MPK Steels borrowings rise as cash and assets fall in H1

M P K Steels (I) Limited reported combined borrowings of Rs 31.99 crore at September 30, 2026, up from Rs 16.90 crore at March 31, 2026, while cash and cash equivalents fell to Rs 3.76 crore and total assets declined to Rs 106.94 crore. The changes followed operating and investing cash outflows during the half year.

How much did MPK Steels’ borrowings rise in H1?

MPK Steels’ combined long-term and short-term borrowings rose by Rs 15.09 crore between March 31, 2026 and September 30, 2026. Long-term borrowings increased to Rs 14.94 crore from Rs 8.68 crore, while short-term borrowings rose to Rs 17.05 crore from Rs 8.21 crore.

Short-term borrowings became the larger component of MPK Steels’ reported debt at September 30, 2026, at Rs 17.05 crore compared with Rs 14.94 crore of long-term borrowings. At March 31, 2026, long-term borrowings of Rs 8.68 crore were higher than short-term borrowings of Rs 8.21 crore, showing a shift in the composition of reported funding over the six months.

The increase in both debt categories aligns with the financing cash-flow statement for the half year ended September 30, 2026. That statement records a Rs 8.81 crore increase in short-term borrowings and a Rs 6.25 crore increase in long-term borrowings, offset in part by Rs 1.20 crore of finance costs.

Why did MPK Steels’ cash balance decline to Rs 3.76 crore?

MPK Steels’ cash and cash equivalents declined by Rs 10.72 crore because financing inflows of Rs 13.89 crore did not cover operating and investing outflows. The company closed September 30, 2026 with Rs 3.76 crore of cash and cash equivalents, compared with an opening balance of Rs 14.48 crore at March 31, 2026.

Net cash used in operating activities was Rs 22.06 crore for the half year ended September 30, 2026, after tax paid of Rs 1.89 crore. Cash generated from operations was negative Rs 20.16 crore, compared with profit before tax of Rs 2.82 crore, reflecting movements in receivables, loans and advances, and trade payables.

The largest working-capital movement was a Rs 26.13 crore decrease in trade payables. This was partly offset by an Rs 8.59 crore decrease in trade receivables and a Rs 0.24 crore decrease in inventories, while short-term loans and advances increased by Rs 6.96 crore and used cash.

Investing activities used Rs 2.55 crore during the period. MPK Steels reported Rs 4.33 crore of purchases of fixed assets, including work in progress, partly offset by Rs 0.99 crore from the sale of investments, Rs 0.67 crore of interest received and Rs 0.11 crore from the sale of fixed assets.

Which assets changed most at MPK Steels in H1?

MPK Steels’ total assets decreased by Rs 10.51 crore to Rs 106.94 crore at September 30, 2026, from Rs 117.46 crore at March 31, 2026. Current assets fell by Rs 13.23 crore to Rs 88.49 crore, more than offsetting a Rs 2.72 crore increase in non-current assets to Rs 18.45 crore.

Cash accounted for the largest current-asset reduction, falling by Rs 10.72 crore to Rs 3.76 crore. Trade receivables declined by Rs 8.59 crore to Rs 38.40 crore, while short-term loans and advances rose by Rs 6.96 crore to Rs 19.87 crore, partly counterbalancing the cash and receivables movements.

Inventories were largely unchanged at Rs 25.76 crore at September 30, 2026, compared with Rs 26.00 crore at March 31, 2026. Current investments decreased to Rs 0.17 crore from Rs 1.12 crore, while other current assets increased to Rs 0.51 crore from Rs 0.20 crore.

Within non-current assets, tangible property, plant and equipment increased to Rs 18.25 crore from Rs 7.99 crore. The balance sheet also reported capital work in progress of Rs 7.00 crore at March 31, 2026, but no separate capital-work-in-progress balance at September 30, 2026; the September statement instead presents tangible assets within its non-current-assets total.

What changed in MPK Steels’ payables and equity?

MPK Steels’ current liabilities fell to Rs 37.80 crore at September 30, 2026 from Rs 56.47 crore at March 31, 2026, despite the rise in short-term borrowings. The reduction principally reflected trade payables due to parties other than micro and small enterprises declining to Rs 2.98 crore from Rs 29.60 crore.

Trade payables due to micro and small enterprises moved in the opposite direction, rising to Rs 15.13 crore from Rs 14.64 crore. Other current liabilities increased to Rs 2.19 crore from Rs 2.09 crore, while short-term provisions declined to Rs 0.42 crore from Rs 1.91 crore.

The Rs 26.13 crore decrease in trade payables in the cash-flow statement broadly corresponds with the reduction in reported creditor balances. The September 30, 2026 filing does not provide creditor ageing, payment terms, a borrowing repayment timetable or the specific purpose of the increase in short-term loans and advances.

Shareholders’ funds increased to Rs 53.95 crore from Rs 52.08 crore over the six months. Share capital remained Rs 10.18 crore, while surplus increased to Rs 43.77 crore from Rs 41.89 crore, alongside reported profit after tax of Rs 1.87 crore for the half year.

How did MPK Steels’ H1 profit compare with last year?

MPK Steels reported revenue from operations of Rs 101.84 crore for the half year ended September 30, 2026, up from Rs 92.53 crore in the corresponding half year ended September 30, 2025. Total income, including other income, rose to Rs 102.57 crore from Rs 92.74 crore.

Profit before tax increased to Rs 2.82 crore from Rs 2.47 crore, while profit after tax rose to Rs 1.87 crore from Rs 1.62 crore. Basic and diluted earnings per share were Rs 1.84, compared with Rs 2.40 a year earlier; the statement shows share capital of Rs 10.18 crore at September 30, 2026 against Rs 6.92 crore at September 30, 2025.

Cost of materials consumed rose to Rs 88.95 crore from Rs 82.02 crore in the year-earlier half, and purchases of trading goods increased to Rs 1.96 crore from Rs 0.61 crore. Depreciation and amortisation expense rose to Rs 0.95 crore from Rs 0.28 crore, while finance costs were Rs 1.20 crore for H1 2026.

MPK Steels is a single-segment company under Accounting Standard 17, manufacturing and trading structural steel products including mild-steel channels, beams, angles, squares, rounds and flats. Its unaudited results for the half year ended September 30, 2026 were approved by the board on November 13, 2026, and were subject to a limited review by N L A & Associates.

Conclusion

MPK Steels’ September 30, 2026 balance sheet shows higher borrowings alongside lower cash, assets and current liabilities. The Rs 15.09 crore increase in combined borrowings coincided with a Rs 26.13 crore reduction in trade payables, Rs 4.33 crore of fixed-asset purchases and a Rs 10.72 crore decrease in cash, even as H1 revenue rose to Rs 101.84 crore.

The next financial disclosure will show whether the Rs 19.87 crore short-term loans and advances, Rs 38.40 crore trade receivables and Rs 17.05 crore short-term borrowings change after September 30, 2026. MPK Steels’ filing does not disclose a debt target, repayment schedule or capital-expenditure plan beyond the reported half-year balances and cash-flow movements.