Shree Hari Chemicals lifts H1 capital spending to Rs 24.36 crore

Shree Hari Chemicals Export Limited reported Rs 24.36 crore of purchases of fixed assets, right-of-use assets and capital work-in-progress in the half year ended September 30, 2026, up from Rs 6.94 crore a year earlier. Capital work-in-progress reached Rs 26.18 crore, compared with Rs 11.30 crore at March 31, 2026.

How much did Shree Hari Chemicals spend on capital assets?

Shree Hari Chemicals recorded Rs 24.36 crore of cash outflow for purchases of fixed assets, including right-of-use assets and capital work-in-progress, in the half year ended September 30, 2026. The comparable outflow was Rs 6.94 crore in the half year ended September 30, 2025, so the reported outflow increased by Rs 17.42 crore.

The investing cash-flow line combines fixed assets, right-of-use assets and capital work-in-progress, or CWIP, and therefore does not split the spending between those categories. Shree Hari Chemicals also reported Rs 2.63 crore of payments of capital advances in the September 2026 half year, compared with an Rs 89.55 lakh inflow under that line in the corresponding 2025 period.

Shree Hari Chemicals used Rs 37.89 crore of cash in investing activities during the September 2026 half year, against Rs 6.06 crore in the prior-year period. Besides the Rs 17.42 crore increase in asset purchases, the latest period included Rs 11.31 crore of net investment purchases, compared with Rs 50 lakh in the prior-year half year.

What does Shree Hari Chemicals' CWIP increase show?

Shree Hari Chemicals reported CWIP of Rs 26.18 crore at September 30, 2026, an increase of Rs 14.88 crore from Rs 11.30 crore at March 31, 2026. CWIP is shown separately from completed property, plant and equipment in the consolidated balance sheet.

Property, plant and equipment, or PPE, increased to Rs 28.62 crore at September 30 from Rs 20.61 crore at March 31, a rise of Rs 8.01 crore. Combined PPE and CWIP therefore rose to Rs 54.80 crore from Rs 31.91 crore over the six months, increasing by Rs 22.89 crore.

The filing does not identify the projects, facilities or products represented by the Rs 26.18 crore CWIP balance. Shree Hari Chemicals states that it operates in one reportable business segment under Indian Accounting Standard 108, so it provides neither a segment-level allocation of the investment nor a commissioning timetable.

How did Shree Hari Chemicals fund the higher investing outflow?

Shree Hari Chemicals generated Rs 26.41 crore from operating activities in the half year ended September 30, 2026, compared with Rs 15.07 lakh used in operating activities in the prior-year half year. The latest operating cash generation covered part, but not all, of the Rs 37.89 crore investing outflow.

Borrowings taken, net of repayments, were Rs 12.33 crore in the September 2026 half year, versus Rs 35.34 lakh in the corresponding 2025 period. After Rs 1.03 crore of interest expense, financing activities generated Rs 11.30 crore of cash, compared with Rs 7.51 crore a year earlier, when the group also reported Rs 8.18 crore of proceeds from convertible debentures.

Cash and cash equivalents declined by Rs 18.48 lakh during the latest half year to Rs 4.42 crore at September 30, 2026. In the comparable half year, cash and cash equivalents increased by Rs 1.29 crore to Rs 1.96 crore, as the higher 2026 operating and financing inflows were outweighed by the larger investing outflow.

Which balance-sheet changes accompanied Shree Hari Chemicals' spending?

Shree Hari Chemicals' non-current borrowings rose to Rs 19.18 crore at September 30, 2026 from Rs 7.28 crore at March 31, an increase of Rs 11.90 crore. Current borrowings were Rs 26.06 crore, compared with Rs 25.63 crore, taking total reported borrowings to Rs 45.24 crore from Rs 32.91 crore.

Equity increased to Rs 65.28 crore at September 30 from Rs 44.30 crore at March 31, comprising Rs 6.31 crore of equity share capital and Rs 58.97 crore of other equity. Shree Hari Chemicals allotted 7,74,946 equity shares on April 3, 2026 upon conversion of an equal number of zero-coupon compulsorily convertible debentures originally allotted on November 15, 2024.

Working-capital balances also changed during the six months. Trade receivables increased to Rs 47.52 crore from Rs 24.32 crore, while other current assets rose to Rs 11.90 crore from Rs 1.78 crore; the cash-flow statement records Rs 23.14 crore and Rs 10.05 crore of cash outflows, respectively, from those two movements.

What financial-result context accompanied the capital spending?

Shree Hari Chemicals reported profit before tax of Rs 28.00 crore for the half year ended September 30, 2026, compared with Rs 2.56 crore in the corresponding 2025 period. The cash-flow statement shows that depreciation was Rs 1.53 crore in the latest half year, compared with Rs 1.10 crore a year earlier.

The consolidated results were reviewed by Kailash Chand Jain & Co., which stated in its November 6, 2026 review report that nothing had come to its attention to indicate a material misstatement in the results. The Board approved the consolidated financial results on November 6, 2026, and the filing describes them as unaudited.

Conclusion

Shree Hari Chemicals' September 2026 half-year accounts show a substantially larger investment outflow, with Rs 24.36 crore spent on fixed assets, right-of-use assets and CWIP and CWIP rising to Rs 26.18 crore. Operating cash generation of Rs 26.41 crore and net borrowings of Rs 12.33 crore offset part of the Rs 37.89 crore investing outflow, while total borrowings increased to Rs 45.24 crore.

The next disclosures to watch are whether Shree Hari Chemicals identifies the projects behind its Rs 26.18 crore CWIP balance, provides a completion timetable, or reports a transfer of CWIP into completed PPE. The current filing provides no project description, capacity detail or commissioning schedule, leaving the purpose and timing of the investment unresolved.