Shellz borrowings rise to ₹128.26 crore as capex jumps sharply

Shellz India Limited reported total borrowings of Rs 128.26 crore at September 30, 2026, up Rs 27.43 crore in six months, as capital work-in-progress rose nearly sixfold to Rs 65.18 crore. Net operating cash flow turned into an inflow of Rs 35.81 crore, but Rs 59.20 crore of investing outflow reduced closing cash to Rs 59 lakh.

How much did Shellz’s borrowing increase in six months?

Shellz’s total borrowings increased by Rs 27.43 crore to Rs 128.26 crore at September 30, 2026, from Rs 100.83 crore at March 31, 2026. The September balance was also Rs 50.08 crore above Rs 78.18 crore at March 31, 2025, although the earlier figure is based on restated standalone financials and the latest figure is consolidated.

Short-term borrowings accounted for most of the six-month increase. They rose by Rs 22.35 crore to Rs 77.20 crore, while long-term borrowings increased by Rs 5.08 crore to Rs 51.06 crore. The presentation reports both categories within total borrowings of Rs 128.26 crore at September 30, 2026.

Shellz’s shareholders’ funds rose Rs 8.20 crore to Rs 68.36 crore over the same period, comprising Rs 8.72 crore of share capital and Rs 59.64 crore of reserves and surplus. Total borrowings exceeded shareholders’ funds at September 30, 2026, while total equity and liabilities increased Rs 48.94 crore to Rs 262.58 crore.

Why did Shellz’s capital work-in-progress rise sharply?

Shellz’s capital work-in-progress increased by Rs 53.85 crore to Rs 65.18 crore at September 30, 2026, from Rs 11.33 crore at March 31, 2026. The closing balance was about 5.75 times the March amount and was higher than intangible assets of Rs 22.21 crore and property, plant and equipment of Rs 15.58 crore.

The presentation does not give a project-by-project split of the Rs 65.18 crore balance. It states that advances to suppliers include advances for plant and machinery for the Sonipat facility, carried in short-term loans and advances until machinery is received and capitalised. Loans, advances and other current assets stood at Rs 38.07 crore at September 30, 2026, versus Rs 35.94 crore six months earlier.

Property, plant and equipment moved in the opposite direction, falling Rs 1.28 crore to Rs 15.58 crore at September 30, 2026. The balance-sheet change therefore concentrated in work-in-progress and supplier advances rather than completed fixed assets during the six-month period.

What does Shellz’s cash flow show about the funding trade-off?

Shellz generated Rs 35.81 crore of net cash from operating activities in the half year ended September 30, 2026, compared with an outflow of Rs 7.36 crore in the half year ended September 30, 2025. Cash generated from operations was Rs 38.81 crore before Rs 3.00 crore of direct taxes paid, including Rs 16.79 crore from other working-capital changes.

Investing activities used Rs 59.20 crore in H1 FY27, compared with Rs 2.11 crore in H1 FY26. The Rs 57.09 crore higher investing outflow exceeded the Rs 43.17 crore improvement in operating cash flow, while net financing inflow increased to Rs 22.84 crore from Rs 14.58 crore.

Cash and cash equivalents fell Rs 55 lakh during H1 FY27, closing at Rs 59 lakh on September 30, 2026, from Rs 1.14 crore at March 31, 2026. H1 FY26 closed with Rs 5.58 crore, but Shellz identifies H1 FY27 as consolidated and H1 FY26 as standalone because Shellz Overseas Private Limited became a subsidiary in March 2026.

How did Shellz’s earnings and working capital change during H1 FY27?

Shellz reported revenue from operations of Rs 95.66 crore in H1 FY27, up Rs 3.79 crore, or 4.1%, from Rs 91.87 crore in H1 FY26. Profit after tax rose Rs 1.93 crore to Rs 8.19 crore, and the profit-after-tax margin increased to 8.56% from 6.82%; the half-year figures are not annualised.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 21.4% to Rs 17.61 crore from Rs 14.50 crore. EBITDA margin increased to 18.41% from 15.78%, while total expenses rose Rs 1.18 crore to Rs 84.55 crore and total income rose Rs 4.13 crore to Rs 96.23 crore.

Trade receivables declined Rs 10.79 crore to Rs 37.81 crore at September 30, 2026, while inventories were broadly unchanged at Rs 70.56 crore from Rs 70.22 crore at March 31, 2026. Trade payables rose Rs 1.70 crore to Rs 37.13 crore, alongside the positive Rs 16.79 crore contribution from other working-capital changes in the H1 FY27 cash-flow statement.

Conclusion

Shellz’s September 2026 accounts show that improved operating cash generation partly supported a larger investment programme, but did not cover it in full. Operating cash flow changed from a Rs 7.36 crore outflow in H1 FY26 to a Rs 35.81 crore inflow in H1 FY27, while capital work-in-progress reached Rs 65.18 crore and total borrowings rose to Rs 128.26 crore.

The next results can show whether plant and machinery advances for the Sonipat facility are received and capitalised, and how the Rs 65.18 crore work-in-progress balance changes. The presentation also leaves an unresolved funding question around whether operating cash flow can continue to support investment alongside Rs 77.20 crore of short-term borrowings and Rs 59 lakh of closing cash.