Swasti Vinayaka cash drops to Rs 2.22 lakh in September

Swasti Vinayaka Art and Heritage Corporation Limited reported a Rs 7.60 crore net cash outflow for the six months ended 30 September 2026 and closed with Rs 2.22 lakh in cash and cash equivalents, versus Rs 7.63 crore at the beginning of the year. The decline came despite half-year net profit of Rs 1.59 crore.

Why did Swasti Vinayaka’s cash balance fall to Rs 2.22 lakh?

Swasti Vinayaka’s cash balance fell because operating, investing and financing activities each used cash during the six months ended 30 September 2026. The company reported operating cash outflow of Rs 2.43 crore, investing cash outflow of Rs 3.52 crore and financing cash outflow of Rs 1.65 crore, resulting in total net cash use of Rs 7.60 crore.

The cash-flow statement records opening cash and cash equivalents of Rs 7.63 crore and closing cash and cash equivalents of Rs 2.22 lakh for the half-year. The 30 September 2026 balance sheet separately shows Rs 1.15 lakh under cash and cash equivalents and Rs 1.07 lakh under bank balances other than cash equivalents, which together equal the Rs 2.22 lakh closing amount reported in the cash-flow statement.

What were Swasti Vinayaka’s main cash flows in the half-year?

Swasti Vinayaka recorded negative cash flow in all three reported categories during the six months ended 30 September 2026. Investing activities represented the largest use at Rs 3.52 crore, followed by operating activities at Rs 2.43 crore and financing activities at Rs 1.65 crore.

The comparison covers a six-month period and the preceding full year, so it is not like-for-like. It nonetheless shows that Swasti Vinayaka moved from Rs 18.24 crore of operating cash generation in the year ended 31 March 2026 to a Rs 2.43 crore operating cash outflow in the six months ended 30 September 2026, while the investing outflow remained near the prior full-year level of Rs 3.37 crore.

What caused Swasti Vinayaka’s operating cash outflow?

Swasti Vinayaka generated Rs 1.93 crore of operating cash profit before working-capital changes in the six months to September 2026, after reporting profit before tax and extraordinary items of Rs 2.06 crore. The calculation included Rs 43.82 lakh of finance cost and Rs 4.55 lakh of depreciation, partly offset by Rs 37.53 lakh profit on sale of investments, Rs 16.83 lakh dividend income and Rs 6.38 lakh interest income.

Working-capital movements then reduced cash by Rs 4.37 crore. Short-term loans, advances and other items increased by Rs 3.33 crore, long-term loans, advances and deposits increased by Rs 27.82 lakh, trade and other payables decreased by Rs 70.96 lakh, and inventories increased by Rs 6.55 lakh. These cash uses exceeded the Rs 1.74 lakh decrease in trade and other receivables.

How did investing and financing activities use cash?

Swasti Vinayaka’s Rs 3.52 crore investing outflow included Rs 2.66 crore used to purchase investments and Rs 2.62 crore spent on fixed assets. The company received Rs 1.53 crore from sale of investments, Rs 16.83 lakh in dividends and Rs 6.38 lakh in interest, but these inflows did not cover the purchases of investments and fixed assets.

Financing activities used Rs 1.65 crore in the half-year, comprising a Rs 1.21 crore decrease in secured or unsecured loans and Rs 43.82 lakh of interest paid. In the year ended 31 March 2026, financing activities had used Rs 7.26 crore, including a Rs 5.84 crore decrease in secured or unsecured loans and Rs 1.49 crore of interest payments.

How did the cash outflow compare with Swasti Vinayaka’s profit and balance sheet?

Swasti Vinayaka reported net profit of Rs 1.59 crore for the six months ended 30 September 2026, down from Rs 2.22 crore in the corresponding six months ended 30 September 2025. Revenue from operations declined to Rs 9.03 crore from Rs 13.63 crore, while total expenses fell to Rs 7.59 crore from Rs 11.11 crore. The reported profit therefore did not translate into positive operating cash flow after working-capital movements.

Current assets stood at Rs 19.48 crore at 30 September 2026, down from Rs 24.53 crore at 31 March 2026. Inventories were largely unchanged at Rs 14.64 crore from Rs 14.57 crore, while non-current borrowings declined to Rs 6.83 crore from Rs 8.11 crore. The cash-flow statement identifies loan reduction and interest payments as financing uses of cash.

What did the limited review say about Swasti Vinayaka’s results?

Swasti Vinayaka’s statutory auditor stated in its limited review report dated 13 November 2026 that nothing had come to its attention indicating that the unaudited financial statement had not made the required disclosures or contained a material misstatement. The auditor reviewed the quarterly and half-yearly standalone results under Regulation 33 of the Securities and Exchange Board of India listing regulations.

The audit committee reviewed the results and the board took them on record on 13 November 2026. The company also disclosed that deferred tax liability would be calculated and provided when the accounts are finalised, leaving the amount of that provision unresolved in the half-year statement.

Conclusion

Swasti Vinayaka reported accounting profit of Rs 1.59 crore for the six months ended 30 September 2026, but used Rs 2.43 crore in operating cash after movements in advances, deposits, payables and inventories. Investment purchases and fixed-asset spending added Rs 3.52 crore of cash use, while loan reduction and interest payments used another Rs 1.65 crore, leaving Rs 2.22 lakh in cash and cash equivalents.

The next results will show whether short-term loans, advances and other working-capital items reverse after their Rs 3.33 crore increase in the half-year. Investors can also watch for the finalisation of accounts and the deferred tax liability that Swasti Vinayaka said it would calculate and provide at that stage.