Ritco Logistics subsidiary raises Rs 78.26 crore in preference shares

Ritco Logistics Limited’s subsidiary raised Rs 78.26 crore through compulsory convertible preference shares in the half year ended 30 September 2026, while the group’s cash and cash equivalents declined by Rs 9.33 crore to Rs 8.61 crore after operating and investing cash outflows exceeded financing inflows.

How much preference-share funding did Ritco Logistics’ subsidiary raise?

Ritco Logistics’ subsidiary Trucksup Solutions Private Limited issued and allotted 15,65,200 compulsory convertible preference shares, or CCPS, during the half year ended 30 September 2026. The securities had a face value of Rs 10 each and an issue price of Rs 500 each, including Rs 490 of securities premium, for gross proceeds of Rs 78.26 crore.

The CCPS are convertible into equity shares of Trucksup Solutions Private Limited under their issue terms and the Companies Act, 2013, the filing said. Ritco Logistics said the subsidiary accounted for the proceeds under applicable Indian Accounting Standards, or Ind AS, but did not disclose the conversion ratio, conversion timing, investor identity or use of proceeds.

The consolidated cash-flow statement records Rs 76.01 crore of preference-share proceeds, net of issue expenses, for the period ended 30 September 2026. This was Rs 2.25 crore below the Rs 78.26 crore gross allotment value, reflecting the distinction between the issue value in the notes and net cash proceeds in the cash-flow statement.

How did Ritco Logistics finance its cash outflows?

Ritco Logistics recorded a net financing cash inflow of Rs 98.97 crore for the period ended 30 September 2026, but this did not offset Rs 22.92 crore used in operations and Rs 85.38 crore used in investing activities. The net result was a Rs 9.33 crore cash outflow, reducing cash and cash equivalents from Rs 17.94 crore at 31 March 2026 to Rs 8.61 crore.

Preference-share proceeds were the largest stated financing inflow, followed by Rs 45.29 crore of net proceeds from long-term borrowings. Short-term borrowings decreased by Rs 6.90 crore, interest paid was Rs 15.24 crore and lease principal payments were Rs 20.11 lakh. These items left financing cash inflow below the combined operational and investment outflows.

The columns cover different periods: six months to 30 September 2026 and the full year to 31 March 2026. Within that limitation, operating cash flow was negative in both periods, while financing inflow was Rs 35.21 crore lower in the six-month period than in the preceding full year.

Why was Ritco Logistics’ operating cash flow negative?

Ritco Logistics reported operating profit before working-capital changes of Rs 47.37 crore for the period ended 30 September 2026, but working-capital movements turned cash flow negative. Trade receivables increased by Rs 58.33 crore, other assets increased by Rs 8.03 crore and direct taxes paid were Rs 11.69 crore, resulting in net operating cash used of Rs 22.92 crore.

The receivables movement was the largest stated working-capital use of cash and exceeded the period’s Rs 12.53 crore profit before tax. It was partly offset by a Rs 7.59 crore reduction in other financial assets and a Rs 2.00 crore increase in provisions, while a Rs 56 lakh decrease in trade payables also used cash.

The consolidated balance sheet records trade receivables of Rs 553.45 crore at 30 September 2026, compared with Rs 495.11 crore at 31 March 2026. Other current assets increased to Rs 41.39 crore from Rs 33.37 crore, and current financial investments rose to Rs 42.48 crore from Rs 8.20 crore, taking total current assets to Rs 693.61 crore from Rs 594.07 crore.

How much did Ritco Logistics spend on assets and borrowing?

Ritco Logistics spent Rs 53.07 crore on purchases of property, plant and equipment in the six months to 30 September 2026, the largest investing cash outflow. It also recorded Rs 34.05 crore of increased investments, while property, plant and equipment sales provided Rs 60 lakh and interest received added Rs 2.13 crore.

Property, plant and equipment on the consolidated balance sheet increased to Rs 237.34 crore at 30 September 2026 from Rs 206.11 crore at 31 March 2026. The Rs 31.23 crore balance-sheet increase was below the Rs 53.07 crore purchase line, while the filing also reports Rs 21.51 crore of depreciation expense and Rs 60 lakh of asset-sale proceeds for the half year.

Non-current borrowings rose to Rs 146.11 crore at 30 September 2026 from Rs 99.25 crore at 31 March 2026. Current borrowings decreased to Rs 363.44 crore from Rs 370.33 crore, movements consistent with the cash-flow statement’s Rs 45.29 crore net long-term borrowing inflow and Rs 6.90 crore net reduction in short-term borrowings.

What did Ritco Logistics report on revenue and profit?

Ritco Logistics reported consolidated revenue from operations of Rs 804.18 crore for the half year ended 30 September 2026, up from Rs 714.71 crore in the corresponding half year ended 30 September 2025. Profit before tax, however, decreased to Rs 12.53 crore from Rs 27.00 crore, while consolidated profit for the period was Rs 4.50 crore compared with Rs 18.28 crore a year earlier.

Cost of service rose to Rs 705.20 crore from Rs 630.44 crore, employee benefit expense increased to Rs 34.24 crore from Rs 20.97 crore, and depreciation rose to Rs 21.51 crore from Rs 13.80 crore. Finance costs increased to Rs 15.24 crore from Rs 12.98 crore. Ritco Logistics reported one segment under Ind AS 108 and therefore did not provide a segment-level revenue or profitability split.

Total equity increased to Rs 450.28 crore at 30 September 2026 from Rs 364.43 crore at 31 March 2026, while total assets increased to Rs 983.43 crore from Rs 862.28 crore. Non-controlling interest was negative Rs 13.17 crore at 30 September 2026, compared with negative Rs 6.08 crore at the prior year-end, and the filing did not explain this movement beyond the reported consolidated figures.

Conclusion

Ritco Logistics combined Rs 78.26 crore of gross subsidiary CCPS issuance with Rs 45.29 crore of net long-term borrowing proceeds during the half year ended 30 September 2026. Those funding sources coincided with a Rs 22.92 crore operating cash outflow, led by a Rs 58.33 crore receivables increase, and an Rs 85.38 crore investing outflow that included Rs 53.07 crore of property, plant and equipment purchases.

The next financial update should show whether cash conversion changes after receivables reached Rs 553.45 crore and cash declined to Rs 8.61 crore at 30 September 2026. The filing also leaves the conversion ratio and schedule for Trucksup Solutions Private Limited’s CCPS undisclosed, despite confirming that the securities are convertible into equity shares.