Add-Shop E-Retail cash outflow follows receivables rise

Add-Shop E-Retail Limited reported a Rs 1.18 crore net cash outflow from operating activities for the half year ended September 30, 2026, as trade receivables increased by Rs 7.18 crore to Rs 119.37 crore. The outflow occurred despite net profit rising to Rs 55.27 lakh from Rs 43.68 lakh a year earlier.

Why did Add-Shop E-Retail report negative operating cash flow?

Add-Shop E-Retail reported negative operating cash flow because working-capital movements outweighed its operating profit before working-capital changes. The cash-flow statement records operating profit before those changes of Rs 1.79 crore for the half year ended September 30, 2026, but cash generated from operations was negative Rs 1.02 crore and net operating cash flow was negative Rs 1.18 crore after income-tax and other adjustments of Rs 15.96 lakh.

The result contrasts with the half year ended September 30, 2025, when Add-Shop E-Retail reported net operating cash inflow of Rs 7.00 crore. Profit before tax increased to Rs 73.38 lakh in the 2026 period from Rs 58.08 lakh in the previous-year period, while the receivables movement changed from a Rs 7.65 crore reduction in 2025 to a Rs 7.18 crore increase in 2026.

Add-Shop E-Retail also reported an inventory-related cash-flow benefit of Rs 1.27 crore in the 2026 half year, compared with a Rs 59.84 lakh inventory-related outflow in the prior-year period. Other current assets generated a negative cash-flow adjustment of Rs 1.33 crore, compared with a Rs 6.64 lakh benefit a year earlier, while the filing does not explain the commercial reasons for those movements.

What happened to Add-Shop E-Retail's receivables and current assets?

Add-Shop E-Retail's trade receivables increased to Rs 119.37 crore at September 30, 2026 from Rs 112.19 crore at March 31, 2026. The Rs 7.18 crore increase is reflected in the cash-flow statement as a working-capital outflow and was larger than the Rs 55.27 lakh net profit reported for the half year.

Inventories moved lower to Rs 31.26 crore at September 30 from Rs 32.53 crore at March 31, a reduction of Rs 1.27 crore. Other current assets rose to Rs 1.50 crore from Rs 17.65 lakh during the same period, corresponding with the Rs 1.33 crore negative cash-flow adjustment identified in the cash-flow statement.

Cash and cash equivalents nevertheless increased to Rs 27 lakh at September 30, 2026 from Rs 18.99 lakh at March 31, 2026. This increase followed Rs 3.01 crore of net cash from financing activities, which exceeded the Rs 1.18 crore operating outflow and Rs 1.75 crore used in investing activities.

How did Add-Shop E-Retail's profit and revenue change?

Add-Shop E-Retail reported revenue from operations of Rs 92.71 crore for the half year ended September 30, 2026, compared with Rs 62.81 crore in the corresponding 2025 period. Net profit rose to Rs 55.27 lakh from Rs 43.68 lakh, while profit before tax rose to Rs 73.38 lakh from Rs 58.08 lakh.

Animal Food was Add-Shop E-Retail's largest reported revenue segment, contributing Rs 73.84 crore in the 2026 half year, up from Rs 46.95 crore a year earlier. Ayurvadic Product revenue increased to Rs 10.13 crore from Rs 8.72 crore, while Agriculture Product revenue rose to Rs 8.51 crore from Rs 7.06 crore.

The movement in segment results differed from the revenue pattern. Animal Food's segment result declined to Rs 5.52 crore from Rs 8.25 crore, while Ayurvadic Product's result increased to Rs 7.98 crore from Rs 4.22 crore and Agriculture Product's rose to Rs 6.77 crore from Rs 5.40 crore. The unallocable segment loss widened to Rs 19.76 crore from Rs 17.24 crore, and total segment result was Rs 73.37 lakh compared with Rs 58.07 lakh.

How did Add-Shop E-Retail's borrowings and liabilities change?

Add-Shop E-Retail's long-term borrowings rose to Rs 5.16 crore at September 30, 2026 from Rs 1.17 crore at March 31, 2026. The cash-flow statement records Rs 3.99 crore of proceeds from long-term borrowings in the half year, consistent with the increase in the balance-sheet line.

Short-term borrowings decreased to Rs 10.97 crore from Rs 11.25 crore, a reduction of Rs 27.61 lakh. Other long-term liabilities increased to Rs 26.43 crore from Rs 12.50 crore, while deferred tax liabilities rose to Rs 37.92 lakh from Rs 35.77 lakh; the filing does not disclose the purpose, maturity or terms of the long-term borrowing proceeds or other long-term liability increase.

Total assets increased to Rs 161.01 crore at September 30 from Rs 152.29 crore at March 31. Property, plant and equipment increased to Rs 7.51 crore from Rs 6.12 crore, while the investing cash-flow statement records purchases of fixed assets of Rs 1.74 crore during the half year.

Add-Shop E-Retail reported share capital of Rs 28.31 crore at both September 30 and March 31, while other equity increased to Rs 86.15 crore from Rs 85.60 crore. The balance sheet therefore shows that the increase in total assets was accompanied by higher receivables, higher property and equipment balances, and higher long-term borrowings and other long-term liabilities.

Conclusion

Add-Shop E-Retail's September 2026 half-year results show that higher revenue and profit did not result in operating cash generation. Revenue increased to Rs 92.71 crore and net profit reached Rs 55.27 lakh, but a Rs 7.18 crore rise in receivables contributed to a Rs 1.18 crore operating cash outflow, compared with a Rs 7.00 crore inflow in the corresponding prior-year period.

The next financial statements will show whether trade receivables of Rs 119.37 crore decline and whether long-term borrowings of Rs 5.16 crore and other long-term liabilities of Rs 26.43 crore change after September 30, 2026. The filing discloses no collection target, repayment plan or scheduled financing event for these balances.