Andhra Cements borrowings rise as operating cash increases

Andhra Cements Limited reported total borrowings of Rs 1,183.77 crore at September 30, 2026, Rs 69.13 crore above the March 31 balance. Net cash generated from operating activities rose to Rs 65.22 crore from Rs 1.99 crore a year earlier, supported by inventory reduction and higher operating liabilities despite higher receivables.

How much did Andhra Cements' borrowings increase?

Andhra Cements' total borrowings increased by Rs 69.13 crore to Rs 1,183.77 crore at September 30, 2026, from Rs 1,114.64 crore at March 31, 2026. Non-current borrowings rose by Rs 56.75 crore to Rs 1,068.91 crore, while current borrowings increased by Rs 12.38 crore to Rs 114.86 crore.

The cash-flow statement recorded Rs 93.02 crore of proceeds from non-current borrowings and Rs 27.04 crore of repayments in the six months ended September 30, 2026. Net current-borrowing proceeds were Rs 2.66 crore. Finance costs for the six months were Rs 63.73 crore, compared with Rs 41.45 crore in the corresponding 2025 period, while interest paid rose to Rs 45.83 crore from Rs 23.06 crore.

Did Andhra Cements generate operating cash in the first half?

Andhra Cements generated Rs 65.22 crore of net cash from operating activities in the six months ended September 30, 2026, compared with Rs 1.99 crore in the corresponding 2025 period. Cash generated before net income-tax payments was Rs 65.73 crore, and net income tax paid was Rs 0.51 crore, although the company reported a pre-tax loss of Rs 85.43 crore.

Depreciation and amortisation of Rs 41.82 crore and finance costs of Rs 63.73 crore were added back under the indirect cash-flow method, producing operating profit before working-capital changes of Rs 18.24 crore. That measure was Rs 2.56 crore in the year-earlier six months. The statement was prepared under Indian Accounting Standard 7, or Ind AS 7, which classifies interest paid within financing activities in this filing.

What changed in Andhra Cements' working capital?

Andhra Cements' working-capital movements provided Rs 47.49 crore of cash in the six months ended September 30, 2026, compared with a Rs 0.30 crore outflow a year earlier. Trade payables, other financial liabilities and other liabilities together added Rs 50.34 crore, offsetting a Rs 17.36 crore use of cash from higher trade receivables.

Trade receivables increased to Rs 63.76 crore at September 30 from Rs 46.40 crore at March 31. Inventories fell to Rs 67.96 crore from Rs 81.29 crore, creating a Rs 13.33 crore operating cash inflow. Trade payables increased to Rs 143.11 crore from Rs 117.42 crore, while the cash-flow statement records a Rs 25.70 crore inflow from payables after rounding in the underlying financial statements.

How did Andhra Cements fund investment and its balance sheet?

Andhra Cements used Rs 86.12 crore in investing activities in the 2026 first half, lower than Rs 135.14 crore in the corresponding 2025 period. Purchases of property, plant and equipment, including capital work-in-progress, capital advances and capital creditors, were Rs 87.06 crore, exceeding the Rs 65.22 crore of operating cash generated during the period.

Property, plant and equipment increased by Rs 61.60 crore to Rs 1,021.01 crore at September 30, while capital work-in-progress declined by Rs 1.32 crore to Rs 5.05 crore. Financing activities generated Rs 20.97 crore, against Rs 133.18 crore a year earlier, and cash and cash equivalents rose by Rs 7 lakh to Rs 28 lakh. Total assets increased to Rs 1,499.96 crore from Rs 1,420.06 crore, while total equity fell to Rs 16.50 crore from Rs 80.74 crore.

What do Andhra Cements' results show alongside the cash flow?

Andhra Cements reported revenue from operations of Rs 308.15 crore for the six months ended September 30, 2026, compared with Rs 177.38 crore a year earlier. Its net loss narrowed to Rs 64.28 crore from Rs 71.54 crore, while other equity moved to negative Rs 75.67 crore from negative Rs 11.43 crore at March 31.

The company identifies cement and cement-related products as its single reportable business segment under Ind AS 108. Non-current liabilities rose to Rs 1,126.26 crore from Rs 1,054.78 crore, and current liabilities increased to Rs 357.20 crore from Rs 284.54 crore. The statutory auditors issued an unmodified conclusion on their limited review of the September 2026 results.

Conclusion

Andhra Cements' six-month figures show that operating cash generation increased materially, but the improvement came alongside higher borrowings, receivables and trade payables. The Rs 86.12 crore investing outflow exceeded operating cash flow, while the company ended September with Rs 1,183.77 crore of borrowings and Rs 16.50 crore of total equity.

The next disclosed matter to watch is the proposed amalgamation of Andhra Cements into Sagar Cements Limited. The board considered and approved the scheme on June 5, 2026, with an appointed date of April 1, 2026, but it remains subject to approvals from stock exchanges, the Securities and Exchange Board of India, shareholders, creditors, the National Company Law Tribunal and other authorities.