SNL Bearings raises half-year capex as operating cash falls

SNL Bearings Limited raised capital-asset spending to Rs 2.89 crore in the half year ended 30 September 2026, while net operating cash flow fell to Rs 3.48 crore from Rs 5.93 crore a year earlier. The increase in spending came as inventory absorbed Rs 1.97 crore of cash and direct taxes paid rose to Rs 1.91 crore.

What caused SNL Bearings’ capital spending to rise?

SNL Bearings spent Rs 2.89 crore on purchases of property, plant and equipment and intangible assets in the half year ended 30 September 2026, compared with Rs 59 lakh in the corresponding half of 2025. The Rs 2.30 crore increase took the outflow to nearly five times the prior-year amount. The cash-flow line includes movements in capital creditors and capital advances, so it captures more than additions recorded directly in fixed assets.

Property, plant and equipment stood at Rs 14.50 crore on 30 September 2026, up from Rs 12.63 crore at 31 March 2026. Intangible assets, however, fell to Rs 24 lakh from Rs 30 lakh over the same period. The balance-sheet movement indicates that the higher spending coincided with a larger recorded physical asset base, while intangible assets did not increase.

Depreciation and amortisation was unchanged at Rs 87 lakh in each of the two half-year periods. SNL Bearings reports its operations as one Bearing segment under Indian Accounting Standard 108, so the filing does not allocate the Rs 2.89 crore purchase outflow among products, facilities or customer markets.

Why did SNL Bearings’ operating cash flow decrease?

SNL Bearings generated Rs 3.48 crore of net cash from operating activities in the half year ended 30 September 2026, down Rs 2.45 crore from Rs 5.93 crore in the corresponding period. Cash-flow profit before tax rose to Rs 8.80 crore from Rs 7.56 crore, but cash generated from operations before direct taxes declined to Rs 5.39 crore from Rs 7.61 crore. Direct taxes paid then increased to Rs 1.91 crore from Rs 1.68 crore.

Inventory was the largest stated working-capital use of cash, absorbing Rs 1.97 crore in the latest half year after releasing Rs 48 lakh a year earlier. Trade receivables used Rs 77 lakh, compared with a Rs 1.39 crore use in the previous corresponding period. Loans and other current and non-current assets used another Rs 55 lakh, versus Rs 1 lakh in the 2025 half year.

Trade payables provided Rs 84 lakh of cash in the six months to September 2026, lower than the Rs 1.42 crore contribution in the prior-year period. Other financial liabilities, provisions and other current liabilities used Rs 5 lakh, whereas they contributed Rs 4 lakh a year earlier. Operating profit before working-capital changes increased to Rs 7.89 crore from Rs 7.07 crore, but the inventory build and lower payable contribution reduced cash conversion.

The cash-flow reconciliation also included a Rs 1.64 crore deduction for fair-value changes on financial assets measured at fair value through profit or loss, or FVTPL, compared with Rs 1.14 crore a year earlier. Interest income was Rs 9 lakh against Rs 6 lakh, while profit on sale of investments was Rs 4 lakh against Rs 14 lakh. These adjustments explain part of the difference between cash-flow profit before tax and operating profit before working-capital movements.

How did deposits and investments affect SNL Bearings’ cash position?

SNL Bearings generated Rs 1.90 crore from investing activities in the half year ended 30 September 2026, reversing an Rs 2.24 crore investing cash outflow in the prior-year period. Net proceeds from bank deposits were Rs 5.50 crore, compared with an Rs 11 lakh net investment in deposits a year earlier. That deposit release exceeded the Rs 2.89 crore spent on capital assets.

Current-investment transactions remained a net cash use. SNL Bearings spent Rs 2.04 crore buying current investments, received Rs 1.25 crore from sales and paid Rs 1 lakh of tax on sale proceeds. In the corresponding 2025 half year, it spent Rs 2.34 crore on purchases, received Rs 86 lakh from sales and paid Rs 4 lakh in taxes on sale proceeds.

Bank balances other than cash and cash equivalents declined to Rs 2.31 crore on 30 September 2026 from Rs 7.76 crore at 31 March 2026, consistent with the reported deposit proceeds. Current investments rose to Rs 41.63 crore from Rs 39.20 crore during the same six months. Cash and cash equivalents fell to Rs 28 lakh from Rs 32 lakh at the March 2026 year-end.

What do SNL Bearings’ financing flows and balance sheet show?

SNL Bearings used Rs 5.42 crore in financing activities in the latest half year, compared with Rs 2.89 crore in the prior-year period. Equity dividends paid accounted for Rs 5.37 crore, up from Rs 2.87 crore. Movement in the unclaimed dividend account was Rs 5 lakh, compared with Rs 2 lakh in the corresponding 2025 period.

The combined operating, investing and financing movements resulted in a Rs 4 lakh decrease in cash and cash equivalents, against an Rs 80 lakh increase in the prior-year half year. SNL Bearings started the latest period with Rs 32 lakh in cash and cash equivalents and closed it with Rs 28 lakh. The previous corresponding period began with Rs 34 lakh and ended with Rs 1.14 crore.

Total assets increased to Rs 86.64 crore on 30 September 2026 from Rs 84.22 crore on 31 March 2026. Inventories rose to Rs 13.62 crore from Rs 11.65 crore and trade receivables increased to Rs 10.24 crore from Rs 9.43 crore, matching the operating cash outflows reported for these assets. Total equity increased to Rs 76.97 crore from Rs 75.85 crore, while total liabilities rose to Rs 9.67 crore from Rs 8.37 crore.

SNL Bearings reported revenue from operations of Rs 31.30 crore for the half year, up from Rs 27.14 crore, and profit after tax of Rs 6.55 crore, up from Rs 5.64 crore. Its Board approved the unaudited results on 3 November 2026 and declared an interim dividend of Rs 6 per share on equity shares with a face value of Rs 10 each.

Conclusion

SNL Bearings increased half-year capital-asset purchases to Rs 2.89 crore while operating cash generation declined to Rs 3.48 crore. Higher cash use for inventory, at Rs 1.97 crore, and direct taxes, at Rs 1.91 crore, outweighed the rise in cash-flow profit before tax to Rs 8.80 crore. Net proceeds of Rs 5.50 crore from bank deposits supported investing cash flow and helped fund the higher capital spending.

The next financial results will indicate whether inventory and receivable balances continue to absorb operating cash after reaching Rs 13.62 crore and Rs 10.24 crore, respectively, on 30 September 2026. The filing also leaves the payment date unresolved for the Rs 6-per-share interim dividend declared on 3 November 2026, following Rs 5.37 crore of dividends paid during the reported half year.