R & B Denims lifts capex nearly sevenfold, cash at Rs 19.02 lakh

R & B DENIMS LIMITED spent Rs 22.88 crore on property, plant, equipment and capital work-in-progress in the half-year ended September 30, 2026, compared with Rs 3.43 crore a year earlier, while cash and cash equivalents declined from Rs 1.79 crore at March 31 to Rs 19.02 lakh at September-end.

Why did R & B Denims' capital spending rise nearly sevenfold?

R & B Denims increased purchases of property, plant and equipment and capital work-in-progress to Rs 22.88 crore in the half-year ended September 30, 2026, from Rs 3.43 crore in the corresponding 2025 half-year. The Rs 19.44 crore increase made these purchases the largest stated investing outflow during the 2026 half-year.

The company’s property, plant and equipment balance rose to Rs 103.68 crore at September 30, 2026, from Rs 93.36 crore at March 31, 2026. Capital work-in-progress declined to Rs 1.94 crore from Rs 3.96 crore, while investment property was reported at Rs 4.88 crore at September-end, with no March 31, 2026 balance shown in the statement.

R & B Denims does not split the Rs 22.88 crore cash-flow line between property, plant and equipment and capital work-in-progress. The filing also recorded depreciation and amortisation expense of Rs 9.67 crore in the 2026 half-year, compared with Rs 7.53 crore a year earlier; this amount was an operating-cash-flow adjustment rather than a disclosed measure of new asset purchases.

How did R & B Denims fund its investment outflows?

R & B Denims generated Rs 26.69 crore of net cash from operating activities in the half-year ended September 30, 2026, versus Rs 8.68 crore in the prior-year half. This operating inflow exceeded the Rs 22.88 crore capital-asset purchase line by Rs 3.81 crore before the group’s other investing and financing cash movements.

Working-capital changes contributed to the rise in operating cash flow. Inventories generated Rs 11.64 crore of cash in the 2026 half-year, against a Rs 93.41 lakh cash use a year earlier, while trade receivables generated Rs 3.72 crore after using Rs 2.80 crore in the prior-year period. Other current assets used Rs 8.35 crore, compared with Rs 3.63 crore a year earlier.

R & B Denims reported total investing cash use of Rs 23.69 crore in the 2026 half-year, compared with an inflow of Rs 65.78 lakh in the 2025 half-year. Alongside capital-asset purchases, the cash-flow statement recorded a Rs 10.29 crore net increase in loans and advances and a Rs 2.51 crore positive movement under investment in shares and securities.

The earlier period had different investment movements. In the half-year ended September 30, 2025, R & B Denims reported a Rs 45.40 crore net increase in loans and advances, offset in part by a Rs 50.80 crore net decrease in fixed deposits. Those items help explain the shift from an overall investing inflow in the prior-year half to an outflow in 2026.

What happened to R & B Denims' borrowings and liquidity?

R & B Denims' current borrowings rose to Rs 67.82 crore at September 30, 2026, from Rs 55.44 crore at March 31, 2026. Its cash-flow statement reported a Rs 12.38 crore net increase in short-term borrowings during the half-year, while non-current borrowings decreased to Rs 15.80 crore from Rs 16.46 crore.

Financing activities nevertheless used Rs 4.60 crore in the 2026 half-year, compared with Rs 19.00 crore used in the corresponding 2025 period. The financing section included a Rs 13.35 crore decrease in non-controlling interest, Rs 2.84 crore of finance costs and a Rs 65.68 lakh net decrease in long-term borrowings, partly offset by the short-term borrowing increase.

Cash and cash equivalents fell by Rs 1.60 crore in the six months ended September 30, 2026. The balance moved from Rs 1.79 crore at the beginning of the period to Rs 19.02 lakh at the end, comprising Rs 14.63 lakh of cash on hand and Rs 4.39 lakh in current accounts.

How did R & B Denims' earnings compare with its cash-flow changes?

R & B Denims reported total income of Rs 278.30 crore for the half-year ended September 30, 2026, compared with Rs 224.11 crore in the previous-year half. Revenue from operations increased to Rs 268.58 crore from Rs 215.24 crore, including Rs 263.84 crore in sales of products and services against Rs 211.14 crore a year earlier.

Profit after tax increased to Rs 15.57 crore from Rs 15.36 crore, while profit before tax decreased to Rs 19.66 crore from Rs 20.70 crore. Tax expense was Rs 4.09 crore in the 2026 half-year, compared with Rs 5.34 crore in the corresponding period, according to the consolidated results.

Finance costs declined to Rs 3.03 crore from Rs 3.91 crore despite the increase in current borrowings at September-end. The filing reported a debt-equity ratio of 0.33 at September 30, 2026, compared with 0.40 at September 30, 2025 and 0.29 at March 31, 2026.

R & B Denims' total assets increased to Rs 370.15 crore at September 30, 2026, from Rs 356.30 crore at March 31, 2026. Total equity rose to Rs 254.42 crore from Rs 252.12 crore, while total liabilities increased to Rs 115.73 crore from Rs 104.18 crore, including the increase in current borrowings.

Conclusion

R & B Denims combined Rs 26.69 crore of operating cash generation with a Rs 22.88 crore capital-asset outlay in the half-year ended September 30, 2026. However, other investment uses and a Rs 4.60 crore financing outflow left cash and cash equivalents at Rs 19.02 lakh, even as current borrowings increased by Rs 12.38 crore during the period.

The next financial results will show whether property, plant and equipment, at Rs 103.68 crore on September 30, 2026, continues to increase and whether cash balances and current borrowings change further. R & B Denims did not disclose a future capital-expenditure target, project timetable or planned funding amount in the announced results, leaving those matters unresolved.