Vraj Iron long-term borrowings rise to Rs 47.986 crore

Vraj Iron and Steel Limited reported long-term borrowings of Rs 47.986 crore at September 30, 2026, up from Rs 33.991 crore at March 31, 2026, while capital work in progress rose to Rs 18.059 crore. Vraj Iron received Rs 13.994 crore of long-term borrowings during the six-month period and recorded a Rs 26.221 crore investing cash outflow.

Why did Vraj Iron’s long-term borrowings rise?

Vraj Iron’s long-term borrowings increased by Rs 13.995 crore over the six months ended September 30, 2026, broadly matching Rs 13.994 crore of long-term borrowing receipts reported in the half-year cash-flow statement. The balance-sheet long-term borrowing balance reached Rs 47.986 crore, compared with Rs 33.991 crore at March 31, while current borrowings increased to Rs 8.532 crore from Rs 7.076 crore.

The filing does not identify lenders, interest rates, security, repayment dates or the use of proceeds for the long-term borrowings. It separately records finance cost of Rs 2.192 crore for the half year ended September 30, 2026, compared with Rs 62 lakh in the corresponding 2025 period, while cash interest paid rose to Rs 2.113 crore from Rs 54.2 lakh.

Vraj Iron’s non-current liabilities totalled Rs 62.181 crore at September 30, 2026, compared with Rs 45.398 crore at March 31. The increase was not limited to borrowings: deferred tax liabilities rose by Rs 2.755 crore to Rs 11.736 crore, and non-current provisions increased to Rs 1.052 crore from Rs 1.012 crore.

How did Vraj Iron’s investment spending change?

Vraj Iron increased payments for property, plant and equipment to Rs 14.941 crore in the half year ended September 30, 2026 from Rs 4.739 crore a year earlier, while payments for projects classified as work in progress fell to Rs 11.314 crore from Rs 28.083 crore. The shift shows higher spending on the property, plant and equipment line but lower cash payments for work-in-progress projects.

Combined payments for property, plant and equipment and projects were Rs 26.255 crore in the 2026 half year, compared with Rs 32.822 crore in the corresponding 2025 half year. Despite that reduction, net cash used in investing activities increased to Rs 26.221 crore from Rs 24.726 crore because fixed or restricted bank deposits produced a Rs 30.1 lakh net outflow, compared with a Rs 7.104 crore net realisation in the earlier period.

Vraj Iron received Rs 11,000 from the sale of property, plant and equipment in the six months to September 30, 2026. Interest received declined to Rs 32.4 lakh from Rs 99.2 lakh in the previous-year half. The cash-flow statement does not disclose the individual projects, their expected cost, construction timetable, capacity, or the point at which project expenditure will be capitalised.

What changed in Vraj Iron’s asset base?

Vraj Iron’s capital work in progress increased by Rs 10.646 crore to Rs 18.059 crore at September 30, 2026 from Rs 7.413 crore at March 31. Property, plant and equipment was Rs 270.573 crore, marginally higher than Rs 269.984 crore six months earlier, indicating that the increase in work in progress was larger than the movement in the reported property, plant and equipment balance.

The filing reports cash payments and closing asset balances but does not provide a reconciliation of additions, capitalisation, depreciation and other movements for each project. Depreciation and amortisation expense was Rs 15.041 crore in the half year ended September 30, 2026, compared with Rs 10.466 crore in the prior-year half, an item relevant to the period-end property, plant and equipment balance.

Non-current assets rose to Rs 385.171 crore from Rs 350.148 crore. Other non-current assets increased to Rs 42.216 crore from Rs 23.492 crore, while investment in the associate increased to Rs 40.945 crore from Rs 38.089 crore; the company identifies steel-product manufacturing as its sole reportable operating segment.

Vraj Iron’s current assets reached Rs 161.982 crore at September 30, compared with Rs 145.379 crore at March 31. Inventory increased to Rs 76.588 crore from Rs 67.621 crore, trade receivables declined to Rs 28.590 crore from Rs 32.521 crore, and other current assets rose to Rs 68.097 crore from Rs 39.238 crore.

How were Vraj Iron’s half-year cash outflows funded?

Vraj Iron funded part of its investing outflow through Rs 13.036 crore of net operating cash flow and Rs 13.259 crore of net financing cash inflow in the half year ended September 30, 2026. Operating cash flow was Rs 35 lakh in the corresponding 2025 half year, while financing inflow was Rs 23.935 crore, meaning operating cash generation increased but financing inflow declined year on year.

Cash generated from operations before tax was Rs 17.388 crore, compared with Rs 5.092 crore a year earlier, and income taxes paid declined to Rs 4.352 crore from Rs 4.742 crore. The operating-cash movement included an Rs 8.745 crore reduction in inventories in the 2026 half year, whereas inventories increased by Rs 16.221 crore in the earlier half-year cash-flow statement.

Financing inflow shifted toward long-term borrowing receipts of Rs 13.994 crore, up from Rs 5 crore, as net proceeds from short-term borrowings fell to Rs 1.457 crore from Rs 19.556 crore. After investing, operating and financing flows, cash and cash equivalents were Rs 42.4 lakh at September 30, 2026, compared with Rs 35 lakh at the start of the financial year.

Conclusion

Vraj Iron’s September 2026 consolidated statements show a larger capital work-in-progress balance, higher property, plant and equipment cash payments, and an increase in long-term borrowings. The Rs 13.995 crore rise in the long-term borrowing balance occurred alongside a Rs 26.221 crore investing outflow, while net operating cash flow improved to Rs 13.036 crore.

The next financial disclosures will show whether the Rs 18.059 crore work-in-progress balance is capitalised into property, plant and equipment and how the Rs 47.986 crore long-term borrowing balance changes. The September filing leaves the projects’ purpose, timing, cost and debt repayment terms unresolved, although the consolidated half-year results were reviewed by the statutory auditors and approved by the board on November 14, 2026.