proceeds, of which Rs 125.73 crore had been utilised and Rs 39.42 crore remained unutilised at 30 September 2026. The disclosed utilisation table shows Rs 65 crore used for repayment or prepayment of certain borrowings, Rs 36.15 crore for working-capital requirements, Rs 8.04 crore for general corporate purposes and Rs 16.54 crore for issue expenses.

The largest unutilised IPO allocation was Rs 28.85 crore for working-capital requirements, from a planned Rs 65 crore. The company reported Rs 6.17 crore remaining for general corporate purposes from a planned Rs 14.21 crore, and Rs 4.41 crore remaining for issue expenses from a planned Rs 20.95 crore. The borrowing-repayment allocation of Rs 65 crore was shown as fully utilised.

Investing cash outflow was Rs 17.24 crore in the half year ended 30 September 2026, compared with Rs 1.46 crore in the prior-year half. It included Rs 13.32 crore invested in bank deposits, Rs 3.07 crore spent on capital work in progress and Rs 1.13 crore of advances for capital goods. Purchases of property, plant, equipment and intangible assets were Rs 6.98 lakh.

Conclusion

Advit Jewels' half-year statements show that equity funding drove the change in its cash position. Net equity-share proceeds of Rs 165.73 crore supported Rs 60.44 crore of short-term borrowing repayments, a Rs 32.82 crore operating cash outflow and Rs 17.24 crore of investing cash use, while cash and cash equivalents finished at Rs 52.73 crore and total liabilities declined to Rs 20.57 crore.

The next disclosed items to watch are the deployment of Rs 39.42 crore of unutilised IPO proceeds, including Rs 28.85 crore earmarked for working-capital requirements, and Rs 18.58 crore of unutilised private-placement proceeds for general corporate purposes. The filing also leaves unresolved how higher inventories, receivables and other current assets will affect operating cash flow after the half year ended 30 September 2026.