Asston Pharmaceuticals funds outflows with Rs 27.72 crore

Asston Pharmaceuticals Limited funded Rs 12.78 crore of operating and investing cash outflows in the half year ended 30 September 2026 through a Rs 27.72 crore preferential equity issue. The financing inflow of Rs 27.47 crore resulted in a Rs 14.70 crore increase in cash and cash equivalents during the six-month period.

How did Asston Pharmaceuticals' cash flow change in the half year?

Asston Pharmaceuticals reported Rs 6.57 crore of net cash used in operating activities and Rs 6.21 crore used in investing activities for the half year ended 30 September 2026. These combined outflows of Rs 12.78 crore were exceeded by a Rs 27.47 crore net financing inflow, producing a Rs 14.70 crore increase in cash and cash equivalents.

The latest cash-flow statement covers six months, while the comparative statement covers the year ended 31 March 2026. Financing cash inflow in the latest half year was Rs 27.47 crore, above Rs 21.18 crore for the full prior year, while operating cash use was Rs 6.57 crore against Rs 10.18 crore and investing cash use was Rs 6.21 crore against Rs 9.91 crore.

Why was Asston Pharmaceuticals' operating cash flow negative?

Asston Pharmaceuticals used Rs 6.57 crore in operating activities because working-capital movements outweighed its Rs 4.37 crore profit before tax for the half year ended 30 September 2026. After adding back items including Rs 32.13 lakh of depreciation and amortisation, the company reported Rs 4.96 crore of operating profit before working-capital changes.

The cash-flow statement recorded a Rs 1.65 crore increase in inventories, a Rs 7.56 crore increase in trade receivables and Rs 1.75 crore of cash use in short-term loans and advances. It also showed Rs 20.86 lakh associated with trade payables and Rs 39.89 lakh associated with other current liabilities, while income tax paid was reported as nil for the period.

Profit before tax increased from Rs 1.22 crore in the six months ended 31 March 2026 to Rs 4.37 crore in the half year ended 30 September 2026. Revenue from operations rose to Rs 15.27 crore from Rs 10.05 crore in the preceding six months, but was below Rs 15.42 crore reported in the half year ended 30 September 2025.

What did Asston Pharmaceuticals spend on investing activities?

Asston Pharmaceuticals reported Rs 6.21 crore of net cash used in investing activities in the half year ended 30 September 2026. The largest disclosed item was Rs 5.94 crore under redemption or purchase of fixed deposits, while purchases of property, plant and equipment were Rs 26.97 lakh and interest received was Rs 4,000.

The reported Rs 26.97 lakh property, plant and equipment purchase was substantially below the Rs 10.06 crore of total investing cash use recorded in the year ended 31 March 2026. Property, plant and equipment stood at Rs 10.64 crore on 30 September 2026, compared with Rs 10.69 crore on 31 March 2026.

Asston Pharmaceuticals has one reportable segment, pharmaceuticals, according to the notes to its half-year results. The filing therefore does not allocate the Rs 6.21 crore investing outflow among individual products, facilities or pharmaceutical activities, and it states that the cash-flow statement uses the indirect method under Accounting Standard 3.

How did Asston Pharmaceuticals raise Rs 27.72 crore?

Asston Pharmaceuticals raised Rs 27.72 crore through a preferential allotment of equity shares for cash on 5 September 2026. The cash-flow statement records Rs 27.72 crore from issue of equity share capital including share premium, net of preliminary expenses, and reports a resulting Rs 27.47 crore net financing inflow after Rs 26.30 lakh of finance cost.

Asston Pharmaceuticals allotted 24,10,431 equity shares with a face value of Rs 10 each at an issue price of Rs 115 per share, including a premium of Rs 105 per share. The issue was approved by the board on 2 July 2026 and by shareholders at an extraordinary general meeting on 31 July 2026, with shares allotted to 15 non-promoter public-category allottees.

The preferential allotment increased paid-up equity share capital to Rs 10.92 crore at 30 September 2026 from Rs 8.51 crore at 31 March 2026. The filing states that the number of shares increased from 85,12,360 to 1,09,22,791, and that the new shares rank pari passu with existing equity shares.

What does Asston Pharmaceuticals' balance sheet show after the issue?

Asston Pharmaceuticals reported total assets of Rs 83.15 crore at 30 September 2026, compared with Rs 51.65 crore at 31 March 2026. Shareholders' funds rose to Rs 69.85 crore from Rs 38.86 crore, comprising Rs 10.92 crore of equity share capital and Rs 58.93 crore of reserves and surplus at the half-year end.

Long-term borrowings declined to Rs 2.98 crore at 30 September 2026 from Rs 3.55 crore six months earlier, while short-term borrowings increased to Rs 2.14 crore from Rs 1.56 crore. Cash and cash equivalents were Rs 15.99 crore at the end of the half year, compared with Rs 1.29 crore at its beginning.

Trade receivables increased to Rs 44.13 crore at 30 September 2026 from Rs 36.57 crore at 31 March 2026, matching the Rs 7.56 crore receivables movement in the cash-flow statement. Inventories increased to Rs 2.42 crore from Rs 76.68 lakh, a balance-sheet movement reflected in the Rs 1.65 crore operating cash outflow.

Conclusion

The half-year statement shows that Asston Pharmaceuticals' Rs 27.72 crore preferential equity issue was the main disclosed source of cash supporting Rs 12.78 crore of operating and investing outflows. The company generated Rs 3.27 crore of net profit for the half year, but reported operating cash use as higher receivables, inventories and short-term loans and advances absorbed cash.

The filing does not state a future allocation plan for the preferential-issue proceeds beyond the cash movements reported through 30 September 2026. The next financial statements can show whether the Rs 7.56 crore increase in trade receivables and Rs 1.65 crore inventory increase convert into operating cash, and whether cash and cash equivalents remain near the reported Rs 15.99 crore level.