Privi Speciality Chemicals lifts CWIP 52% as spending rises

Privi Speciality Chemicals Limited increased half-year purchases of capital assets to Rs 214.82 crore for the period ended September 30, 2026, from Rs 154.86 crore a year earlier. Privi Speciality Chemicals’ consolidated capital work-in-progress reached Rs 453.01 crore, up Rs 155.36 crore, or 52%, from March 31, 2026.

How much did Privi Speciality Chemicals spend on capital assets?

Privi Speciality Chemicals spent Rs 214.82 crore on property, plant and equipment, capital work-in-progress, intangible assets, intangible assets under development and capital advances in the half year ended September 30, 2026. The outflow, reported net of capital creditors, was Rs 59.96 crore higher than Rs 154.86 crore in the half year ended September 30, 2025.

The company recorded this amount within investing activities, where net cash used increased to Rs 220.21 crore from Rs 133.29 crore a year earlier. The difference between capital-asset purchases and the total investing outflow reflected a net Rs 33.42 crore investment in mutual funds, partly offset by Rs 24.82 crore of fixed-deposit maturities and Rs 3.22 crore of interest received.

Privi Speciality Chemicals’ reported purchase line is broader than expenditure on completed plant and machinery because it includes capital work-in-progress, commonly called CWIP, and intangible development assets. The filing does not identify individual projects, capacity additions, product applications or commissioning dates behind the expenditure of Rs 214.82 crore.

Why did Privi Speciality Chemicals’ CWIP rise to Rs 453.01 crore?

Privi Speciality Chemicals’ consolidated CWIP increased to Rs 453.01 crore at September 30, 2026, from Rs 297.65 crore at March 31, 2026. The Rs 155.36 crore movement means a greater amount of capital expenditure was held in projects under development at the half-year date.

Property, plant and equipment, or PPE, moved differently, declining to Rs 1,044.38 crore from Rs 1,114.68 crore over the same six-month period. That balance-sheet change does not measure cash capital expenditure alone because the cash-flow statement separately reports Rs 214.82 crore of asset purchases, while the income statement records Rs 74.40 crore of depreciation and amortisation for the half year.

Other development-linked balances also rose. Intangible assets under development increased to Rs 20.62 crore at September 30 from Rs 16.12 crore at March 31, while other non-current assets rose to Rs 103.13 crore from Rs 60.44 crore. Privi Speciality Chemicals reports a single Aroma Chemical operating segment under Indian Accounting Standard 108, so the filing does not split CWIP by business line.

How did Privi Speciality Chemicals fund higher capital spending?

Privi Speciality Chemicals generated Rs 360.26 crore of net cash from operating activities in the half year ended September 30, 2026, compared with Rs 234.89 crore in the corresponding 2025 period. The operating cash inflow exceeded the Rs 214.82 crore capital-asset purchase outflow by Rs 145.44 crore.

Cash generated from operating activities before income taxes increased to Rs 444.40 crore from Rs 281.29 crore, while income taxes paid rose to Rs 84.14 crore from Rs 46.40 crore. Profit before tax was Rs 271.92 crore, against Rs 206.25 crore a year earlier, and finance costs declined to Rs 33.65 crore from Rs 45.14 crore.

Working-capital movements also differed from the prior-year half. Trade receivables decreased by Rs 62.92 crore in the September 2026 half, while they had increased by Rs 35.93 crore in the September 2025 half. Inventory absorbed Rs 19.70 crore, compared with Rs 75.24 crore a year earlier, while trade payables increased by Rs 56.34 crore against an increase of Rs 41.47 crore.

Did Privi Speciality Chemicals reduce borrowings during the half year?

Privi Speciality Chemicals’ combined current and non-current borrowings fell to Rs 976.80 crore at September 30, 2026, from Rs 1,009.89 crore at March 31, 2026. The Rs 33.09 crore reduction occurred while CWIP rose by Rs 155.36 crore and capital-asset purchases reached Rs 214.82 crore.

Non-current borrowings declined to Rs 571.30 crore from Rs 577.90 crore, while current borrowings decreased to Rs 405.49 crore from Rs 431.99 crore. In the cash-flow statement, Privi Speciality Chemicals reported Rs 50 crore of proceeds from non-current borrowings, Rs 43.42 crore of repayments and a net Rs 39.68 crore reduction in current borrowings.

Financing activities used Rs 110.19 crore in the September 2026 half, compared with Rs 135.45 crore in the corresponding 2025 half. Interest paid was Rs 33.04 crore, down from Rs 44.08 crore, while dividends paid increased to Rs 39.06 crore from Rs 19.53 crore; cash and cash equivalents ended the period at Rs 73.95 crore, versus Rs 44.09 crore at its start.

What did Privi Speciality Chemicals report alongside the investment increase?

Privi Speciality Chemicals reported revenue from operations of Rs 1,426.67 crore for the half year ended September 30, 2026, up from Rs 1,237.53 crore a year earlier. Net profit for the period rose to Rs 200.37 crore from Rs 147.76 crore, while total expenses increased to Rs 1,182.67 crore from Rs 1,039.83 crore.

Materials consumed increased to Rs 818.37 crore from Rs 677.43 crore, and power and fuel expense rose to Rs 96.87 crore from Rs 84.38 crore. Other expenses declined to Rs 141.67 crore from Rs 172.54 crore, contributing to a Rs 65.67 crore increase in profit before tax to Rs 271.92 crore.

The consolidated results include Privi Biotechnologies Private Limited, Privi Speciality Chemicals USA Corporation and Prigiv Specialities Private Limited. The board approved the unaudited consolidated results on October 29, 2026, and the statutory auditors issued an unmodified limited-review conclusion.

Conclusion

Privi Speciality Chemicals increased capital-asset purchases by Rs 59.96 crore year on year and added Rs 155.36 crore to CWIP during the six months to September 30, 2026. Higher operating cash generation of Rs 360.26 crore coincided with a Rs 33.09 crore reduction in combined borrowings, while half-year revenue and net profit also increased.

The filing does not disclose the projects, completion dates or capacity additions associated with the Rs 453.01 crore CWIP balance. The disclosed unresolved matter to watch is the next step in the Scheme of Amalgamation after shareholders approved the resolution on October 27, 2026, following the National Company Law Tribunal order dated September 7, 2026.