Mahamaya Steel cuts short-term borrowings by Rs 31.18 crore

Mahamaya Steel Industries Limited reduced current borrowings by Rs 31.18 crore to Rs 19.88 crore at 30 September 2026, while reporting Rs 41.18 crore of operating cash flow for the half year. Mahamaya Steel’s inventories fell by Rs 42.07 crore over the same six months, compared with an operating cash outflow of Rs 3.66 crore a year earlier.

How did Mahamaya Steel reduce short-term borrowings?

Mahamaya Steel reduced current borrowings to Rs 19.88 crore at 30 September 2026 from Rs 51.06 crore at 31 March 2026. The Rs 31.18 crore reduction occurred as inventories decreased to Rs 68.21 crore from Rs 110.28 crore, releasing Rs 42.07 crore from the inventory balance.

The reduction was concentrated in current funding. Non-current borrowings rose to Rs 7.37 crore at 30 September 2026 from Rs 6.98 crore at 31 March 2026, an increase of Rs 0.38 crore. Combining both categories, total reported borrowings fell to Rs 27.25 crore from Rs 58.04 crore, a reduction of Rs 30.80 crore.

Mahamaya Steel’s inventory reduction was not the only balance-sheet movement during the period. Trade receivables increased to Rs 21.50 crore from Rs 18.08 crore, while other current assets rose to Rs 18.24 crore from Rs 6.90 crore. Bank, cash and cash equivalents increased to Rs 1.22 crore from Rs 11.95 lakh.

What drove Mahamaya Steel’s operating cash flow?

Mahamaya Steel generated Rs 41.18 crore of net cash from operating activities in the half year ended 30 September 2026, reversing net cash used of Rs 3.66 crore in the half year ended 30 September 2025. The cash-flow statement records the Rs 42.07 crore inventory decrease as the largest disclosed working-capital movement in the current half year.

Profit before working-capital changes was Rs 12.12 crore in the 2026 half year, compared with Rs 6.02 crore in the prior-year period. The higher figure reflected profit before tax of Rs 6.40 crore, depreciation and amortisation of Rs 4.67 crore, and finance cost of Rs 1.30 crore.

Some working-capital movements offset part of the inventory-related cash release. Trade receivables rose by Rs 3.42 crore and other current assets rose by Rs 11.34 crore between 31 March and 30 September 2026. Other current liabilities increased by Rs 18.58 crore to Rs 27.39 crore, while trade payables declined by Rs 3.23 crore to Rs 20.75 crore.

Did Mahamaya Steel’s earnings rise with cash generation?

Mahamaya Steel’s standalone profit after tax increased to Rs 4.70 crore for the half year ended 30 September 2026 from Rs 3.06 crore in the corresponding 2025 period. Revenue from operations rose to Rs 523.34 crore from Rs 395.62 crore, while total income increased to Rs 523.54 crore from Rs 395.85 crore.

The higher revenue was accompanied by increased input and operating costs. Cost of materials consumed rose to Rs 416.19 crore from Rs 310.26 crore, while other expenses increased to Rs 75.02 crore from Rs 61.35 crore. Changes in inventories of finished goods, work-in-progress and stock-in-trade were an expense of Rs 5.37 crore, compared with Rs 3.07 crore a year earlier.

Finance cost declined to Rs 1.30 crore in the half year from Rs 2.35 crore in the comparable period. Profit before tax rose to Rs 6.40 crore from Rs 4.17 crore, including exceptional income of Rs 24.55 lakh in 2026 and Rs 58.49 lakh in 2025.

What does Mahamaya Steel’s September balance sheet show?

Mahamaya Steel reported total assets of Rs 237.95 crore at 30 September 2026, down from Rs 259.54 crore at 31 March 2026. Current assets fell to Rs 109.38 crore from Rs 136.61 crore, as the Rs 42.07 crore reduction in inventories exceeded increases in receivables, other current assets and cash balances.

Equity increased to Rs 152.71 crore at 30 September 2026 from Rs 143.01 crore at 31 March 2026. Other equity rose to Rs 136.27 crore from Rs 131.58 crore, while equity share capital was unchanged at Rs 16.43 crore.

Current liabilities declined to Rs 70.65 crore from Rs 97.10 crore. The decrease reflected lower current borrowings and provisions, which fell to Rs 2.54 crore from Rs 12.65 crore, although other current liabilities rose to Rs 27.39 crore from Rs 8.80 crore.

Was Mahamaya Steel’s half-year statement audited?

Mahamaya Steel’s standalone results for the half year ended 30 September 2026 were unaudited and approved by its board on 13 November 2026. The company reports one business segment, steel, in the statement.

Chopra AJ & Associates performed a limited review of the standalone statement. The firm said nothing had come to its attention indicating that the statement omitted required disclosures or contained a material misstatement, while noting that a limited review has a narrower scope than an audit.

The comparative half-year results to 30 September 2025 were reviewed by the predecessor statutory auditor on 13 November 2025. The financial statements for the year ended 31 March 2026 were audited by the predecessor statutory auditor, which issued its audit report on 26 May 2026.

Conclusion

Mahamaya Steel’s half-year filing shows that a Rs 42.07 crore inventory reduction coincided with Rs 41.18 crore of operating cash generation and a Rs 31.18 crore reduction in current borrowings. Higher half-year revenue and profit after tax, alongside a Rs 1.05 crore decline in finance cost, accompanied the balance-sheet change.

The filing does not disclose a future borrowing target, inventory plan or scheduled operating event. The next financial update will clarify whether inventories remain near Rs 68.21 crore, whether receivables and other current assets continue to rise from Rs 21.50 crore and Rs 18.24 crore respectively, and whether operating cash flow remains positive.