Vaswani Industries operating cash flow drops to Rs 5.735 crore

Vaswani Industries Limited reported net cash from operating activities of Rs 5.735 crore for the half year ended September 30, 2026, versus Rs 10.7993 crore a year earlier, as inventories absorbed Rs 11.2947 crore and loans and advances absorbed Rs 12.1702 crore. The decline came despite profit after tax rising to Rs 7.7777 crore from Rs 6.8138 crore.

Why did Vaswani Industries’ operating cash flow fall?

Vaswani Industries’ operating cash flow fell because working-capital movements reduced cash generated from operations to Rs 5.7421 crore in the half year ended September 30, 2026, from Rs 11.1725 crore in the corresponding prior-year period. After direct taxes paid of Rs 0.71 lakh, net cash from operating activities was Rs 5.735 crore, compared with Rs 10.7993 crore a year earlier.

Operating profit before working-capital changes increased to Rs 27.0689 crore from Rs 16.5103 crore. Depreciation and amortisation expenses added back Rs 8.0582 crore, against Rs 2.9157 crore in the prior-year half, while interest and finance costs added back Rs 11.9306 crore, compared with Rs 6.5824 crore. Those adjustments increased the pre-working-capital cash measure, but inventory, advances and creditor movements subsequently reduced operating cash.

Profit after tax increased by Rs 0.9639 crore year on year to Rs 7.7777 crore. The difference between the higher reported profit and the lower operating cash flow reflects movements in current assets and liabilities recorded in the cash-flow statement rather than a decline in the reported half-year profit.

Which working-capital items absorbed Vaswani Industries’ cash?

Vaswani Industries’ largest identified working-capital cash uses were inventories, at Rs 11.2947 crore, and loans and advances, at Rs 12.1702 crore, during the half year ended September 30, 2026. Inventories on the balance sheet rose to Rs 93.5047 crore at September 30 from Rs 82.2101 crore at March 31, 2026. Current loans and advances increased to Rs 35.528 crore from Rs 23.3578 crore over the same period.

Trade receivables provided Rs 3.4304 crore of cash because they declined to Rs 11.67 crore at September 30 from Rs 15.1004 crore at March 31. Other current assets also provided Rs 5.1163 crore of cash and fell to Rs 11.7784 crore from Rs 16.8947 crore. Other financial assets, however, used Rs 0.7969 crore of cash during the latest half.

Trade payables used Rs 4.3535 crore of operating cash, contrasting with a Rs 18.9127 crore cash source in the half year ended September 30, 2025. Total dues to other creditors stood at Rs 43.5475 crore at September 30, down from Rs 47.5862 crore at March 31, while dues to micro and small enterprises were Rs 31.47 lakh. Other current liabilities used Rs 0.996 crore and provisions used Rs 0.2622 crore.

The year-on-year comparison shows that inventory cash absorption increased from Rs 2.3846 crore to Rs 11.2947 crore, while loans and advances absorption increased from Rs 1.4303 crore to Rs 12.1702 crore. In contrast, trade receivables shifted from using Rs 6.1588 crore in the prior-year half to generating Rs 3.4304 crore in the latest period. Trade payables also moved from a cash source to a cash use.

How did Vaswani Industries’ borrowings change?

Vaswani Industries’ total borrowings increased by Rs 20.9758 crore to Rs 297.9641 crore at September 30, 2026, from Rs 276.9883 crore at March 31, 2026. Non-current borrowings rose by Rs 7.2823 crore to Rs 225.7938 crore, while current borrowings increased by Rs 13.6935 crore to Rs 72.1703 crore.

The cash-flow statement records net proceeds of Rs 13.6935 crore from short-term borrowings and Rs 7.2823 crore from long-term borrowings. Financing activities generated net cash of Rs 9.0452 crore after interest and finance costs of Rs 11.9306 crore. In the corresponding 2025 half, financing activities generated Rs 111.0074 crore, including Rs 92.7236 crore from long-term borrowings and Rs 8 crore from share-capital issuance.

Other equity increased to Rs 124.9314 crore at September 30 from Rs 117.1537 crore at March 31, broadly matching the half-year profit after tax of Rs 7.7777 crore. Share capital remained Rs 32.9462 crore. Total assets increased to Rs 530.7483 crore from Rs 508.3149 crore, alongside the rise in borrowings and other equity.

Where did Vaswani Industries deploy investing cash?

Vaswani Industries reported net investing cash outflow of Rs 13.5909 crore in the half year ended September 30, 2026, compared with Rs 146.3867 crore in the previous corresponding half. The latest outflow included Rs 7.6013 crore spent on property, plant and equipment and Rs 7.2868 crore on capital work in progress, partly offset by a Rs 1.1297 crore reduction in non-current assets and Rs 16.75 lakh of proceeds from asset sales.

Capital work in progress rose to Rs 16.696 crore at September 30 from Rs 9.4093 crore at March 31. Property, plant and equipment was Rs 334.2216 crore, below Rs 334.8496 crore at the March year-end. The filing reports the investment outflow and the balance-sheet changes, but does not specify the individual projects represented by capital work in progress.

Net cash and cash equivalents increased by Rs 1.1893 crore during the latest half to Rs 17.4315 crore. The balance sheet lists Rs 5.5484 crore of cash and cash equivalents and Rs 11.8831 crore of other bank balances, which total Rs 17.4315 crore. In the prior-year half, cash and cash equivalents declined by Rs 24.58 crore.

Iron and Steel segment revenue including other income increased to Rs 236.0498 crore from Rs 185.0693 crore, while Power segment revenue rose to Rs 19.7376 crore from Rs 14.7663 crore. Iron and Steel segment result increased to Rs 12.5914 crore from Rs 5.882 crore, whereas Power segment result fell to Rs 6.4156 crore from Rs 7.6911 crore. The filing does not provide cash-flow data by segment.

Conclusion

Vaswani Industries recorded higher half-year profit and higher operating profit before working-capital changes, but net operating cash flow declined by Rs 5.0643 crore year on year. The reported cash movements show increased funds tied up in inventories and loans and advances, alongside a reduction in trade payables, while total borrowings rose by Rs 20.9758 crore from the March 2026 balance-sheet date.

The next financial-results disclosure will show whether inventories of Rs 93.5047 crore and loans and advances of Rs 35.528 crore reverse or continue to absorb cash. It will also provide the next reported position on capital work in progress, which was Rs 16.696 crore at September 30, 2026, and on borrowings of Rs 297.9641 crore.