Jhaveri Credits cash falls to Rs 34.01 lakh after H1 outflow

Jhaveri Credits and Capital Limited ended the six months to September 30, 2026 with Rs 34.01 lakh of cash and cash equivalents after a Rs 17.53 crore net outflow, compared with Rs 17.87 crore at March 31, 2026. Operating, investing and financing activities each used cash, while the company reported a Rs 1.97 crore loss.

Why did Jhaveri Credits' cash balance fall in the first half?

Jhaveri Credits' cash balance fell because all three reported cash-flow categories were outflows in the six months ended September 30, 2026. Operating activities used Rs 6.56 crore, investing activities used Rs 8.60 crore and financing activities used Rs 2.37 crore, resulting in a total reduction of Rs 17.53 crore.

Cash and cash equivalents opened at Rs 17.87 crore on March 31, 2026 and closed at Rs 34.01 lakh on September 30, 2026. The cash-flow statement reported no effect from exchange-rate changes on cash held in foreign currencies, leaving the operating, investing and financing movements as the reported drivers of the reduction.

The comparison is between a six-month period and a full year, so it is not like-for-like. Even so, the composition changed: investing cash use was below the Rs 30.02 crore reported for the year ended March 31, 2026, while financing moved from a Rs 13.84 crore inflow to a Rs 2.37 crore outflow.

What caused Jhaveri Credits' operating cash outflow?

Jhaveri Credits used Rs 6.56 crore in operating activities because cash generated from operations was negative Rs 5.64 crore and income taxes paid were Rs 91.94 lakh. The reported operating cash deficit occurred despite a Rs 5.97 crore reduction in trade and other receivables and a Rs 12.02 lakh reduction in inventories.

The company recorded a pre-tax loss of Rs 1.97 crore for the half year. After adjustments including Rs 3.62 crore of interest income, Rs 81.04 lakh of depreciation and amortisation, and Rs 32.59 lakh of finance costs, operating profit before working-capital changes was negative Rs 5.03 crore.

Working-capital movements included a Rs 5.37 crore use of cash in other assets and a Rs 3.87 crore use in other liabilities and provisions. These were partly offset by a Rs 2.54 crore cash contribution from trade and other payables, leaving the net working-capital movement negative Rs 60.60 lakh.

The standalone income statement reported total income of Rs 24.99 crore for the six months ended September 30, 2026, compared with Rs 55.03 crore in the restated prior-year half. Total expenses fell to Rs 26.95 crore from Rs 48.63 crore, but the result changed from a Rs 6.24 crore profit to a Rs 1.97 crore loss.

How did loans and bank balances affect Jhaveri Credits' cash?

Jhaveri Credits used Rs 8.60 crore in investing activities, mainly through Rs 8.91 crore of loans given and Rs 3.71 crore of bank deposits or margin money. Interest received of Rs 3.55 crore, dividends of Rs 11.13 lakh and a Rs 47.97 lakh net inflow from investments in shares partly offset those uses.

Non-current loans on the September 30, 2026 balance sheet rose to Rs 22.44 crore from Rs 12.82 crore at March 31, 2026. Current loans declined to Rs 45.42 crore from Rs 46.14 crore, while the filing does not provide borrower-level details, repayment timing or the purpose of the Rs 8.91 crore of loans given.

Other bank balances increased to Rs 9.71 crore on September 30, 2026 from Rs 5.49 crore at March 31, 2026. These balances were separately presented from the Rs 34.01 lakh of cash and cash equivalents, and the filing does not identify individual deposits or restrictions associated with the reported Rs 3.71 crore movement in deposits or margin money.

For the year ended March 31, 2026, investing activities used Rs 30.02 crore, including Rs 29.25 crore of loans given and Rs 9.32 crore of net outflow on investments in shares. That annual outflow was partly offset by Rs 6.85 crore of interest received and Rs 71.52 lakh released through bank deposits or margin money.

What did financing and earnings changes show at Jhaveri Credits?

Jhaveri Credits used Rs 2.37 crore in financing activities during the first half, led by Rs 1.92 crore of loan repayment. Lease payments used Rs 41.81 lakh, finance costs used Rs 3.12 lakh and the statement reported no proceeds from issuing equity instruments during the period.

This contrasts with the Rs 13.84 crore financing inflow for the year ended March 31, 2026, when Jhaveri Credits reported Rs 10.69 crore of net proceeds from equity instruments. Current borrowings declined to Rs 2.25 crore on September 30, 2026 from Rs 3.73 crore at March 31, while non-current borrowings fell from Rs 44.72 lakh to nil.

Revenue from operations decreased to Rs 20.77 crore in the first half from Rs 51.47 crore in the recast half year ended September 30, 2025. Other income increased to Rs 4.21 crore from Rs 3.56 crore, while basic and diluted earnings per share moved to a loss of Rs 1.77 from earnings of Rs 5.73.

Jhaveri Credits reported a total comprehensive loss of Rs 2.43 crore for the six months, comprising the Rs 1.97 crore period loss and Rs 46.73 lakh of other comprehensive loss on fair-value measurement of equity instruments. The company said it operates in one business segment and therefore did not provide separate segmental results.

What corporate changes were disclosed during the period?

Jhaveri Credits said the National Company Law Tribunal, Ahmedabad Bench sanctioned the amalgamation of U R Energy (India) Private Limited with the company on March 16, 2026. The scheme's appointed date was April 1, 2024, and comparative figures for the quarter and half year ended September 30, 2025 were restated using the pooling-of-interests method under Indian Accounting Standard 103.

During the quarter ended September 30, 2026, Jhaveri Credits acquired majority shares in U R Energy (Solar) Pvt Ltd for Rs 51,000. The filing does not state the acquired stake percentage, expected revenue contribution or future cash-flow effect of that transaction.

The Audit Committee reviewed and the board approved the September-quarter and half-year results on November 3, 2026. The statutory auditor conducted a limited review and stated that nothing had come to its attention suggesting the standalone unaudited results did not disclose the required information or contained a material misstatement.

Conclusion

Jhaveri Credits' first-half cash decline reflected outflows across operations, investing and financing rather than one cash-flow category alone. The Rs 17.53 crore reduction brought cash and cash equivalents to Rs 34.01 lakh, alongside lower revenue from operations and a Rs 1.97 crore loss compared with a restated Rs 6.24 crore profit a year earlier.

The next results will show whether operating cash generation changes after September 30, 2026, and how the Rs 8.91 crore of loans given and Rs 9.71 crore of other bank balances develop. Investors can also watch for disclosures on U R Energy (Solar) Pvt Ltd following the Rs 51,000 majority-share acquisition and on the effects of the completed U R Energy (India) Private Limited amalgamation.