Sky Industries Limited raises long-term debt as spending jumps

Sky Industries Limited spent Rs 19.11 crore on asset purchases in the six months ended September 30, 2026 and took Rs 13.10 crore of long-term borrowings, lifting non-current borrowings to Rs 29.81 crore from Rs 16.71 crore at March 31, 2026.

How much did Sky Industries spend on capital assets?

Sky Industries spent Rs 19.11 crore on purchases of property, plant and equipment and intangible assets, including capital work-in-progress, during the six months ended September 30, 2026. The outlay rose from Rs 1.48 crore in the corresponding six months of 2025, an increase of Rs 17.63 crore. Net cash used in investing activities consequently increased to Rs 16.93 crore from Rs 44.52 lakh.

The September 30 balance sheet records a Rs 13.61 crore increase in property, plant and equipment, which reached Rs 23.89 crore from Rs 10.29 crore at March 31. Capital work-in-progress, meaning projects not yet completed and ready for use, increased by Rs 5.06 crore to Rs 34.99 crore. These two categories together rose by Rs 18.67 crore, while right-of-use assets declined to Rs 47.47 lakh from Rs 83.09 lakh.

Sky Industries did not disclose a project name, capacity addition, product line or completion schedule for the asset purchases. The results note says management evaluates the business as one primary segment comprising the manufacture and trading of narrow fabrics. The filing therefore establishes the size of the first-half investment but does not assign the Rs 19.11 crore spending to individual facilities or equipment.

How did Sky Industries’ borrowings change?

Sky Industries took Rs 13.10 crore of long-term borrowings during the six months ended September 30, 2026, compared with Rs 35.39 lakh in the prior-year period. Non-current borrowings at September 30 were Rs 29.81 crore, up by the same Rs 13.10 crore from March 31. The cash-flow statement identifies the borrowing inflow but does not provide lender names, interest rates, maturity dates, security or stated end-use.

Current borrowings moved in the opposite direction, falling to Rs 10.49 crore from Rs 14.69 crore over the same six-month period. The cash-flow statement reports a Rs 4.20 crore decrease in the overdraft facility. Combined current and non-current borrowings nevertheless rose to Rs 40.30 crore at September 30 from Rs 31.40 crore at March 31, an increase of Rs 8.90 crore.

Sky Industries reported Rs 7.43 crore of net cash from financing activities in the first half, against a Rs 68.51 lakh outflow a year earlier. Besides long-term borrowings and the overdraft reduction, the financing cash flows included Rs 38.56 lakh of lease-liability repayment, Rs 78.91 lakh of dividend paid, Rs 34.84 lakh of finance cost and Rs 5.40 lakh of proceeds from shares and share warrants.

Did operating cash flow cover Sky Industries’ asset purchases?

Sky Industries generated Rs 9.63 crore of net cash from operating activities in the six months ended September 30, 2026, but this was below its Rs 19.11 crore asset-purchase outflow. The difference between the two disclosed figures was Rs 9.48 crore before investment purchases and investment sales. The Rs 7.43 crore financing inflow was therefore material to the period’s overall cash movements.

Net operating cash flow rose from Rs 95.50 lakh in the corresponding 2025 period. Cash generated from operations before taxes was Rs 10.11 crore in the 2026 period, compared with a Rs 92.99 lakh cash outflow shown for the prior-year period. A Rs 7.00 crore increase in trade payables supported the 2026 movement, while trade receivables increased by Rs 2.69 crore and inventories increased by Rs 1.03 crore, both using cash.

The cash-flow statement reports cash and cash equivalents of Rs 77.60 lakh at September 30, 2026, up from Rs 64.91 lakh at the start of the year. The consolidated balance sheet reports Rs 98.90 lakh for cash and cash equivalents on the same date, as well as Rs 4.72 crore of bank balances other than cash and cash equivalents. Sky Industries does not explain the difference between the Rs 77.60 lakh cash-flow closing figure and the Rs 98.90 lakh balance-sheet figure.

What changed in Sky Industries’ earnings and asset base?

Sky Industries reported revenue from operations of Rs 41.89 crore for the six months ended September 30, 2026, compared with Rs 41.12 crore in the comparable 2025 period. Profit before tax increased to Rs 3.87 crore from Rs 3.65 crore, while net profit after tax rose to Rs 2.80 crore from Rs 2.77 crore. These changes occurred alongside the larger investing outflow and higher debt balance.

For the quarter ended September 30, revenue from operations was Rs 22.74 crore, higher than Rs 19.15 crore in the quarter ended June 30, 2026 but below Rs 24.89 crore in the September 2025 quarter. Quarterly net profit after tax was Rs 1.42 crore, compared with Rs 1.37 crore in the preceding quarter and Rs 1.73 crore a year earlier. The consolidated results were approved by the board on November 5, 2026.

Total assets reached Rs 109.51 crore at September 30, up Rs 18.25 crore from Rs 91.26 crore at March 31. Non-current assets increased to Rs 60.24 crore from Rs 49.50 crore, while current assets rose to Rs 49.26 crore from Rs 41.76 crore. The filing gives no management target for output, revenue, capacity utilisation or return from the increased fixed assets and work-in-progress.

Conclusion

Sky Industries increased first-half asset purchases to Rs 19.11 crore from Rs 1.48 crore a year earlier, with property, plant and equipment and capital work-in-progress accounting for much of the balance-sheet expansion. Long-term borrowing inflows of Rs 13.10 crore coincided with a rise in non-current borrowings, while current borrowings and the overdraft facility declined. Operating cash flow improved to Rs 9.63 crore but did not fully cover the asset-purchase outflow.

The next reported periods may show whether the Rs 34.99 crore capital work-in-progress balance moves into completed fixed assets, although the September filing provides no completion timetable. Readers can also watch for clarification of the differing September 30 cash-and-cash-equivalent figures of Rs 77.60 lakh in the cash-flow statement and Rs 98.90 lakh in the balance sheet.