Prerna Infrabuild borrowings rise Rs 20.68 crore in half year

Prerna Infrabuild Limited reported a Rs 20.68 crore increase in consolidated borrowings for 01.04.26 to 30.09.26, while operating and investing activities used a combined Rs 13.47 crore. Net financing cash inflow was Rs 19.31 crore after finance costs, and cash and cash equivalents increased by Rs 5.84 crore during the period.

How did Prerna Infrabuild fund its first-half cash requirements?

Prerna Infrabuild primarily funded its disclosed first-half cash requirements through a Rs 20.68 crore change in borrowings. Its consolidated cash-flow statement records net cash flow from financing activities of Rs 19.31 crore for 01.04.26 to 30.09.26, after Rs 1.70 crore of finance costs and a Rs 32.08 lakh movement in minority shares.

Operating activities used Rs 1.95 crore and investing activities used Rs 11.52 crore, taking the combined outflow to Rs 13.47 crore. The remaining financing inflow supported a Rs 5.84 crore increase in cash and cash equivalents, from Rs 68.09 lakh at the beginning of the year to Rs 6.52 crore at the end of the period.

The latest borrowing movement was below the Rs 21.90 crore reported for the year ended 31 March 2026, but the periods are not directly comparable because the latest statement covers six months. The filing identifies only a change in borrowings; it does not disclose lenders, borrowing instruments, maturities, interest rates or whether the funding came from term loans or working-capital facilities.

Why was Prerna Infrabuild’s operating cash flow negative?

Prerna Infrabuild recorded a Rs 1.95 crore operating cash outflow because working-capital movements exceeded its Rs 2.07 crore operating profit before working-capital changes. Inventory absorbed Rs 6.30 crore, trade receivables absorbed Rs 3.44 crore, and other current assets absorbed Rs 1.22 crore in 01.04.26 to 30.09.26.

Those uses of cash were partly offset by a Rs 7.09 crore movement in non-current operating assets and a Rs 1.99 crore rise in other current liabilities, excluding unpaid dividend. Trade payables used Rs 1.20 crore, other financial assets used Rs 81.81 lakh, and income tax paid was Rs 12.25 lakh, resulting in the reported operating outflow.

The operating cash deficit was lower than the Rs 34.17 crore outflow reported for the year ended 31 March 2026. Inventory consumed Rs 29.87 crore in that full year, compared with Rs 6.30 crore in the latest six-month period, while trade receivables shifted from a Rs 9.12 lakh cash inflow in the full year to a Rs 3.44 crore outflow in the latest half year.

Profit did not translate into positive operating cash flow during the period. Consolidated profit before tax was Rs 1.29 crore for the half year ended 30 September 2026, compared with Rs 1.12 crore in the corresponding half year ended 30 September 2025, but the stated inventory and receivables movements left cash from operations negative.

What did Prerna Infrabuild spend on investment activities?

Prerna Infrabuild used Rs 11.52 crore in investing activities, led by a Rs 12 crore purchase of investment property during 01.04.26 to 30.09.26. It also spent Rs 57.69 lakh on fixed assets and Rs 16.51 lakh on movement in investments.

Interest received of Rs 89.69 lakh, rental income from investment properties of Rs 12.23 lakh, and a Rs 20.16 lakh movement in loans and advances partly reduced the gross investing outflow. These items explain why net cash used in investing activities, at Rs 11.52 crore, was below the investment-property purchase of Rs 12 crore.

The latest period contrasts with the year ended 31 March 2026, when investing activities generated a Rs 13.82 crore net cash inflow. That annual cash-flow statement included Rs 70.84 crore of bank-deposit maturities and Rs 47.20 crore of bank-deposit placements, whereas no such deposit placement or maturity is shown in the latest six-month statement.

The investment-property purchase in the latest six months exceeded the Rs 8.91 crore purchase reported for the full year ended 31 March 2026. The filing does not identify the property’s location, type, valuation or expected return, though it records Rs 12.23 lakh of rental income from investment properties in the latest period.

How did Prerna Infrabuild’s earnings and finance costs change?

Prerna Infrabuild reported consolidated revenue from operations of Rs 8.30 crore for the half year ended 30 September 2026, compared with Rs 6.37 crore in the corresponding 2025 half year. Total revenue, including other income, increased to Rs 9.32 crore from Rs 8.05 crore over the same comparison.

Consolidated profit from continuing operations after tax was Rs 1.01 crore, compared with Rs 86.33 lakh a year earlier. Finance costs rose to Rs 1.70 crore from Rs 72.32 lakh in the corresponding 2025 half year; the filing reports both the higher finance cost and the Rs 20.68 crore borrowing change, but does not allocate the cost to specific borrowings.

In the quarter ended 30 September 2026, revenue from operations was Rs 6.77 crore, against Rs 1.63 crore in the quarter ended 30 June 2026 and Rs 6.37 crore in the quarter ended 30 September 2025. Quarterly finance costs were Rs 1.59 crore, compared with Rs 10.71 lakh in the preceding quarter, while the cash-flow statement provides borrowing movement only for the six-month period.

Cash and cash equivalents closed at Rs 6.52 crore on 30 September 2026, comprising Rs 6.50 crore in current-bank-account balances and Rs 2.26 lakh of cash on hand. The increase from Rs 68.09 lakh at the beginning of the year followed net financing inflows of Rs 19.31 crore, after the reported operating and investing uses of cash.

Conclusion

Prerna Infrabuild’s consolidated statement shows that additional borrowings were the principal disclosed cash source in the half year ended 30 September 2026. The Rs 20.68 crore borrowing movement exceeded the combined Rs 13.47 crore used in operations and investing, with Rs 12 crore of investment-property purchases and working-capital movements in inventories and receivables accounting for major uses.

The next reporting period will show whether borrowing movements and finance costs continue after the Rs 1.70 crore first-half charge. The filing leaves the underlying debt structure, repayment schedule and terms unresolved, while the cash-flow statement also does not disclose the specific investment property acquired for Rs 12 crore.