Rajputana Stainless Limited cash falls as receivables rise

Rajputana Stainless Limited ended September 30, 2026 with cash and cash equivalents of Rs 2.01 crore, down from Rs 102.43 crore at March 31, as trade receivables increased by Rs 95.10 crore in the six-month cash-flow statement. The company reported Rs 43.90 crore of profit after tax for the same period.

Why did Rajputana Stainless' cash balance fall?

Rajputana Stainless' cash and cash equivalents fell by Rs 100.42 crore during the six months ended September 30, 2026. The balance declined from Rs 102.43 crore at March 31, 2026 to Rs 2.01 crore, matching the Rs 100.42 crore net cash used during the period reported in its cash-flow statement.

The filing identifies investing and financing uses alongside working-capital movements. Net cash used in investing activities was Rs 39.85 crore, including Rs 12.16 crore spent on property, plant, equipment, intangible assets and investment property, and Rs 34.52 crore of loans and advances given. Financing cash flows included Rs 55.68 crore of repayments of borrowings, Rs 4.18 crore of dividends paid and Rs 3.03 crore of finance costs.

The period-end cash balance should be read alongside other liquid or financial-asset balances disclosed in the balance sheet. Rajputana Stainless reported Rs 19.40 crore of bank balances other than cash and cash equivalents, Rs 2.18 crore of current investments and Rs 46.07 crore of other financial assets at September 30, 2026, compared with Rs 31.36 crore, Rs 0.18 crore and Rs 26.44 crore respectively at March 31.

How much did Rajputana Stainless' trade receivables increase?

Rajputana Stainless reported a Rs 95.10 crore increase in trade receivables in cash-flow working-capital changes for the six months ended September 30, 2026. This compared with a Rs 5.24 crore increase in the corresponding six months of 2025, making receivables the largest stated working-capital cash outflow in the current half year.

The balance sheet recorded trade receivables of Rs 232.34 crore at September 30, 2026, compared with Rs 137.51 crore at March 31, 2026. That represents a Rs 94.83 crore increase in the balance-sheet line item. The filing does not provide an ageing schedule or explain the difference between that movement and the Rs 95.10 crore cash-flow presentation.

Receivables rose as revenue increased. Revenue from operations was Rs 666.35 crore in the six months ended September 30, 2026, compared with Rs 501.53 crore in the corresponding 2025 period, while total income increased to Rs 670.76 crore from Rs 502.77 crore. The company operates in one reportable segment, manufacturing long and flat stainless-steel products including billets, forging ingots, rolled black bar, rolled bright bar, flat products and patti.

Which working-capital movements offset the receivables outflow?

Rajputana Stainless recorded some cash offsets within working capital, although they were smaller than the receivables movement. Inventories decreased by Rs 7.59 crore in the six months ended September 30, 2026, compared with a Rs 44.08 crore increase in the prior-year period. Other current assets generated Rs 6.32 crore of cash, while other financial assets used Rs 1.55 crore.

Liability movements were mixed in the cash-flow statement. Other financial liabilities increased by Rs 39.01 crore and other current liabilities increased by Rs 1.73 crore, while trade payables decreased by Rs 6.17 crore. Provisions increased by Rs 0.67 crore. Cash generated from operating activities before taxes was Rs 17.45 crore, compared with Rs 37.81 crore in the corresponding 2025 period.

Balance-sheet lines also changed over the six months. Inventories stood at Rs 174.19 crore at September 30, down from Rs 181.78 crore at March 31. Trade payables to creditors other than micro and small enterprises increased to Rs 141.77 crore from Rs 119.79 crore, while dues to micro and small enterprises increased to Rs 26.78 crore from Rs 9.76 crore.

Did profit and borrowings move differently from cash?

Rajputana Stainless reported profit after tax of Rs 43.90 crore for the six months ended September 30, 2026, up from Rs 24.41 crore in the corresponding 2025 period. Profit before tax increased to Rs 59.13 crore from Rs 32.32 crore, while the cash balance fell because of receivables growth, investing outflows and financing payments during the same period.

Borrowings moved between current and non-current categories. Short-term borrowings fell to Rs 1.43 crore at September 30 from Rs 66.01 crore at March 31, while long-term borrowings increased to Rs 9.94 crore from Rs 1.03 crore. Finance costs for the six months were Rs 3.18 crore, compared with Rs 10.25 crore in the corresponding 2025 period.

Production and procurement costs rose with revenue. Cost of materials consumed was Rs 403.55 crore in the September 2026 half year, up from Rs 360.23 crore a year earlier, while purchases of traded goods increased to Rs 127.46 crore from Rs 47.42 crore. These two expense lines together accounted for Rs 531.01 crore, compared with Rs 407.65 crore in the prior-year half year.

What remains of Rajputana Stainless' IPO proceeds?

Rajputana Stainless disclosed Rs 21.58 crore of unutilised initial public offer proceeds at September 30, 2026. The company completed an initial public offer in the year ended March 31, 2026 that included a fresh issue of Rs 178.73 crore, and its shares were listed on BSE Limited and the National Stock Exchange of India Limited on March 19, 2026.

The Rs 18.57 crore allocation for capital expenditure at the Panchmahal facility remained unutilised as of September 30. The allocation for repayment or prepayment of borrowings was Rs 98 crore, of which Rs 96.01 crore had been utilised, leaving Rs 1.99 crore unutilised. The filing said Rs 21.23 crore of unutilised proceeds was temporarily invested in fixed deposits, including interest earned, with Rs 16.13 lakh in the monitoring account and Rs 86.43 lakh in the escrow account.

Conclusion

Rajputana Stainless' September 2026 half-year results show a divergence between reported earnings and cash movement. Profit after tax rose to Rs 43.90 crore and revenue from operations reached Rs 666.35 crore, but a Rs 95.10 crore increase in receivables, Rs 39.85 crore of investing cash outflow and Rs 55.68 crore of borrowing repayments reduced cash and cash equivalents to Rs 2.01 crore.

The next filing can show whether Rajputana Stainless deploys the Rs 18.57 crore still allocated to Panchmahal facility capital expenditure and the Rs 1.99 crore remaining for debt repayment. It can also show whether trade receivables, reported at Rs 232.34 crore at September 30, decline, remain elevated or continue to rise.