Nahar Spinning Mills raises first-half capital spending

Nahar Spinning Mills Limited increased fixed-asset purchases to Rs 126.44 crore in the half year ended 30 September 2026, from Rs 3.33 crore a year earlier. Nahar Spinning Mills also spent Rs 43.87 crore on capital work in progress, while long-term borrowings rose by Rs 125.38 crore from the March 2026 year-end.

How much did Nahar Spinning Mills spend on capital assets?

Nahar Spinning Mills spent Rs 126.44 crore on purchases of fixed assets in the half year ended 30 September 2026, compared with Rs 3.33 crore in the corresponding 2025 period. The Rs 123.11 crore increase made fixed-asset purchases the largest reported investing outflow in the latest half year.

Capital work in progress absorbed a further Rs 43.87 crore of cash, against Rs 5.77 crore in the half year ended 30 September 2025. Together, fixed-asset purchases and capital-work spending were Rs 170.31 crore, compared with Rs 9.10 crore a year earlier. The financial statements do not identify the projects, facilities or equipment behind these additions.

Nahar Spinning Mills used Rs 154.80 crore in investing activities, substantially more than Rs 11.02 crore in the earlier half year. Proceeds from sale of fixed assets increased to Rs 29.81 crore from Rs 0.38 crore, while the latest period also included Rs 4.11 crore from sale of investments. These inflows partly offset the larger purchases of fixed assets and work in progress.

What changed in Nahar Spinning Mills' asset base?

Nahar Spinning Mills reported property, plant and equipment of Rs 868.03 crore at 30 September 2026, compared with Rs 809.91 crore at 31 March 2026. The Rs 58.12 crore increase followed cash purchases of fixed assets of Rs 126.44 crore during the half year, as well as Rs 29.81 crore of proceeds from fixed-asset sales.

Capital work in progress rose to Rs 75.87 crore from Rs 32.00 crore at the March year-end. This Rs 43.87 crore increase matches the cash-flow statement's capital-work-in-progress spending during the six months. The filing does not state when the capital work in progress will be completed or transferred into operating fixed assets.

Investments increased to Rs 179.56 crore at 30 September from Rs 146.50 crore at 31 March, an increase of Rs 33.06 crore. The balance-sheet movement differs from the Rs 22.90 crore cash-flow outflow for investment increases because the cash-flow statement separately records investment-sale proceeds of Rs 4.11 crore. No investment categories or valuation movements are disclosed in the filing.

Total non-current assets reached Rs 1,188.32 crore, up from Rs 1,054.81 crore at 31 March 2026. In contrast, current assets declined to Rs 1,533.96 crore from Rs 1,638.01 crore, with inventories falling by Rs 22.74 crore to Rs 821.96 crore and other current assets falling by Rs 66.51 crore to Rs 209.67 crore.

How did Nahar Spinning Mills reshape its borrowings?

Nahar Spinning Mills received Rs 153.48 crore from long-term borrowings in the half year ended 30 September 2026 and repaid Rs 30.19 crore. The resulting net long-term borrowing inflow was Rs 123.29 crore, compared with a Rs 14.82 crore repayment in the corresponding half year of 2025, when no long-term borrowing proceeds were reported.

Working-capital limits declined by Rs 255.13 crore during the latest half year, compared with a reduction of Rs 330.80 crore a year earlier. Nahar Spinning Mills drew Rs 15.00 crore of short-term borrowings and repaid Rs 15.00 crore, leaving no net movement from those specific short-term borrowing lines. Net financing cash used was Rs 144.94 crore, lower than Rs 351.18 crore in the prior-year period.

Long-term borrowings on the balance sheet rose to Rs 309.63 crore at 30 September from Rs 184.26 crore at 31 March, an increase of Rs 125.38 crore. Current borrowings fell to Rs 541.49 crore from Rs 798.71 crore, a reduction of Rs 257.22 crore. The balance-sheet changes are consistent with the reported mix of new long-term funding and reduced working-capital limits, although the filing provides no detailed reconciliation of cash-flow categories to debt balances.

Did Nahar Spinning Mills generate operating cash during the investment period?

Nahar Spinning Mills generated Rs 298.97 crore of net cash from operating activities in the half year ended 30 September 2026, compared with Rs 331.55 crore a year earlier. Cash generated from operations before interest and direct taxes was Rs 345.49 crore, down from Rs 349.69 crore in the comparable period.

Profit before tax and extraordinary activities rose to Rs 185.27 crore from Rs 14.02 crore. Depreciation was Rs 50.99 crore, compared with Rs 46.08 crore, while finance cost increased to Rs 31.67 crore from Rs 28.60 crore. Interest paid of Rs 22.19 crore and direct taxes paid or adjusted of Rs 24.33 crore reduced the latest operating cash flow.

After the Rs 298.97 crore operating inflow, Rs 154.80 crore of investing outflow and Rs 144.94 crore of financing outflow, cash and cash equivalents plus other bank balances decreased by Rs 0.76 crore. The cash-flow statement reports closing cash and other bank balances of Rs 1.01 crore at 30 September 2026, compared with opening balances of Rs 1.78 crore.

Conclusion

Nahar Spinning Mills' first-half statements show a substantial increase in capital deployment, led by Rs 126.44 crore of fixed-asset purchases and Rs 43.87 crore of capital-work-in-progress spending. The higher investment was accompanied by a Rs 125.38 crore rise in long-term borrowings and a Rs 257.22 crore reduction in current borrowings from the March 2026 balance-sheet position.

The filing does not disclose a capital-expenditure plan, project timetable, funding target or the assets included in the Rs 75.87 crore capital-work-in-progress balance. The next financial statements will indicate whether this work is completed, whether fixed-asset spending continues and how the mix between long-term and current borrowings changes.