Kheria Autocomp FY26 investing outpaced operating cash

Kheria Autocomp Limited reported a Rs 26.64 crore net investing cash outflow in FY26, exceeding Rs 26.03 crore of net operating cash flow by Rs 0.61 crore. The funding gap coincided with combined long-term and short-term borrowings of Rs 35.03 crore at March 31, 2026, up from Rs 30.90 crore a year earlier.

Why did Kheria Autocomp’s FY26 investing outpace operating cash?

Kheria Autocomp’s aggregate FY26 investing outflow exceeded internally generated operating cash because net cash used in investing activities was Rs 26.64 crore, against Rs 26.03 crore of net cash from operating activities. The Rs 0.61 crore difference is based on the restated cash-flow statement’s broader investing category, rather than only purchases of fixed assets.

Purchases of property, plant and equipment, or PPE, were the largest investing use at Rs 25.61 crore in FY26. PPE includes tangible business assets such as plant, machinery and vehicles. The amount rose from Rs 16.79 crore in FY25 and Rs 13.18 crore in FY24, meaning FY26 purchases were Rs 8.82 crore higher than in FY25.

The investing category also included Rs 0.75 crore of capital advances for a new plant, Rs 2.16 crore of fixed deposits booked, Rs 1.57 crore of other long-term assets and Rs 10,000 of investments made in FY26. These outflows were partly offset by Rs 0.27 crore of interest received and Rs 0.05 crore from sales of PPE, producing the reported Rs 26.64 crore net investing outflow.

Net investing cash flow increased by Rs 8.67 crore from Rs 17.98 crore in FY25 and by Rs 11.31 crore from Rs 15.33 crore in FY24. The comparison shows that the FY26 funding pressure arose not only from a higher PPE purchase bill but also from deposits, long-term assets and the disclosed advance for a new plant.

How did operating cash flow change during the investment cycle?

Kheria Autocomp generated Rs 26.03 crore of net operating cash flow in FY26, compared with Rs 8.40 crore in FY25 and Rs 9.82 crore in FY24. The FY26 amount followed Rs 27.42 crore of cash generated from operations and Rs 1.39 crore of direct taxes paid.

Profit before tax was Rs 15.63 crore in FY26, compared with Rs 10.44 crore in FY25 and Rs 5.13 crore in FY24. The operating-cash-flow reconciliation added back Rs 4.39 crore of depreciation and Rs 3.14 crore of interest paid, while the working-capital calculation included a Rs 6.93 crore increase in trade payables.

Working capital is the balance of current operating assets and liabilities that affects cash timing. FY26 inventory movements used Rs 3.66 crore of cash, trade and other receivables used Rs 0.12 crore, and other current assets used Rs 0.16 crore. The cash-flow statement also recorded Rs 2.26 crore from the increase or decrease in short-term loans and advances, while other current liabilities used Rs 0.78 crore.

Revenue from operations rose to Rs 120.01 crore in FY26 from Rs 92.07 crore in FY25 and Rs 62.32 crore in FY24. Operating cash flow increased more than revenue between FY25 and FY26, but the Rs 6.93 crore trade-payable movement formed part of that change. Continued operating-cash generation at a level sufficient to fund investment would depend on profitability, tax payments and the movement of inventory, receivables and payables.

How much did Kheria Autocomp borrow by March 2026?

Kheria Autocomp reported Rs 35.03 crore of combined borrowings at March 31, 2026, comprising Rs 26.66 crore of long-term borrowings and Rs 8.37 crore of short-term borrowings or long-term debt classified as current. The combined balance was Rs 4.12 crore above the Rs 30.90 crore reported at March 31, 2025.

Short-term borrowings accounted for Rs 2.55 crore of the year-on-year increase, rising from Rs 5.82 crore at March 31, 2025 to Rs 8.37 crore at March 31, 2026. Long-term borrowings rose by Rs 1.58 crore from Rs 25.08 crore to Rs 26.66 crore. Compared with March 31, 2024, combined borrowings were Rs 16.21 crore higher than the Rs 18.83 crore balance.

The long-term borrowing note classified Rs 23.33 crore as secured term loans from banks and non-banking financial companies, or NBFCs, at March 31, 2026. It also reported Rs 3.32 crore of unsecured long-term borrowings, including Rs 2.74 crore from directors and their relatives that were interest-free. The note states that the secured borrowings also carried personal guarantees from promoters.

The balance-sheet asset base expanded alongside the debt balance. Tangible PPE was Rs 55.52 crore at March 31, 2026, up from Rs 52.75 crore at March 31, 2025 and Rs 39.53 crore at March 31, 2024. Capital work in progress, which represents incomplete capital assets, was Rs 18.41 crore at March 31, 2026, while no such balance was reported for March 31, 2025 or March 31, 2024.

What did financing cash flows contribute to FY26 spending?

Kheria Autocomp recorded Rs 0.86 crore of net financing cash inflow in FY26, down from Rs 9.69 crore in FY25 and Rs 5.39 crore in FY24. Financing cash flow measures the annual cash movements in borrowing, equity and related payments; it is therefore different from the debt balance reported at March 31.

FY26 financing inflows included Rs 2.55 crore of short-term borrowings availed or repaid on a net basis and Rs 1.58 crore of long-term borrowings. These were reduced by Rs 3.14 crore of interest paid and Rs 0.13 crore of capital-increase fees paid to the Ministry of Corporate Affairs, resulting in the Rs 0.86 crore net inflow.

In FY25, long-term borrowings produced Rs 9.12 crore of financing inflow and short-term borrowings added Rs 2.95 crore, while interest paid was Rs 2.39 crore. The lower FY26 financing inflow therefore reflects a reduction in the cash movement from long-term borrowings, even though the closing long-term borrowing balance increased by Rs 1.58 crore during FY26.

Cash and cash equivalents in the cash-flow statement closed at Rs 0.57 crore on March 31, 2026, compared with Rs 0.33 crore a year earlier and Rs 0.22 crore at March 31, 2024. The closing cash-and-cash-equivalents figure comprised Rs 0.49 crore of bank balances and Rs 0.08 crore of cash in hand. The balance sheet separately reported Rs 2.73 crore of cash and bank balances at March 31, 2026.

Conclusion

Kheria Autocomp’s FY26 restated cash-flow statement shows that net investment activity was marginally larger than operating cash generation. Net investing outflow of Rs 26.64 crore exceeded net operating cash flow of Rs 26.03 crore, while combined borrowings increased to Rs 35.03 crore and capital work in progress reached Rs 18.41 crore at March 31, 2026.

The disclosed Rs 18.41 crore capital work-in-progress balance and Rs 0.75 crore capital advance for a new plant are the main items to watch in later financial statements. Those statements may show whether incomplete assets are transferred into completed PPE and how the Rs 8.37 crore current borrowing balance, Rs 26.66 crore long-term borrowing balance and Rs 3.16 crore finance cost change as the investment programme progresses.