Raj Rayon assets rise Rs 86.89 crore by September-end 2026

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, as current investments rose Rs 74.89 crore and trade receivables rose Rs 18.19 crore. Current liabilities increased Rs 69.27 crore, chiefly through a Rs 64.74 crore increase in trade payables.

How did Raj Rayon's assets change in six months?

Raj Rayon's total assets increased to Rs 685.20 crore at September 30, 2026, from Rs 598.30 crore at March 31, 2026. The increase came from current assets, which rose Rs 89.80 crore to Rs 340.52 crore, while non-current assets fell Rs 2.91 crore to Rs 344.68 crore. The September 30 column is marked un-audited, although the balance-sheet heading describes the statement as audited.

Current investments were the largest contributor to the asset movement, increasing to Rs 100.21 crore from Rs 25.32 crore. Trade receivables rose to Rs 48.38 crore from Rs 30.20 crore, while other current assets increased to Rs 64.62 crore from Rs 53.28 crore. These increases outweighed a Rs 4.69 crore reduction in inventories, which stood at Rs 113.41 crore at September 30.

Cash and cash equivalents moved in the opposite direction, falling Rs 10.86 crore to Rs 1.56 crore from Rs 12.42 crore at March 31. Bank balances other than cash and cash equivalents increased to Rs 10.59 crore from Rs 10.27 crore. The reported asset mix therefore moved towards investments, receivables and other current assets rather than cash and cash equivalents.

What drove Raj Rayon's increase in current investments?

Raj Rayon's current investments rose nearly four times, increasing Rs 74.89 crore to Rs 100.21 crore at September 30, 2026. The half-year cash-flow statement records Rs 74.00 crore of mutual-fund investments, while its operating cash-flow reconciliation includes a Rs 89.49 lakh net unrealised gain on investments.

The investing section recorded net cash outflow of Rs 81.98 crore for the half year ended September 30, 2026, compared with Rs 29.14 crore in the half year ended September 30, 2025. The 2026 outflow included Rs 8.04 crore spent on property, plant and equipment and capital work in progress, whereas the comparable prior-year period included Rs 29.06 crore of such spending and no stated mutual-fund investment outflow.

Non-current assets declined as property, plant and equipment fell Rs 5.43 crore to Rs 336.99 crore from Rs 342.42 crore. Capital work in progress increased to Rs 4.19 crore from Rs 87.38 lakh, and other non-current assets rose to Rs 1.96 crore from Rs 1.35 crore. A deferred tax asset of Rs 1.45 crore at March 31 was not reported at September 30, while deferred tax liabilities of Rs 93.33 lakh were reported on the liabilities side.

Why did Raj Rayon's trade payables rise?

Raj Rayon's trade payables increased Rs 64.74 crore to Rs 273.61 crore at September 30, 2026, from Rs 208.87 crore at March 31. Dues to creditors other than micro and small enterprises accounted for Rs 262.70 crore of the September balance, up from Rs 204.61 crore, while dues to micro and small enterprises rose to Rs 10.91 crore from Rs 4.26 crore.

The cash-flow statement also reports a Rs 64.74 crore increase in trade payables during the half year, compared with a Rs 98.31 crore increase in the half year ended September 30, 2025. Trade receivables used Rs 18.21 crore of cash in the 2026 half year, while the inventory reduction generated Rs 4.69 crore of cash. In the comparable 2025 period, inventory increased and used Rs 21.59 crore of cash.

Total current liabilities rose Rs 69.27 crore to Rs 359.89 crore. Current borrowings changed little, reaching Rs 71.87 crore from Rs 71.71 crore, but other financial liabilities increased to Rs 13.85 crore from Rs 9.47 crore. Other current liabilities were Rs 54.89 lakh at September 30, compared with Rs 56.39 lakh at March 31.

How was Raj Rayon's balance-sheet expansion funded?

Raj Rayon's total equity increased Rs 29.85 crore to Rs 186.33 crore at September 30, 2026, from Rs 156.47 crore at March 31. Other equity rose to Rs 105.72 crore from Rs 75.87 crore, while equity share capital remained Rs 55.61 crore and instruments entirely equity in nature remained Rs 25.00 crore.

Non-current liabilities declined Rs 12.24 crore to Rs 138.98 crore. Non-current borrowings fell Rs 13.30 crore to Rs 137.49 crore from Rs 150.78 crore, while provisions increased to Rs 55.85 lakh from Rs 43.34 lakh. The financing cash-flow statement records Rs 11.76 crore of long-term borrowing repayment, Rs 47.38 lakh of short-term borrowing repayment and Rs 8.89 crore of interest and other borrowing costs.

The cash-flow statement presents Rs 92.24 crore on the line titled net cash flow used in operating activities for the half year ended September 30, 2026, versus Rs 82.56 crore a year earlier. It reported profit before tax of Rs 32.23 crore, compared with Rs 17.36 crore in the prior-year half, and depreciation of Rs 10.16 crore. After Rs 81.98 crore of investing outflows and Rs 21.12 crore of financing outflows, cash and cash equivalents decreased Rs 10.86 crore.

Conclusion

Raj Rayon's Rs 86.89 crore balance-sheet expansion in the six months to September 30, 2026 was concentrated in current assets, particularly Rs 74.89 crore of additional investments and Rs 18.19 crore of additional receivables. On the funding side, the Rs 64.74 crore increase in trade payables accounted for most of the Rs 69.27 crore rise in current liabilities, while equity increased and non-current borrowings declined.

What to watch next is whether Raj Rayon provides a completion date for its assessment and compliance readiness under the new labour codes. Management said implementation had been deferred while it finalises the process with the human-resources department, and the November 3, 2026 filing did not provide a target date.