Baheti Recycling Industries Limited funds Rs 61.55 crore outflow

For the half year ended September 30, 2026, Baheti Recycling Industries Limited funded a Rs 61.55 crore net operating cash outflow with Rs 66.96 crore of net financing inflow, led by Rs 70.69 crore of short-term borrowing proceeds. The outflow followed cash absorption in inventory, receivables and other current assets despite Rs 25.71 crore of profit before tax.

Why did Baheti Recycling Industries Ltd report negative operating cash flow?

Baheti Recycling Industries Ltd reported negative operating cash flow because working-capital movements outweighed Rs 42.83 crore of operating profit before working-capital changes in the half year ended September 30, 2026. The company began the indirect cash-flow calculation with Rs 25.71 crore of profit before tax, adding back Rs 2.41 crore of depreciation, Rs 14.59 crore of finance cost and Rs 1.32 crore of preliminary expenses written off.

The cash-flow statement then reported Rs 55.65 crore of cash used in operations before direct taxes. Direct taxes paid were Rs 5.89 crore, taking net cash flow from operating activities to an outflow of Rs 61.55 crore. This differs from the accounting profit because the cash-flow statement includes movements in assets and liabilities that are not reflected in profit before tax for the period.

The September-half operating outflow was Rs 29.30 crore greater than the Rs 32.25 crore outflow reported for the full year ended March 31, 2026. The periods are not directly comparable because one covers six months and the other 12 months, but the half-year disclosure shows a larger cash outflow than the preceding full-year figure while revenue from operations was Rs 528.47 crore.

How much cash did working capital absorb at Baheti Recycling Industries Ltd?

Working capital absorbed cash primarily through a Rs 65.13 crore inventory movement during the half year ended September 30, 2026. Inventories on the balance sheet rose to Rs 296.64 crore at September 30 from Rs 223.51 crore at March 31, 2026, an increase of Rs 73.13 crore in the reported closing balance.

Trade receivables also rose to Rs 135.88 crore at September 30 from Rs 91.15 crore at March 31, 2026, a balance-sheet increase of Rs 44.74 crore. The cash-flow statement separately identifies the change in trade receivables as an operating cash outflow, although the machine-readable figure in that row is unclear. Its stated direction is consistent with the higher receivables balance.

Other current assets and short-term loans and advances used Rs 10.72 crore of cash, while long-term loans and advances used Rs 1.40 lakh. Short-term loans and advances increased to Rs 22.57 crore from Rs 9.87 crore, while other current assets increased to Rs 2.71 crore from Rs 2.26 crore between March 31 and September 30, 2026.

Liability movements partly offset these asset-related cash uses. Trade payables contributed Rs 21.22 crore, other current liabilities and short-term provisions contributed Rs 3.78 crore, and long-term provisions contributed Rs 10.51 lakh. These stated offsets did not prevent cash generated from operations from turning negative at Rs 55.65 crore before direct-tax payments.

How did Baheti Recycling Industries Ltd finance the cash requirement?

Baheti Recycling Industries Ltd financed its operating and investing cash requirement with Rs 66.96 crore of net financing inflow in the half year ended September 30, 2026. The main financing line was Rs 70.69 crore of proceeds from short-term borrowings, while the increase in long-term borrowings added Rs 11.37 crore.

The financing inflow was reduced by Rs 13.91 crore of interest paid and a Rs 1.19 crore negative amount reported against proceeds from finance lease. The company reported no proceeds from share warrants or preferential equity shares for the September half. By comparison, the year ended March 31, 2026 included Rs 2.84 crore of share-warrant proceeds and Rs 1.64 crore received against a preferential issue of equity shares.

Total reported borrowings rose by Rs 80.73 crore over the six months to September 30, 2026. The balance-sheet movement is different from the financing-cash-flow proceeds because the cash-flow statement records financing transactions, while the balance sheet records period-end liabilities. The filing does not disclose borrowing maturities, interest rates, security arrangements or a borrowing-reduction target.

What was Baheti Recycling Industries Ltd's investing cash outflow?

Baheti Recycling Industries Ltd recorded a Rs 5.36 crore net investing cash outflow in the half year ended September 30, 2026. Capital work in progress used Rs 3.42 crore, purchases of fixed assets used Rs 1.77 crore, and advances paid for capital goods used Rs 17.16 lakh. Interest received of Rs 86,000 was the disclosed offset.

The September-half investing outflow was lower than the Rs 14.11 crore outflow reported for the year ended March 31, 2026. In the prior full year, capital work in progress used Rs 5.56 crore, advances for capital goods used Rs 2.53 crore, fixed-asset purchases used Rs 50.87 lakh and mutual-fund investment used Rs 1.58 crore.

Property, plant and equipment stood at Rs 37.59 crore at September 30, 2026, compared with Rs 33.86 crore at March 31, 2026. Tangible assets under capital work in progress declined to Rs 1.65 crore from Rs 5.58 crore over the same period, so the disclosed investment spending occurred alongside a lower closing capital-work-in-progress balance.

The cash-flow statement shows that net financing inflow of Rs 66.96 crore exceeded the combined Rs 61.55 crore operating outflow and Rs 5.36 crore investing outflow by Rs 5.56 lakh. It accordingly reports a Rs 5.56 lakh increase in cash and cash equivalents, from Rs 12.68 lakh at the start of the period to Rs 18.24 lakh at September 30, 2026.

Conclusion

Baheti Recycling Industries Ltd's September-half filing shows that reported profit and cash generation moved in different directions. Profit before tax was Rs 25.71 crore, but inventory, receivables and other current assets contributed to a Rs 61.55 crore operating cash outflow. Net financing inflow of Rs 66.96 crore, principally short-term borrowing proceeds, covered the operating and investing cash requirements.

The next results will need to show whether inventory, receivables and the Rs 271.00 crore short-term borrowing balance change. The filing also presents Rs 18.24 lakh of closing cash and cash equivalents in the cash-flow statement, while the assets-and-liabilities statement lists Rs 48.24 lakh under cash and cash equivalents at September 30, 2026, leaving a difference within the disclosed statements to be reconciled.