Unitec Fibres funded FY26 capex with debt as cash fell

Unitec Fibres Limited funded a Rs 45.0846 crore FY26 investing outflow largely through financing cash inflow of Rs 38.7379 crore, while operating activities generated Rs 4.0024 crore after tax payments. Cash and cash equivalents fell from Rs 2.4491 crore on March 31, 2025 to Rs 10.48 lakh on March 31, 2026.

How did Unitec Fibres fund FY26 capex with debt?

Unitec Fibres funded its FY26 capital-expenditure push primarily through borrowings. The company recorded Rs 23.8682 crore of proceeds from long-term borrowings and a Rs 19.3546 crore net increase in short-term borrowings during FY26. These two borrowing inflows totalled Rs 43.2228 crore, compared with the Rs 45.0846 crore net cash used in investing activities.

The financing section also included Rs 2.6689 crore of repayments of long-term borrowings and Rs 1.8161 crore of finance cost paid. After those items, net cash generated from financing activities was Rs 38.7379 crore in FY26, up from Rs 18.4100 crore in FY25. Financing inflow therefore equalled about 86% of FY26 investing outflow before accounting for operating cash generation and the decline in cash equivalents.

The balance sheet reflected the higher debt funding. Long-term borrowings increased from Rs 22.0767 crore on March 31, 2025 to Rs 37.5818 crore on March 31, 2026, while short-term borrowings increased from Rs 14.5616 crore to Rs 39.6104 crore. Combined reported borrowings rose by Rs 40.5539 crore to Rs 77.1922 crore, although cash-flow movements and closing balance-sheet amounts are measured differently.

What did Unitec Fibres spend its investing cash on?

Unitec Fibres spent Rs 39.9024 crore in FY26 on property, plant and equipment, intangible assets, capital work in progress and intangible assets under development. This was the largest component of the Rs 45.0846 crore investing outflow, and it exceeded the Rs 32.4280 crore spent on those assets in FY25 and Rs 2.8048 crore in FY24.

Capital work in progress, which represents assets still under construction or installation rather than ready for normal use, rose from Rs 8.5034 crore at March 31, 2025 to Rs 44.9254 crore at March 31, 2026. In contrast, property, plant and equipment stood at Rs 44.3901 crore at March 31, 2026, marginally below Rs 44.7842 crore a year earlier. The classification indicates that much of the FY26 asset expenditure was still recorded as projects in progress at the reporting date.

The rest of the investing cash outflow included a Rs 5.8768 crore increase in long-term loans and advances. Proceeds from the sale of property, plant and equipment were Rs 11.86 lakh, interest income was Rs 7.18 lakh and other non-current assets declined by Rs 50.41 lakh. Those items partly offset the larger investment uses of cash in the indirect-method cash-flow statement.

Why did Unitec Fibres' cash equivalents fall to Rs 10.48 lakh?

Unitec Fibres' cash equivalents fell because FY26 investing cash use exceeded the combined cash inflows from operations and financing. Operating activities generated Rs 4.0024 crore after income taxes and financing activities generated Rs 38.7379 crore, together totalling Rs 42.7403 crore. That was Rs 2.3443 crore below the Rs 45.0846 crore net investing outflow.

The resulting Rs 2.3443 crore cash-equivalent decline reduced the opening balance of Rs 2.4491 crore to Rs 10.48 lakh at March 31, 2026. The closing cash-equivalent balance comprised Rs 3.99 lakh of cash on hand and Rs 6.49 lakh held in current accounts. At March 31, 2025, cash on hand was Rs 9.55 lakh and current-account balances were Rs 2.3536 crore.

Cash equivalents are narrower than the Rs 2.9806 crore cash-and-bank-balances line in Unitec Fibres' March 31, 2026 balance sheet. The cash-flow statement recorded a Rs 2.7891 crore increase in other bank balances during FY26, while its note on cash equivalents includes only cash on hand and balances in current accounts. The two reported measures therefore use different definitions.

Why did Unitec Fibres' operating cash generation decline in FY26?

Unitec Fibres generated Rs 4.0024 crore of operating cash after taxes in FY26, down from Rs 11.7490 crore in FY25. Cash generated from operations before taxes fell from Rs 14.2585 crore to Rs 8.6688 crore, while income taxes paid rose from Rs 2.5095 crore to Rs 4.6664 crore. Profit before tax in the cash-flow statement declined by Rs 0.6532 crore to Rs 11.0235 crore, a smaller movement than the operating-cash decline.

Working-capital movements accounted for a substantial part of the difference between profit and cash generation. Short-term loans and advances increased by Rs 7.2185 crore in FY26, compared with a Rs 2.2817 crore increase in FY25. Other bank balances increased by Rs 2.7891 crore after declining by Rs 1.5010 crore in FY25, creating another FY26 use of cash.

Trade receivables released Rs 1.4459 crore of cash in FY26, compared with a Rs 3.6307 crore use of cash in FY25. However, this inflow was offset by the increase in short-term loans and advances, the increase in other bank balances and a Rs 1.1527 crore decrease in trade payables. Inventory increased by Rs 12.91 lakh in FY26, compared with a Rs 2.7769 crore increase in FY25.

Conclusion

Unitec Fibres' FY26 cash flows show an investment cycle financed largely through debt. The company used Rs 45.0846 crore in investing activities, received Rs 38.7379 crore in net financing cash and generated Rs 4.0024 crore from operations after taxes. The combination left cash equivalents at Rs 10.48 lakh, while total reported borrowings reached Rs 77.1922 crore at March 31, 2026.

The next disclosed financial update will be relevant for the treatment of Rs 44.9254 crore of capital work in progress and for changes in the Rs 39.6104 crore of short-term borrowings. Unitec Fibres' restated financial information was approved by its board on September 10, 2026 for inclusion in documentation connected with its proposed small and medium enterprise initial public offering.