Vaibhav Vyapar advances nearly doubled, using Rs 18.44 crore in FY26

Vaibhav Vyapar Limited’s short-term loans and advances rose 102% over 16 months to Rs 69.47 crore on 31 July 2026 from Rs 34.33 crore on 31 March 2025. Vaibhav Vyapar used Rs 18.44 crore of operating cash in FY26 because the Rs 38.82 crore cash outflow for loans and advances exceeded operating profit before working-capital changes.

How quickly did Vaibhav Vyapar’s lending advances grow?

Vaibhav Vyapar’s short-term loans and advances increased by Rs 35.14 crore between 31 March 2025 and 31 July 2026. The balance rose from Rs 34.33 crore to Rs 63.15 crore at 31 March 2026, then increased by a further Rs 6.32 crore in the four months ended 31 July 2026. Vaibhav Vyapar is a non-banking financial company, or NBFC, registered as a Category “N” NBFC on 18 August 2010, and its stated business remains lending.

The largest increase occurred in FY26, when the short-term loans and advances balance rose Rs 28.82 crore from the 31 March 2025 level. This contrasted with a Rs 2.32 crore reduction from Rs 36.65 crore at 31 March 2024 to Rs 34.33 crore at 31 March 2025. The balance-sheet classification identifies the portfolio as a current asset, which Vaibhav Vyapar defines as an asset expected to be realised within 12 months in its normal operating cycle.

Vaibhav Vyapar’s cash-flow statement separately records changes in loans and advances as a working-capital item. That treatment means a rise in the lending balance consumes cash in the operating section of the indirect-method cash-flow statement, even where the lending activity also produces reported revenue. The persistence of the cash requirement therefore depends on whether new advances continue to exceed repayments and collections.

Why did Vaibhav Vyapar’s advances use Rs 18.44 crore of operating cash in FY26?

Vaibhav Vyapar used Rs 38.82 crore of cash for the increase in loans and advances in the year ended 31 March 2026. Operating profit before working-capital changes was Rs 17.46 crore, leaving Rs 18.38 crore of cash used in operations before direct taxes. After Rs 5.49 lakh of direct taxes paid, net cash used in operating activities was Rs 18.44 crore.

The FY26 outcome differed from both preceding financial years. Loans and advances used Rs 7.44 crore in FY25, but Vaibhav Vyapar generated Rs 30.53 lakh of net operating cash after other working-capital movements. In FY24, a Rs 13.06 crore outflow for loans and advances accompanied a Rs 4.34 crore net operating cash outflow.

The four months ended 31 July 2026 produced Rs 2.09 crore of operating cash despite a Rs 10.84 crore cash use for loans and advances. Vaibhav Vyapar reported Rs 10.08 crore of operating profit before working-capital changes for that period, including Rs 4.47 crore of debts written off and Rs 25.37 lakh of provision on standard assets. This comparison shows that the operating cash result changes with both lending growth and the non-cash adjustments included under the indirect method.

How did Vaibhav Vyapar’s profit compare with cash generation?

Vaibhav Vyapar reported a FY26 profit after tax of Rs 1.97 crore while recording an Rs 18.44 crore operating cash outflow. Profit after tax increased from Rs 1.48 crore in FY25, and profit before tax rose from Rs 1.03 crore to Rs 3.15 crore. The different cash result arose because the Rs 38.82 crore lending-related working-capital outflow was larger than the cash generated before working-capital movements.

Under Accounting Standard 3, Cash Flow Statements, Vaibhav Vyapar uses the indirect method, beginning with profit before tax and adjusting for specified items. FY26 adjustments included Rs 9.59 crore of debts written off, Rs 1.33 crore of provision on standard assets and Rs 1.89 crore of depreciation and amortisation. These items helped produce Rs 17.46 crore of operating profit before working-capital changes, but they did not fund the full increase in loans and advances.

Revenue from operations increased to Rs 36.80 crore in FY26 from Rs 25.05 crore in FY25, while finance costs rose to Rs 6.64 crore from Rs 5.09 crore. Vaibhav Vyapar recognises interest income on an accrual and time-proportion basis using the outstanding amount and applicable interest rate. For non-performing assets, however, interest is recognised on realisation under Reserve Bank of India norms, making collections and loan performance relevant to conversion of reported lending income into cash.

How was Vaibhav Vyapar funding the larger lending balance?

Vaibhav Vyapar’s total reported borrowings increased to Rs 46.80 crore at 31 March 2026 from Rs 22.66 crore at 31 March 2025. Short-term borrowings increased to Rs 39.75 crore from Rs 10.99 crore, while long-term borrowings declined to Rs 7.04 crore from Rs 11.67 crore. The rise in borrowings occurred alongside the Rs 28.82 crore increase in short-term loans and advances during FY26.

The FY26 cash-flow statement records Rs 49.90 crore of short-term borrowing proceeds and Rs 29.98 crore of short-term borrowing repayments. It also records Rs 25.69 crore of long-term borrowing proceeds and Rs 21.65 crore of long-term repayment. Vaibhav Vyapar notes that short-term borrowings include current maturities of long-term borrowings, so the categories should not be treated as entirely separate obligations.

At 31 July 2026, short-term borrowings were Rs 29.70 crore and long-term borrowings were Rs 8.20 crore, for total reported borrowings of Rs 37.90 crore. During the four-month period, Vaibhav Vyapar reported Rs 9 crore of short-term borrowing proceeds and Rs 15.74 crore of repayments, alongside Rs 15 crore of long-term borrowing proceeds and Rs 6.52 crore of repayments. Cash and bank balances increased to Rs 5.27 crore at 31 July 2026 from Rs 2.45 crore at 31 March 2026.

Conclusion

Vaibhav Vyapar’s FY26 accounts show that the expansion of its lending balance had a larger effect on operating cash than reported profit. Short-term loans and advances increased Rs 28.82 crore during FY26, while the associated Rs 38.82 crore operating cash use exceeded the Rs 17.46 crore operating profit before working-capital changes. Borrowings at 31 March 2026 were Rs 24.14 crore higher than a year earlier.

The next disclosures to watch are whether short-term loans and advances continue to rise after reaching Rs 69.47 crore on 31 July 2026, and whether operating cash remains positive after the Rs 2.09 crore inflow reported for the four-month period. Vaibhav Vyapar’s policy requires provisions and write-offs on overdue assets subject to Reserve Bank of India minimum requirements, while standard-asset provisions are reviewed periodically using maximum loan-level days past due, or DPD.