Supershakti Metaliks Limited cash falls to Rs 1.8666 crore

Supershakti Metaliks Limited ended the half year to September 30, 2026 with cash and cash equivalents of Rs 1.8666 crore, down from Rs 7.2942 crore at March 31, 2026, as inventories rose Rs 15.9635 crore and current borrowings increased to Rs 7.279 crore. Operating activities used Rs 3.1097 crore of cash during the period.

Why did Supershakti Metaliks' cash balance fall?

Supershakti Metaliks' cash and cash equivalents fell by Rs 5.4276 crore during the six months ended September 30, 2026. The closing balance comprised Rs 3.70 lakh in cash on hand and Rs 1.8295 crore in bank balances, compared with total cash and cash equivalents of Rs 7.2942 crore at March 31, 2026.

The cash-flow statement records net cash used in operating activities of Rs 3.1097 crore and net cash used in investing activities of Rs 8.8839 crore for the September 2026 half year. Financing activities generated Rs 6.566 crore, resulting in the Rs 5.4276 crore net fall in cash and cash equivalents from the opening balance.

The comparable half year ended September 30, 2025 recorded a Rs 8.1953 crore increase in cash and cash equivalents, ending that period at Rs 8.2813 crore. The shift in the September 2026 half year occurred even as profit before tax rose to Rs 20.0275 crore from Rs 12.0952 crore a year earlier, showing that the reported cash movement differed from the accounting profit result.

How much did inventory increase at Supershakti Metaliks?

Supershakti Metaliks' inventories rose to Rs 31.4677 crore at September 30, 2026 from Rs 15.5042 crore at March 31, 2026, an increase of Rs 15.9635 crore. Its cash-flow statement separately reports a Rs 15.5779 crore cash outflow under inventories for the half year, which is a cash-flow movement rather than the closing balance-sheet change.

Trade receivables increased by Rs 1.0488 crore to Rs 4.2272 crore over the same six months. Other current assets declined by Rs 12.226 crore to Rs 6.4084 crore, while the company reported only one primary segment, manufacturing and trading of iron and steel products, and therefore did not provide inventory details by product category.

The inventory cash outflow of Rs 15.5779 crore exceeded the Rs 1.3222 crore increase in trade payables shown in the cash-flow statement. Other current financial liabilities and other current liabilities decreased by Rs 4.8312 crore in that statement, while tax paid was Rs 2.4111 crore, contributing to the Rs 3.1097 crore operating cash outflow.

How did Supershakti Metaliks' short-term funding change?

Supershakti Metaliks' current borrowings increased to Rs 727.90 lakh at September 30, 2026 from Rs 3.20 lakh at March 31, 2026. The cash-flow statement reports Rs 728.70 lakh of proceeds from short-term loan borrowings during the half year, whereas the comparable September 2025 half year reported Rs 1,876.94 lakh of net repayment from short-term loan borrowings.

Financing cash flow included Rs 64.90 lakh of dividend paid and Rs 61.61 lakh of interest paid, leaving a net financing inflow of Rs 656.60 lakh. The consolidated balance sheet reports no non-current borrowings at either September 30, 2026 or March 31, 2026, so the disclosed borrowing balance was classified entirely as current.

Cash equivalents and bank balances other than cash equivalents combined were Rs 236.16 lakh at September 30, 2026, compared with Rs 1,126.16 lakh six months earlier. The filing does not allocate short-term borrowing proceeds to a specific use, but it reports the increase in borrowing alongside negative operating cash flow and an Rs 888.39 lakh investing cash outflow.

What investment and balance-sheet movements also used cash?

Supershakti Metaliks reported net cash used in investing activities of Rs 8.8839 crore in the September 2026 half year. This included Rs 7.0593 crore of net investment in mutual funds, alternative investment funds and gold, Rs 4.20 crore of loans given net, and Rs 51.50 lakh spent on property, plant and equipment, capital work in progress and intangible assets.

Current investments fell to Rs 19.0343 crore at September 30, 2026 from Rs 45.9363 crore at March 31, 2026, while non-current investments rose to Rs 66.4009 crore from Rs 31.3058 crore. The company also reported a Rs 3.0714 crore net movement from fixed deposits in the cash-flow statement, but did not specify the instruments or reasons behind the balance-sheet investment changes.

Total current assets declined to Rs 67.3467 crore at September 30, 2026 from Rs 96.1346 crore at March 31, 2026. Total current liabilities rose to Rs 29.4593 crore from Rs 25.2866 crore, including trade payables of Rs 13.7566 crore and other current liabilities of Rs 4.7371 crore at the September reporting date.

Did Supershakti Metaliks' earnings change despite the cash outflow?

Supershakti Metaliks reported revenue from operations of Rs 386.2348 crore for the half year ended September 30, 2026, up from Rs 328.7762 crore in the corresponding 2025 period. Net profit rose to Rs 18.355 crore from Rs 10.6054 crore, and the September 2026 half year contained no exceptional item.

Cost of materials consumed increased to Rs 312.0888 crore from Rs 258.9108 crore as revenue increased. Power and fuel expense was Rs 51.4439 crore in April to September 2026, compared with Rs 46.1106 crore a year earlier, while finance cost declined to Rs 61.61 lakh from Rs 98.55 lakh.

Conclusion

The September 2026 half-year statements show that Supershakti Metaliks had lower cash balances alongside a Rs 15.9635 crore inventory increase, a Rs 15.5779 crore inventory-related cash outflow and Rs 727.90 lakh of current borrowings. Profit increased to Rs 18.355 crore, but operating and investing cash outflows reduced cash and cash equivalents to Rs 1.8666 crore.

The next disclosed item to watch is Supershakti Metaliks' implementation of applicable New Labour Codes provisions for remaining employees from October 2026. The company said it would review estimates and assumptions for those employees after recognising an Rs 88.57 lakh incremental gratuity liability as an exceptional item for the year ended March 31, 2026.