AKI India reports Rs 3.33 crore operating cash outflow

AKI India Limited reported a Rs 3.33 crore net operating cash outflow for the half year ended 30 September 2026, despite net profit of Rs 1.42 crore, as a Rs 5.77 crore inventory increase absorbed cash. AKI India generated Rs 4.22 crore of financing inflow, primarily through a Rs 4.23 crore increase in long-term borrowings.

Why did AKI India report an operating cash outflow?

AKI India reported an operating cash outflow because its Rs 5.77 crore inventory increase exceeded Rs 2.72 crore of operating profit before working-capital changes in the half year ended 30 September 2026. Profit before tax was Rs 1.73 crore and depreciation was Rs 98.25 lakh, but these did not offset the working-capital cash use.

Cash generated from operations was negative Rs 3.33 crore, and the filing showed no income-tax payment for the current half year, leaving net cash from operating activities at negative Rs 3.33 crore. A Rs 73.70 lakh reduction in trade receivables, Rs 1.07 crore reduction in other current assets and Rs 56.90 lakh reduction in short-term advances released cash, but inventory remained the largest identified use.

The current-period operating outflow was lower than negative Rs 35.52 crore in the half year ended 30 September 2025. In that prior period, inventory consumed Rs 17.22 crore and the movement in short-term advances used Rs 17.37 crore, compared with a Rs 5.77 crore inventory outflow and a Rs 56.90 lakh cash release from short-term advances in the current period.

How much did AKI India inventory rise?

AKI India’s inventory rose by Rs 5.77 crore to Rs 57.15 crore at 30 September 2026 from Rs 51.38 crore at 31 March 2026. This balance-sheet increase corresponds with the Rs 5.77 crore inventory outflow in the consolidated cash-flow statement for the six-month period.

Total current assets increased to Rs 127.78 crore at 30 September 2026 from Rs 124.05 crore at 31 March 2026. Trade receivables fell to Rs 30.26 crore from Rs 31.00 crore, cash and cash equivalents rose to Rs 5.02 crore from Rs 4.69 crore, and current tax assets declined to Rs 5.48 crore from Rs 6.55 crore.

The current-liability movements also affected operating cash flow. Trade payables declined by Rs 61.51 lakh to Rs 24.25 crore, other current liabilities declined by Rs 1.96 crore to Rs 8.91 crore, and short-term provisions fell by Rs 7.26 lakh to Rs 2.57 crore between 31 March and 30 September 2026.

How did AKI India fund its cash requirements?

AKI India generated Rs 4.22 crore of net financing cash inflow in the half year ended 30 September 2026, principally from a Rs 4.23 crore increase in long-term borrowings. Short-term borrowings decreased by Rs 98,000 in the cash-flow statement, while the filing disclosed no proceeds from share capital, security premium or share warrants for the current half year.

Non-current borrowings increased to Rs 8.65 crore at 30 September 2026 from Rs 4.43 crore at 31 March 2026. Current borrowings were nearly unchanged at Rs 17.01 crore from Rs 17.02 crore, bringing reported total borrowings to Rs 25.67 crore from Rs 21.45 crore over the six months.

Financing inflow was substantially lower than Rs 40.64 crore in the half year ended 30 September 2025. The prior-year period included Rs 4.51 crore of additional long-term borrowings, Rs 13.39 crore of increased capital, Rs 2.93 crore of share-capital proceeds and Rs 24.52 crore of security-premium proceeds, offset by a negative Rs 6.86 crore movement in money received against share warrants.

Did AKI India’s profit convert into operating cash?

AKI India’s first-half profit did not convert into positive operating cash because working-capital movements outweighed profit and depreciation. Net profit rose to Rs 1.42 crore for the half year ended 30 September 2026 from Rs 84.88 lakh a year earlier, while operating cash flow remained negative Rs 3.33 crore.

Income from operations increased to Rs 53.93 crore from Rs 45.19 crore in the corresponding half year, while profit before tax increased to Rs 1.73 crore from Rs 1.14 crore. Finance cost declined to Rs 97.56 lakh from Rs 1.08 crore, and the group’s share of profit from associates rose to Rs 77.80 lakh from Rs 17.80 lakh.

Investing activities used Rs 55.69 lakh in the current half year, compared with an outflow of Rs 2.84 crore in the prior-year period. Purchases of fixed assets were Rs 45.30 lakh, compared with Rs 3.20 crore a year earlier, while other non-current assets used Rs 32.62 lakh and work in progress provided Rs 23.13 lakh.

What review status applies to AKI India’s half-year figures?

AKI India’s consolidated quarterly and half-year figures ended 30 September 2026 were unaudited and subject to a limited review rather than an audit. The board approved the results on 6 November 2026, and the auditor said its procedures were designed to provide moderate assurance, not an audit opinion.

The consolidated statement includes AKI UK Limited and AKI CASTIL SHOES LLP. The auditor said AKI UK Limited’s interim information was reviewed by branch or other auditors, while AKI CASTIL SHOES LLP’s interim information had not been reviewed or audited by its auditors; management represented that the associate’s information was not material to the group.

The auditor issued an unmodified conclusion on the consolidated statement dated 6 November 2026. It noted that AKI CASTIL SHOES LLP’s interim information included group-share revenue of Rs 14.72 crore and group-share net profit after tax of Rs 69.27 lakh for the half year, based on information not reviewed or audited by that associate’s auditors.

Conclusion

AKI India’s half-year statement shows that higher income from operations of Rs 53.93 crore and net profit of Rs 1.42 crore did not produce positive operating cash flow. Inventory absorbed Rs 5.77 crore, while a Rs 4.22 crore financing inflow, mainly linked to additional long-term borrowing, supported a Rs 32.90 lakh increase in cash and cash equivalents.

The next disclosure to watch is whether inventory, which stood at Rs 57.15 crore on 30 September 2026, changes alongside operating cash flow and borrowing levels. The filing also leaves unresolved the review status of AKI CASTIL SHOES LLP’s interim financial information, although management said it was not material to the group as of 6 November 2026.