Avro India operating cash outflow widens to Rs 9.28 crore

Avro India Limited reported a consolidated operating cash outflow of Rs 9.28 crore for the half year ended September 30, 2026, widening from Rs 5.14 crore a year earlier despite pre-tax profit of Rs 2.53 crore. Inventory, other assets and lower trade payables absorbed cash, while cash and cash equivalents declined to Rs 1.12 crore.

Why did Avro India report a Rs 9.28 crore operating cash outflow?

Avro India reported a Rs 9.28 crore net cash outflow from operating activities because working-capital movements and Rs 52.75 lakh of net income taxes paid outweighed profit and non-cash adjustments. Profit before tax and exceptional items was Rs 2.53 crore for the half year ended September 30, 2026, compared with Rs 2.88 crore in the corresponding half year ended September 30, 2025.

The operating cash outflow increased by Rs 4.14 crore from Rs 5.14 crore in the prior-year half. The consolidated cash-flow statement uses the indirect method under Indian Accounting Standard 7, Statement of Cash Flows, starting with profit before tax and then adjusting for non-cash items, interest and changes in operating assets and liabilities.

Depreciation and amortisation expense of Rs 2.03 crore and interest on borrowings of Rs 72.83 lakh were added back in the current-half reconciliation. Interest income of Rs 73.58 lakh and a Rs 1.42 lakh net gain on sale of mutual-fund investments were deducted. These adjustments were insufficient to offset the working-capital cash use recorded for the six months.

Which working-capital items used Avro India cash?

Avro India’s largest reported working-capital cash uses were a Rs 7.07 crore increase in other assets, a Rs 7.92 crore decrease in trade payables and a Rs 5.88 crore increase in inventories. In the indirect cash-flow statement, higher inventory and other assets use cash, while lower trade payables indicate reduced supplier balances.

Trade receivables increased by Rs 28.50 lakh and other financial assets increased by Rs 10.35 lakh in the half year. Those movements were partly offset by a Rs 7.28 crore increase in other financial liabilities. Together, the disclosed movements resulted in cash generated from operations of negative Rs 8.76 crore before the Rs 52.75 lakh net tax payment.

The September 30, 2026 balance sheet also records inventories of Rs 23.72 crore, compared with Rs 19.85 crore at March 31, 2026. Trade receivables rose to Rs 32.67 crore from Rs 28.03 crore, while other current assets increased to Rs 14.36 crore from Rs 7.29 crore. The cash-flow statement remains the direct measure of the period’s operating-cash movement, as balance-sheet lines can contain classifications outside individual cash-flow categories.

How did investing and financing flows affect Avro India cash?

Avro India generated Rs 6.93 crore of net cash from investing activities in the half year ended September 30, 2026, compared with Rs 26.03 crore of net cash used a year earlier. The principal inflow was Rs 26.50 crore from maturity of bank deposits, while the company invested Rs 17.45 crore in bank deposits with original maturities of more than three months.

The company spent Rs 7.83 crore on property, plant and equipment, including capital work-in-progress and capital advances, and received Rs 4.52 crore from sale of such assets. It also paid Rs 38 lakh to purchase mutual funds and received Rs 1.49 crore of interest during the half year, according to the investing cash-flow statement.

Financing activities generated Rs 1.39 crore of net cash in the current half. Avro India raised Rs 55.71 crore and repaid Rs 53.80 crore of short-term borrowings, received Rs 1.01 crore of share-warrant money, repaid Rs 95.85 lakh of long-term borrowings and paid Rs 73.37 lakh of interest. Across operating, investing and financing activities, cash and cash equivalents declined by Rs 97.43 lakh from Rs 2.09 crore at March 31, 2026 to Rs 1.12 crore at September 30, 2026.

What changed in Avro India revenue and segments?

Avro India’s revenue from operations increased to Rs 54.86 crore in the half year ended September 30, 2026 from Rs 42.57 crore a year earlier. The plastic moulded furniture and granules segment reported Rs 45.34 crore of revenue, compared with Rs 42.67 crore, while plastic waste recycling reported Rs 16.75 crore against no reported revenue in the prior-year half.

Inter-segment revenue eliminations rose to Rs 7.23 crore from Rs 10.17 lakh, reducing total segment revenue of Rs 62.09 crore to consolidated revenue from operations of Rs 54.86 crore. This means the reported segment total cannot be added directly to consolidated external revenue without accounting for transactions between the two segments.

Plastic moulded furniture and granules reported operating income of Rs 6.14 crore, up from Rs 2.44 crore, and plastic waste recycling reported Rs 35.76 lakh, up from Rs 97,000. Consolidated profit before tax nevertheless fell by Rs 34.66 lakh to Rs 2.53 crore, with the segment statement recording a Rs 3.96 crore plastic waste recycling allocable expense.

The consolidated results include Avro India and its wholly owned subsidiary, Avro Recycling Limited, as at September 30, 2026. The board approved the unaudited consolidated results on November 14, 2026 after Audit Committee review, and the statutory auditors issued a limited-review conclusion rather than an audit opinion.

Conclusion

Avro India’s first-half figures show that higher revenue and reported profit did not convert into operating cash in the period. Revenue from operations rose by Rs 12.29 crore year on year, but the Rs 5.88 crore inventory increase, Rs 7.07 crore other-asset increase and Rs 7.92 crore trade-payable decrease contributed to a Rs 9.28 crore operating cash outflow.

The filing provides no operating-cash-flow target or forecast. The next disclosed results will show whether inventory, receivables, other assets and trade payables reverse or remain a cash use, while the cash effect of Rs 7.83 crore of spending on property, plant and equipment and related capital work remains a matter to track.