Raj Rayon assets increase Rs 86.89 crore as investments grow

Raj Rayon Industries Limited increased total assets by Rs 86.89 crore in the six months to September 30, 2026, to Rs 685.20 crore, chiefly as current investments rose Rs 74.89 crore to Rs 100.21 crore. Raj Rayon also reported Rs 18.19 crore higher trade receivables and Rs 64.74 crore higher total trade payables over the period.

How did Raj Rayon's balance sheet change in six months?

Raj Rayon’s balance sheet expanded because total assets increased to Rs 685.20 crore at September 30, 2026 from Rs 598.30 crore at March 31, 2026. Current assets grew Rs 89.80 crore to Rs 340.52 crore, while non-current assets declined Rs 2.91 crore to Rs 344.68 crore.

Raj Rayon’s total equity rose Rs 29.85 crore to Rs 186.33 crore, as other equity increased to Rs 105.72 crore from Rs 75.87 crore. Equity share capital remained Rs 55.61 crore and instruments entirely equity in nature stayed Rs 25 crore; half-year profit after tax was Rs 29.85 crore, compared with Rs 14.09 crore for the half year ended September 30, 2025.

Which assets drove Raj Rayon's increase?

Raj Rayon’s current investments were the largest contributor, rising to Rs 100.21 crore from Rs 25.32 crore, an increase of Rs 74.89 crore. The half-year cash-flow statement records Rs 74 crore of investments in mutual funds and a Rs 89.49 lakh net unrealised gain on investments in the operating-profit reconciliation.

Trade receivables increased Rs 18.19 crore to Rs 48.38 crore at September 30, 2026 from Rs 30.20 crore at March 31, 2026. Other current assets increased Rs 11.34 crore to Rs 64.62 crore, while inventories declined Rs 4.69 crore to Rs 113.41 crore; the cash-flow statement similarly records a Rs 18.21 crore increase in trade receivables.

Raj Rayon’s cash and cash equivalents fell Rs 10.86 crore to Rs 1.56 crore, although bank balances other than cash and cash equivalents rose Rs 31.67 lakh to Rs 10.59 crore. Property, plant and equipment declined Rs 5.43 crore to Rs 336.99 crore, while capital work-in-progress rose to Rs 4.19 crore from Rs 87.38 lakh following Rs 8.04 crore of purchases of property, plant and equipment and capital work-in-progress.

How did Raj Rayon fund the larger asset base?

Raj Rayon funded much of the asset increase through higher current liabilities, which rose Rs 69.27 crore to Rs 359.89 crore at September 30, 2026. Total trade payables accounted for Rs 64.74 crore of the movement, reaching Rs 273.61 crore from Rs 208.87 crore at March 31, 2026.

Raj Rayon’s dues to micro enterprises and small enterprises rose Rs 6.65 crore to Rs 10.91 crore. Dues to creditors other than micro enterprises and small enterprises rose Rs 58.09 crore to Rs 262.70 crore, while other financial liabilities increased Rs 4.39 crore to Rs 13.85 crore.

Raj Rayon’s non-current borrowings declined Rs 13.30 crore to Rs 137.49 crore, while current borrowings increased Rs 16.41 lakh to Rs 71.87 crore. Total borrowings, comprising current and non-current amounts, therefore fell Rs 13.13 crore to Rs 209.36 crore; total non-current liabilities declined Rs 12.24 crore to Rs 138.98 crore despite a Rs 93.33 lakh deferred tax liability at September 30, 2026.

What does Raj Rayon's cash flow show about the movements?

Raj Rayon reported net cash flow used in operating activities of Rs 92.24 crore for the half year ended September 30, 2026, compared with Rs 82.56 crore in the corresponding 2025 half year. The statement recorded profit before tax of Rs 32.23 crore, depreciation of Rs 10.16 crore and finance costs of Rs 7.99 crore in the operating-profit reconciliation.

Working-capital movements included a Rs 64.74 crore increase in trade payables, a Rs 4.37 crore increase in financial and other liabilities, and a Rs 4.69 crore decline in inventories. These movements were partly offset by a Rs 18.21 crore increase in trade receivables and a Rs 12.12 crore increase in financial and other assets; the trade-payable increase was below Rs 98.31 crore in the half year ended September 30, 2025.

Raj Rayon recorded Rs 81.98 crore of net cash used in investing activities, against Rs 29.14 crore in the prior-year half, principally reflecting Rs 74 crore of mutual-fund investments and Rs 8.04 crore of capital expenditure. Net cash used in financing activities was Rs 21.12 crore, including Rs 11.76 crore of long-term borrowing repayments and Rs 8.89 crore of interest and other borrowing costs, leaving cash and cash equivalents at Rs 1.56 crore.

Conclusion

Raj Rayon’s Rs 86.89 crore balance-sheet expansion at September 30, 2026 was concentrated in current assets, particularly the Rs 74.89 crore increase in investments. The increase was accompanied by Rs 64.74 crore higher trade payables and Rs 29.85 crore more equity, while total borrowings declined Rs 13.13 crore.

The next reported position will show whether the Rs 100.21 crore investment balance, Rs 48.38 crore receivables and Rs 273.61 crore trade payables change after September 30, 2026. Raj Rayon also said management had deferred implementation of the new labour codes while finalising impact assessment and compliance readiness with its human-resources department.