Novalum Materials cash reaches Rs 13.0389 crore on loan decline

Novalum Materials Limited reported cash and cash equivalents of Rs 13.0389 crore at September 30, 2026, compared with Rs 22.23 lakh at March 31, after a Rs 11.9223 crore reduction in loans and advances drove most of its Rs 12.8166 crore half-year increase in cash.

What caused Novalum Materials’ cash balance to rise?

Novalum Materials’ cash balance rose principally because loans and advances declined by Rs 11.9223 crore in the half year ended September 30, 2026. The cash-flow statement recorded net cash from operating activities of Rs 11.6471 crore, compared with net cash used in operating activities of Rs 10.8369 crore in the corresponding half year ended September 30, 2025.

The operating result before working-capital changes was not the main source of this increase. Profit before tax was Rs 97.81 lakh, but adjustments including Rs 89 lakh of interest received, Rs 25.96 lakh of tax provision and Rs 12.42 lakh of depreciation and amortisation resulted in operating profit before working-capital changes of negative Rs 4.73 lakh.

The reduction in loans and advances was partly offset by other working-capital movements. Trade receivables generated Rs 12.79 lakh of cash, while other current assets used Rs 58.99 lakh, trade payables used Rs 20.14 lakh and provisions added Rs 26.56 lakh. These movements resulted in cash generated from operations of Rs 11.6471 crore.

How did Novalum Materials’ balance sheet change?

Novalum Materials’ non-current loans fell to Rs 2.8719 crore at September 30, 2026, from Rs 14.7942 crore at March 31, 2026. The Rs 11.9223 crore decline matches the loans-and-advances cash-flow movement reported for the half year, although the filing does not identify the counterparties or terms of those loans.

Cash and cash equivalents increased to Rs 13.0389 crore from Rs 22.23 lakh during the same period. The September 30 balance comprised Rs 13.0293 crore held with banks and Rs 96,000 of cash on hand, while the cash-flow statement reported a net increase in cash and cash equivalents of Rs 12.8166 crore.

Current assets rose to Rs 14.64 crore at September 30 from Rs 1.3613 crore at March 31, reflecting the cash increase. Total assets increased to Rs 18.3643 crore from Rs 16.879 crore, even as non-current assets declined to Rs 3.7243 crore from Rs 15.5177 crore, primarily because of the lower loan balance.

Did Novalum Materials’ operating performance improve?

Novalum Materials reported revenue from operations of Rs 39.3639 crore for the half year ended September 30, 2026, up from Rs 22.6816 crore in the corresponding 2025 period. Profit after tax increased to Rs 73.19 lakh from Rs 57.30 lakh, while profit before tax rose to Rs 97.81 lakh from Rs 76.42 lakh.

Purchases of stock-in-trade rose to Rs 38.6329 crore from Rs 22.1324 crore, broadly alongside the revenue increase. Total income was Rs 40.2667 crore against Rs 23.2117 crore a year earlier, and total expenses were Rs 39.2886 crore against Rs 22.4475 crore. Novalum Materials identifies trading as its sole reportable business segment.

The September 2026 quarter produced revenue from operations of Rs 24.9996 crore, compared with Rs 14.3643 crore in the preceding June quarter. However, September-quarter profit after tax was Rs 27.79 lakh, below Rs 45.40 lakh in the June quarter, despite the higher quarterly revenue.

What other cash flows affected Novalum Materials’ liquidity?

Novalum Materials generated Rs 64.56 lakh from investing activities in the half year ended September 30, 2026, compared with Rs 12,000 in the corresponding prior-year period. It received Rs 89 lakh of interest income and spent Rs 24.44 lakh on capital expenditure on fixed assets, including capital advances.

Financing activities added Rs 52.40 lakh in the latest half year, compared with Rs 10.0673 crore in the corresponding 2025 period. The 2026 inflow included Rs 51.30 lakh of proceeds from long-term borrowings and Rs 1.09 lakh from other financial liabilities, whereas the prior-year financing figure included Rs 10.065 crore of proceeds from an issue of shares.

Non-current loan liabilities increased to Rs 1.2425 crore at September 30 from Rs 72.95 lakh at March 31. Current liabilities also increased to Rs 1.3432 crore from Rs 1.0981 crore, with provisions rising to Rs 61.02 lakh and other current liabilities rising to Rs 52.49 lakh; trade payables declined to Rs 17.80 lakh from Rs 37.94 lakh.

What did the limited review conclude?

Novalum Materials’ statutory auditor, BAS & Co. LLP, stated on November 14, 2026 that nothing had come to its attention causing it to believe that the unaudited standalone results failed to make the disclosures required under applicable accounting standards and listing regulations. The board approved the quarter and half-year results on the same date.

The auditor conducted a limited review under Standard on Review Engagement 2410, rather than an audit, and said this process provides moderate assurance. Novalum Materials said the results were prepared under Indian Accounting Standard 34, Interim Financial Reporting, and were reviewed by the audit committee before board approval on November 14, 2026.

Conclusion

The September 2026 half-year filing shows that Novalum Materials’ cash increase was chiefly a balance-sheet and working-capital event. The Rs 11.9223 crore reduction in loans and advances was substantially larger than its Rs 73.19 lakh profit after tax and converted a negative Rs 4.73 lakh pre-working-capital operating result into Rs 11.6471 crore of operating cash flow.

The key unresolved item is the remaining Rs 2.8719 crore of non-current loans at September 30, 2026, after the earlier Rs 14.7942 crore balance at March 31. The filing does not disclose a target, plan or timetable for those loans, the use of the Rs 13.0389 crore cash balance, or future loan-and-advance movements.