Sharda Ispat generated Rs 10.26 crore operating cash

Sharda Ispat Limited generated Rs 10.26 crore of net cash from operating activities in the half year ended September 30, 2026, after reporting a Rs 7.13 crore reduction in inventories and a Rs 1.24 crore decrease in trade and other receivables. The inflow followed a Rs 70.97 lakh operating cash outflow in the year ended March 31, 2026.

How much operating cash did Sharda Ispat generate?

Sharda Ispat generated Rs 10.26 crore of net operating cash in the half year ended September 30, 2026. Cash generation from operations was Rs 11.37 crore and taxes paid were Rs 1.11 crore, according to the cash-flow statement accompanying the unaudited half-year results approved by the board on November 3, 2026.

The operating cash inflow compares with an outflow of Rs 70.97 lakh for the year ended March 31, 2026. The periods are not directly comparable because the September 2026 figure covers six months and the March 2026 figure covers a full financial year, but the reported cash-flow direction changed from an outflow to an inflow.

Sharda Ispat reported Rs 3.77 crore of operating profit before working-capital changes in the September 2026 half year. This was derived from profit before tax of Rs 3.93 crore in the cash-flow statement, with Rs 44.15 lakh of depreciation and amortisation and Rs 1 crore of interest paid among the adjustments, offset partly by Rs 1.55 crore of interest received.

Cash generation from operations exceeded pre-working-capital operating profit by Rs 7.61 crore. That difference reflects the combined effect of working-capital movements, including releases from inventories and receivables, a decline in payables and other liabilities, an increase in provisions, and changes in other financial and non-financial assets.

What drove Sharda Ispat's operating cash inflow?

Sharda Ispat's largest reported operating cash contributor was a Rs 7.13 crore decrease in inventories during the half year ended September 30, 2026. Inventories stood at Rs 15.51 crore at September 30, down from Rs 22.64 crore at March 31, 2026, consistent with the cash-flow statement's working-capital movement.

Trade and other receivables generated a further Rs 1.24 crore of cash, as reported in the cash-flow statement. The balance sheet shows trade receivables at Rs 17.37 crore at September 30, 2026, compared with Rs 18.59 crore at March 31, although the cash-flow line includes trade and other receivables rather than trade receivables alone.

These releases were partly offset by a Rs 98.52 lakh decrease in trade payables and other liabilities. Provisions added Rs 14.78 lakh of cash, while other financial assets and other assets contributed Rs 7.09 lakh, leaving the total working-capital contribution at Rs 7.61 crore before taxes.

The working-capital pattern differed from that reported for the year ended March 31, 2026. In that earlier full-year period, inventories absorbed Rs 1.02 crore and trade and other receivables absorbed Rs 6.29 crore, whereas both categories released cash in the six months to September 2026. The filing does not specify the operational reasons for those changes.

How did Sharda Ispat deploy the cash generated?

Sharda Ispat used Rs 7.42 crore in financing activities during the half year ended September 30, 2026. The principal financing movement was a Rs 6.09 crore decrease in borrowings from banks, alongside Rs 92.20 lakh of interest paid and Rs 40.13 lakh of lease-obligation repayments.

The balance sheet supports the reported decline in bank borrowings. Current borrowings fell to Rs 22.66 crore at September 30 from Rs 30.38 crore at March 31, while non-current borrowings were Rs 1.62 crore at September 30. Total current and non-current borrowings were therefore Rs 24.29 crore, down Rs 6.09 crore from the March 2026 balance.

Investing activities generated Rs 48.32 lakh of cash in the six-month period. Sharda Ispat received Rs 1.53 crore of interest and Rs 5.08 lakh of dividends, while it advanced Rs 1 crore in loans, purchased Rs 2.20 lakh of investments, and spent Rs 60,000 on fixed assets.

Net cash and cash equivalents increased by Rs 3.33 crore during the half year. Cash and cash equivalents rose to Rs 5.11 crore at September 30, 2026, from Rs 1.78 crore at the beginning of the period, while bank balances other than cash and cash equivalents were Rs 21.20 lakh at the September reporting date.

How did Sharda Ispat's profit and revenue change?

Sharda Ispat reported revenue from operations of Rs 138.62 crore for the half year ended September 30, 2026, compared with Rs 54.01 crore in the corresponding half year of 2025. Profit after tax rose to Rs 2.95 crore from Rs 41.32 lakh over the same two six-month periods.

Profit before tax was Rs 3.93 crore in the September 2026 half year, against Rs 63.44 lakh a year earlier. Finance cost declined to Rs 1 crore from Rs 1.33 crore, while total comprehensive income was Rs 3.38 crore, compared with Rs 89.90 lakh in the corresponding prior-year half year.

In the quarter ended September 30, 2026, revenue from operations was Rs 67.47 crore, below Rs 71.15 crore in the quarter ended June 30, 2026, but above Rs 26.19 crore in the quarter ended September 30, 2025. Quarterly profit after tax was Rs 1.32 crore, compared with Rs 1.64 crore in the preceding quarter and Rs 12.93 lakh a year earlier.

Sharda Ispat states that it operates in one segment, iron and steel. The company says Indian Accounting Standard 108, which addresses operating-segment disclosures, is not applicable, so the results do not provide a product, customer or geographic split of the Rs 138.62 crore half-year revenue.

What changed in Sharda Ispat's balance sheet?

Sharda Ispat reported total assets of Rs 97.66 crore at September 30, 2026, compared with Rs 101.59 crore at March 31, 2026. The Rs 7.13 crore inventory reduction was partly offset by the Rs 3.33 crore rise in cash and cash equivalents and a Rs 1 crore increase in loans to Rs 40.55 crore.

Total equity increased to Rs 68.83 crore from Rs 65.46 crore over the same period. Equity share capital was unchanged at Rs 5.08 crore, while other equity increased to Rs 63.76 crore from Rs 60.38 crore, alongside total comprehensive income of Rs 3.38 crore for the half year.

Current liabilities declined to Rs 26.53 crore at September 30 from Rs 35.19 crore at March 31. In addition to lower current borrowings, amounts payable to micro, small and medium enterprises fell to Rs 24.97 lakh from Rs 90.10 lakh, and trade payables due to others declined to Rs 1.46 crore from Rs 1.70 crore.

Non-current liabilities rose to Rs 2.30 crore from Rs 94.21 lakh, including Rs 1.62 crore of non-current borrowings at September 30. Property, plant and equipment declined to Rs 3.10 crore from Rs 3.54 crore, while investments increased to Rs 9.81 crore from Rs 9.29 crore.

Conclusion

Sharda Ispat's Rs 10.26 crore operating cash inflow in the half year ended September 30, 2026 was principally driven by a Rs 7.13 crore inventory reduction and a Rs 1.24 crore cash release from trade and other receivables. The company used financing cash flows to reduce bank borrowings by Rs 6.09 crore and ended the period with Rs 5.11 crore of cash and cash equivalents.

The next financial results will show whether inventories remain close to the September 30 balance of Rs 15.51 crore and whether receivables continue to decline from Rs 17.37 crore. Sharda Ispat disclosed no forward target or plan for inventory, borrowings, operating cash flow or cash balances in its November 3, 2026 filing.