Swaraj Suiting H1 capex reaches Rs 69 crore as debt rises

Swaraj Suiting Limited spent Rs 69.01 crore on tangible assets in the half year ended September 30, 2026, while combined short- and long-term borrowings rose Rs 41.17 crore from March 31, 2026. Net operating cash flow was Rs 40.59 crore, but cash and cash equivalents fell Rs 2.85 crore to Rs 7.73 crore.

How much did Swaraj Suiting spend on capital assets in H1?

Swaraj Suiting spent Rs 69.01 crore on purchases of tangible assets in the half year ended September 30, 2026. The amount was the largest specified investing cash outflow and exceeded the Rs 40.59 crore net cash flow from operating activities by Rs 28.42 crore. The cash-flow statement does not identify the projects, facilities or equipment included in this tangible-asset expenditure.

The spending occurred alongside increases in property, plant and equipment and capital work in progress. Property, plant and equipment increased Rs 24.94 crore from Rs 288.19 crore at March 31, 2026 to Rs 313.13 crore at September 30, while capital work in progress increased Rs 15.48 crore from Rs 45.71 crore to Rs 61.19 crore. Right-of-use assets, in contrast, declined Rs 0.85 crore to Rs 23.98 crore.

How did Swaraj Suiting’s borrowings change during H1?

Swaraj Suiting’s combined borrowings rose Rs 41.17 crore to Rs 342.71 crore at September 30, 2026 from Rs 301.55 crore at March 31, 2026. Long-term borrowings rose Rs 22.48 crore to Rs 208.26 crore, while short-term borrowings rose Rs 18.69 crore to Rs 134.46 crore. The balance-sheet figures cover borrowings reported at the two dates.

The half-year cash-flow statement records Rs 22.48 crore of increase in long-term borrowings and Rs 18.69 crore of increase in short-term borrowings. It also records Rs 20.14 crore of finance cost within financing activities, resulting in a Rs 22.94 crore net financing cash inflow. Share capital increased Rs 2.55 crore in the cash-flow statement, while money received against share warrants declined Rs 0.64 crore.

Why did Swaraj Suiting’s cash balance fall despite operating cash inflow?

Swaraj Suiting’s cash balance fell because its Rs 66.38 crore net investing outflow exceeded the combined Rs 40.59 crore operating inflow and Rs 22.94 crore financing inflow. Cash and cash equivalents declined from Rs 10.58 crore at the beginning of the half year to Rs 7.73 crore at September 30, 2026, a decrease of Rs 2.85 crore.

Purchases of tangible assets accounted for Rs 69.01 crore of the investing outflow. The company also reported Rs 17.14 crore of other investing cash outflows, partly offset by Rs 18.84 crore of cash advances, loans and deposits made to other parties and Rs 0.94 crore of interest received. The source does not provide a project-level explanation for the asset purchases or the other investing outflows.

What changed in Swaraj Suiting’s operating cash generation?

Swaraj Suiting generated Rs 40.59 crore of net operating cash flow in the half year ended September 30, 2026, compared with a Rs 16.59 crore operating cash outflow in the year ended March 31, 2026. The periods are not like-for-like because the latest figure covers six months and the comparison figure covers 12 months, but the reported direction changed from an outflow to an inflow.

Trade receivables increased Rs 49.69 crore during the half year, representing the largest working-capital cash use in the operating reconciliation. Trade payables increased Rs 20.04 crore, providing an offsetting cash contribution, while inventories declined Rs 0.33 crore. Cash generated from operations was Rs 40.59 crore after these movements, and the statement shows no income tax paid or refunded during the half year.

Profit before tax was Rs 48.07 crore in the half year ended September 30, 2026, compared with Rs 23.67 crore in the corresponding half year ended September 30, 2025. Depreciation and amortisation was Rs 11.61 crore against Rs 10.48 crore a year earlier, while finance cost was Rs 21.19 crore against Rs 19.48 crore. These figures were included in the operating-cash-flow reconciliation.

What does Swaraj Suiting’s balance sheet show after H1 spending?

Swaraj Suiting reported total assets of Rs 964.15 crore at September 30, 2026, up Rs 108.59 crore from Rs 855.56 crore at March 31, 2026. Besides the Rs 24.94 crore increase in property, plant and equipment, trade receivables rose Rs 49.69 crore to Rs 173.64 crore. Inventories were broadly unchanged, declining Rs 0.33 crore to Rs 235.44 crore.

On the funding side, equity share capital rose Rs 0.11 crore to Rs 26.42 crore and other equity rose Rs 32.71 crore to Rs 312.85 crore. Money received against share warrants declined Rs 0.64 crore to Rs 30.66 crore. Swaraj Suiting reports a single operating segment, textiles, and therefore does not provide a segment-level split of its Rs 69.01 crore tangible-asset purchases.

Conclusion

Swaraj Suiting’s September 2026 half-year statements show that Rs 69.01 crore of tangible-asset purchases coincided with Rs 41.17 crore growth in combined borrowings. Positive operating cash flow of Rs 40.59 crore and a Rs 22.94 crore financing inflow did not fully cover the Rs 66.38 crore investing outflow, leaving cash Rs 2.85 crore lower at Rs 7.73 crore.

The next reported period will show whether capital work in progress of Rs 61.19 crore changes and whether trade receivables, which rose to Rs 173.64 crore, continue to increase. Swaraj Suiting did not disclose a capital-expenditure target, project timetable or stated funding plan in the September 30, 2026 standalone financial statements.