Nagreeka Capital borrowings offset cash outflow after inventory rise

Nagreeka Capital & Infrastructure Limited reported a Rs 26.02 crore operating cash outflow for the half year ended September 30, 2026, after inventories absorbed Rs 42.28 crore of cash; Rs 31.75 crore of borrowing inflow helped produce Rs 26.28 crore of net financing inflow and lifted period-end cash.

Why did Nagreeka Capital's operating cash flow turn negative?

Nagreeka Capital's operating cash flow turned negative because working-capital movements outweighed Rs 13.20 crore of operating profit before working-capital changes in the half year ended September 30, 2026. Inventory increased by Rs 42.28 crore, compared with an increase of Rs 7.57 crore in the half year ended September 30, 2025, making it the largest disclosed use of operating cash.

Other asset movements added to the cash requirement. Financial and non-financial assets used Rs 9.93 crore in the latest half year, against a Rs 8.60 crore cash release a year earlier, while trade and other payables provided Rs 14.30 crore, compared with a Rs 11.98 lakh reduction in the prior-year period. Cash generated from operations therefore changed to an outflow of Rs 25.65 crore from an inflow of Rs 11.36 crore.

After direct taxes paid of Rs 36.77 lakh, net cash used in operating activities was Rs 26.02 crore, versus net operating cash inflow of Rs 11.24 crore in the corresponding 2025 half year. The reported change between the two periods was Rs 37.26 crore, while direct taxes paid increased from Rs 11.75 lakh.

How did Nagreeka Capital cover its operating cash outflow?

Nagreeka Capital recorded Rs 31.75 crore of cash inflow from borrowings during the September 2026 half year. After finance costs of Rs 5.47 crore, financing activities delivered net cash inflow of Rs 26.28 crore, exceeding the Rs 26.02 crore operating outflow by Rs 26.02 lakh.

The funding pattern differed from the half year ended September 30, 2025, when borrowings showed a Rs 7.75 crore repayment and finance costs were Rs 3.88 crore. That produced a Rs 11.63 crore financing cash outflow in the earlier period, compared with the Rs 26.28 crore inflow reported in 2026.

Investing activities added Rs 51.67 lakh of cash in the latest half year, compared with Rs 40.34 lakh a year earlier. The 2026 investing inflow included Rs 74.10 lakh from sale or purchase of investments and Rs 22.43 lakh used for fixed assets, helping financing and investing inflows exceed the operating cash deficit.

How much did Nagreeka Capital's inventory and assets increase?

Nagreeka Capital's inventories stood at Rs 103.01 crore on September 30, 2026, up from Rs 60.73 crore on March 31, 2026. The Rs 42.28 crore balance-sheet increase corresponds with the inventory movement in the half-year cash-flow statement and accounted for most of the rise in non-financial assets to Rs 131.23 crore from Rs 90.24 crore.

Total assets rose by Rs 47.63 crore to Rs 192.45 crore at September 30, 2026, from Rs 144.82 crore at March 31, 2026. Financial assets increased to Rs 61.22 crore from Rs 54.57 crore, as loans rose to Rs 45.55 crore from Rs 36.01 crore, while trade receivables fell to Rs 6.88 crore from Rs 10.08 crore.

Cash and cash equivalents reached Rs 1.86 crore at September 30, compared with Rs 1.08 crore at the beginning of the financial year. The closing balance comprised Rs 34.02 lakh of cash on hand and Rs 1.52 crore in current accounts, following a Rs 77.69 lakh net increase during the half year.

What did Nagreeka Capital's half-year profit and finance costs show?

Nagreeka Capital reported profit after tax of Rs 5.72 crore for the half year ended September 30, 2026, down from Rs 6.47 crore in the corresponding 2025 period. Profit before tax was Rs 7.67 crore, compared with Rs 8.65 crore, while deferred tax was Rs 1.95 crore against Rs 2.18 crore a year earlier.

Finance costs increased to Rs 5.47 crore in the 2026 half year from Rs 3.88 crore in the prior-year period. In the quarter ended September 30, 2026, finance costs were Rs 3.00 crore, compared with Rs 2.01 crore in the September 2025 quarter, alongside the half-year borrowing inflow of Rs 31.75 crore.

Nagreeka Capital said it is primarily engaged in non-banking financial company, or NBFC, business and has no separate reportable segments under Indian Accounting Standard 108. Its unaudited results for the quarter and half year ended September 30, 2026 were approved by the board on November 6, 2026.

What balance-sheet changes accompanied Nagreeka Capital's borrowing inflow?

Nagreeka Capital's total financial liabilities were Rs 157.96 crore at September 30, 2026, compared with Rs 115.63 crore at March 31, 2026. Total liabilities and equity rose to Rs 192.45 crore from Rs 144.82 crore, matching the increase in total assets over the same six-month period.

Total equity increased to Rs 34.26 crore at September 30 from Rs 28.54 crore at March 31. Equity share capital remained Rs 6.31 crore, while other equity rose to Rs 27.95 crore from Rs 22.23 crore; other financial liabilities declined to Rs 10.16 crore from Rs 13.88 crore.

Trade and other payables increased by Rs 14.30 crore in cash-flow terms during the half year, partly offsetting the Rs 42.28 crore inventory increase and Rs 9.93 crore increase in other financial and non-financial assets. Those offsets were insufficient to prevent the Rs 26.02 crore operating outflow.

Conclusion

Nagreeka Capital's September 2026 half-year figures show that a Rs 42.28 crore inventory increase and a Rs 9.93 crore increase in other financial and non-financial assets shifted operating cash flow from a Rs 11.24 crore inflow a year earlier to a Rs 26.02 crore outflow. Borrowing proceeds of Rs 31.75 crore resulted in Rs 26.28 crore of net financing inflow after finance costs.

The unresolved matter in the filing is whether inventories of Rs 103.01 crore convert into cash in later periods or continue to require funding. Future disclosures will also show whether finance costs, which rose to Rs 5.47 crore from Rs 3.88 crore in the comparable half year, change alongside borrowings and operating cash flow.