ADF Foods Limited operating cash flow rises to Rs 49.54 crore

ADF Foods Limited generated Rs 49.54 crore of standalone operating cash in the half year ended September 30, 2026, up from Rs 29.69 crore a year earlier, even as Rs 52.53 crore of investing outflow and Rs 21.41 crore of net borrowing proceeds changed its cash deployment. The unaudited statement was prepared under Indian Accounting Standard 7.

What drove ADF Foods’ higher operating cash flow?

ADF Foods’ standalone net cash from operating activities increased by Rs 19.85 crore to Rs 49.54 crore in the half year ended September 30, 2026, from Rs 29.69 crore in the corresponding 2025 period. On a consolidated basis, operating cash flow rose to Rs 49.21 crore from Rs 31.93 crore, an increase of Rs 17.28 crore.

Standalone profit before tax declined to Rs 53.87 crore from Rs 63.18 crore, but cash generated from operating activities before taxes paid increased to Rs 61.89 crore from Rs 44.47 crore. Net taxes paid fell to Rs 12.35 crore from Rs 14.77 crore, which contributed to the increase in reported operating cash flow.

Depreciation and amortisation added back Rs 6.62 crore in the standalone reconciliation, compared with Rs 4.35 crore a year earlier, while finance cost added back Rs 0.98 crore versus Rs 0.72 crore. The statement also recorded an unrealised foreign-exchange gain of Rs 0.85 crore, compared with a gain of Rs 3.40 crore in the prior-year half.

How did working capital affect ADF Foods’ cash flow?

ADF Foods’ standalone trade receivables declined by Rs 10.57 crore in the 2026 half year, compared with a Rs 2.74 crore decline a year earlier. Loans and other current financial assets also declined by Rs 14.87 crore, whereas the same line increased by Rs 5.58 crore in the previous corresponding period.

Inventory absorbed Rs 10.35 crore of standalone cash, compared with Rs 10.95 crore in the half year ended September 30, 2025. Current non-financial assets used Rs 9.48 crore against Rs 6.97 crore a year earlier, while trade payables increased by Rs 5.23 crore, compared with a Rs 3.28 crore increase in the prior period.

Consolidated inventory absorbed Rs 20.67 crore, up from Rs 19.18 crore in the corresponding half year. Consolidated trade receivables declined by Rs 12.56 crore versus a Rs 4.75 crore decline, while current non-financial assets used Rs 11.06 crore compared with Rs 8.53 crore a year earlier.

Where did ADF Foods deploy investing cash?

ADF Foods used Rs 52.53 crore in standalone investing activities in the half year ended September 30, 2026, compared with an outflow of Rs 2.55 crore a year earlier. Mutual-fund purchases accounted for Rs 40.00 crore, while the comparable 2025 standalone cash-flow statement did not report a purchase in that line.

Purchases of property, plant and equipment used Rs 21.29 crore, lower than Rs 41.51 crore in the corresponding 2025 half year. The filing states that payments for property, plant and equipment include movements in capital work-in-progress, covering both completed assets and assets under development.

Mutual-fund sale proceeds fell to Rs 4.75 crore from Rs 48.74 crore, reducing the offset to the year’s investment purchases. Fixed-deposit withdrawals contributed Rs 4.41 crore, compared with Rs 9.91 crore a year earlier, and proceeds from asset sales were Rs 0.37 crore versus Rs 0.16 crore.

The consolidated investing outflow was Rs 51.90 crore, compared with a Rs 10.49 crore inflow in the prior-year half. Consolidated mutual-fund purchases were Rs 40.30 crore and sales proceeds were Rs 7.22 crore; the statement also recorded Rs 1.26 crore invested in equity shares of an unlisted subsidiary.

How did ADF Foods finance its cash deployment?

ADF Foods reported Rs 21.41 crore of net proceeds from borrowings in standalone financing cash flow for the half year ended September 30, 2026. After lease-rent payments, dividends and finance costs, financing activities supplied Rs 13.27 crore, compared with a Rs 7.27 crore outflow in the corresponding 2025 period.

Standalone dividends paid were Rs 6.59 crore, compared with Rs 5.86 crore a year earlier, while lease-rent payments were Rs 0.99 crore versus Rs 0.95 crore. Finance costs paid were Rs 0.64 crore, compared with Rs 0.47 crore in the previous half year.

Consolidated net borrowing proceeds were Rs 21.49 crore and financing activities generated Rs 8.74 crore of cash, after Rs 5.52 crore of lease-rent payments, Rs 6.59 crore of dividends and Rs 0.64 crore of finance costs. In the prior-year half, consolidated financing activities used Rs 15.92 crore, including Rs 9.60 crore of lease-rent payments.

Standalone borrowings stood at Rs 30.23 crore at September 30, 2026, comprising Rs 24.74 crore of non-current borrowings and Rs 5.49 crore of current borrowings. Total standalone borrowings were Rs 8.75 crore at March 31, 2026, comprising Rs 7.29 crore of non-current and Rs 1.46 crore of current borrowings.

What happened to ADF Foods’ cash balance?

ADF Foods ended September 30, 2026 with standalone cash and cash equivalents of Rs 44.68 crore, up from Rs 33.94 crore at the start of the half year. The Rs 10.28 crore increase was lower than the Rs 19.98 crore increase in the corresponding 2025 period, when closing cash and cash equivalents were Rs 46.77 crore.

The standalone closing balance comprised Rs 44.65 crore held with banks and Rs 0.03 crore of cash on hand. An unrealised foreign-exchange restatement added Rs 0.46 crore, compared with Rs 1.51 crore in the prior-year half.

Consolidated cash and cash equivalents closed at Rs 72.45 crore, compared with Rs 65.62 crore at March 31, 2026 and Rs 66.00 crore at September 30, 2025. The consolidated statement reported a Rs 6.05 crore net increase and a Rs 0.78 crore unrealised foreign-exchange restatement during the 2026 half year.

Conclusion

ADF Foods produced more operating cash in the half year ended September 30, 2026 despite lower standalone profit before tax. That operational cash generation was accompanied by a larger investing outflow, led by mutual-fund purchases and property, plant and equipment spending, while new borrowings provided financing cash.

The next disclosed event is the November 11, 2026 record date for the interim dividend. Investors can also watch collections under the October 9, 2026 forbearance agreement involving a US-based subsidiary, which provides for Rs 16.77 crore plus applicable interest; Rs 4.31 crore had been received, with the balance due in subsequent periods and no impact recorded in the September 30, 2026 unaudited consolidated results.