Apis India Limited reports Rs 5.27 crore operating cash outflow

Apis India Limited reported a Rs 5.27 crore net cash outflow from operating activities for the half year ended September 30, 2026, despite profit before tax increasing to Rs 16.12 crore. A Rs 21.46 crore cash use in trade receivables and a Rs 12.54 crore cash use in trade payables outweighed Rs 29.78 crore of operating profit before working-capital changes.

Why did Apis India’s operating cash flow turn negative?

Apis India’s operating cash flow turned negative because working-capital movements more than absorbed cash generated before those movements. Operating profit before working-capital changes was Rs 29.78 crore in the half year ended September 30, 2026, compared with Rs 17.67 crore in the corresponding 2025 half year. The increase in trade receivables used Rs 21.46 crore of cash, while the reduction in trade payables used a further Rs 12.54 crore.

Inventories used Rs 2.09 crore, reversing a Rs 14.46 crore cash release in the half year ended September 30, 2025. Other non-current assets used Rs 2.16 crore, while other current assets generated Rs 75.96 lakh. A Rs 6.94 crore increase in other current financial liabilities partly offset the outflows, but cash generated from operations was negative Rs 93.86 lakh, compared with positive Rs 32.56 crore a year earlier.

The company then paid Rs 4.33 crore of tax, including tax deducted at source, compared with Rs 4.61 crore in the prior-year half. That moved net cash from operating activities to an outflow of Rs 5.27 crore, against an inflow of Rs 27.95 crore in the half year ended September 30, 2025.

How did Apis India’s cash conversion compare with last year?

Apis India generated a higher pre-tax profit but converted it into lower operating cash than a year earlier because its working-capital movements changed materially. Profit before tax rose by Rs 96.08 lakh to Rs 16.12 crore for the half year ended September 30, 2026, from Rs 15.16 crore in the corresponding 2025 period. Net operating cash, however, moved from an inflow of Rs 27.95 crore to an outflow of Rs 5.27 crore.

Non-cash and non-operating adjustments increased operating profit before working-capital changes by Rs 13.65 crore above reported pre-tax profit in the September 2026 half year. These adjustments included Rs 8.19 crore of foreign-exchange fluctuation, Rs 3.28 crore of finance costs and Rs 2.39 crore of depreciation and amortisation. The cash-flow reversal occurred after these adjustments, through receivables, inventory and payables movements.

The prior-year comparison also shows the scale of the inventory change. Inventory was a Rs 14.46 crore source of cash in the September 2025 half year, whereas it was a Rs 2.09 crore use of cash in the latest period. Trade receivables used Rs 1.30 crore in the earlier half year, compared with Rs 21.46 crore in the September 2026 half year.

What balance-sheet movements accompanied the working-capital outflow?

Apis India’s consolidated balance sheet showed increases in receivables, inventories and total current assets at September 30, 2026. Trade receivables were Rs 142.77 crore at the half-year date, compared with Rs 130.72 crore at March 31, 2026. Inventories increased to Rs 83.43 crore from Rs 81.35 crore, and total current assets rose to Rs 256.53 crore from Rs 239.06 crore.

The cash-flow statement records a Rs 21.46 crore use of cash in trade receivables, while the balance-sheet value of closing receivables increased by Rs 12.05 crore between March 31 and September 30. The two disclosures use different financial-statement presentations, but both show that customer dues were higher at the end of the half year and absorbed cash during the period.

Trade payables used Rs 12.54 crore of cash in the cash-flow statement. Other current financial liabilities, in contrast, increased to Rs 17.92 crore at September 30, 2026 from Rs 10.98 crore at March 31, 2026, generating the recorded Rs 6.94 crore cash inflow. Other current assets were Rs 26.56 crore at September 30, compared with Rs 26.34 crore at March 31, while the cash-flow statement recorded a Rs 75.96 lakh release from that category.

How was Apis India’s cash balance supported after the operating outflow?

Apis India increased cash and cash equivalents to Rs 3.37 crore at September 30, 2026 because financing inflows exceeded the combined operating and investing outflows. Net cash from financing activities was Rs 14.33 crore, compared with a financing outflow of Rs 25.30 crore in the corresponding 2025 half year. Net cash and cash equivalents increased by Rs 2.82 crore from the opening balance of Rs 54.66 lakh.

Financing cash flow included Rs 9.35 crore of net short-term borrowings and Rs 10.07 crore of proceeds from long-term borrowings. These inflows were partly offset by Rs 3.28 crore of finance costs and Rs 1.08 crore of long-term borrowing repayment. The cash-flow statement also records Rs 2 lakh of principal payment on lease liabilities.

Investing activities used Rs 6.24 crore in the September 2026 half year, compared with Rs 2.26 crore in the prior-year period. The principal investing item was Rs 6.17 crore spent on acquiring property, plant and equipment, including adjustments for intangible assets, capital work-in-progress, capital creditors and capital advances.

Total consolidated borrowings were Rs 79.31 crore at September 30, 2026, comprising Rs 67.52 crore of current borrowings and Rs 11.79 crore of non-current borrowings. This compared with total borrowings of Rs 60.97 crore at March 31, 2026. Total assets increased to Rs 328.31 crore from Rs 308.09 crore over the same period.

Conclusion

Apis India reported higher profit before tax of Rs 16.12 crore for the half year ended September 30, 2026, but operating cash flow moved to a Rs 5.27 crore outflow from a Rs 27.95 crore inflow a year earlier. The change was led by a Rs 21.46 crore cash use in trade receivables, a Rs 12.54 crore cash use in trade payables and a Rs 2.09 crore inventory cash use.

The next financial disclosures will show whether closing trade receivables of Rs 142.77 crore convert into cash and whether the working-capital outflows reverse. They will also indicate how total borrowings of Rs 79.31 crore, the Rs 6.17 crore property, plant and equipment acquisition and the closing cash balance of Rs 3.37 crore affect subsequent cash flows.