Salzer short-term borrowings rose to Rs 568.80 crore in H1 FY27

Salzer’s consolidated short-term borrowings rose by Rs 65.44 crore to Rs 568.80 crore as on 30 September 2026, from Rs 503.36 crore at 31 March 2026, alongside increases of Rs 60.61 crore in trade receivables and Rs 25.74 crore in inventories. The H1 FY27 balance sheet shows a larger operating funding requirement as current assets and liabilities both expanded.

Why did Salzer’s short-term borrowings increase in H1 FY27?

Salzer’s consolidated current borrowings increased to Rs 568.80 crore at 30 September 2026 from Rs 503.36 crore at 31 March 2026, a rise of Rs 65.44 crore over H1 FY27. Current borrowings were substantially larger than non-current borrowings, which increased by Rs 5.19 crore to Rs 33.27 crore during the same period.

Total current and non-current borrowings therefore rose by Rs 70.63 crore to Rs 602.07 crore at September-end, compared with Rs 531.44 crore at the FY26 close. Current borrowings accounted for about 94% of this combined borrowing balance at 30 September 2026, versus about 95% at 31 March 2026, showing that the borrowing profile remained concentrated in shorter-term funding.

Salzer’s total current liabilities rose by Rs 95.95 crore to Rs 802.26 crore in H1 FY27. Trade payables increased by Rs 22.83 crore to Rs 201.54 crore, other current liabilities rose by Rs 3.65 crore to Rs 14.63 crore, and provisions increased by Rs 4.01 crore to Rs 15.83 crore. The broader increase in operating liabilities occurred alongside the rise in short-term borrowings.

How did Salzer’s working-capital balances change?

Salzer’s consolidated current assets increased by Rs 109.51 crore to Rs 1,108.42 crore at 30 September 2026, exceeding the Rs 95.95 crore increase in current liabilities. The difference between current assets and current liabilities was Rs 306.16 crore at September-end, compared with Rs 292.60 crore at 31 March 2026. This is a balance-sheet comparison rather than a disclosed working-capital-days measure.

Trade receivables were the largest contributor to the current-asset increase, rising by Rs 60.61 crore to Rs 506.14 crore from Rs 445.53 crore. Inventories increased by Rs 25.74 crore to Rs 494.09 crore, and other current assets rose by Rs 19.43 crore to Rs 79.00 crore. Receivables and inventories together totalled Rs 1,000.23 crore at 30 September 2026, equivalent to about 90% of current assets.

Salzer’s cash and cash equivalents fell by Rs 1.23 crore to Rs 3.05 crore, while bank balances other than cash equivalents increased by Rs 3.97 crore to Rs 10.12 crore. Current investments rose by Rs 1.59 crore to Rs 11.62 crore. The presentation does not disclose working-capital days for either 30 September 2026 or 31 March 2026.

How has Salzer’s debt profile changed since FY25?

Salzer reported a debt-to-equity ratio of 0.92 times in FY26, compared with 0.86 times in FY25. The presentation defines debt-to-equity as total debt divided by net worth, and reported FY26 net worth of Rs 592.66 crore as of 31 March 2026, against Rs 543.95 crore one year earlier. The annual ratio rose while net worth also increased by Rs 48.71 crore.

Salzer’s shareholders’ funds increased by Rs 18.18 crore to Rs 620.54 crore between 31 March 2026 and 30 September 2026. Other equity increased by Rs 17.62 crore to Rs 592.59 crore, while non-controlling interest rose by Rs 0.56 crore to Rs 10.27 crore. Non-current liabilities also increased by Rs 5.71 crore to Rs 68.86 crore, including the Rs 5.19 crore increase in non-current borrowings.

The increase in shareholders’ funds was smaller than the Rs 70.63 crore rise in combined borrowings over the six-month period. Deferred tax liabilities increased by Rs 0.49 crore to Rs 29.76 crore, while lease liabilities declined by Rs 0.32 crore to Rs 2.25 crore. These line items explain changes in the reported consolidated balance sheet but do not provide a September 2026 debt-to-equity ratio.

What does Salzer’s H1 FY27 earnings performance show?

Salzer reported consolidated net revenue of Rs 1,077.79 crore in H1 FY27, up 25.32% from Rs 860.03 crore in H1 FY26, while EBITDA excluding other income declined by 9.03% to Rs 71.26 crore. EBITDA margin fell by 250 basis points to 6.61% from 9.11%. Management attributed margin pressure to raw-material volatility and said it expected margins to normalise from the third and fourth quarters.

Interest and finance cost increased by Rs 1.85 crore to Rs 25.19 crore in H1 FY27 from Rs 23.34 crore a year earlier. Profit before tax fell by Rs 10.08 crore to Rs 32.70 crore, while profit after tax declined by Rs 7.41 crore to Rs 23.20 crore. Profit after tax margin decreased to 2.15% from 3.56% as revenue growth did not translate into higher reported profit.

Industrial Switchgear represented about 55% of H1 FY27 revenue and had a 7.92% EBITDA margin, while Wire & Cable represented about 38% and had a 5.11% margin. Management’s plan is for a blended EBITDA margin of about 7.5% to 8% in FY27 and about 9% to 10% in FY28, compared with a current level of about 6.5%. The stated mechanisms are higher-value engineered products, export-led stock-keeping units, pricing discipline in Wire & Cable and higher capacity utilisation.

Conclusion

Salzer’s H1 FY27 balance sheet shows a larger operating funding requirement, with short-term borrowings rising to Rs 568.80 crore as trade receivables reached Rs 506.14 crore and inventories reached Rs 494.09 crore. Current assets increased more than current liabilities in absolute terms, but the expansion was concentrated in receivables and inventories, while H1 revenue growth of 25.32% coincided with lower EBITDA and profit after tax.

The next disclosed markers are management’s expectation of margin normalisation from the third and fourth quarters and its FY27 blended EBITDA-margin target of about 7.5% to 8%. Investors can monitor whether receivables, inventories and current borrowings move in line with that plan, particularly as management identifies Wire & Cable pricing discipline and capacity utilisation as operating priorities.