Sunil Industries Limited uses Rs 30.13 crore borrowing for outflow

Sunil Industries reported a Rs 27.12 crore operating cash outflow in the half year ended 30 September 2026, while net proceeds from non-current borrowings were Rs 30.13 crore. A Rs 121.75 crore increase in trade receivables was the largest working-capital cash use, and cash and cash equivalents rose to Rs 1.58 crore.

What caused Sunil Industries’ operating cash outflow?

Sunil Industries recorded net cash used in operating activities of Rs 27.12 crore for the half year ended 30 September 2026, compared with Rs 1.06 crore used in the corresponding half year ended 30 September 2025. The indirect-method cash-flow statement began with profit before tax of Rs 5.74 crore, up from Rs 5.17 crore a year earlier.

After adding depreciation of Rs 1.45 crore and interest and finance charges of Rs 1.99 crore, then deducting interest received of Rs 0.11 crore, operative profit before working-capital changes was Rs 9.07 crore. That was below Rs 9.29 crore in the September 2025 half, before movements in receivables, payables, inventories and other balance-sheet items.

The largest movement was a Rs 121.75 crore increase in trade receivables, compared with a Rs 45.13 crore increase in the prior-year half. The cash-flow statement treats that increase as a use of cash. It was partly offset by a Rs 83.10 crore increase in trade payables, against a Rs 30.84 crore increase a year earlier, and a Rs 4.18 crore decrease in inventories, against a Rs 2.18 crore decrease in the comparable period.

How did Sunil Industries finance the cash movement?

Sunil Industries reported Rs 30.13 crore of net proceeds from non-current borrowings in the half year ended 30 September 2026, compared with Rs 7.40 crore in the corresponding 2025 half. Interest paid was Rs 1.99 crore, lower than Rs 2.87 crore a year earlier, leaving a net financing cash inflow of Rs 28.14 crore versus Rs 4.53 crore.

The company used Rs 41.55 lakh in investing activities during the 2026 half, compared with Rs 1.97 crore in the prior-year half. Net purchases of fixed assets accounted for Rs 50 lakh, while Rs 10.69 lakh of interest received partly offset that spending; the 2025 investing outflow included Rs 1.26 crore of fixed-asset purchases and Rs 79.81 lakh invested in fixed deposits.

Net cash increased by Rs 59.85 lakh during the half year, reversing a Rs 3.03 crore decrease in the corresponding 2025 period. Cash and cash equivalents were Rs 98.49 lakh at the start of the 2026 half and Rs 1.58 crore at 30 September 2026; the comparative closing balance at 30 September 2025 was Rs 5.19 crore.

How did receivables and payables affect Sunil Industries’ cash conversion?

Sunil Industries’ revenue from operations increased to Rs 176.59 crore in the six months ended 30 September 2026 from Rs 149.98 crore in the corresponding 2025 period. Profit after tax also rose to Rs 4.37 crore from Rs 3.81 crore, but the reported revenue and profit did not produce positive operating cash flow after working-capital changes.

The Rs 121.75 crore receivables movement was Rs 76.62 crore larger than the Rs 45.13 crore movement in the prior-year half. Meanwhile, the Rs 83.10 crore increase in trade payables was Rs 52.26 crore higher than the comparative Rs 30.84 crore increase, providing an offset that remained smaller than the receivables cash use.

Other current liabilities declined by Rs 4.26 crore in the 2026 half, compared with a Rs 2.91 crore decline a year earlier. Other current assets provided Rs 4.42 crore of cash, against Rs 4.70 crore in the 2025 half, while other non-current assets used Rs 2.84 lakh; the filing does not provide customer-wise collection schedules or a receivables ageing analysis.

Did Sunil Industries remain profitable despite negative operating cash flow?

Sunil Industries remained profitable in the half year ended 30 September 2026, reporting profit before tax of Rs 5.74 crore and profit after tax of Rs 4.37 crore. In the corresponding 2025 half, profit before tax was Rs 5.17 crore and profit after tax was Rs 3.81 crore, showing a different result from the operating cash-flow movement.

Finance cost in the half-year income statement decreased to Rs 1.99 crore from Rs 2.87 crore, while depreciation rose to Rs 1.45 crore from Rs 1.34 crore. Under the indirect cash-flow method, depreciation and finance charges were included in reconciling profit before tax to the Rs 9.07 crore operative profit before working-capital changes, with interest paid reported in financing activities.

Earnings per equity share were Rs 10.41 for the six months ended 30 September 2026, compared with Rs 9.08 in the corresponding prior-year period. The closing cash balance of Rs 1.58 crore was Rs 59.85 lakh above the 1 April 2026 opening balance, although it remained below the Rs 5.19 crore reported at 30 September 2025.

What did Sunil Industries disclose about related-party funding and the review?

Sunil Industries disclosed net loans taken from related parties of Rs 11.05 crore for the half year ended 30 September 2026. It also disclosed interest paid to related parties of Rs 47.73 lakh, compared with related-party loans taken of Rs 30.77 crore and interest paid of Rs 1.35 crore for the year ended 31 March 2026.

The related-party disclosure is separate from the cash-flow statement’s Rs 30.13 crore net proceeds from non-current borrowings. The filing does not state whether the Rs 11.05 crore of related-party loans is included in that borrowing cash-flow line, nor does it set out lenders, maturity dates, security or interest rates for the non-current borrowing proceeds.

V K Beswal & Associates issued its limited review report on 6 November 2026 for the quarter ended 30 September 2026 and the six-month period from 1 April 2026. The auditor said nothing had come to its attention indicating that the unaudited standalone financial results failed to make required disclosures or contained a material misstatement; it also stated that a review is not an audit.

Conclusion

Sunil Industries’ September 2026 half combined higher revenue of Rs 176.59 crore and profit after tax of Rs 4.37 crore with a Rs 27.12 crore operating cash outflow. The Rs 121.75 crore increase in receivables outweighed the Rs 83.10 crore increase in payables and other operating movements, while Rs 30.13 crore of net non-current borrowing proceeds supported cash balances.

The next disclosure will show whether receivables that increased by Rs 121.75 crore are collected and whether the Rs 83.10 crore payable movement reverses. The filing provides no borrowing repayment schedule, collection target or funding plan, making the next reported cash-flow statement and balance sheet relevant to changes from the Rs 1.58 crore cash balance at 30 September 2026.