Horizon Reclaim holds Rs 16.44 crore after IPO debt repayment

Horizon Reclaim (India) Limited held Rs 16.44 crore of cash and cash equivalents at September 30, 2026, after receiving Rs 49.51 crore from share issuance and repaying a net Rs 23.24 crore of borrowings during the half-year. Horizon Reclaim's cash was Rs 15.03 lakh at March 31, 2026.

How did Horizon Reclaim’s IPO affect its cash balance?

Horizon Reclaim’s IPO-related share issue was the main driver of its Rs 25.20 crore financing cash inflow in the half-year ended September 30, 2026. The company received Rs 49.51 crore from the issue of shares, while the comparable half-year ended September 30, 2025 had no share-issue proceeds and generated a financing inflow of Rs 6.44 crore.

Cash and cash equivalents increased by Rs 16.29 crore in the September 2026 half-year, compared with an increase of Rs 40.30 lakh in the corresponding 2025 period. The September 2026 closing balance comprised Rs 16.32 crore held with banks and Rs 12.10 lakh of cash on hand.

Horizon Reclaim issued 52,69,200 fresh equity shares at Rs 103 each, raising Rs 54.27 crore before issue expenses. Its shares were listed on the BSE SME platform on June 19, 2026, and the company disclosed provisional offer expenses of Rs 4.76 crore, leaving Rs 49.51 crore in net proceeds.

The increase in cash reflected more than the equity raise alone. Operating activities used Rs 64.92 lakh and investing activities used Rs 8.26 crore during the six months, while financing included the debt repayment and Rs 56.26 lakh of finance-cost payments. The closing balance therefore followed simultaneous financing, working-capital use and investment spending.

Where did Horizon Reclaim deploy IPO proceeds?

Horizon Reclaim repaid a net Rs 23.24 crore of borrowings during the half-year ended September 30, 2026, against net borrowing proceeds of Rs 6.08 crore in the corresponding 2025 half-year. The cash-flow direction consequently changed from debt funding in the prior-year period to a material net debt repayment after the share issue.

The IPO utilisation disclosure allocated Rs 26.70 crore for pre-payment or repayment of borrowings and Rs 9.43 crore for additional plant and machinery. It also showed Rs 6 crore for working-capital requirements and a revised Rs 7.38 crore for general corporate purposes, bringing revised planned uses to the Rs 49.51 crore net proceeds.

As of September 30, 2026, the utilisation note reported Rs 33.21 crore deployed and Rs 16.30 crore remaining from net IPO proceeds. The disclosed deployment included Rs 26.70 crore for borrowing repayment, Rs 6 crore for working capital and Rs 50.98 lakh for general corporate purposes; Rs 6.87 crore remained under the general corporate-purpose allocation.

Horizon Reclaim also paid Rs 50.52 lakh to creditors for capital assets and spent Rs 9.18 crore on property, plant and equipment, including capital work-in-progress. The latter was higher than the Rs 7.99 crore property-related outflow in the September 2025 half-year, showing that capital spending continued alongside debt reduction.

How did Horizon Reclaim’s balance sheet change after the IPO?

Horizon Reclaim’s total borrowings fell to Rs 12.51 crore at September 30, 2026 from Rs 35.76 crore at March 31, 2026. Long-term borrowings declined to Rs 2.70 crore from Rs 17.97 crore, while short-term borrowings fell to Rs 9.82 crore from Rs 17.79 crore.

The Rs 23.24 crore fall in balance-sheet borrowings matched the net repayment recorded in the cash-flow statement for the six-month period. This matching movement indicates that the reported financing outflow was reflected in lower debt at September 30 rather than being offset by a new borrowing balance.

Shareholders’ funds rose to Rs 77.42 crore from Rs 24.82 crore over the same period, an increase of Rs 52.60 crore. Total assets increased to Rs 96.28 crore from Rs 64.90 crore, with cash, inventories, trade receivables and property-related assets contributing to the expansion.

Property, plant and equipment rose to Rs 22.31 crore at September 30 from Rs 5.82 crore at March 31, while capital work-in-progress declined to Rs 27.73 crore from Rs 36.20 crore. The two movements are consistent with assets being capitalised during the half-year, alongside the Rs 9.18 crore cash outflow for property, plant and equipment and work-in-progress.

What did operating and investing cash flows show?

Horizon Reclaim used Rs 64.92 lakh in operating activities in the half-year ended September 30, 2026, compared with an operating inflow of Rs 7.12 crore a year earlier. Profit before tax was Rs 4.13 crore, but cash absorbed by working capital and income-tax payments exceeded cash generated from operations.

Trade receivables increased by Rs 4.25 crore and inventories increased by Rs 2.12 crore, while trade payables increased by Rs 3.41 crore. Net income tax paid was Rs 2 crore, compared with Rs 1.50 crore in the September 2025 half-year, contributing to the shift into operating cash outflow.

Revenue from product sales was Rs 28.18 crore in the September 2026 half-year, compared with Rs 21.97 crore in the corresponding period, according to the explanatory notes. The company attributed the increase to performance at the Bhagwanpur unit and the start of commercial operations at Rajkot, which contributed Rs 4.65 crore of half-year revenue.

Investing activities used Rs 8.26 crore, lower than the Rs 13.52 crore outflow in the prior-year half-year. The current-period outflow included Rs 9.18 crore of property-related purchases, partly offset by a Rs 89.04 lakh reduction in long-term loans and advances; the prior period included Rs 5.53 crore deployed in capital advances.

What balance-sheet issue did the auditors identify?

Horizon Reclaim’s auditors issued a qualified conclusion on a Rs 6.25 crore advance paid in financial year 2024-25 for land intended for capacity expansion. As of September 30, 2026, the seller had not obtained release of the land mortgage, despite seven extensions, the last of which set February 28, 2026 as the release date.

The auditors said recovery of the Rs 6.25 crore advance was doubtful and that a provision should have been recognised. They stated that, had the provision been made, Horizon Reclaim would have reported a Rs 3.15 crore loss for the September 2026 half-year rather than its reported Rs 3.09 crore profit.

Management said the agreement entitled Horizon Reclaim to a refund of the advance plus Rs 3 crore of interest and penalty if the transaction became null and void. The company said it was pursuing completion of the land acquisition after release of the mortgage and therefore had not recognised a provision against the advance.

Conclusion

Horizon Reclaim’s Rs 16.44 crore cash balance at September 30, 2026 resulted from Rs 49.51 crore of net IPO proceeds, partly deployed toward a Rs 23.24 crore debt repayment, Rs 9.18 crore of property-related spending and working-capital requirements. The balance sheet shows lower borrowings and higher shareholders’ funds, while operating cash flow moved to a Rs 64.92 lakh outflow as receivables, inventories and tax payments used cash.

Next, Horizon Reclaim expects Bhagwanpur Unit III to begin operations by January 2027, while Rajkot, which commenced operations on July 15, 2026, recorded approximately Rs 4 crore of sales in October 2026. The company also disclosed Rs 16.30 crore of remaining IPO proceeds at September 30, 2026, and the unresolved Rs 6.25 crore land advance remains subject to mortgage release or recovery.