Ramaraju Surgical Annual Reports, Balance Sheet and Financials

The Ramaraju Surgical Cotton Mills Limited Consolidated Balance Sheet (Rs in Crores)

The Ramaraju Surgical Cotton Mills Limited Consolidated Profit & Loss Statement (Rs in Crores)

Summary of the Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities:
Net cash used in operating activities increased significantly to Rs. 88.94 crore in FY 2026, compared with Rs. 28.94 crore in FY 2025, indicating continued pressure on the company’s core operations. Although operating profit before working capital changes improved to Rs. 20.10 crore from Rs. 5.54 crore, this was more than offset by adverse working capital movements. The largest outflow came from trade receivables of Rs. 98.10 crore, compared with Rs. 39.66 crore in FY 2025, suggesting that substantial sales remained tied up in receivables. Inventories also absorbed Rs. 25.55 crore, while loans and advances used another Rs. 15.38 crore. The increase in trade payables and current liabilities provided a partial offset of Rs. 30.34 crore. Overall, the operating cash flow reflects weak cash

conversion and higher working capital requirements.

Cash Flow from Investing Activities:
Net cash used in investing activities was relatively low at Rs. 0.31 crore in FY 2026, compared with net cash generated of Rs. 45.19 crore in FY 2025. The major change was the sharp reduction in proceeds from the sale of investments in associates, which fell from Rs. 40.30 crore to just Rs. 0.06 crore. The company spent Rs. 4.87 crore on PPE, intangible assets and investment property, higher than Rs. 1.49 crore in the previous year, indicating somewhat higher capital expenditure. This was partly offset by Rs. 2.22 crore from the sale of PPE and Rs. 2.29 crore of interest received. Overall, investing activities were broadly cash-neutral in FY 2026, but the absence of the large investment-sale proceeds seen in FY 2025 reduced liquidity support.

Cash Flow from Financing Activities:
Financing activities generated Rs. 93.20 crore in FY 2026, compared with a cash outflow of Rs. 55.80 crore in FY 2025. The key driver was a substantial increase in deposits, which generated Rs. 179.35 crore, compared with only Rs. 9.04 crore in FY 2025. The company also raised Rs. 45 crore through long-term borrowings. However, these inflows were partly absorbed by Rs. 71.65 crore of long-term loan repayments, Rs. 13.31 crore reduction in short-term borrowings and Rs. 44.84 crore of finance costs. Therefore, the positive financing cash flow was largely supported by higher deposit mobilisation and borrowing, rather than internally generated cash.

Net Increase/(Decrease) in Cash:
The company 's cash and cash equivalents increased by Rs. 3.95 crore in FY 2026, reversing the Rs. 39.54 crore decline in FY 2025. However, the improvement was primarily due to financing inflows of Rs. 93.20 crore, which more than offset the Rs. 88.94 crore operating cash outflow and Rs. 0.31 crore investing outflow. Consequently, the improvement in cash should not be interpreted as an improvement in underlying operating liquidity, as the business continued to consume substantial cash from operations.

Financial Ratios of The Ramaraju Surgical Cotton Mills Ltd :

Summary of Financial Ratios for the year 2026 and 2025:

Current Ratio:

The Current Ratio declined from 1.20 in FY 2025 to 1.04 in FY 2026, indicating a weakening in short-term liquidity. Although the ratio remains marginally above 1, the company 's current assets provide only a limited cushion over its current liabilities. This is consistent with the negative operating cash flow and suggests that the company has relatively limited liquidity headroom.

Debt-Equity Ratio:

The Debt-Equity Ratio increased sharply from 4.01x to 7.66x, indicating a substantial rise in financial leverage. The company is increasingly dependent on debt relative to shareholders ' funds, which increases financial risk and interest obligations. The deterioration is particularly significant given the company 's negative profitability.

Debt Service Coverage Ratio:

DSCR improved from 0.32x to 0.44x, but remains well below 1.0x. This indicates that the company 's internally generated earnings are still insufficient to comfortably cover its debt servicing obligations. Despite the improvement, debt repayment capacity remains weak.

Return on Equity:

ROE deteriorated significantly from a positive 6.45% in FY 2025 to negative 38.76% in FY 2026. This reflects the company 's loss during FY 2026 and indicates that shareholders ' capital generated a negative return. The sharp deterioration points to a significant decline in overall profitability and shareholder value creation.

Inventory Turnover Ratio:

Inventory turnover remained broadly stable, moving from 101 days to 100 days. This indicates that there was little change in the time taken to convert inventory into sales. Inventory management therefore appears relatively stable year-on-year, although the relatively long holding period continues to tie up working capital.

Trade Receivable Turnover Ratio:

The trade receivable cycle deteriorated considerably, increasing from 64 days to 97 days. This indicates that the company is taking substantially longer to collect money from customers. The deterioration is consistent with the Rs. 98.10 crore increase in cash tied up in trade receivables and is a major contributor to the company 's negative operating cash flow.

Trade Payable Turnover Ratio:

Trade payable days increased from 15 days to 18 days, indicating that the company is taking slightly longer to pay its suppliers. This provides some short-term working capital support and partially offsets the increase in receivable days. However, the increase is insufficient to compensate for the much larger deterioration in collections.

Net Capital Turnover Ratio:

The Net Capital Turnover Ratio increased from 150 days to 179 days. This indicates a higher amount of net working capital being employed relative to the company 's operations. While higher turnover can sometimes indicate better utilisation, in this case the increase should be viewed alongside the sharp rise in receivables and negative operating cash flow, suggesting greater working capital intensity.

Net Profit Ratio:

The Net Profit Ratio declined sharply from a positive 1.54% to negative 7.11%. This indicates that the company moved from generating a small net profit to incurring a significant net loss relative to revenue. The deterioration reflects higher costs and financial pressure and is one of the key reasons for the negative ROE.

Return on Capital Employed:

ROCE declined from 8.86% to 2.19%, indicating a substantial reduction in the efficiency with which the company generates operating returns from its long-term capital. Although ROCE remains positive, the sharp decline suggests weaker operating profitability and inefficient utilisation of the capital employed.

Return on Investments:

Return on Investment fell from 1.08% to negative 5.30%, indicating that the company 's asset base generated a negative return during FY 2026. This reflects the deterioration in profitability and suggests that the company 's assets are currently not generating adequate returns. Overall, the ratio trend points to weak profitability, higher leverage and increasing working-capital pressure in FY 2026.