Nityas Gems halves non-current lease liabilities as receivables rise

Nityas Gems and Jewellery Limited reduced non-current lease liabilities by Rs 6.827 crore to Rs 5.782 crore at September 30, 2026, from Rs 12.609 crore at March 31, 2026, while trade receivables rose Rs 10.135 crore to Rs 31.593 crore. Inventories also increased Rs 4.718 crore during the six-month period.

How much did Nityas Gems reduce lease liabilities?

Nityas Gems reduced non-current lease liabilities by more than half, with the balance falling from Rs 12.609 crore at March 31, 2026 to Rs 5.782 crore at September 30, 2026. Current lease liabilities also declined, falling from Rs 1.736 crore to Rs 1.211 crore over the same period.

Combined current and non-current lease liabilities were Rs 6.993 crore at September 30, compared with Rs 14.345 crore at March 31, a reduction of Rs 7.352 crore. Right-of-use assets, which represent assets controlled through leases, fell by Rs 6.987 crore to Rs 6.696 crore, broadly alongside the liability reduction.

The half-year cash-flow statement recorded Rs 0.884 crore of gain on termination of lease and Rs 0.859 crore of principal payments of lease liabilities. Finance costs, including interest on lease liabilities in the cash-flow statement, were Rs 1.158 crore for the half year ended September 30, 2026, compared with Rs 0.453 crore in the corresponding 2025 period.

Why did Nityas Gems’ working-capital assets increase?

Nityas Gems’ current assets increased by Rs 16.391 crore to Rs 105.338 crore at September 30, 2026 from Rs 88.947 crore at March 31, 2026. Trade receivables produced the largest movement, rising to Rs 31.593 crore from Rs 21.458 crore, while inventories increased to Rs 68.310 crore from Rs 63.592 crore.

The Rs 10.135 crore receivables increase exceeded the Rs 4.718 crore inventory increase. The cash-flow statement reported a Rs 10.058 crore operating cash outflow from higher trade receivables for the half year ended September 30, 2026, compared with a Rs 13.830 crore outflow in the corresponding 2025 period.

Inventory generated a Rs 4.718 crore working-capital cash outflow in the latest half year, compared with Rs 6.565 crore in the prior-year half. Other current assets rose by Rs 1.687 crore to Rs 5.010 crore, while cash and cash equivalents fell by Rs 0.121 crore to Rs 0.421 crore.

How did working capital affect Nityas Gems’ operating cash flow?

Nityas Gems used Rs 1.709 crore in operating activities in the half year ended September 30, 2026, compared with Rs 16.260 crore used in the corresponding 2025 half year. The latest outflow followed increases in receivables and inventories, although it was substantially lower than the prior-year cash use.

Operating profit before working-capital changes was Rs 10.819 crore, down from Rs 11.514 crore a year earlier. After working-capital movements, cash generated from operations was negative Rs 0.209 crore, compared with negative Rs 16.167 crore in the prior-year half.

Nityas Gems paid Rs 1.500 crore in income taxes, including tax deducted at source receivable, in the latest half year, taking net operating cash flow to negative Rs 1.709 crore. Investing activities used Rs 0.971 crore, including Rs 0.937 crore spent on property, plant and equipment and Rs 0.021 crore of initial direct costs for right-of-use assets.

What changed in Nityas Gems’ liability and funding mix?

Nityas Gems’ total liabilities rose Rs 4.142 crore to Rs 41.127 crore at September 30, 2026, despite the reduction in non-current lease liabilities. Current liabilities increased by Rs 10.956 crore to Rs 34.909 crore, while non-current liabilities declined by Rs 6.813 crore to Rs 6.219 crore.

Current borrowings increased by Rs 4.655 crore to Rs 13.642 crore. The cash-flow statement reported Rs 4.655 crore of net proceeds from short-term borrowings, while long-term borrowings showed a Rs 0.090 crore repayment during the half year.

Trade payables to micro and small enterprises increased to Rs 2.257 crore from Rs 0.190 crore. Trade payables to other creditors rose by Rs 1.775 crore to Rs 9.977 crore, and other current liabilities increased by Rs 2.716 crore to Rs 5.996 crore.

Total equity rose Rs 7.199 crore to Rs 86.629 crore, including Rs 70.687 crore attributable to owners. The reported debt-equity ratio was 0.24 at September 30, 2026, compared with 0.29 at March 31, 2026; the filing defines debt as current and non-current borrowings plus current and non-current lease liabilities.

What business and financial results did Nityas Gems report?

Nityas Gems reported one operating segment, covering manufacturing and trading of gold, silver and diamond jewellery, including laboratory-grown diamonds. Management said the chief operating decision maker evaluates the group as a whole for resource allocation and performance assessment, so it did not present separate segment results.

Revenue from operations rose to Rs 116.955 crore for the half year ended September 30, 2026 from Rs 88.545 crore in the corresponding 2025 half year. However, profit before tax declined to Rs 8.625 crore from Rs 10.207 crore, and net profit declined to Rs 7.189 crore from Rs 8.463 crore.

Total assets increased by Rs 11.341 crore to Rs 127.756 crore at September 30, 2026. Non-current assets fell by Rs 5.050 crore to Rs 22.418 crore, principally reflecting the lower right-of-use asset balance, while current assets rose by Rs 16.391 crore.

The consolidated results were unaudited, reviewed by the audit committee and approved by the board on November 6, 2026. The statutory auditors issued an unmodified conclusion, while Nityas Gems reported no investor complaints received, disposed of or unresolved during the period ended September 30, 2026.

Conclusion

Nityas Gems’ balance sheet at September 30, 2026 shows a smaller lease-liability position alongside a larger investment in receivables and inventories. The Rs 7.352 crore reduction in total lease liabilities was outweighed within the broader liability mix by higher current borrowings, payables and other current liabilities, while operations used Rs 1.709 crore of cash in the half year.

The filing does not disclose a forward operating target, lease plan or scheduled business event against which these balances can be measured. The disclosed investor-complaint position was nil unresolved complaints at September 30, 2026, leaving subsequent financial disclosures as the source of any updated receivables, inventory, borrowing and lease-liability figures.