Parmeshwari Silk Mills Limited inventory rises 53% in six months

Parmeshwari Silk Mills Limited reported consolidated inventory of Rs 138.36 crore at September 30, 2026, 53% higher than Rs 90.36 crore at March 31, 2026, while current trade payables more than doubled to Rs 89.48 crore. The half-year cash-flow statement recorded a Rs 48.01 crore inventory-related cash outflow.

What changed in Parmeshwari Silk Mills’ working capital during the half year?

Parmeshwari Silk Mills expanded current assets by Rs 54.15 crore during the six months ended September 30, 2026, led by a Rs 48.01 crore increase in inventories. Inventory reached Rs 138.36 crore from Rs 90.36 crore at March 31, while trade receivables rose by Rs 7.19 crore to Rs 87.69 crore. Current assets consequently increased to Rs 241.35 crore from Rs 187.20 crore.

Cash holdings moved in the other direction. Cash and cash equivalents fell to Rs 9.84 lakh at September 30 from Rs 20.75 lakh at March 31, while bank balances other than cash equivalents declined to Rs 33.05 lakh from Rs 87.75 lakh. Current loans also reduced to Rs 3.80 crore from Rs 6.91 crore, although other current assets increased to Rs 11.07 crore from Rs 8.34 crore.

The cash-flow statement records Rs 48.01 crore under the increase in inventories for April 1, 2026 to September 30, 2026. In the income statement, changes in inventories of finished goods, work-in-progress and stock-in-trade were negative Rs 44.48 crore, compared with negative Rs 20.15 crore in the corresponding 2025 half year. Cost of materials consumed also increased to Rs 77.63 crore from Rs 55.67 crore.

How was Parmeshwari Silk Mills’ inventory build-up reflected in liabilities?

Parmeshwari Silk Mills’ current trade payables increased by Rs 48.02 crore to Rs 89.48 crore at September 30, 2026, from Rs 41.47 crore at March 31. This increase was slightly larger than the Rs 48.01 crore rise in balance-sheet inventory. The cash-flow statement separately records a Rs 48.02 crore increase in current trade payables during the half year.

The matching movements show that supplier obligations rose alongside inventory, but the filing does not identify particular purchases or suppliers financed by those payables. Current liabilities overall rose by Rs 40.32 crore to Rs 176.73 crore. The increase in payables was partly offset by a Rs 6.41 crore fall in current borrowings to Rs 81.16 crore and a Rs 2.39 crore reduction in other current liabilities to Rs 97.16 lakh.

Non-current borrowings increased by Rs 21.52 crore to Rs 71.33 crore at September 30 from Rs 49.81 crore at March 31. Non-current liabilities rose to Rs 80.76 crore from Rs 56.93 crore, including lease liabilities of Rs 3.83 crore compared with Rs 1.66 crore. Other equity increased by Rs 4.64 crore to Rs 66.11 crore, broadly corresponding with the Rs 4.64 crore consolidated profit after tax for the half year.

What does Parmeshwari Silk Mills’ cash flow show about capital spending?

Parmeshwari Silk Mills reported net cash from operating activities of Rs 3.58 crore for the half year ended September 30, 2026, after reporting profit before tax of Rs 6.12 crore. The operating cash-flow reconciliation includes Rs 7.19 crore used by higher current trade receivables and Rs 2.73 crore used by other current assets, alongside the Rs 48.01 crore inventory increase.

Investing activities used Rs 13.22 crore, principally because purchases of property, plant and equipment totalled Rs 13.52 crore. The company received Rs 28 lakh from sales of property, plant and equipment, Rs 47,000 of interest and Rs 1.20 lakh of other inflows. Its property, plant and equipment balance rose by Rs 10.30 crore to Rs 78.22 crore at September 30.

Right-of-use assets, which represent recognised rights to use leased assets, increased to Rs 3.78 crore from Rs 1.66 crore. Total non-current assets rose by Rs 14.64 crore to Rs 85.26 crore, also including non-current loans of Rs 3.01 crore against Rs 85.61 lakh at March 31. The cash-flow statement reports Rs 8.98 crore of net cash from financing activities and a net decrease in cash and cash equivalents of Rs 65.61 lakh.

How did Parmeshwari Silk Mills’ earnings change during the half year?

Parmeshwari Silk Mills reported revenue from operations of Rs 120.03 crore for the half year ended September 30, 2026, compared with Rs 111.06 crore in the corresponding period of 2025. Total income increased to Rs 120.21 crore from Rs 111.16 crore. Consolidated profit after tax rose by Rs 43.24 lakh to Rs 4.64 crore from Rs 4.20 crore.

The reported revenue increase was accompanied by higher costs. Employee-benefit expense increased to Rs 19.37 crore from Rs 17.73 crore, other expenses rose to Rs 53.98 crore from Rs 45.54 crore, and finance costs increased to Rs 4.46 crore from Rs 4.05 crore. Depreciation and amortisation increased to Rs 3.13 crore from Rs 2.46 crore, consistent with the higher property, plant and equipment balance.

Basic and diluted earnings per share rose to Rs 15.45 for the six months from Rs 14.01 a year earlier, while paid-up equity capital remained Rs 3.00 crore. The company states that its business falls within a single segment. As a result, the filing does not provide separate segment-level figures for inventory, sales, costs or profit.

Conclusion

The September 30, 2026 consolidated figures show a sizeable expansion in Parmeshwari Silk Mills’ working-capital balances and fixed assets. Inventory increased by Rs 48.01 crore, trade payables rose by Rs 48.02 crore, and non-current borrowings increased by Rs 21.52 crore. Meanwhile, revenue rose by Rs 8.97 crore and profit after tax increased by Rs 43.24 lakh from the corresponding prior-year half.

The filing does not disclose an inventory-reduction plan, borrowing target or scheduled capital-spending milestone. The next reported results will show whether inventory and receivables convert into operating cash, whether trade payables remain near Rs 89.48 crore, and how the Rs 13.52 crore half-year spending on property, plant and equipment changes the balance sheet and cash flows.