Prime Industries repays Rs 27.005 crore, cash at Rs 14.4 lakh

Prime Industries Limited repaid Rs 27.005 crore of current borrowings during the half year ended September 30, 2026, while its consolidated cash-flow statement reported closing cash and cash equivalents of Rs 14.4 lakh. Cash fell from an opening Rs 40.535 crore as operating activities used Rs 14.128 crore and financing activities used Rs 25.348 crore.

What happened to Prime Industries' cash by September 2026?

Prime Industries reported closing cash and cash equivalents of Rs 14.4 lakh at September 30, 2026, down from opening cash of Rs 40.535 crore in its consolidated cash-flow statement. The closing amount comprised Rs 2.6 lakh of cash on hand and Rs 11.8 lakh held in bank current accounts. The statement recorded a net decrease in cash and cash equivalents of Rs 40.492 crore for the six-month period.

The comparative cash-flow column is labelled as the period ended March 31, 2026, rather than the corresponding six-month period. It reports closing cash and cash equivalents of Rs 40.635 crore, including Rs 40.61 crore in bank current accounts and Rs 2.6 lakh in cash on hand. That period recorded a net cash increase of Rs 10.816 crore, compared with the Rs 40.492 crore decrease to September 2026.

Why was Prime Industries' operating cash flow negative?

Prime Industries used Rs 14.128 crore in operating activities in the half year, despite generating Rs 10.912 crore of cash from operations before working-capital changes. The cash-flow statement records a Rs 22.772 crore increase in trade receivables and a Rs 14.733 crore increase in other financial assets. After these movements, cash flow from operations was negative Rs 11.150 crore, followed by Rs 2.548 crore of income tax paid.

Trade payables provided a partial offset, increasing by Rs 11.617 crore during the period, while inventories are shown as a Rs 1.307 crore movement in the operating cash-flow reconciliation. Other financial liabilities declined by Rs 73.8 lakh and other current or non-current liabilities increased by Rs 7.8 lakh. These movements resulted in negative operating cash flow even as profit before tax was Rs 10.634 crore for the half year.

The segment disclosure shows manufacturing generated the full Rs 33.951 crore of reported revenue in the half year to September 2026. Total revenue was Rs 2.724 crore lower than Rs 36.675 crore in the corresponding half year of 2025, which included Rs 4.769 crore from investment or trading in securities and other activities. Manufacturing segment profit before tax increased to Rs 9.520 crore from Rs 6.203 crore.

How much did Prime Industries reduce its borrowings?

Prime Industries' current borrowings fell to Rs 46.071 crore at September 30, 2026 from Rs 73.080 crore at March 31, 2026, a balance-sheet reduction of Rs 27.009 crore. Its cash-flow statement separately records Rs 27.005 crore of repayments of current borrowings during the half year. The supplied statements do not explain the Rs 4 lakh difference between the balance-sheet movement and the reported repayment.

The fall in current borrowings coincided with higher non-current borrowings. Non-current borrowings rose to Rs 4.420 crore at September 30 from Rs 1.741 crore at March 31, while the cash-flow statement reports Rs 2.679 crore of proceeds from non-current borrowings. Other non-current financial liabilities were Rs 34.5 lakh at September 30, with no amount shown at March 31.

Prime Industries recorded negative financing cash flow of Rs 25.348 crore for the half year. Alongside the current-borrowing repayment, the statement shows a Rs 9.341 crore increase in current or non-current loans and Rs 52.8 lakh of interest and financial charges. It also records Rs 6.879 crore received against share warrants or convertible preference shares, Rs 34.5 lakh from non-current financial liabilities and Rs 1.026 crore of interest income.

What does Prime Industries' balance sheet show about liquidity?

Prime Industries reported current assets of Rs 154.844 crore at September 30, 2026, compared with Rs 149.798 crore at March 31, while current liabilities declined to Rs 82.476 crore from Rs 95.568 crore. Trade receivables rose to Rs 59.790 crore from Rs 37.018 crore, and other financial assets increased to Rs 43.870 crore from Rs 29.737 crore. Those changes align with the working-capital outflows in the cash-flow statement.

The September balance sheet and cash-flow statement show different cash and cash-equivalent amounts. The balance sheet lists Rs 74.4 lakh at September 30, while the cash-flow statement lists Rs 14.4 lakh, a difference of Rs 60 lakh. At March 31, the balance sheet shows Rs 40.636 crore, compared with Rs 40.535 crore as the opening cash figure in the subsequent cash-flow statement; the supplied filing provides no reconciliation.

Total equity rose to Rs 88.304 crore at September 30 from Rs 73.739 crore at March 31, including preference share capital of Rs 24.048 crore compared with Rs 17.169 crore. Trade payables increased to Rs 27.890 crore from Rs 16.273 crore, and provisions rose to Rs 5.353 crore from Rs 2.393 crore. Total assets increased to Rs 175.562 crore from Rs 171.065 crore.

Conclusion

Prime Industries reduced current borrowings by Rs 27.005 crore during the half year to September 30, 2026, but its cash-flow statement also recorded a Rs 40.492 crore cash decline to Rs 14.4 lakh. The reported decline reflected Rs 14.128 crore used in operations and Rs 25.348 crore used in financing, as receivables and other financial assets increased while current debt was repaid.

The next disclosures will show whether Prime Industries explains the Rs 60 lakh difference between its September balance-sheet cash figure and its cash-flow closing balance. Investors can also monitor whether trade receivables of Rs 59.790 crore and other financial assets of Rs 43.870 crore convert into cash, and whether borrowings continue to shift from current to non-current liabilities.