Prithvi Exchange borrowing proceeds accompany working capital build-up

Prithvi Exchange (India) Limited reported Rs 10.7957 crore of net borrowing proceeds in the half year ended September 30, 2026, as inventories and trade receivables increased by a combined Rs 23.0924 crore and net operating cash flow was negative Rs 1.8803 crore. Financing inflows nevertheless increased cash and cash equivalents by Rs 7.6571 crore.

Why did Prithvi Exchange raise borrowings in the September half year?

Prithvi Exchange did not state a specific reason, facility or use-of-proceeds allocation for the Rs 10.7957 crore of net borrowing proceeds reported for the half year ended September 30, 2026. The cash-flow statement shows the proceeds in a period when inventories rose by Rs 15.2596 crore and trade receivables rose by Rs 7.8328 crore.

The standalone balance sheet reported current borrowings of Rs 15.7478 crore at September 30, 2026, compared with Rs 4.9522 crore at March 31, 2026. That Rs 10.7956 crore balance-sheet increase is close to, but not identical with, the Rs 10.7957 crore net borrowing proceeds in the cash-flow statement, reflecting the source’s separate presentation of balance-sheet and cash-flow figures.

Non-current liabilities were Rs 2.3140 crore at September 30, 2026, compared with Rs 1.5696 crore at March 31, 2026. The September non-current liabilities included Rs 57.90 lakh of lease liabilities, Rs 1.6739 crore of other financial liabilities and Rs 6.11 lakh of provisions.

How much did Prithvi Exchange’s working capital increase?

Prithvi Exchange’s inventory and trade receivables increased by Rs 23.0924 crore between March 31, 2026 and September 30, 2026. Inventory rose to Rs 28.8774 crore from Rs 13.6178 crore, while trade receivables increased to Rs 16.6347 crore from Rs 8.8019 crore.

Trade payables provided a partial offset to the cash absorbed by inventory and receivables. The cash-flow statement recorded a Rs 7.9429 crore increase in trade payables and a Rs 8.0292 crore increase in other liabilities, while other receivables contributed Rs 3.6419 crore. These movements did not fully offset the Rs 23.0924 crore increase in inventories and trade receivables.

Total current assets rose to Rs 78.6825 crore at September 30, 2026 from Rs 47.6324 crore at March 31, 2026. Alongside the inventory, receivables and cash movements, other current assets increased to Rs 4.0077 crore from Rs 1.5992 crore, while bank balances other than cash equivalents declined to Rs 8.6493 crore from Rs 10.8056 crore.

What did Prithvi Exchange’s operating cash flow show?

Prithvi Exchange reported net cash used in operating activities of Rs 1.8803 crore for the half year ended September 30, 2026. Operating profit before working-capital changes was Rs 2.1795 crore, but the inventory increase of Rs 15.2596 crore and receivables increase of Rs 7.8328 crore changed the operating cash outcome.

Cash generated from operations was negative Rs 3.4784 crore before net income tax payments and refunds. Net income tax paid was Rs 58.14 lakh, resulting in the Rs 1.8803 crore net operating cash outflow. For comparison, the filing reported Rs 76.76 lakh of net cash generated from operating activities for the full year ended March 31, 2026; the periods are not directly comparable because one covers six months and the other a full year.

The difference between earnings and operating cash flow is visible in the reported profit before tax. Prithvi Exchange recorded profit before tax of Rs 2.1330 crore for the September 2026 half year, compared with Rs 3.1828 crore in the corresponding half of the previous year, while inventory and receivables alone increased by Rs 23.0924 crore.

How did financing activities change Prithvi Exchange’s cash position?

Prithvi Exchange recorded net cash inflow from financing activities of Rs 9.9080 crore in the half year ended September 30, 2026. Net borrowing proceeds of Rs 10.7957 crore exceeded cash outflows of Rs 26.09 lakh for interest paid, Rs 21.43 lakh for lease-liability payments and Rs 41.25 lakh for dividends paid.

Investing activities used Rs 37.06 lakh during the half year. Payments for property, plant and equipment were Rs 1.3209 crore and purchases of investments were Rs 71.41 lakh, partly offset by Rs 98.08 lakh from sale of investments, Rs 61.28 lakh of interest received and Rs 2.53 lakh of dividend received.

The operating outflow of Rs 1.8803 crore, investing outflow of Rs 37.06 lakh and financing inflow of Rs 9.9080 crore resulted in a Rs 7.6571 crore increase in cash and cash equivalents. Prithvi Exchange ended September 30, 2026 with cash and cash equivalents of Rs 19.0191 crore, compared with Rs 11.3620 crore at the beginning of the financial year.

How did Prithvi Exchange’s half-year earnings change?

Prithvi Exchange reported net profit after tax of Rs 1.6330 crore for the half year ended September 30, 2026, compared with Rs 2.3828 crore in the corresponding previous-year period. Total income increased to Rs 2,422.1161 crore from Rs 1,878.3138 crore, while basic earnings per share declined to Rs 1.98 from Rs 2.89.

Purchase of foreign currencies was Rs 2,411.7349 crore in the September 2026 half year, compared with Rs 1,859.4402 crore a year earlier. Finance cost increased to Rs 28.47 lakh from Rs 11.48 lakh, employee benefit expense increased to Rs 9.3069 crore from Rs 7.2853 crore, and other expenses increased to Rs 4.9543 crore from Rs 3.6271 crore.

Prithvi Exchange operates in one reportable segment, foreign exchange. The company said a Reserve Bank of India circular that became operational from July 1, 2024 had a financial impact on the current quarter, but it did not quantify that impact in the September 2026 filing.

Conclusion

Prithvi Exchange’s September 2026 standalone statements show that inventory and receivables expanded by Rs 23.0924 crore while operating activities used Rs 1.8803 crore of cash. The company reported Rs 10.7957 crore of net borrowing proceeds and a Rs 9.9080 crore financing inflow, which accompanied a Rs 7.6571 crore increase in cash and cash equivalents.

The next results will show whether inventories of Rs 28.8774 crore, receivables of Rs 16.6347 crore and current borrowings of Rs 15.7478 crore change after September 30, 2026. Prithvi Exchange also has not quantified the financial effect of the Reserve Bank of India’s quarterly foreign-currency sales requirement, leaving that matter unresolved in the filing.