RUPA net debt turns Rs 50 crore as inventory rises Rs 173.4 crore

RUPA reported net debt of Rs 50 crore at September 2026, replacing a Rs 33 crore net surplus at March 2026, while inventory rose Rs 173.4 crore to Rs 619.3 crore. Short-term borrowings increased to Rs 332 crore, whereas total cash and cash equivalents remained broadly unchanged at Rs 282 crore.

Why did RUPA move from net surplus to net debt?

RUPA moved from a Rs 33 crore net surplus in March 2026 to Rs 50 crore net debt in September 2026 as its reported short-term borrowings rose by Rs 82 crore while total cash and cash equivalents fell by Rs 1 crore. The key financial metrics show borrowings of Rs 332 crore at September 2026, against Rs 250 crore six months earlier, and cash and cash equivalents of Rs 282 crore, against Rs 283 crore.

The Rs 83 crore change in the reported net debt/(surplus) measure closely matched the change in short-term borrowings, but the presentation does not explicitly attribute the movement to inventory or any other balance-sheet item. RUPA defines total cash and cash equivalents as including investments and fixed deposits, both current and non-current. Its detailed balance sheet separately reported Rs 3.5 crore of cash and cash equivalents, Rs 242.5 crore of other bank balances and Rs 26.3 crore of investments at September 2026.

The detailed consolidated balance sheet records current borrowings of Rs 328.8 crore at September 2026, compared with Rs 247.7 crore at March 2026. This is lower than the Rs 332 crore and Rs 250 crore figures in the key-metrics table, which the presentation does not reconcile. Non-current borrowings were nil at both reporting dates, placing the disclosed borrowing balance within current liabilities rather than long-term funding.

How much did RUPA's inventory increase in six months?

RUPA's inventory increased by Rs 173.4 crore over six months to Rs 619.3 crore at September 2026 from Rs 445.9 crore at March 2026. The rise exceeded the Rs 77.7 crore increase in total current assets because trade receivables declined materially during the same period. The presentation does not disclose inventory days, stock composition or an intended inventory level.

Trade receivables fell by Rs 93.3 crore to Rs 484.7 crore at September 2026 from Rs 578 crore in March 2026. Other bank balances decreased by Rs 7.8 crore to Rs 242.5 crore, while other financial assets rose by Rs 6.2 crore to Rs 10 crore. These offsets left total current assets at Rs 1,423.7 crore, compared with Rs 1,346 crore six months earlier.

Net working capital rose by Rs 75 crore to Rs 929 crore between March and September 2026, according to RUPA's key financial metrics. The inventory build occurred in the first half of FY27, when revenue from operations increased 3.7% year on year to Rs 522.8 crore. That sales increase was smaller in absolute terms than the Rs 173.4 crore inventory increase, although the presentation provides no working-capital-cycle analysis.

What else changed on RUPA's balance sheet?

RUPA's total liabilities increased by Rs 77.5 crore to Rs 625.8 crore at September 2026, while total equity increased by Rs 1.5 crore to Rs 1,067.6 crore. Current liabilities accounted for almost all of the increase, rising by Rs 78.1 crore to Rs 597.4 crore. Non-current liabilities declined by Rs 0.6 crore to Rs 28.4 crore.

Beyond current borrowings, trade payables to creditors other than microenterprises and small enterprises rose by Rs 10.6 crore to Rs 171.9 crore. Other financial liabilities declined by Rs 2.5 crore to Rs 82.6 crore, while current tax liabilities fell by Rs 7.2 crore to Rs 1.1 crore. Payables to microenterprises and small enterprises also declined to Rs 3.2 crore from Rs 8.3 crore.

The changes were concentrated in current assets and liabilities rather than fixed assets. Property, plant and equipment was Rs 220.7 crore at September 2026, nearly unchanged from Rs 220.4 crore in March 2026. Total non-current assets rose by Rs 1.3 crore to Rs 269.7 crore, with investments increasing by Rs 10.3 crore to Rs 26.3 crore.

Did RUPA's earnings improve during H1 FY27?

RUPA's earnings improved in H1 FY27 despite the higher inventory and borrowing balances. Revenue from operations rose to Rs 522.8 crore from Rs 504.1 crore in H1 FY26, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 20.4% to Rs 41.7 crore. EBITDA margin rose to 8.0% from 6.9% in the year-earlier half.

Profit after tax (PAT) increased 25.9% to Rs 25.3 crore in H1 FY27 from Rs 20 crore in H1 FY26, and PAT margin rose to 4.8% from 4.0%. Finance cost increased by Rs 1.8 crore to Rs 11.2 crore over the same comparison. RUPA does not attribute the higher finance cost to a particular borrowing category in the presentation.

In Q2 FY27, revenue from operations was Rs 320.4 crore, compared with Rs 320.2 crore in Q2 FY26, while EBITDA rose to Rs 26 crore from Rs 22.4 crore. Management said Thermal and Athleisure wear recorded revenue growth supported by volume momentum. It also said exports and modern trade contributed about 4% and 5%, respectively, to quarterly revenue; the H1 FY27 sales-mix table reports export at 4% and modern trade at 3%.

Conclusion

RUPA's September 2026 balance sheet shows a Rs 83 crore shift in its reported net debt/(surplus) position, from a Rs 33 crore surplus to Rs 50 crore net debt. Inventory rose Rs 173.4 crore, receivables fell Rs 93.3 crore and current borrowings increased, while H1 FY27 EBITDA rose Rs 7.1 crore and PAT increased Rs 5.3 crore from the prior-year period.

The next point to watch is H2 FY27, when management says it will focus on improving product mix and operational efficiencies after reporting an 8.0% H1 EBITDA margin and Rs 929 crore of net working capital at September 2026. RUPA did not disclose an inventory target, debt-reduction target or timetable for changing its September borrowing balance.