Zuari Industries Limited cuts current borrowings 62.5% in H1

Zuari Industries Limited reduced consolidated current borrowings by 62.5% to Rs 523.9856 crore at 30 September 2026 from Rs 1,397.4444 crore at 31 March 2026, while reporting Rs 269.3494 crore of operating cash inflow and Rs 730.7817 crore from investing activities during the half year.

How much did Zuari Industries reduce consolidated borrowings?

Zuari Industries reduced total consolidated borrowings by Rs 924.717 crore over the six months to 30 September 2026. Current and non-current borrowings combined stood at Rs 1,656.5786 crore, compared with Rs 2,581.29 crore at 31 March 2026, based on the unaudited consolidated balance sheet.

The reduction was concentrated in short-term funding. Current borrowings fell by Rs 873.4588 crore to Rs 523.9856 crore, whereas non-current borrowings decreased by Rs 51.2526 crore to Rs 1,132.593 crore. Current borrowings therefore accounted for nearly all of the decline in total borrowings during the half year.

Zuari Industries also reported total current liabilities of Rs 952.451 crore at 30 September 2026, down from Rs 2,102.7404 crore at 31 March 2026. This wider movement includes trade payables, other financial liabilities, other current liabilities, provisions and tax liabilities, so it cannot be attributed entirely to borrowings.

What cash flows supported Zuari Industries' repayments?

Zuari Industries generated Rs 1,000.1311 crore from operating and investing activities combined in the half year ended 30 September 2026. Operating activities contributed Rs 269.3494 crore and investing activities generated Rs 730.7817 crore, compared with combined cash inflows of Rs 267.5018 crore in the corresponding half of 2025.

The investing inflow changed materially from an outflow of Rs 16.652 crore a year earlier. It included Rs 404.6242 crore of net proceeds from non-current investments and Rs 258.5 crore of loans received back, partly offset by Rs 9.3196 crore of payments for property, plant and equipment and Rs 3.8581 crore of fixed-deposit investments, net of maturities.

Operating cash inflow was Rs 14.8044 crore lower than the Rs 284.1538 crore reported in the half year ended 30 September 2025. Cash generated from operations was Rs 258.7121 crore, with a Rs 387.7043 crore inventory movement partly offset by a Rs 199.1317 crore movement in trade payables and other liabilities.

How did Zuari Industries repay and raise borrowings?

Zuari Industries repaid Rs 1,277.986 crore of consolidated borrowings in the six months ended 30 September 2026 and raised Rs 350.8107 crore. Repayments included Rs 668.2321 crore of non-current borrowings and Rs 609.7539 crore of current borrowings.

New funding comprised Rs 340.3 crore of non-current borrowings and Rs 10.5107 crore of current borrowings. Net repayment of borrowings before other financing payments was therefore Rs 927.1753 crore, compared with Rs 175.4095 crore in the corresponding 2025 half, when repayments totalled Rs 410.3747 crore and new proceeds were Rs 234.9652 crore.

Zuari Industries' financing cash outflow reached Rs 1,037.912 crore, more than three times the Rs 302.9024 crore outflow a year earlier. Besides borrowings, the cash-flow statement included Rs 105.3765 crore of finance costs paid, Rs 2.1063 crore of lease payments including interest, and Rs 3.2539 crore of dividends paid on preference and equity shares.

Cash and cash equivalents consequently declined to Rs 24.0846 crore at 30 September 2026 from Rs 61.8655 crore at the beginning of the half year. The Rs 37.7809 crore decrease was slightly larger than the Rs 35.4006 crore decline reported during the half year ended 30 September 2025.

What did Zuari Industries report in its half-year results?

Zuari Industries reported consolidated revenue from operations of Rs 568.7849 crore for the half year ended 30 September 2026, up from Rs 498.6327 crore a year earlier. Total income rose to Rs 656.2912 crore from Rs 554.0823 crore, while total expenses increased to Rs 693.3605 crore from Rs 601.8224 crore.

The group recorded a loss of Rs 37.0693 crore before its share of profit or loss of associates and joint ventures, exceptional items and tax, compared with a loss of Rs 47.7401 crore in the previous-year half. Its share of profit from associates and joint ventures was Rs 222.8218 crore, marginally above Rs 221.3592 crore a year earlier.

Profit after tax was Rs 184.7782 crore, compared with Rs 163.8172 crore in the half year ended 30 September 2025. Finance costs declined to Rs 118.2306 crore from Rs 124.4722 crore, while the cash-flow statement recorded Rs 105.3765 crore of finance costs paid during the current period.

Which segments and balance-sheet items changed during the half year?

Zuari Industries' sugar segment revenue increased to Rs 431.7266 crore in the half year ended 30 September 2026 from Rs 352.9482 crore a year earlier. Real-estate revenue rose to Rs 39.9908 crore from Rs 16.2602 crore, while ethanol revenue declined to Rs 92.0209 crore from Rs 109.7513 crore.

The company states that sugar is seasonal, with cane crushing normally occurring between October and May and sales taking place throughout the year. This timing means quarterly performance can vary, including during the half year ended 30 September 2026, which precedes the usual start of the crushing period.

Consolidated inventories declined to Rs 384.3493 crore at 30 September 2026 from Rs 772.0536 crore at 31 March 2026. Trade receivables also decreased to Rs 40.6081 crore from Rs 66.3311 crore, movements reflected in the Rs 387.7043 crore inventory-related and Rs 25.723 crore receivables-related cash-flow movements.

Zuari Industries held Rs 1,763.2587 crore of investments accounted for using the equity method at 30 September 2026, up from Rs 1,712.1432 crore at 31 March 2026. The increase coincided with the Rs 222.8218 crore share of profit from associates and joint ventures that supported consolidated profit for the half year.

Conclusion

Zuari Industries' half-year disclosures show that the Rs 873.4588 crore reduction in current borrowings was accompanied by substantial debt repayments and unusual investing inflows. Operating cash generation remained positive at Rs 269.3494 crore, but the Rs 730.7817 crore investing inflow, including investment proceeds and loan recoveries, was a major source of cash during the period.

Next, readers should watch whether cash generation continues after the Rs 258.5 crore loan recovery and Rs 404.6242 crore of non-current investment proceeds recorded in the half year. Zuari Industries also disclosed an estimated Rs 50.717 crore import and export pass-fee matter through 30 September 2028, for which it has made no provision while litigation and interim relief remain in place.