VTM first-half capex hits Rs 17.45 crore as cash falls

VTM Limited spent Rs 17.45 crore on property, plant and equipment, including changes in capital work in progress, in the six months ended September 30, 2026, while cash and cash equivalents fell to Rs 1.32 crore from Rs 3.00 crore at the start of the financial year. The investment outlay was Rs 9.64 crore a year earlier.

How much did VTM spend on capital expenditure?

VTM spent Rs 17.45 crore on purchases of property, plant and equipment, including changes in capital work in progress, during the six months ended September 30, 2026. This was Rs 7.81 crore higher than the Rs 9.64 crore reported for the six months ended September 30, 2025, an increase of about 81% year on year.

The property-and-equipment purchase line was the largest disclosed item in VTM’s investing cash flows for the latest six-month period. Net cash used in investing activities reached Rs 16.60 crore, compared with Rs 6.88 crore in the corresponding prior-year period, as the company’s purchase outlay increased substantially.

VTM’s cash-flow statement does not identify a specific project, capacity addition, product line or completion date behind the Rs 17.45 crore expenditure. The filing classifies the amount as purchases of property, plant and equipment, including changes in capital work in progress, but does not disclose the intended operational use of the assets.

How did VTM’s cash balance change by September 2026?

VTM’s cash and cash equivalents declined by Rs 1.68 crore in the first six months of the financial year, from Rs 3.00 crore at the beginning of the year to Rs 1.32 crore at September 30, 2026. The closing balance was above the Rs 72.37 lakh reported at September 30, 2025, when cash and cash equivalents had declined by Rs 1.88 crore during the first half.

The latest movement comprised Rs 20.01 crore of net operating cash inflow, Rs 16.60 crore of net investing cash outflow and Rs 5.38 crore of net financing cash outflow. These reported movements resulted in a net decrease of Rs 1.68 crore in cash and cash equivalents in the latest six-month period.

VTM separately reported bank balances other than cash and cash equivalents of Rs 85.48 lakh at both September 30, 2026 and September 30, 2025. The cash-flow reconciliation uses cash and cash equivalents, rather than that separately presented bank-balance category or other current financial assets.

Did VTM’s operating cash flow cover its investment outlay?

VTM’s Rs 20.01 crore of net cash from operating activities exceeded its Rs 17.45 crore property-and-equipment purchase outlay by Rs 2.56 crore in the six months ended September 30, 2026. Operating cash flow rose from Rs 18.37 crore in the prior-year period, while the purchase outlay rose more sharply from Rs 9.64 crore.

Cash generated from operations before income-tax payments was Rs 21.89 crore, down from Rs 24.16 crore a year earlier. Net income taxes paid declined to Rs 1.59 crore from Rs 5.73 crore, which left net operating cash inflow at Rs 20.01 crore, compared with Rs 18.37 crore in the prior-year six months.

VTM reported Rs 5.38 crore of net financing cash used in the latest half year, against Rs 13.27 crore used a year earlier. The financing section included a net short-term borrowing repayment of Rs 3.77 crore, net long-term borrowing proceeds of Rs 4.33 lakh and finance costs of Rs 1.66 crore.

What changed inside VTM’s operating cash flow?

VTM’s profit before income tax increased to Rs 6.22 crore in the six months ended September 30, 2026 from Rs 5.02 crore a year earlier, while depreciation and amortisation rose to Rs 6.66 crore from Rs 5.64 crore. Finance costs increased to Rs 1.66 crore from Rs 73.30 lakh, and the allowance for expected credit loss was Rs 13.52 crore, compared with Rs 13.90 crore.

Working-capital movements were different across the two reporting periods. Inventory increased by Rs 5.79 crore in the latest six months, compared with an Rs 18.01 crore increase a year earlier, while trade receivables increased by Rs 2.17 crore after declining by Rs 15.85 crore in the previous corresponding period.

Trade payables increased by Rs 2.44 crore in the latest six months, below the Rs 15.84 crore increase reported a year earlier. VTM also reported a Rs 9.02 crore decline in loans and advances, compared with a Rs 2.89 crore decline in the prior-year period, while provisions and other liabilities rose by Rs 9.68 crore after falling by Rs 1.72 crore.

What does VTM say about interpreting the half-year figures?

VTM says the textile industry is seasonal in nature and that quarterly results cannot be taken as an indicator of the full year’s working results. The statement accompanies results for the quarter and six months ended September 30, 2026, when VTM reported net profit of Rs 4.87 crore, compared with Rs 6.33 crore in the prior-year six-month period.

VTM reports one operating segment, textile manufacturing, under Indian Accounting Standard 108, which covers operating segments. The filing therefore provides no separate segment cash-flow or capital-expenditure data to show whether the Rs 17.45 crore outlay was directed to a particular textile product or manufacturing activity.

Conclusion

VTM’s first-half cash-flow data show that Rs 20.01 crore of operating cash inflow was greater than its Rs 17.45 crore property-and-equipment purchase outlay. Cash and cash equivalents still fell from Rs 3.00 crore at the start of the financial year to Rs 1.32 crore at September 30, 2026 because investing and financing activities also used cash.

The next financial disclosures may clarify the use and timing of the Rs 17.45 crore asset investment, as VTM has not disclosed a project purpose, expected return or completion date. Its stated seasonal warning also means the full-year implications of the September 2026 half-year figures remain unresolved.