Hindprakash Industries Limited loan outflow reaches Rs 25.586 crore

Hindprakash Industries Limited advanced Rs 25.586 crore in loans during the half year ended 30 September 2026, driving Rs 20.837 crore of net cash used in investing activities despite Rs 5.1263 crore of operating cash inflow. HIL also reported net financing cash inflow of Rs 14.2466 crore, while cash and cash equivalents declined to Rs 1.5381 crore.

What drove HIL's investing cash outflow?

HIL's Rs 20.837 crore investing cash outflow was chiefly caused by Rs 25.586 crore of loans given in the half year ended 30 September 2026. The loan advance was partly offset by Rs 4.655 crore of proceeds from the sale of long-term investments, Rs 13.07 lakh of interest received and Rs 75,000 of dividend received. Payments for capital work-in-progress, property, plant and equipment were Rs 4.37 lakh.

Loans given rose from Rs 13.9764 crore in the half year ended 30 September 2025. Net cash used in investing activities consequently increased from Rs 12.6685 crore in the prior-year period, although HIL recorded Rs 4.655 crore of long-term investment sale proceeds in the 2026 half year and no such proceeds were reported for the comparable period.

How did HIL's operating cash flow change?

HIL generated Rs 5.1263 crore of net cash from operating activities in the half year ended 30 September 2026, compared with Rs 3.717 crore in the corresponding 2025 period. Cash generated from operations increased to Rs 5.1994 crore from Rs 4.0085 crore, while net income taxes paid fell to Rs 7.31 lakh from Rs 29.15 lakh.

Trade receivables consumed Rs 4.2218 crore of cash and inventories consumed Rs 3.2141 crore during the 2026 half year. In contrast, other current assets released Rs 9.2306 crore and trade payables added Rs 5.9879 crore. Inventory movement changed materially from the prior-year half, when inventories released Rs 1.6462 crore rather than using cash.

The operating inflow did not cover the Rs 20.837 crore investing outflow. HIL's cash-flow statement was prepared using the indirect method under Indian Accounting Standard 7, or Ind AS 7, and begins with profit before tax of Rs 1.1045 crore for the 2026 half year, versus Rs 33.77 lakh a year earlier.

How did HIL fund the investing outflow?

HIL reported Rs 14.2466 crore of net financing cash inflow for the half year ended 30 September 2026, up from Rs 5.9906 crore in the prior-year half. Net proceeds from short-term borrowings were Rs 12.0561 crore, while net proceeds from long-term borrowings were Rs 4.3991 crore.

The comparable 2025 period included Rs 9.0607 crore of net short-term borrowing proceeds but a Rs 1.2825 crore net repayment of long-term borrowings. Finance costs paid were Rs 2.2086 crore in the 2026 half year, compared with Rs 1.7876 crore a year earlier, reducing the net financing inflow.

Together, net additions to short- and long-term borrowings were Rs 16.4552 crore in the cash-flow statement. That funding, along with Rs 5.1263 crore of operating cash generation and Rs 4.655 crore of investment-sale proceeds, was deployed against the Rs 25.586 crore loan advance and other cash movements during the six-month period.

How did HIL's borrowings and cash balances change?

HIL's short-term borrowings rose to Rs 32.0661 crore at 30 September 2026 from Rs 20.01 crore at 31 March 2026. Long-term borrowings increased to Rs 17.1473 crore from Rs 12.7482 crore over the same period, consistent with the financing cash inflows reported for the half year.

Cash and cash equivalents fell by Rs 1.4641 crore from an opening balance of Rs 3.0027 crore to Rs 1.5381 crore at 30 September 2026. The cash-flow statement also recorded a Rs 5,000 foreign-exchange loss on restatement of foreign-currency cash and cash equivalents during the period.

Closing cash included Rs 1.50 crore in deposit accounts with original maturity within three months, Rs 2.56 lakh of cash on hand and Rs 1.25 lakh in current accounts. Separately, non-current other financial assets increased to Rs 36.8569 crore at 30 September 2026 from Rs 11.2708 crore at 31 March 2026, with no line-item breakdown provided in the supplied pages.

What does HIL disclose about its loan advances?

HIL identifies Rs 25.586 crore as an increase in loans given but does not disclose the borrowers, maturity, security, pricing or purpose of those loans in the supplied cash-flow statement and balance-sheet pages. The filing also presents no closing loans balance at 30 September 2026, showing a dash against loans within current financial assets.

HIL's unaudited standalone results for the quarter and half year ended 30 September 2026 were reviewed and recommended by the Audit Committee and approved by the Board on 6 November 2026. The statutory auditors conducted a limited review, and HIL stated that its activities fall within a single primary business segment under Ind AS 108, Operating Segments.

Total equity was Rs 55.6555 crore at 30 September 2026, compared with Rs 54.4308 crore at 31 March 2026. Other equity increased to Rs 44.2314 crore from Rs 43.0067 crore, while paid-up equity share capital remained unchanged at Rs 11.4241 crore.

Conclusion

HIL's half-year cash flow shows Rs 5.1263 crore of operating inflow and Rs 14.2466 crore of financing inflow alongside Rs 20.837 crore used in investing activities. The central investing cash use was the Rs 25.586 crore loan advance, while borrowings increased on both the short-term and long-term balance-sheet lines and closing cash fell to Rs 1.5381 crore.

The next disclosures to watch are whether HIL reports repayment, further advances or terms for the loans given, an unresolved matter in the supplied filing. Further movement in short-term borrowings of Rs 32.0661 crore, long-term borrowings of Rs 17.1473 crore and non-current other financial assets of Rs 36.8569 crore will also show how the September 2026 funding position changes.