K.S. Oils finances Rs 50.80 crore capex with borrowings

K.S. Oils Limited used Rs 50.80 crore for capital purchases in the half year ended 30 September 2026, while Rs 56.11 crore of net financing inflow, including Rs 62.73 crore of net borrowing movements, broadly covered that outflow and Rs 4.63 crore of negative operating cash flow.

What did K.S. Oils spend on capital investment?

K.S. Oils spent Rs 50.80 crore on purchases of property, plant and equipment (PPE), capital work-in-progress (CWIP), right-of-use assets, capital advances and capital creditors in the half year ended 30 September 2026. This was the entire reported investing cash outflow for the period, compared with Rs 36.26 crore in the half year ended 30 September 2025.

The cash-flow statement does not split the Rs 50.80 crore by individual capital category. Its balance sheet shows CWIP rose by Rs 19.63 crore to Rs 100.80 crore at 30 September 2026 from Rs 81.17 crore at 31 March 2026, while PPE increased by Rs 2.65 crore to Rs 209.37 crore. Capital advances of Rs 2.50 crore were also recorded at 30 September 2026, against no balance at 31 March 2026.

K.S. Oils said the Kota plant commenced operations on 1 October 2025 and the Guna plant on 1 April 2026. The company also disclosed that both plants were refurbished after revival under the resolution plan and were in continuous operation at stable capacity. It operates in one segment, edible oil, under Indian Accounting Standard 108.

How did K.S. Oils fund the capital outflow?

K.S. Oils generated Rs 56.11 crore of net cash from financing activities in the half year ended 30 September 2026, exceeding the Rs 50.80 crore investing outflow by Rs 5.31 crore. The financing section reported Rs 23.34 crore of net non-current borrowings and Rs 39.39 crore of net current borrowings, together totalling Rs 62.73 crore.

The reported borrowing inflows were partly offset by Rs 6.75 crore of finance costs paid. Financing cash flow also included a Rs 0.15 crore net increase in lease liabilities and a Rs 0.02 crore other movement in equity. The disclosure therefore identifies borrowings as the principal reported financing source during a period when operating activities used Rs 4.63 crore.

The mix changed from the half year ended 30 September 2025, when financing inflow was Rs 36.61 crore and investment outflow was Rs 36.26 crore. That earlier financing inflow included Rs 36.92 crore of net non-current borrowings, while current borrowings had no reported movement. K.S. Oils cautioned that the 2025 period is not comparable because the Kota and Guna plants commenced on different dates.

K.S. Oils closed 30 September 2026 with Rs 0.68 crore of cash and cash equivalents, compared with no opening balance disclosed at 31 March 2026. The net increase of Rs 0.68 crore reflects the Rs 56.11 crore financing inflow against combined operating and investing cash outflows of Rs 55.43 crore.

How did K.S. Oils' balance sheet change?

K.S. Oils' total borrowings rose by Rs 62.73 crore to Rs 377.37 crore at 30 September 2026 from Rs 314.64 crore at 31 March 2026. Non-current borrowings increased to Rs 48.62 crore from Rs 25.28 crore, and current borrowings increased to Rs 328.75 crore from Rs 289.36 crore.

Total equity fell to Rs 3.81 crore at 30 September 2026 from Rs 17.13 crore six months earlier. Equity share capital was unchanged at Rs 16.98 crore, but other equity moved to negative Rs 13.17 crore from positive Rs 0.15 crore. K.S. Oils reported a Rs 13.30 crore loss after tax for the half year and Rs 0.02 crore of other equity movement in financing cash flow.

Total assets increased by Rs 34.16 crore to Rs 434.00 crore at 30 September 2026. Non-current assets rose by Rs 24.84 crore to Rs 321.42 crore, led by the increase in CWIP, while current assets rose by Rs 9.33 crore to Rs 112.59 crore. Other current assets increased by Rs 5.96 crore to Rs 20.11 crore and trade receivables rose by Rs 1.87 crore to Rs 5.13 crore.

Total liabilities rose to Rs 430.19 crore at 30 September 2026 from Rs 382.71 crore at 31 March 2026. Besides borrowings, the balance sheet showed other financial liabilities of Rs 31.29 crore, trade payables of Rs 3.47 crore and other current liabilities of Rs 15.84 crore at the half-year date.

Did operating cash flow support K.S. Oils' investment programme?

K.S. Oils did not generate positive operating cash flow in the half year ended 30 September 2026, using Rs 4.63 crore compared with Rs 0.35 crore used in the corresponding 2025 half year. Operating profit before working-capital changes was Rs 2.39 crore, compared with an operating loss of Rs 1.64 crore before working-capital changes a year earlier.

Working-capital movements turned that Rs 2.39 crore pre-working-capital profit into Rs 4.59 crore of cash generated from operations on a negative basis. Inventories absorbed Rs 1.63 crore, trade receivables absorbed Rs 1.87 crore, other current assets absorbed Rs 5.96 crore and trade payables declined by Rs 4.63 crore. These movements were partly offset by a Rs 6.85 crore increase in other financial liabilities and a Rs 0.86 crore reduction in short-term loans and advances.

K.S. Oils reported a loss before tax of Rs 13.42 crore for the 2026 half year, against a Rs 12.05 crore loss in the prior corresponding period. Finance costs rose to Rs 6.75 crore from Rs 0.31 crore. The company stated that the earlier period is not comparable because the operational commencement dates of the Kota and Guna plants differed.

K.S. Oils changed the depreciation method for PPE from written-down value to straight-line method with effect from 1 July 2026. Management said its technical evaluation found that refurbished assets' economic benefits would be consumed evenly over their remaining useful lives. The change reduced half-year depreciation and loss before tax by Rs 3.24 crore, while increasing deferred-tax charge by Rs 0.81 crore.

Conclusion

K.S. Oils' disclosures show that net financing cash inflow of Rs 56.11 crore broadly funded Rs 50.80 crore of capital purchases and a Rs 4.63 crore operating cash outflow in the half year ended 30 September 2026. Borrowings increased to Rs 377.37 crore, while equity declined to Rs 3.81 crore as the company recorded a Rs 13.30 crore half-year loss.

The next reported periods can show whether operations at the Kota and Guna plants translate into positive operating cash flow after the investment phase. Investors can also track the deployment of Rs 100.80 crore of CWIP, changes in the Rs 328.75 crore current-borrowing balance, and the continuing effect of the depreciation-method change introduced on 1 July 2026.