Shree Balaji (Mala) Textiles uses ₹18.37 crore without deviation

Shree Balaji (Mala) Textiles Limited reported utilisation of ₹18.37 crore from its ₹18.90 crore public issue by September 30, 2026, with ₹16.50 crore deployed for working-capital requirements. The cotton-saree manufacturer reported no deviation or variation from the stated fund-use objects in its half-year filing.

How did Shree Balaji (Mala) Textiles use the public-issue proceeds?

Shree Balaji (Mala) Textiles used ₹16.50 crore, the full original allocation, for working-capital requirements by September 30, 2026. The company raised ₹18.90 crore through a public issue on July 29, 2026, and its disclosure covered the half-year ended September 30, 2026.

The remaining reported utilisation comprised ₹1.78 crore of issue-related expenses and ₹8.64 lakh for general corporate purposes. The original public-issue amount included ₹1.91 crore for issue-related expenses and ₹49.37 lakh for general corporate purposes, alongside the ₹16.50 crore working-capital allocation.

Working capital accounted for nearly all of the amount reported as used because the full ₹16.50 crore allocation had been deployed within the reporting period. The filing did not break down the working-capital spending into inventory, receivables, supplier payments or other individual operating uses.

Did Shree Balaji (Mala) Textiles report a deviation in fund use?

No, Shree Balaji (Mala) Textiles reported no deviation or variation in the use of its public-issue proceeds for the half-year ended September 30, 2026. It also recorded no modified allocation for working capital, general corporate purposes or issue-related expenses.

The company stated that its audit committee had no comments after review, while the auditors also had no comments. The filing defines a deviation or variation as a change in the stated objects, a difference in the amount actually used against the originally disclosed amount, or a change in terms of a contract cited in the fund-raising documents.

The absence of a reported deviation means the company retained the three original objects associated with the ₹18.90 crore public issue. The filing marked fields concerning shareholder approval for changes, explanation of deviation and modified allocation as not applicable.

How much public-issue money remained unused at September 30, 2026?

Shree Balaji (Mala) Textiles had ₹53.17 lakh of public-issue proceeds unutilised at September 30, 2026, based on ₹18.90 crore raised and ₹18.37 crore reported as utilised. The balance did not relate to the working-capital allocation, which was fully used at ₹16.50 crore.

General corporate purposes had ₹40.73 lakh remaining from the original ₹49.37 lakh allocation after ₹8.64 lakh was utilised. Issue-related expenses had ₹12.44 lakh remaining after the company reported use of ₹1.78 crore against an original allocation of ₹1.91 crore.

Together, the ₹40.73 lakh general-corporate balance and ₹12.44 lakh issue-expense balance equal the ₹53.17 lakh unutilised total. The disclosure does not specify a future date for using these balances or provide a further purpose within the general corporate-purpose category.

What changed in Shree Balaji (Mala) Textiles' financial position?

Shree Balaji (Mala) Textiles reported total assets of ₹164.84 crore at September 30, 2026, compared with ₹148.64 crore at March 31, 2026. Current assets rose to ₹150.08 crore from ₹139.56 crore, while non-current assets increased to ₹14.76 crore from ₹9.09 crore.

Inventory increased to ₹35.54 crore at September 30 from ₹28.82 crore at March 31, while trade receivables rose to ₹111.74 crore from ₹104.27 crore. Cash and cash equivalents moved the other way, falling to ₹1.77 crore from ₹5.84 crore across the same dates.

Long-term borrowings were ₹11.76 crore at September 30, compared with ₹2.63 lakh at March 31. Short-term borrowings declined to ₹64.88 crore from ₹69.06 crore, and total current liabilities decreased to ₹104.86 crore from ₹120.71 crore.

The unaudited cash-flow statement reported net cash used in operating activities of ₹15.09 crore for the half-year ended September 30, 2026, against ₹9.74 crore for the year ended March 31, 2026. Cash and cash equivalents declined by ₹4.07 crore during the half year, from ₹5.84 crore at the beginning to ₹1.77 crore at the end.

What did Shree Balaji (Mala) Textiles report for the half year?

Shree Balaji (Mala) Textiles reported revenue from operations of ₹97.67 crore and profit after tax of ₹3.06 crore for the unaudited half-year ended September 30, 2026. Total income was ₹98.87 crore, including ₹1.21 crore of other income, while profit before tax was ₹4.11 crore.

The filing provides an audited full-year comparison rather than a prior corresponding half-year figure. For the year ended March 31, 2026, Shree Balaji (Mala) Textiles reported revenue from operations of ₹211.97 crore and profit after tax of ₹5.78 crore; these annual figures are not directly comparable with the six-month results.

For the September half year, cost of materials consumed was ₹56.68 crore, other expenses were ₹32.54 crore and finance costs were ₹3.03 crore. Basic and diluted earnings per equity share were ₹3.76, compared with ₹8.02 for the audited year ended March 31, 2026.

Conclusion

Shree Balaji (Mala) Textiles used ₹18.37 crore of the ₹18.90 crore it raised on July 29, 2026, with the full ₹16.50 crore working-capital allocation deployed by September 30. The company retained its original fund-use objects, reported no deviation or variation, and had ₹53.17 lakh left across general corporate purposes and issue-related expenses.

The unresolved item to watch is utilisation of the ₹53.17 lakh balance, including ₹40.73 lakh assigned to general corporate purposes. The filing also shows inventory at ₹35.54 crore and receivables at ₹111.74 crore on September 30, 2026, alongside cash and cash equivalents of ₹1.77 crore, which provides context for subsequent working-capital disclosures.