Susan Electricals posts Rs 6.0177 crore operating cash inflow

Susan Electricals India Limited generated Rs 6.0177 crore of net operating cash in the half year ended September 30, 2026, versus a Rs 10.7232 crore outflow a year earlier, while investing activities used Rs 65.4498 crore, led by restricted deposits, fixed assets, advances and investments.

How did Susan Electricals' operating cash flow change?

Susan Electricals' operating cash flow turned positive at Rs 6.0177 crore for the period ended September 30, 2026, compared with net cash used of Rs 10.7232 crore in the corresponding period ended September 30, 2025. Profit before tax rose to Rs 17.7092 crore from Rs 6.006 crore, while operating profit before working-capital changes increased to Rs 25.127 crore from Rs 9.4696 crore.

Working-capital movements continued to absorb cash in the latest half year. Trade receivables increased by Rs 49.7647 crore, compared with an increase of Rs 21.4551 crore a year earlier, and inventories increased by Rs 1.2221 crore versus Rs 8.2664 crore. Net income-tax paid was Rs 7.2192 crore, compared with Rs 5.84 lakh in the prior-year period.

Financiers paid Rs 39.6692 crore directly to suppliers through the Trade Receivables Discounting System, or TReDS, during the period. Susan Electricals excluded those supplier payments from operating and financing cash flows, while classifying the related outstanding amount as short-term borrowings. Under the indirect method prescribed by Accounting Standard 3, the statement included Rs 1.2588 crore of depreciation and Rs 5.4495 crore of finance cost in arriving at operating cash flow.

What did Susan Electricals spend investing cash on?

Susan Electricals used Rs 65.4498 crore in investing activities in the half year ended September 30, 2026, compared with Rs 4.3267 crore in the corresponding 2025 period. The largest item was Rs 25.9043 crore in deposits held under lien or as margin money, followed by Rs 12.95 crore in term deposits and Rs 9.9934 crore in fixed-asset purchases.

The outflow also included Rs 6.1793 crore in long-term loans and advances, Rs 5.616 crore in mutual funds, Rs 5.3133 crore in other non-current assets and Rs 50,000 in equity instruments. A Rs 51.15 lakh inflow from fixed-asset sales partly offset these uses. Fixed assets on the balance sheet rose to Rs 17.3736 crore on September 30, 2026 from Rs 12.8282 crore on March 31, 2026, while capital work-in-progress stood at Rs 3.688 crore.

The Rs 25.9043 crore deposit outflow was restricted cash rather than cash available for general use. Susan Electricals disclosed Rs 25.1366 crore held under lien as security for cash-credit or overdraft facilities and Rs 76.77 lakh as margin money against bank guarantees. These deposits were excluded from cash and cash equivalents under the cash-flow statement.

How did Susan Electricals fund its investment outflow?

Susan Electricals generated Rs 63.2241 crore from financing activities during the September 2026 half year, compared with Rs 14.407 crore a year earlier. The principal financing inflow was Rs 60.2234 crore in net proceeds from a fresh equity issue, supplemented by Rs 31.8163 crore from short-term borrowings and Rs 5.3933 crore from long-term borrowings.

Financing cash outflows included Rs 21.9926 crore in repayments of bills discounted under TReDS, Rs 6.7668 crore of initial public offering expenses and Rs 5.4495 crore of finance cost. Susan Electricals was listed on the SME platform of BSE Limited on June 18, 2026, after an initial public offering of 55,42,000 equity shares at an issue price of Rs 127 a share. That offering comprised a fresh issue of 47,42,000 shares and an offer for sale of 8,00,000 shares by selling shareholders.

The net fresh-issue proceeds were Rs 60.2234 crore, of which Susan Electricals had used Rs 48.8723 crore by September 30, 2026. The disclosed use included Rs 8.6888 crore for expansion of its Sahibabad manufacturing facility, Rs 24.9549 crore for working-capital requirements, Rs 7.2731 crore for general corporate purposes and Rs 7.9555 crore for issue-related expenses.

What changed in Susan Electricals' cash and borrowings?

Susan Electricals' cash and cash equivalents increased by Rs 3.792 crore during the latest half year, reversing a Rs 64.28 lakh decrease in the corresponding 2025 period. Cash and cash equivalents closed at Rs 4.6457 crore on September 30, 2026, compared with Rs 85.37 lakh at the beginning of the financial year, as operating and financing inflows exceeded the investing outflow in aggregate.

The balance sheet reported cash and bank balances of Rs 30.55 crore on September 30, 2026, compared with Rs 85.37 lakh on March 31, 2026. The difference from the Rs 4.6457 crore cash-equivalent balance includes the Rs 25.9043 crore of restricted deposits. Current investments were Rs 18.566 crore, including Rs 5.616 crore of mutual funds pledged with Standard Chartered Bank as security for a cash-credit facility.

Short-term borrowings increased to Rs 114.6731 crore at September 30, 2026 from Rs 65.1802 crore at March 31, 2026. Long-term borrowings rose to Rs 6.9302 crore from Rs 1.5368 crore over the same period. Susan Electricals also disclosed that repayments of TReDS bills outstanding as of March 31, 2026 were presented within financing activities.

Conclusion

Susan Electricals moved from a Rs 10.7232 crore operating cash outflow in the half year ended September 30, 2025 to a Rs 6.0177 crore inflow in the latest period, alongside higher profit before tax. The Rs 65.4498 crore investing outflow, however, was substantially larger than operating cash generation and was supported primarily by Rs 60.2234 crore of fresh equity proceeds and additional borrowings.

The next disclosed item to watch is deployment of the Rs 11.3511 crore of IPO proceeds unutilised at September 30, 2026. This included Rs 1.6061 crore remaining for the Sahibabad expansion, Rs 8.0451 crore for working capital, Rs 1.6706 crore for general corporate purposes and Rs 2.93 lakh for issue-related expenses.