Him Teknoforge Limited borrowings rise as cash needs grow

Him Teknoforge Limited reported total borrowings of Rs 199.86 crore at September 30, 2026, up Rs 29.70 crore from March 31, 2026, as net working-capital changes used Rs 20.42 crore and purchases of fixed assets and capital advances used Rs 27.29 crore during the half year.

Why did Him Teknoforge’s borrowings rise?

Him Teknoforge’s borrowings rose because both non-current and current debt increased during the six months to September 30, 2026. Non-current borrowings increased to Rs 76.13 crore from Rs 57.14 crore at March 31, while current borrowings rose to Rs 123.73 crore from Rs 113.02 crore. Total borrowings consequently increased to Rs 199.86 crore from Rs 170.16 crore.

The additional debt was recorded alongside a larger balance sheet. Total assets increased by Rs 53.61 crore to Rs 562.36 crore at September 30, 2026, while total equity rose by Rs 8.75 crore to Rs 252.84 crore. Total liabilities increased by Rs 44.86 crore to Rs 309.52 crore, including higher borrowings, trade payables and other current liabilities.

Him Teknoforge’s cash-flow statement records Rs 29.37 crore of term-loan proceeds, Rs 7.10 crore of term-loan repayments and a Rs 7.43 crore net increase in short-term borrowings in the half year. It also reports Rs 6.92 crore of interest paid and Rs 82.65 lakh of dividends paid. The statement shows Rs 23.63 crore of net cash from financing activities, although its line-item caption describes this amount as net cash used in financing activity.

How much cash did working capital use?

Net working-capital changes used Rs 20.42 crore in the half year ended September 30, 2026. Inventory absorbed Rs 17.53 crore and trade and other receivables absorbed Rs 15.13 crore. These outflows were partly offset by Rs 2.32 crore from trade payables, Rs 9.77 crore from other liabilities and Rs 15.10 lakh from other assets.

The balance sheet reflects the two main cash demands. Inventories increased to Rs 197.57 crore at September 30 from Rs 180.04 crore at March 31, a Rs 17.53 crore increase. Trade receivables increased to Rs 102.01 crore from Rs 86.88 crore, up Rs 15.13 crore. Cash and cash equivalents fell to Rs 17.38 lakh from Rs 63.24 lakh over the same period.

Him Teknoforge generated Rs 25.83 crore of operating profit before working-capital changes in the September 2026 half year. The Rs 20.42 crore net working-capital outflow reduced cash generated from operations to Rs 5.41 crore, and Rs 2.63 crore of direct taxes paid left Rs 2.78 crore of net operating cash flow. The filing’s March 31, 2026 comparator is an audited full-year figure, rather than a like-for-like half-year comparison.

What was spent on investment?

Him Teknoforge used Rs 26.87 crore in investing activities in the half year ended September 30, 2026. Purchases of fixed assets and capital advances accounted for Rs 27.29 crore. The cash use was partly offset by Rs 53.32 lakh of proceeds from fixed-asset sales and Rs 9.67 lakh of interest received, while other non-current assets used Rs 20.34 lakh.

Capital work-in-progress rose to Rs 7.30 crore at September 30, 2026 from Rs 2.33 crore at March 31, 2026, an increase of Rs 4.98 crore. Property, plant and equipment increased to Rs 216.08 crore from Rs 208.26 crore. The filing does not identify the projects, assets, commissioning dates or expected returns linked to the Rs 27.29 crore of fixed-asset purchases and capital advances.

Did profit growth become operating cash flow?

Him Teknoforge’s half-year profit grew, but operating cash flow remained lower because working-capital changes absorbed Rs 20.42 crore. Profit after tax increased to Rs 9.53 crore for the half year ended September 30, 2026 from Rs 5.78 crore a year earlier. Revenue from operations increased to Rs 253.92 crore from Rs 207.11 crore, while profit before tax rose to Rs 12.91 crore from Rs 8.11 crore.

Finance costs increased to Rs 11.05 crore in the September 2026 half year from Rs 8.75 crore in the prior-year half year. The cash-flow statement separately records Rs 6.97 crore of interest charged as an adjustment to profit before tax and Rs 6.92 crore of interest paid in financing activities. The filing does not disclose inventory days, receivable collection days, customer credit terms or a target for reducing working-capital balances.

Conclusion

Him Teknoforge’s September 2026 results show that higher revenue and profit coincided with a larger funding requirement. Inventory and receivables increased by a combined Rs 32.66 crore, net working-capital movements used Rs 20.42 crore, and investment activity used Rs 26.87 crore. Total borrowings rose Rs 29.70 crore while cash and cash equivalents declined to Rs 17.38 lakh.

The unresolved issue is whether the Rs 197.57 crore inventory and Rs 102.01 crore trade receivables convert into operating cash in later reporting periods. Him Teknoforge disclosed no borrowing-reduction target, working-capital target, capital-spending plan or project-completion schedule, leaving future movements in debt, cash flow and finance costs as the reported measures to watch.