AHB Capital Ltd cash falls to Rs 1.32 crore on outflow

AHB Capital Ltd ended the half year to September 30, 2026 with Rs 1.32 crore of cash and cash equivalents, after a Rs 41.99 crore operating cash outflow driven principally by a Rs 41.38 crore use of cash for investments held for trading, while net short-term borrowings provided Rs 12.92 crore.

Why did AHB Capital's operating cash flow turn negative?

AHB Capital's operating cash flow turned negative because net working-capital changes used Rs 41.96 crore in the half year ended September 30, 2026, compared with a Rs 36.05 crore cash inflow in the corresponding 2025 half year. The largest latest-period movement was the Rs 41.38 crore cash use for investments held for trading, against a Rs 33.69 crore inflow from that line a year earlier.

The company reported a Rs 3.34 crore loss before tax for the latest half year, compared with a Rs 8.15 crore profit before tax in the prior-year period. Depreciation of Rs 10.55 lakh, finance expenses of Rs 32.05 lakh, interest income of Rs 50.74 lakh and profit on sale of investments of Rs 32.48 lakh resulted in an operating loss before working-capital changes of Rs 3.74 crore.

Other current assets released Rs 3.43 crore of cash during the latest half year, partly offsetting the trading-investment movement. Other non-current financial assets used Rs 27 lakh and other non-current assets and other financial assets used Rs 15.42 lakh, while trade payables generated Rs 16.69 lakh and other financial liabilities used Rs 4.92 lakh.

Current-tax payments of Rs 2.83 lakh followed the working-capital movements. Net cash generated from operations was therefore an outflow of Rs 41.99 crore, reversing the Rs 34.27 crore operating inflow reported for the half year ended September 30, 2025.

How much cash did AHB Capital have at September-end?

AHB Capital had Rs 1.32 crore of cash and cash equivalents at September 30, 2026, down from Rs 30.08 crore at March 31, 2026. The Rs 28.77 crore net decrease reported in the cash-flow statement reconciles the opening balance with the closing balance.

The previous-year half showed the opposite movement. Cash and cash equivalents increased by Rs 34.12 crore to Rs 35.83 crore at September 30, 2025, from Rs 1.71 crore at the beginning of that period, supported by Rs 34.27 crore of operating cash generation.

The balance sheet separately presents cash and cash equivalents and bank balances other than those cash equivalents. Cash and bank balance other than free cash increased by Rs 1,000 during the latest half year, but the filing does not provide a maturity analysis or further detail on the composition of the Rs 1.32 crore closing cash-equivalent balance.

The reported cash reduction occurred alongside an increase in total assets to Rs 70.86 crore at September 30, 2026 from Rs 58.72 crore at March 31, 2026. That change reflects the presentation of trading holdings as financial assets, while cash-flow movements relating to those holdings are included within operating activities.

How did AHB Capital fund the operating cash outflow?

AHB Capital received Rs 12.92 crore from short-term borrowings, net of repayments, in the half year ended September 30, 2026. This financing inflow partly offset the Rs 41.99 crore operating outflow, whereas short-term borrowings recorded a net repayment of Rs 9.74 lakh in the corresponding prior-year half.

Cash used for lease-liability principal repayments was Rs 11.11 lakh, interest paid on lease liabilities was Rs 15,000 and finance-expense payments were Rs 31.90 lakh. After these items, net cash from financing activities was Rs 12.49 crore, compared with a Rs 37.32 lakh financing outflow in the half year ended September 30, 2025.

The prior-year financing outflow included a Rs 6.77 lakh dividend payment, which is not shown for the latest half year. The September 30, 2026 balance sheet reported current borrowings of Rs 12.92 crore, while finance cost in the profit-and-loss statement rose to Rs 32.05 lakh from Rs 16.62 lakh a year earlier.

Investing activities generated Rs 73.35 lakh in the latest half year, including Rs 18.82 crore from sale of investments and Rs 50.38 lakh of interest received. These inflows were substantially offset by a Rs 18.50 crore net loan given and Rs 9.51 lakh spent on property, plant and equipment.

What changed in AHB Capital's trading-investment presentation?

AHB Capital reclassified trading shareholdings from inventories to investments held for trading within financial assets, measured at fair value through profit or loss. It also reclassified related working-capital movements from changes in inventories to changes in investments held for trading in cash flow from operating activities.

The company said realised gains or losses and unrealised fair-value changes on trading shares and derivatives are now presented on a net basis. A net gain is recorded in revenue from operations, while a net loss is reported in expenses; the latest half year included a Rs 2.46 crore net loss on fair-value changes of investments or derivatives held for trading.

AHB Capital stated that it restated comparative financial results for the presentation change. The company said the reclassification did not affect profit before tax, profit after tax, total comprehensive income, earnings per share, total assets or total equity for any period presented.

The results identify trading in shares and securities as AHB Capital's single reportable business segment under Indian Accounting Standard 108. Total income for the half year ended September 30, 2026 was Rs 95.20 lakh, down from Rs 9.89 crore a year earlier, while total expenses rose to Rs 4.29 crore from Rs 1.74 crore.

What do the latest results show alongside the cash movement?

AHB Capital reported a net loss after tax of Rs 2.50 crore for the half year ended September 30, 2026, compared with a net profit after tax of Rs 6.10 crore in the corresponding 2025 period. The latest loss followed the Rs 3.34 crore pre-tax loss and the Rs 2.46 crore trading fair-value loss.

Administrative expenses were Rs 1.15 crore in the latest half year, compared with Rs 43.97 lakh a year earlier. Employee-benefit expense was Rs 25.46 lakh, down from Rs 97.22 lakh, while depreciation and amortisation expense was Rs 10.55 lakh compared with Rs 16.25 lakh in the prior-year period.

For the September 2026 quarter alone, total income was Rs 42.53 lakh and net loss after tax was Rs 2.21 crore. In the June 2026 quarter, total income was Rs 52.67 lakh and net loss after tax was Rs 29.01 lakh, showing that the September-quarter loss accounted for most of the half-year loss.

On October 8, 2026, AHB Capital allotted bonus shares in a 10:1 ratio. The filing states that issued, subscribed and paid-up capital increased from 30,00,100 equity shares of Rs 10 each to 3,30,01,100 equity shares of Rs 10 each, and earnings per share for all reported periods reflects that allotment.

Conclusion

AHB Capital's cash position at September 30, 2026 reflected a reversal from the prior-year half, with a Rs 41.38 crore use of cash for trading investments contributing to a Rs 41.99 crore operating outflow. Net short-term borrowings of Rs 12.92 crore and Rs 73.35 lakh generated from investing activities did not prevent cash and cash equivalents from falling by Rs 28.77 crore to Rs 1.32 crore.

The filing does not disclose a liquidity target or a repayment timetable for the Rs 12.92 crore of current borrowings. The next results will show whether movements in investments held for trading, short-term borrowings and operating cash flow change after the revised presentation of trading activities.