Vishwaraj Sugar frees Rs 195.66 crore through inventory

Vishwaraj Sugar Industries Limited freed Rs 195.66 crore through lower inventory in the six months ended September 30, 2026, as inventories fell to Rs 54.96 crore from Rs 250.62 crore at March 31. The release helped generate Rs 81.37 crore of operating cash flow even as Vishwaraj Sugar recorded a Rs 45.77 crore net loss.

How much inventory did Vishwaraj Sugar release?

Vishwaraj Sugar released Rs 195.66 crore from inventories during the six months ended September 30, 2026. Its inventory balance declined from Rs 250.62 crore at March 31, 2026 to Rs 54.96 crore at September 30, 2026, matching the Rs 195.66 crore decrease reported in the cash-flow statement.

The inventory movement was the largest working-capital item in the half year, exceeding the Rs 89.77 crore net positive working-capital movement. Higher trade receivables and other current assets absorbed part of the inventory-related cash release, while lower trade payables also reduced the net cash retained from working-capital movements.

Trade receivables increased by Rs 10.21 crore to Rs 32.85 crore, and other current assets rose by Rs 23.83 crore to Rs 67.47 crore by September 30, 2026. Total current assets consequently fell by Rs 159.96 crore to Rs 159.49 crore, a smaller decline than the reduction in inventories alone.

Did the inventory reduction generate operating cash flow?

Yes, Vishwaraj Sugar reported Rs 81.37 crore of net cash from operating activities for the six months ended September 30, 2026, following a Rs 89.77 crore positive movement in working capital. Operating profit before working-capital changes was negative Rs 8.41 crore, so the reported operating cash inflow followed balance-sheet movements during the period.

The cash-flow statement records Rs 195.66 crore from the decrease in inventories, but Rs 10.21 crore was absorbed by higher trade receivables and Rs 23.83 crore by higher other current assets. It also records a Rs 79.02 crore decrease in trade payables, reducing the cash retained after the inventory movement.

Vishwaraj Sugar used Rs 5.78 crore in investing activities during the half year, including Rs 5.86 crore for fixed assets and capital work in progress. Cash and cash equivalents increased by Rs 1.65 crore to Rs 4.10 crore, while bank balances other than cash equivalents were Rs 0.10 crore at September 30, 2026.

Which Vishwaraj Sugar liabilities changed during the half year?

Vishwaraj Sugar reduced current borrowings by Rs 78.24 crore and trade payables excluding micro, small and medium enterprises, or MSMEs, by Rs 79.02 crore between March 31 and September 30, 2026. Current borrowings stood at Rs 211.00 crore at September 30, compared with Rs 289.24 crore at March 31, while non-current borrowings increased by Rs 29.37 crore to Rs 160.71 crore.

The reduction in supplier dues was outside the MSME category. Trade payables excluding MSMEs declined from Rs 97.43 crore to Rs 18.41 crore, whereas MSME dues remained unchanged at Rs 4.35 crore. Other financial liabilities rose by Rs 8.00 crore to Rs 30.55 crore over the same six-month period.

Total borrowings, including current and non-current balances, fell by Rs 48.87 crore to Rs 371.70 crore at September 30, 2026. The cash-flow statement separately reports Rs 33.57 crore under repayment or proceeds of short-term borrowings, Rs 25.06 crore of interest paid, and Rs 15.30 crore in parentheses under proceeds from long-term borrowings.

Did Vishwaraj Sugar's liquidity position improve despite the loss?

The filing shows that Vishwaraj Sugar's cash and bank balances rose by Rs 1.65 crore to Rs 4.20 crore, but it does not provide a liquidity ratio or define liquidity improvement. Total current assets declined by Rs 159.96 crore while total current liabilities declined by Rs 150.29 crore between March 31 and September 30, 2026.

Total assets fell by Rs 166.69 crore to Rs 661.07 crore at September 30, 2026. Property, plant and equipment decreased by Rs 8.90 crore to Rs 472.06 crore, while capital work in progress increased by Rs 2.38 crore to Rs 24.03 crore.

Total equity decreased by Rs 45.77 crore to Rs 207.19 crore, reflecting the half-year net loss because no other comprehensive income was reported for the period. The Board approved the unaudited results on November 14, 2026, and the statutory auditor's limited review dated the same day reported no matter suggesting a material misstatement in the standalone results.

Why did Vishwaraj Sugar remain loss-making in the half year?

Vishwaraj Sugar reported a net loss of Rs 45.77 crore for the six months ended September 30, 2026, compared with a Rs 30.84 crore loss in the corresponding six months of 2025. Revenue from operations increased by Rs 26.03 crore to Rs 214.13 crore, but total expenses rose by Rs 45.90 crore to Rs 267.54 crore.

Finance costs increased to Rs 25.06 crore from Rs 11.29 crore in the prior-year half year. Changes in inventories were recorded as an expense of Rs 196.87 crore, compared with Rs 170.37 crore a year earlier, while depreciation and amortisation increased by Rs 4.21 crore to Rs 12.30 crore.

The September 2026 quarter recorded revenue from operations of Rs 107.07 crore, almost unchanged from Rs 107.07 crore in the June 2026 quarter. The quarterly loss narrowed to Rs 19.77 crore from Rs 25.84 crore, although Vishwaraj Sugar stated that sugar production is seasonal and one quarter is not indicative of the full-year trend.

Conclusion

Vishwaraj Sugar's half-year statements show a substantial inventory release alongside lower current borrowings and non-MSME supplier dues. The Rs 81.37 crore operating cash inflow was supported by Rs 89.77 crore of positive working-capital movement, while the company remained loss-making and its six-month loss widened to Rs 45.77 crore.

The disclosed seasonal nature of sugar production leaves the sustainability of the September 30, 2026 inventory balance of Rs 54.96 crore unresolved. Future results will show whether receivables of Rs 32.85 crore, current borrowings of Rs 211.00 crore and finance costs of Rs 25.06 crore change as the production cycle progresses.