Amir Chand Jagdish Kumar (Exports) Limited cash outflow

Amir Chand Jagdish Kumar (Exports) Limited reported Rs 27.597 crore of cash used in operating activities for the half year ended September 30, 2026, despite Rs 101.295 crore of pre-tax profit, as trade receivables absorbed Rs 286.102 crore and inventories absorbed Rs 85.864 crore. The board approved the unaudited consolidated results on November 2, 2026.

Why did Amir Chand Jagdish Kumar report an H1 operating cash outflow?

Amir Chand Jagdish Kumar reported an operating cash outflow because changes in working-capital accounts outweighed cash generated before those movements. Pre-tax profit was Rs 101.295 crore for the half year ended September 30, 2026, compared with Rs 63.028 crore in the corresponding half year ended September 30, 2025.

The cash-flow statement shows Rs 132.884 crore of profit before working-capital changes in H1 2026, against Rs 104.568 crore a year earlier. Depreciation and amortisation were Rs 3.175 crore and net interest and hire charges on vehicle loans were Rs 29.393 crore, while interest on fixed deposits and deposits of Rs 1.020 crore was deducted in reaching that measure.

Trade receivables used Rs 286.102 crore of cash and inventories used Rs 85.864 crore. Those outflows were partly offset by a Rs 183.626 crore reduction in financial and other assets, but the company reported Rs 27.597 crore of cash used in operations after Rs 25.467 crore of income-tax payments.

The H1 2025 comparison also recorded negative operating cash flow of Rs 12.696 crore. The latest outflow was therefore Rs 14.901 crore larger year on year, while the principal recorded receivables movement increased to Rs 286.102 crore from Rs 36.657 crore.

How much did Amir Chand Jagdish Kumar's receivables and inventory increase?

Amir Chand Jagdish Kumar's trade receivables rose by Rs 286.103 crore between March 31, 2026 and September 30, 2026, reaching Rs 781.315 crore. The balance-sheet increase is substantially the same as the Rs 286.102 crore receivables cash use recorded in the H1 cash-flow statement, with the minor difference reflecting reported rounding.

Inventories increased by Rs 85.864 crore to Rs 1,125.332 crore at September 30, 2026 from Rs 1,039.468 crore at March 31, 2026. Other current assets also rose by Rs 14.042 crore to Rs 24.960 crore, whereas other financial assets declined by Rs 197.701 crore to Rs 27.875 crore.

The receivables increase was the largest specifically identified working-capital cash outflow in the filing. It was more than three times the inventory increase, while the fall in other financial assets provided an offsetting cash movement during the same six-month period.

Did Amir Chand Jagdish Kumar's earnings improve despite the cash outflow?

Amir Chand Jagdish Kumar's reported earnings improved in H1 2026 even as operating cash flow remained negative. Revenue from operations increased to Rs 1,357.657 crore from Rs 1,021.246 crore in H1 2025, and profit before tax rose by Rs 38.267 crore to Rs 101.295 crore.

Profit from continuing operations was Rs 77.706 crore, compared with Rs 48.654 crore in the prior-year half year. Total comprehensive income increased to Rs 77.825 crore from Rs 38.710 crore, according to the consolidated statement of financial results.

Finance costs declined by Rs 9.758 crore year on year to Rs 32.817 crore. Cost of materials consumed rose to Rs 1,072.993 crore from Rs 841.911 crore, an increase of Rs 231.082 crore, alongside the higher revenue reported for H1 2026.

The result shows a difference between profit recognition and cash collection during the period. The filing quantifies the Rs 286.102 crore receivables movement but does not give a commercial explanation for why customer balances increased.

What happened to Amir Chand Jagdish Kumar's cash balance and financing?

Amir Chand Jagdish Kumar recorded Rs 126.648 crore of net cash used in financing activities during H1 2026. The financing section includes a Rs 86.466 crore decrease in secured loans, Rs 29.393 crore of interest payments and Rs 10.789 crore of fresh-issue expenses.

Net cash used in investing activities was Rs 2.402 crore, including Rs 2.665 crore for net purchases of property, plant and equipment and portfolio investments, partly offset by Rs 1.020 crore of interest received on fixed deposits and deposits. The operating, investing and financing movements resulted in a Rs 156.646 crore net decrease in cash and cash equivalents.

Cash and cash equivalents in the cash-flow statement were Rs 99.540 crore at September 30, 2026, versus Rs 256.187 crore at the beginning of the period. The reported closing amount comprised Rs 0.131 crore of cash and Rs 99.409 crore of bank balances, including other bank balances.

The company completed its initial public offer of 20,754,716 shares at Rs 212 each and listed on the National Stock Exchange and BSE on April 2, 2026. Net fresh-issue proceeds were Rs 411.114 crore after estimated offer expenses of Rs 28.886 crore, and the company said the entire amount had been used by September 30, 2026.

How were IPO proceeds used and what remains unresolved?

Amir Chand Jagdish Kumar said it used Rs 400 crore of net initial public offer proceeds for working-capital requirements and Rs 11.114 crore for general corporate purposes by September 30, 2026. The disclosure showed no unutilised balance from the Rs 411.114 crore of net proceeds at that date.

The consolidated results include ACJK Foods Private Limited, a wholly owned subsidiary. Two other wholly owned subsidiaries, Aeroplane FMCG Pte. Ltd. in Singapore and Amir Chand Trading Company in Saudi Arabia, had no transactions in the quarter or half year ended September 30, 2026 and had not started operations.

Aeroplane FMCG Pte. Ltd. was incorporated on May 15, 2026. The statutory auditor issued an unmodified limited-review conclusion on the consolidated results and did not modify its conclusion in relation to the two inactive subsidiaries.

Management also said the New Labour Codes, effective from November 21, 2025, had not caused a material incremental impact on gratuity obligations based on its assessment and actuarial valuation. It made no adjustment for the quarter but said it continued to evaluate effects in other areas, including the contract workforce.

Conclusion

Amir Chand Jagdish Kumar's H1 2026 filing shows higher revenue and profit alongside negative operating cash flow. Revenue rose by Rs 336.411 crore and pre-tax profit by Rs 38.267 crore year on year, but the Rs 286.102 crore increase in receivables and Rs 85.864 crore inventory cash use left operations with a Rs 27.597 crore outflow.

The next results will indicate whether receivables and inventory continue to absorb cash after the company fully used Rs 400 crore of IPO proceeds earmarked for working capital by September 30, 2026. The filing also leaves two disclosed matters to monitor: the start of operations at the Singapore and Saudi Arabia subsidiaries and management's continuing assessment of the New Labour Codes beyond gratuity obligations.