Hindustan Hardy H1 capex exceeded operating cash inflow

Hindustan Hardy Limited spent Rs 5.2404 crore on property, plant and equipment including work-in-progress in the half year ended 30 September 2026, exceeding its Rs 3.6146 crore operating cash inflow and reducing cash and cash equivalents to Rs 1.3324 crore from Rs 4.3562 crore at 31 March 2026.

How much did Hindustan Hardy spend on capital expenditure in H1?

Hindustan Hardy spent Rs 5.2404 crore on purchases of property, plant and equipment, including work-in-progress, during the half year ended 30 September 2026. The expenditure appeared under investing activities in the unaudited standalone cash-flow statement and was partly offset by Rs 0.30 lakh of proceeds from the sale of property, plant and equipment or capital subsidy received.

Net cash used in investing activities was Rs 5.2374 crore in the six-month period, compared with Rs 7.0294 crore in the audited year ended 31 March 2026. These periods are not directly comparable because the latest figure covers half a year and the earlier figure covers a full year, but H1 investment cash use was 74.51% of the previous full-year outflow.

The balance sheet recorded property, plant and equipment of Rs 16.0866 crore and capital work-in-progress of Rs 8.1636 crore at 30 September 2026, together Rs 24.2502 crore. The corresponding balances at 31 March 2026 were Rs 13.4830 crore and Rs 6.4238 crore, together Rs 19.9068 crore, an increase of Rs 4.3434 crore by the half-year date.

Did Hindustan Hardy generate enough operating cash to cover capex?

No. Hindustan Hardy generated Rs 3.6146 crore of net cash from operating activities in H1, which was Rs 1.6258 crore below its Rs 5.2404 crore capital-expenditure outlay. The comparison measures cash generated and investment cash spent in the same six-month period; it does not identify the specific funding source for each asset purchase.

Cash generated from operations before direct taxes was Rs 4.5590 crore, while direct taxes paid were Rs 0.9444 crore. Operating profit before working-capital changes was Rs 6.9076 crore, but trade receivables absorbed Rs 2.0418 crore, financial and non-financial assets absorbed Rs 4.9470 crore, and inventories absorbed Rs 3.0142 crore.

Those cash uses were partly offset by a Rs 5.9045 crore increase in trade payables and a Rs 1.7499 crore increase in financial and non-financial liabilities and provisions. Revenue from operations rose to Rs 61.5865 crore in the half year ended 30 September 2026 from Rs 52.0787 crore a year earlier, while the working-capital movements reduced the cash conversion of that higher revenue.

H1 profit before tax was Rs 5.7379 crore, down from Rs 6.6628 crore in the half year ended 30 September 2025, and net profit after tax declined to Rs 4.2288 crore from Rs 4.9188 crore. Depreciation and amortisation of Rs 0.9068 crore and interest and finance charges of Rs 0.2214 crore were included among the adjustments from profit before tax to operating cash flow.

Why did Hindustan Hardy's cash balance fall in H1?

Hindustan Hardy's cash and cash equivalents fell by Rs 3.0237 crore in H1 because Rs 5.2374 crore of investing cash outflow and Rs 1.4009 crore of financing cash outflow exceeded the Rs 3.6146 crore operating cash inflow. Cash and cash equivalents closed at Rs 1.3324 crore on 30 September 2026, compared with an opening balance of Rs 4.3562 crore on 1 April 2026.

Financing activities included Rs 2.6856 crore of borrowing proceeds and Rs 3.5118 crore of repayments, resulting in a Rs 0.8262 crore net repayment before other financing cash flows. Hindustan Hardy also paid Rs 0.2214 crore of interest and finance charges and Rs 0.4196 crore in dividends, while reporting Rs 0.0663 crore of interest income in financing activities.

The cash-and-cash-equivalents balance is separate from bank balances classified elsewhere on the balance sheet. Hindustan Hardy reported Rs 0.6899 crore of bank balances other than cash and cash equivalents at 30 September 2026, against Rs 0.2185 crore at 31 March 2026; the two separately classified balances totalled Rs 2.0223 crore at the half-year date.

How did Hindustan Hardy's borrowing mix change in H1?

Hindustan Hardy's total reported borrowings declined to Rs 8.6587 crore at 30 September 2026 from Rs 9.4850 crore at 31 March 2026, as a fall in current borrowings exceeded an increase in non-current borrowings. Current borrowings decreased by Rs 2.3396 crore to Rs 4.4836 crore, while non-current borrowings increased by Rs 1.5133 crore to Rs 4.1751 crore.

The balance-sheet movement shows a change in the maturity classification of borrowings alongside a Rs 0.8263 crore reduction in total reported borrowings. The cash-flow statement reported Rs 2.6856 crore in borrowing proceeds and Rs 3.5118 crore in repayments during H1, a net repayment of Rs 0.8262 crore before interest, interest income and dividend cash flows.

Total equity increased to Rs 41.3961 crore at 30 September 2026 from Rs 37.4974 crore at 31 March 2026, comprising share capital of Rs 1.4985 crore and other equity of Rs 39.8977 crore. Total current liabilities rose to Rs 29.9629 crore from Rs 24.2026 crore, including trade payables due to creditors other than micro and small enterprises of Rs 19.2581 crore, up from Rs 13.1568 crore.

What does Hindustan Hardy's H1 balance sheet show?

Hindustan Hardy reported total assets of Rs 76.0511 crore at 30 September 2026, compared with Rs 64.8274 crore at 31 March 2026, with increases in both current and non-current assets. Non-current assets rose to Rs 25.9812 crore from Rs 21.6167 crore, while current assets increased to Rs 50.0699 crore from Rs 43.2107 crore.

Inventories rose to Rs 14.6799 crore from Rs 11.7298 crore and trade receivables increased to Rs 24.2016 crore from Rs 22.1937 crore. Other current assets reached Rs 9.1519 crore from Rs 4.6880 crore, consistent with the cash-flow statement recording cash absorption in inventories, receivables and financial and non-financial assets during H1.

Hindustan Hardy designs and manufactures propeller shafts and other accessories for automotive, industrial, agricultural and other applications, which the filing treats as one operating segment under Indian Accounting Standard 108. The company reported no subsidiary, associate or joint venture at 30 September 2026, and the disclosed financial statements are standalone.

Conclusion

Hindustan Hardy's H1 cash profile combined Rs 5.2404 crore of capital expenditure with Rs 3.6146 crore of operating cash inflow and Rs 1.4009 crore of financing outflow. Cash and cash equivalents consequently fell by Rs 3.0237 crore to Rs 1.3324 crore, while total borrowings declined by Rs 0.8263 crore and revenue from operations increased by Rs 9.5078 crore year on year.

The next disclosed balance-sheet movements to watch are the Rs 24.2016 crore of trade receivables, Rs 14.6799 crore of inventories, Rs 19.2581 crore of trade payables to larger creditors and Rs 8.1636 crore of capital work-in-progress at 30 September 2026. The filing provides no capital-expenditure target, financing plan or completion schedule for the work-in-progress balance.