Riga Sugar Co. Limited ends September with Rs 2.66 lakh cash

Riga Sugar Co. Limited ended 30 September 2026 with cash and cash equivalents of Rs 2.66 lakh, down from Rs 45.94 lakh at 31 March, despite receiving Rs 4.74 crore in short-term borrowings from related parties during the half year. Interest payments of Rs 4.57 crore left financing cash flow positive by only Rs 16.45 lakh.

Why did Riga Sugar's cash fall to Rs 2.66 lakh?

Riga Sugar's cash fell by Rs 43.27 lakh in the half year ended 30 September 2026 because operating and financing inflows did not cover investing cash outflows. Cash and cash equivalents opened at Rs 45.94 lakh on 1 April and closed at Rs 2.66 lakh, with the closing amount reported as bank balances rather than cash on hand or deposits maturing within three months.

The closing cash balance was also marginally below Rs 2.73 lakh at 30 September 2025. However, the comparison reflects very different opening positions: cash at the beginning of the corresponding 2025 half year was Rs 2.20 crore, compared with Rs 45.94 lakh at the start of the 2026 half year.

Riga Sugar recorded Rs 2.85 crore of operating cash inflow, Rs 3.45 crore of investing outflow and Rs 16.45 lakh of financing inflow in the 2026 half year. Those three cash-flow categories reconcile to the reported Rs 43.27 lakh decline, while the 2025 half year showed a larger Rs 2.17 crore cash decrease, driven primarily by Rs 7.25 crore of investing outflow.

How much did Riga Sugar borrow from related parties?

Riga Sugar received Rs 4.74 crore of short-term borrowings from related parties in the half year ended 30 September 2026. The same period included Rs 4.57 crore of interest paid, so the financing section contributed only Rs 16.45 lakh of net cash rather than the full amount of borrowing receipts.

Short-term borrowings on the balance sheet increased to Rs 81.35 crore at 30 September from Rs 76.61 crore at 31 March, an increase of Rs 4.74 crore. This movement matches the related-party short-term borrowing reported in the cash-flow statement, although the supplied filing does not identify the related parties or disclose interest rates, maturity dates or repayment terms.

Finance costs were Rs 4.57 crore in the half-year income statement, compared with no finance-cost figure in the corresponding half year ended 30 September 2025. The cash-flow statement also lists Rs 4.57 crore as interest expense in the reconciliation of operating profit and as interest paid under financing activities.

The balance sheet recorded total current liabilities of Rs 108.44 crore at 30 September, down from Rs 125.57 crore at 31 March. The Rs 17.13 crore decrease in current liabilities occurred despite the rise in short-term borrowings, as the cash-flow statement reported a Rs 21.53 crore decrease in trade payables during the half year.

What did operations contribute to Riga Sugar's liquidity?

Riga Sugar generated Rs 2.85 crore of net operating cash in the half year ended 30 September 2026, down from Rs 5.07 crore in the corresponding 2025 period. The operating inflow was generated despite a pre-tax loss of Rs 14.58 crore, compared with a pre-tax loss of Rs 4.85 crore a year earlier.

The principal working-capital movement was a Rs 32.32 crore decline in inventories, which was a positive cash-flow adjustment. This was partly offset by a Rs 21.53 crore decrease in trade payables, a Rs 1.17 crore increase in other current assets and a Rs 33.78 lakh decrease in other current liabilities.

Depreciation was Rs 3.58 crore and interest expense was Rs 4.57 crore in the half year, compared with Rs 2.68 crore of depreciation and no reported interest expense in the corresponding 2025 cash-flow statement. After the non-cash adjustments and working-capital movements, the company reported cash generated from operations of Rs 2.85 crore, with no direct taxes paid shown in the statement.

Revenue from operations was Rs 39.10 crore for the half year, compared with Rs 6.33 crore in the corresponding period. Total expenses rose to Rs 53.68 crore from Rs 11.18 crore, resulting in a loss after tax of Rs 15.03 crore, against a loss after tax of Rs 3.29 crore in the prior-year half year.

What changed in Riga Sugar's current assets and liabilities?

Riga Sugar's current assets decreased to Rs 48.08 crore at 30 September 2026 from Rs 79.66 crore at 31 March. Inventories accounted for most of the movement, falling to Rs 39.21 crore from Rs 71.52 crore, while other current assets increased to Rs 8.85 crore from Rs 7.68 crore.

Cash was a small component of current assets at Rs 2.66 lakh at 30 September, compared with Rs 45.94 lakh at 31 March. There were no trade receivables reported at either balance-sheet date, according to the financial-assets section of the standalone balance sheet.

Current liabilities fell to Rs 108.44 crore from Rs 125.57 crore, while short-term borrowings rose to Rs 81.35 crore from Rs 76.61 crore. The balance-sheet presentation reports Rs 25.62 crore of dues to creditors other than micro and small enterprises at 30 September, while dues to micro and small enterprises were nil, versus Rs 2.09 crore at 31 March.

Based on the reported totals, current assets equalled about 0.44 times current liabilities at 30 September, compared with about 0.63 times at 31 March. This calculation uses current assets of Rs 48.08 crore and current liabilities of Rs 108.44 crore at September-end; it is not a ratio reported by Riga Sugar.

Total equity decreased to Rs 250.71 crore at 30 September from Rs 265.74 crore at 31 March. Other equity declined to Rs 236.27 crore from Rs 251.30 crore, broadly in line with the Rs 15.03 crore loss after tax reported for the half year.

Conclusion

Riga Sugar ended the September 2026 half year with Rs 2.66 lakh in cash after a Rs 43.27 lakh reduction from March. Related-party short-term borrowing added Rs 4.74 crore, but Rs 4.57 crore of interest paid limited net financing inflow to Rs 16.45 lakh. Operating cash generation of Rs 2.85 crore was supported by the Rs 32.32 crore inventory reduction while the company reported a Rs 15.03 crore post-tax loss.

The next disclosed event to watch is Riga Sugar's subsequent financial-results filing after its board approved the September half-year results on 7 November 2026. That filing can show whether cash changes from Rs 2.66 lakh, whether short-term borrowings move from Rs 81.35 crore, and whether finance costs remain near the Rs 4.57 crore reported for the half year.