Bhartiya International borrowings rise with inventory build

Bhartiya International Limited increased inventory by Rs 92.80 crore to Rs 781.17 crore in the half year ended September 30, 2026, while total borrowings rose Rs 69.31 crore to Rs 601.38 crore. The Group generated Rs 28.42 crore of net operating cash and spent Rs 19.72 crore on fixed-asset purchases during the period.

Why did Bhartiya International’s operating cash flow trail profit before tax?

Bhartiya International generated Rs 28.42 crore of net cash from operating activities in H1 FY27 against profit before tax of Rs 54.55 crore because the cash-flow statement recorded a Rs 92.80 crore increase in inventories. This was the largest working-capital cash outflow reported for the six months ended September 30, 2026.

Inventory reached Rs 781.17 crore on September 30, 2026, from Rs 688.37 crore on March 31, 2026. Trade receivables moved in the opposite direction, declining by Rs 11.35 crore in the cash-flow statement and ending at Rs 261.53 crore, compared with Rs 272.88 crore at the prior year-end. The filing does not identify products or commercial reasons behind the inventory increase.

Trade payables increased by Rs 26.86 crore in H1 FY27, while other financial liabilities added Rs 9.60 crore to operating cash flow. Net income tax paid was Rs 5.61 crore, and currency-fluctuation reserve consolidation added Rs 1.54 crore. These items left net operating cash at Rs 28.42 crore after the Rs 87.99 crore operating profit before working-capital changes.

How much did Bhartiya International borrow in H1 FY27?

Bhartiya International’s combined current and non-current borrowings rose Rs 69.31 crore during H1 FY27 to Rs 601.38 crore at September 30, 2026. Current borrowings increased Rs 42.59 crore to Rs 482.45 crore, while non-current borrowings increased Rs 26.72 crore to Rs 118.94 crore from their March 31, 2026 balances.

The financing cash-flow statement recorded net proceeds of Rs 46.09 crore from long-term borrowings and Rs 23.22 crore from short-term borrowings during the half year. It also recorded Rs 23.70 crore of interest and processing fees paid and Rs 2.58 crore of lease-liability payments, resulting in net financing cash inflow of Rs 43.04 crore.

Finance cost in the consolidated statement of profit and loss was Rs 24.32 crore in H1 FY27, compared with Rs 24.70 crore in H1 FY26. The Rs 23.70 crore interest and processing-fee cash payment is a cash-flow measure rather than the finance-cost expense, so the filing does not provide a direct reconciliation between those two measures.

What did Bhartiya International spend on capex and investments?

Bhartiya International used Rs 25.17 crore in investing activities in H1 FY27, including Rs 19.72 crore for purchases of fixed assets and Rs 8.17 crore for fixed deposits. Proceeds from fixed-asset sales were Rs 1.25 crore, rental income was Rs 1.26 crore, and capital advances and capital creditors contributed Rs 0.21 crore.

Property, plant and equipment stood at Rs 132.10 crore at September 30, 2026, compared with Rs 129.78 crore at March 31, 2026. Capital work in progress rose to Rs 23.12 crore from Rs 11.62 crore over the same period. These balance-sheet movements accompany fixed-asset spending, but do not directly reconcile to it because the filing separately reports depreciation, disposals and other accounting movements.

Right-to-use assets increased to Rs 15.96 crore from Rs 14.10 crore, while total lease liabilities across current and non-current categories rose to Rs 13.85 crore from Rs 9.89 crore. Other non-current financial assets increased to Rs 17.64 crore from Rs 7.35 crore. Cash and cash equivalents nevertheless increased Rs 46.29 crore to Rs 78.27 crore during H1 FY27.

How did Bhartiya International’s earnings and balance sheet change?

Bhartiya International reported sales and income from operations of Rs 879.74 crore in H1 FY27, up from Rs 679.36 crore in H1 FY26. Profit after tax rose to Rs 40.07 crore from Rs 15.52 crore, while profit before tax increased to Rs 54.55 crore from Rs 24.82 crore and basic earnings per share rose to Rs 29.80 from Rs 11.89.

The Group operates in one reported segment, Fashion Apparels and Accessories including Intermediaries, under Indian Accounting Standard 108. Within expenses, cost of materials consumed increased to Rs 413.14 crore from Rs 344.00 crore, purchases of stock-in-trade rose to Rs 136.64 crore from Rs 96.06 crore, and employee-benefit expense increased to Rs 51.92 crore from Rs 38.00 crore.

Total assets increased to Rs 1,519.76 crore at September 30, 2026, from Rs 1,358.52 crore at March 31, 2026. Total equity increased to Rs 528.81 crore from Rs 487.31 crore, while current liabilities rose to Rs 845.11 crore from Rs 756.90 crore. The balance-sheet increase included inventory, cash, borrowings and trade payables alongside the H1 FY27 profit.

Conclusion

Bhartiya International’s H1 FY27 results combined higher revenue and profit with a larger funding requirement for working capital and investment. Inventory rose Rs 92.80 crore, investing activities used Rs 25.17 crore and borrowings increased Rs 69.31 crore, while net operating cash generation was Rs 28.42 crore and cash and cash equivalents ended at Rs 78.27 crore.

The filing leaves the reasons for the Rs 92.80 crore inventory increase unresolved. The next results disclosure can show whether inventory of Rs 781.17 crore, total borrowings of Rs 601.38 crore and capital work in progress of Rs 23.12 crore change after September 30, 2026.