Shree Pacetronix reduces short-term debt by Rs 1.75 crore

Shree Pacetronix Limited reduced current borrowings to Rs 53.32 lakh at September 30, 2026, from Rs 2.29 crore at March 31, while reporting a Rs 1.75 crore net short-term borrowing outflow and Rs 2.41 crore in operating cash flow for the half-year.

How did Shree Pacetronix reduce short-term borrowings?

Shree Pacetronix reported a Rs 1.75 crore net outflow under short-term borrowings for the half-year ended September 30, 2026, compared with a Rs 6.79 lakh net inflow in the corresponding 2025 half-year. Current borrowings were Rs 53.32 lakh at September 30, 2026, down from Rs 2.29 crore at March 31, 2026. The reduction in short-term borrowings was the largest individual financing cash-flow outflow reported for the six-month period.

Shree Pacetronix also recorded a Rs 12.71 lakh net reduction in long-term borrowings, compared with a Rs 9.23 lakh reduction in the half-year ended September 30, 2025. Non-current borrowings fell to Rs 19.42 lakh at September 30 from Rs 32.12 lakh at the March 2026 year-end. Total equity increased to Rs 19.97 crore from Rs 18.11 crore, including other equity of Rs 15.91 crore against Rs 14.06 crore at March 31.

What operating cash flow did Shree Pacetronix report?

Shree Pacetronix generated Rs 2.41 crore of net cash from operating activities in the half-year ended September 30, 2026, up from Rs 1.60 crore in the corresponding 2025 period. Cash generated from operations before tax payments was Rs 3.16 crore, compared with Rs 1.75 crore a year earlier. The increase in net operating cash occurred although profit before tax declined to Rs 2.53 crore from Rs 2.65 crore.

Taxes paid were Rs 75.17 lakh, compared with Rs 15 lakh in the prior-year half, while operating profit before working-capital changes declined to Rs 2.87 crore from Rs 3.17 crore. Working-capital movements changed the cash outcome: inventories contributed Rs 32.51 lakh and trade and other payables contributed Rs 44.92 lakh. In the comparable period, trade and other payables used Rs 11.10 lakh of cash.

What changed in Shree Pacetronix receivables and liquidity?

Shree Pacetronix recorded a Rs 48.12 lakh cash outflow from trade and other receivables in the half-year ended September 30, 2026, versus a Rs 2.85 crore outflow in the previous corresponding half-year. Trade receivables rose to Rs 10.99 crore at September 30 from Rs 10.64 crore at March 31. Receivables therefore remained a use of cash, although the cash-flow outflow was lower than a year earlier.

Inventory declined to Rs 4.50 crore at September 30, 2026, from Rs 4.83 crore at March 31, in line with the Rs 32.51 lakh inventory-related operating cash inflow. Trade payables increased to Rs 1.70 crore from Rs 1.22 crore, and other financial liabilities increased to Rs 83.23 lakh from Rs 63.45 lakh. Cash and cash equivalents nevertheless declined to Rs 21.40 lakh from Rs 76.91 lakh over the six months.

Where did Shree Pacetronix use cash besides borrowings?

Shree Pacetronix used Rs 1.02 crore in net investing activities during the half-year ended September 30, 2026, compared with Rs 1.34 crore in the corresponding 2025 period. Purchases of fixed assets were Rs 1.02 crore, partly offset by Rs 14.24 lakh from fixed-asset sales and Rs 5.03 lakh in interest income. Property, plant and equipment rose to Rs 4.03 crore from Rs 3.63 crore, while capital work-in-progress increased to Rs 82.08 lakh from Rs 65.54 lakh.

Financing activities used Rs 1.95 crore in the six months, compared with Rs 23.44 lakh in the prior-year period. Along with the Rs 1.75 crore net short-term borrowing reduction and the Rs 12.71 lakh long-term borrowing reduction, Shree Pacetronix paid Rs 5.43 lakh in interest and Rs 1.65 lakh against issuance of share capital or share warrants. Bank balances other than cash and cash equivalents increased by Rs 22.76 lakh to Rs 1.15 crore.

How did Shree Pacetronix earnings compare with cash generation?

Shree Pacetronix reported revenue from operations of Rs 11.04 crore for the half-year ended September 30, 2026, down from Rs 11.93 crore in the corresponding 2025 period. Net profit declined to Rs 1.87 crore from Rs 1.99 crore, while finance costs fell to Rs 5.43 lakh from Rs 20.99 lakh. The filing identifies Life Saving Devices as Shree Pacetronix's only segment and provides no separate segment-level cash-flow disclosure.

The September 2026 quarter reported revenue of Rs 6.14 crore, compared with Rs 4.90 crore in the June 2026 quarter and Rs 6.59 crore in the September 2025 quarter. Quarterly net profit was Rs 1.11 crore, against Rs 76.31 lakh in the preceding quarter and Rs 1.32 crore a year earlier. For the half-year, operating cash flow of Rs 2.41 crore exceeded net profit of Rs 1.87 crore before investing and financing outflows.

Conclusion

Shree Pacetronix reported higher operating cash flow alongside a material reduction in borrowings during the half-year ended September 30, 2026. Net operating cash rose by Rs 81.15 lakh year on year, while short-term borrowings moved from a Rs 6.79 lakh net inflow in the prior-year half to a Rs 1.75 crore net outflow. Lower inventory and higher trade and other payables offset the Rs 48.12 lakh receivables-related cash outflow.

The next financial update will show whether trade receivables of Rs 10.99 crore at September 30 convert into collections and whether cash and cash equivalents recover from Rs 21.40 lakh. It will also show whether fixed-asset expenditure continues after Rs 1.02 crore of purchases in the first half, and whether finance costs remain below the Rs 20.99 lakh reported in the corresponding 2025 half-year.