Gayatri Rubbers spends Rs 4.07 crore on H1 asset expansion

Gayatri Rubbers and Chemicals Limited used Rs 4.07 crore in investing activities in the half year ended September 30, 2026, including Rs 3.89 crore for fixed assets and Rs 18.25 lakh for capital work-in-progress. Gayatri Rubbers reported Rs 4.12 crore of short-term borrowing proceeds and Rs 1.10 crore of net operating cash flow in the period.

How much did Gayatri Rubbers invest in H1 assets?

Gayatri Rubbers invested Rs 4.07 crore during the half year ended September 30, 2026, comprising Rs 3.89 crore spent on fixed-asset purchases and Rs 18.25 lakh invested in capital work-in-progress, or CWIP. The cash-flow statement records no payment for goodwill, so fixed assets and CWIP were the disclosed components of the investing outflow.

Property, plant and equipment, or PPE, increased to Rs 8.57 crore at September 30, 2026 from Rs 5.32 crore at March 31, 2026, a rise of Rs 3.25 crore. CWIP was Rs 18.25 lakh at the half-year date, while no CWIP balance was reported at March 31, 2026. The balance-sheet movement followed the H1 investment cash outflow, although the filing does not identify the assets purchased or the projects under construction.

The Rs 4.07 crore H1 investing outflow was higher than the Rs 3.61 crore spent on fixed-asset purchases in the year ended March 31, 2026. The two periods differ in length, with the latest figure covering six months and the earlier figure covering a full year, but the H1 outflow also included the separately disclosed Rs 18.25 lakh CWIP investment.

Depreciation and amortisation expense was Rs 63.85 lakh in the half year ended September 30, 2026, compared with Rs 36.38 lakh in the half year ended March 31, 2026. The higher depreciation charge was reported alongside the higher PPE balance, but Gayatri Rubbers did not disclose commissioning dates or the useful lives of the newly added assets.

How did Gayatri Rubbers fund its H1 asset spending?

Gayatri Rubbers generated Rs 3.62 crore of net financing cash flow in the half year ended September 30, 2026, led by Rs 4.12 crore of proceeds from short-term borrowings. The financing inflow was reduced by Rs 17.16 lakh of long-term borrowing repayment and Rs 33.13 lakh of finance costs.

Short-term borrowings rose to Rs 10.60 crore at September 30, 2026 from Rs 6.48 crore at March 31, 2026, an increase of Rs 4.12 crore. That increase was the same as the Rs 4.12 crore of short-term borrowing proceeds in the H1 cash-flow statement. The filing does not state the lenders, interest rates, maturity dates, security or intended use of the facilities.

Long-term borrowings declined to Rs 26.73 lakh at September 30, 2026 from Rs 43.89 lakh at March 31, 2026. The Rs 17.16 lakh reduction corresponds with the repayment reported in H1 cash flow, compared with a Rs 9.99 lakh repayment for the year ended March 31, 2026. The reported debt mix therefore had a higher short-term borrowing balance and a lower long-term borrowing balance at the half-year date.

Gayatri Rubbers reported no proceeds from an equity-share issue in either the half year ended September 30, 2026 or the year ended March 31, 2026. Share capital was unchanged at Rs 5.74 crore on both September 30, 2026 and March 31, 2026, leaving operating cash flow and borrowing cash flows as the disclosed H1 funding sources.

What working-capital movements affected Gayatri Rubbers' cash flow?

Gayatri Rubbers' current assets increased to Rs 31.14 crore at September 30, 2026 from Rs 26.12 crore at March 31, 2026, while current liabilities rose to Rs 16.07 crore from Rs 11.64 crore. Inventories of Rs 16.75 crore and trade receivables of Rs 11.57 crore were the two largest current-asset balances at the half-year date.

Inventories increased by Rs 1.44 crore to Rs 16.75 crore between March 31 and September 30, while trade receivables rose by Rs 2.18 crore to Rs 11.57 crore. The cash-flow statement treated both changes as operating cash outflows of Rs 1.44 crore and Rs 2.18 crore, respectively.

Short-term loans and advances rose to Rs 1.15 crore at September 30, 2026 from Rs 30.09 lakh at March 31, 2026. This Rs 84.86 lakh increase was also an operating cash outflow. In contrast, other current assets fell to Rs 25.96 lakh from Rs 55.19 lakh, generating Rs 29.24 lakh of cash in the operating reconciliation.

Trade payables provided an offset of Rs 1.24 crore in H1 operating cash flow. Amounts due to micro and small enterprises increased to Rs 2.53 crore from Rs 2.11 crore, while dues to creditors other than micro and small enterprises rose to Rs 2.06 crore from Rs 1.24 crore between March 31 and September 30, 2026.

Did operating cash cover Gayatri Rubbers' H1 investment outflow?

Gayatri Rubbers generated Rs 1.10 crore of net cash from operating activities in the half year ended September 30, 2026, which was below the Rs 4.07 crore used in investing activities. Net financing cash flow of Rs 3.62 crore, together with operating cash flow, funded the investing outflow and increased cash and cash equivalents.

Cash generated from operations was Rs 2.47 crore before income-tax payments of Rs 1.37 crore, resulting in net operating cash flow of Rs 1.10 crore. For the year ended March 31, 2026, net operating cash flow was Rs 15.86 lakh. The periods are not directly comparable because the latest statement covers six months, but the H1 result showed greater operating cash generation before investment spending.

Cash and cash equivalents rose to Rs 81.20 lakh at September 30, 2026 from Rs 16.43 lakh at March 31, 2026. The Rs 64.77 lakh increase matched the reported net change in cash after Rs 1.10 crore of operating inflow, Rs 4.07 crore of investing outflow and Rs 3.62 crore of financing inflow.

Conclusion

Gayatri Rubbers expanded its reported non-current asset base during the half year ended September 30, 2026, with PPE rising by Rs 3.25 crore and CWIP reaching Rs 18.25 lakh. The Rs 4.07 crore investing outflow coincided with Rs 4.12 crore of short-term borrowing proceeds, while higher receivables, inventories and short-term advances also used operating cash.

Gayatri Rubbers did not disclose a future capital-expenditure plan, borrowing maturity schedule or CWIP completion date in the September 30, 2026 filing. Subsequent disclosures will show whether the Rs 18.25 lakh CWIP moves into PPE, whether short-term borrowings change from Rs 10.60 crore, and how cash flow develops after the board approved the unaudited results on November 2, 2026.