Shree Rajasthan Syntex Limited equity falls to Rs 626.41 lakh in H1

Shree Rajasthan Syntex Limited reported total equity of Rs 626.41 lakh at September 30, 2026, down from Rs 760.38 lakh at March 31, 2026, while operating activities used Rs 54.36 lakh of cash in the first half despite the net loss narrowing to Rs 118.12 lakh.

Why did Shree Rajasthan Syntex’s equity decline?

Shree Rajasthan Syntex’s equity declined because it recorded a total comprehensive loss of Rs 133.96 lakh for the half year ended September 30, 2026. Total equity fell by Rs 133.97 lakh from Rs 760.38 lakh at March 31, while equity share capital remained unchanged at Rs 4,073.73 lakh.

The movement was reflected in other equity, which became more negative at Rs 3,447.32 lakh from negative Rs 3,313.35 lakh at March 31, 2026. The half-year net loss was Rs 118.12 lakh and other comprehensive loss was Rs 15.84 lakh, together producing the reported comprehensive loss.

The net loss was lower than the Rs 411 lakh loss reported in the half year ended September 30, 2025. However, the earlier period included an exceptional gain of Rs 151 lakh, whereas the 2026 half year included an exceptional gain of Rs 6,000.

What caused Shree Rajasthan Syntex’s operating cash outflow?

Shree Rajasthan Syntex reported a Rs 54.36 lakh operating cash outflow for the half year ended September 30, 2026, after cash generated from operations was negative Rs 54.44 lakh and Rs 8,000 of income tax was paid. The outflow was narrower than negative Rs 274 lakh in the corresponding 2025 half year.

The cash-flow statement showed an operating loss before working-capital changes of Rs 8.26 lakh, compared with a Rs 236 lakh loss a year earlier. Depreciation of Rs 48.98 lakh, interest expense of Rs 29.81 lakh and a Rs 22.49 lakh write-back of sundry balances or excess liabilities were among the adjustments made to the pre-tax loss.

Working-capital movements included Rs 38.70 lakh absorbed by inventories, Rs 88.54 lakh absorbed by current and non-current provisions, and Rs 36.19 lakh used by other financial liabilities. These were partly offset by Rs 140.90 lakh generated from other non-financial assets and Rs 7.09 lakh released from trade receivables.

Inventories rose to Rs 117.41 lakh at September 30, 2026 from Rs 78.71 lakh at March 31, while trade receivables declined to Rs 29.46 lakh from Rs 36.55 lakh. The company reported no current, deferred or prior-period tax expense in its half-year income statement.

How did Shree Rajasthan Syntex’s cash and borrowings change?

Shree Rajasthan Syntex’s cash and cash equivalents fell by Rs 43.47 lakh to Rs 127.19 lakh at September 30, 2026 from Rs 170.66 lakh at March 31, 2026. The cash-flow statement reported a net decrease of Rs 43.46 lakh in the half year, compared with a Rs 90 lakh increase in the 2025 period.

Investing activities used Rs 23.65 lakh, compared with an inflow of Rs 159 lakh in the previous-year half. The statement included a negative Rs 168.50 lakh line for sale of property, plant and equipment, Rs 10.17 lakh from assets held for sale, Rs 129.53 lakh invested in fixed deposits and Rs 5.15 lakh of interest received.

Financing activities reported a Rs 34.55 lakh cash inflow, against Rs 205 lakh in the prior-year half. The filing recorded a Rs 28.32 lakh increase in long-term borrowings including interest, alongside Rs 46.34 lakh of lease-liability payment, Rs 29.81 lakh of interest payment and Rs 10.31 lakh of dividend payment.

Non-current borrowings increased to Rs 531.93 lakh from Rs 503.61 lakh at March 31, 2026, while non-current lease liabilities were Rs 34.03 lakh compared with nil. Current liabilities declined to Rs 1,023.48 lakh from Rs 1,111.19 lakh, including other current liabilities falling to Rs 170.15 lakh from Rs 225.69 lakh.

How did Shree Rajasthan Syntex’s assets and results change?

Shree Rajasthan Syntex’s total assets declined by Rs 176.26 lakh to Rs 2,437.65 lakh at September 30, 2026. Current assets fell by Rs 281.73 lakh to Rs 450.55 lakh, while non-current assets rose by Rs 115.64 lakh to Rs 1,925.67 lakh.

Property, plant and equipment increased to Rs 1,503.56 lakh from Rs 1,430.71 lakh, and right-of-use assets rose to Rs 55.46 lakh from Rs 12.21 lakh. In contrast, other current assets declined to Rs 156.27 lakh from Rs 296.53 lakh, and bank balances other than cash and cash equivalents fell from Rs 129.53 lakh to nil.

Revenue from operations rose to Rs 792.33 lakh in the half year ended September 30, 2026 from Rs 701 lakh a year earlier. Total income increased to Rs 860.13 lakh from Rs 745 lakh, while total expenses fell to Rs 978.19 lakh from Rs 1,005 lakh.

The loss before exceptional items and tax narrowed to Rs 118.06 lakh from Rs 260 lakh. Finance cost declined to Rs 29.81 lakh from Rs 68 lakh and other expenses decreased to Rs 110.42 lakh from Rs 162 lakh, while material consumed rose to Rs 549.84 lakh from Rs 460 lakh and power and fuel costs rose to Rs 146.42 lakh from Rs 123 lakh.

What did Shree Rajasthan Syntex disclose about equity issue proceeds?

Shree Rajasthan Syntex disclosed nil unutilised funds from Rs 1,076.56 lakh of net proceeds raised through a fresh equity-share issue by September 30, 2026. The issue comprised 81.25 lakh equity shares issued at Rs 13.25 each, according to the funds-utilisation certificate.

The disclosed allocations were Rs 255 lakh for repayment of unsecured inter-corporate loans from persons other than promoters, Rs 65 lakh for workmen and employee dues, Rs 456.56 lakh for working-capital requirements and Rs 300 lakh for capital expenditure. The capital-expenditure row recorded Rs 232.61 lakh utilised up to March 31, 2026, Rs 26.69 lakh during April to June 2026 and Rs 40.70 lakh up to September 30, 2026.

The board approved the unaudited standalone results on November 5, 2026 after Audit Committee review, and the statutory auditors conducted a limited review. Doogar & Associates stated that the funds-utilisation statement agreed with the unaudited financial statements for the six months ended September 30, 2026 and fairly presented the use of funds in all material respects.

Conclusion

Shree Rajasthan Syntex reduced its half-year loss and narrowed the operating cash outflow from the previous year, but the Rs 133.96 lakh comprehensive loss reduced equity to Rs 626.41 lakh. Lower current assets and cash accompanied higher property, plant and equipment, while total liabilities declined to Rs 1,811.24 lakh.

The next results will show whether the company’s stated full utilisation of the Rs 300 lakh capital-expenditure allocation is reflected in textile revenue, inventory and operating cash flow. Working-capital movements also remain relevant because inventories increased by Rs 38.70 lakh in the cash-flow statement and operating activities remained negative by Rs 54.36 lakh in the reported half year.