Kolte-Patil repays Rs 436.58 crore, debt-equity falls

Kolte-Patil Developers Limited repaid Rs 436.58 crore of borrowings during the six months ended September 30, 2026, and its consolidated debt-to-equity ratio fell to 0.70 from 0.98 at March 31, 2026. Current borrowings declined by Rs 232.46 crore to Rs 908.18 crore, while total equity increased by Rs 153.29 crore.

How much did Kolte-Patil repay in six months?

Kolte-Patil repaid Rs 436.58 crore of borrowings in the six months ended September 30, 2026, compared with Rs 265.11 crore in the corresponding six months of 2025. It raised Rs 202.64 crore of new borrowings in the latest half-year, compared with Rs 170.77 crore a year earlier.

The repayment and fresh borrowing flows produced a net Rs 233.94 crore outflow from borrowing transactions in the September 2026 half-year. Total net cash used in financing activities was Rs 303.32 crore, against net cash generated from financing activities of Rs 256.20 crore in the prior-year period, which included Rs 417.03 crore from issue of share capital including securities premium.

Kolte-Patil paid Rs 60.62 crore of interest during the latest six months, versus Rs 58.19 crore a year earlier. It also repaid Rs 6.46 crore of lease principal and paid Rs 2.30 crore of interest on lease liabilities, meaning the financing cash-flow movement includes both borrowing and lease obligations.

How did Kolte-Patil’s borrowing balances change?

Kolte-Patil’s current borrowings fell to Rs 908.18 crore at September 30, 2026 from Rs 1,140.64 crore at March 31, 2026. Non-current borrowings declined to Rs 0.64 crore from Rs 1.51 crore, taking borrowings across both classifications to Rs 908.82 crore from Rs 1,142.15 crore.

Total equity rose to Rs 1,357.90 crore at September 30 from Rs 1,204.61 crore at March 31. Equity attributable to owners increased to Rs 1,359.33 crore from Rs 1,206.89 crore, while non-controlling interests moved to negative Rs 1.43 crore from negative Rs 2.28 crore.

Current liabilities nevertheless increased to Rs 6,839.82 crore from Rs 6,312.26 crore over the six months. Trade payables to creditors other than micro and small enterprises rose to Rs 1,152.74 crore from Rs 621.51 crore, while other current liabilities increased to Rs 4,518.55 crore from Rs 4,341.17 crore.

Why did Kolte-Patil’s debt-to-equity ratio decline?

Kolte-Patil’s debt-to-equity ratio declined because its reported debt fell while equity increased, reaching 0.70 at September 30, 2026 from 0.98 at March 31. The company defines debt as current and non-current borrowings plus lease liabilities, and equity as share capital, other equity and non-controlling interests.

The ratio was also lower than 0.86 at September 30, 2025 and 0.78 at June 30, 2026. Total debt-to-total-assets ratio decreased to 0.12 at September 30, 2026 from 0.16 at both March 31, 2026 and September 30, 2025.

Lease liabilities totalled Rs 39.40 crore at September 30, comprising Rs 16.51 crore of current liabilities and Rs 22.89 crore of non-current liabilities. The comparable March 31 balance was Rs 41.27 crore, comprising Rs 14.10 crore current and Rs 27.17 crore non-current lease liabilities.

What cash flows supported Kolte-Patil’s debt repayment?

Kolte-Patil generated net operating cash flow of Rs 322.40 crore in the six months to September 30, 2026, compared with Rs 163.55 crore in the corresponding 2025 period. Cash generated from operating activities before tax was Rs 364.15 crore, including a Rs 518.32 crore increase in trade payables and a Rs 214.32 crore increase in other liabilities.

Working-capital movements also absorbed cash during the period. Inventories increased by Rs 457.86 crore, trade receivables increased by Rs 38.05 crore and other assets increased by Rs 68.80 crore; consolidated inventory stood at Rs 5,798.51 crore at September 30 compared with Rs 5,275.00 crore at March 31.

Investing activities used Rs 34.54 crore in the September 2026 half-year, compared with Rs 485.20 crore in the previous year’s first half. Kolte-Patil bought Rs 186.82 crore of mutual-fund units and received Rs 245.81 crore from mutual-fund divestments or unit sales, while bank deposits had a net outflow of Rs 155.87 crore.

Cash and cash equivalents closed at Rs 186.11 crore on September 30, down from Rs 201.57 crore at the start of the financial year. Other bank balances increased to Rs 336.02 crore from Rs 309.15 crore, while current investments declined to Rs 421.19 crore from Rs 465.59 crore.

What do Kolte-Patil’s debt-service metrics show?

Kolte-Patil reported a debt-service coverage ratio of 0.44 for the six months ended September 30, 2026, compared with negative 0.06 in the corresponding 2025 period. Its definition uses earnings available for debt service divided by debt service, with debt service including gross finance cost, lease payments and principal repayments.

Its interest-service coverage ratio was 3.53 for the latest six-month period, versus negative 0.28 a year earlier. The company states that these half-year ratios are not annualised, and calculates earnings available for finance cost using profit before tax, net finance cost, depreciation, amortisation and doubtful-debt provisions.

Profit before tax and share of profit or loss in associates and joint ventures was Rs 208.47 crore in the latest half-year, against a loss of Rs 44.09 crore in the prior-year period. Finance cost in the cash-flow reconciliation declined to Rs 5.57 crore from Rs 10.01 crore over the same comparison.

Conclusion

Kolte-Patil’s September 2026 half-year figures show gross debt repayment of Rs 436.58 crore alongside Rs 202.64 crore of fresh borrowing. Lower current borrowings, reduced lease liabilities and a Rs 153.29 crore increase in total equity together reduced the company’s reported debt-to-equity ratio by 0.28 points to 0.70.

The next disclosed debt-related development to watch is repayment of the remaining listed non-convertible debentures, whose redemption premiums are linked to collections from earmarked unit sales. At September 30, four listed series had outstanding principal ranging from Rs 46.67 crore to Rs 124.86 crore, and the proposed amalgamation of two wholly owned subsidiaries remains conditional on statutory, regulatory, member and creditor approvals.