Balaji Phosphates finances ₹25.26 crore operating cash outflow

Balaji Phosphates Limited (formerly known as Balaji Phosphates Private Limited) recorded a ₹25.26 crore net operating cash outflow for the half year ended September 30, 2026, despite ₹15.27 crore of consolidated profit before tax. Trade receivables and inventories absorbed ₹39.49 crore, while a ₹29.19 crore financing inflow supported the group’s cash position.

Why did Balaji Phosphates report negative operating cash flow?

Balaji Phosphates reported negative operating cash flow because working-capital movements outweighed cash generated before those changes in the half year ended September 30, 2026. Operating profit before working-capital changes was ₹18.36 crore, comprising ₹15.27 crore of profit before tax, ₹2.32 crore of interest expense, ₹0.54 crore of depreciation and amortisation, and other disclosed adjustments.

Trade receivables increased by ₹26.54 crore and inventories increased by ₹12.95 crore in the cash-flow statement. Other current assets consumed ₹2.77 crore and other financial assets used ₹1.21 crore, partly offset by a ₹2.73 crore increase in trade payables and a ₹1.15 crore decrease in other non-current assets. Cash generated from operations consequently turned negative at ₹21.08 crore.

Income-tax payments of ₹4.18 crore widened the operating cash outflow to ₹25.26 crore. This was a change from the ₹4.71 crore net operating cash inflow reported for the full year 2025-26, although the two periods are not directly comparable because the September 2026 figure covers six months.

How much did Balaji Phosphates’ receivables and inventory rise?

Balaji Phosphates’ trade receivables rose to ₹94.15 crore at September 30, 2026 from ₹67.88 crore at March 31, 2026, an increase of ₹26.28 crore on the balance sheet. Inventories rose by ₹12.95 crore to ₹70.78 crore from ₹57.84 crore over the same six-month period.

Revenue from operations increased to ₹106.85 crore in the September 2026 half year from ₹84.71 crore in the half year ended September 30, 2025. Cost of materials consumed increased to ₹80.96 crore from ₹57.93 crore. Balaji Phosphates identifies phosphates fertilizers as its sole operating segment, so the filing does not provide separate product or geographic data explaining the higher receivables and inventory.

Current assets increased to ₹178.44 crore at September 30 from ₹135.52 crore at March 31, 2026. Cash and cash equivalents declined to ₹14.05 lakh from ₹22.05 lakh, while other current assets rose to ₹9.28 crore from ₹6.51 crore. The asset increase was therefore concentrated in working-capital balances rather than immediate cash.

How did Balaji Phosphates fund its cash deficit?

Balaji Phosphates funded its operating and investing cash outflows with a ₹29.19 crore net financing inflow in the half year ended September 30, 2026. The financing section records a ₹31.50 crore increase in borrowings, offset by ₹2.32 crore of interest paid during the period.

Non-current borrowings rose to ₹31.62 crore at September 30 from ₹9.44 crore at March 31, an increase of ₹22.17 crore. Current borrowings increased to ₹42.37 crore from ₹33.03 crore, a ₹9.33 crore increase. Total borrowings across the two categories therefore rose by ₹31.50 crore to ₹73.98 crore.

Investing activities used ₹4.01 crore in the September 2026 half year, compared with ₹12.96 crore in the full year 2025-26. Capital work-in-progress increased to ₹16.91 crore from ₹11.83 crore, while property, plant and equipment declined to ₹6.63 crore from ₹7.01 crore. The cash-flow statement reported ₹14.05 lakh of cash and cash equivalents at the period end.

What happened to Balaji Phosphates’ profit and finance cost?

Balaji Phosphates’ consolidated profit before tax increased to ₹15.27 crore for the half year ended September 30, 2026 from ₹10.90 crore a year earlier. Profit after tax rose to ₹11.69 crore from ₹8.05 crore, and basic and diluted earnings per share increased to ₹4.91 from ₹3.38. The results show no exceptional or extraordinary items in either half-year period.

Finance cost increased to ₹2.32 crore from ₹1.83 crore in the comparable prior-year half year. The higher finance cost coincided with borrowings of ₹73.98 crore at September 30, 2026, versus ₹42.48 crore at March 31, although the filing does not identify loan-specific rates or facilities behind the movement.

Other expenses declined to ₹15.40 crore from ₹17.14 crore, while employee-benefit expense declined to ₹4.59 crore from ₹4.78 crore. Total equity increased to ₹102.34 crore at September 30 from ₹90.66 crore at March 31, while total liabilities increased to ₹106.13 crore from ₹72.29 crore.

What does Balaji Phosphates disclose about IPO proceeds?

Balaji Phosphates reported no deviation or variation in the use of its ₹41.58 crore initial public offering fresh-issue proceeds as of September 30, 2026. The company completed the offering in the year ended March 31, 2025, and its shares were listed on the NSE SME platform on March 7, 2025.

The utilisation statement shows ₹19.00 crore used for working capital and ₹12.88 crore used for capital expenditure through capital work-in-progress. It reports ₹4.92 crore used against the ₹5.01 crore IPO-expense allocation and ₹4.78 crore for general corporate purpose against an original ₹4.69 crore allocation. The filing states that ₹0.09 crore from the IPO-expense allocation was used for general corporate purpose.

Balaji Phosphates’ board approved the consolidated results on November 13, 2026. The independent auditor’s review stated that nothing had come to its attention indicating a material misstatement in the consolidated results, while the comparative September 2025 half-year information was management-certified and had not been reviewed.

Conclusion

Balaji Phosphates’ September 2026 half-year results show that ₹15.27 crore of pre-tax profit did not convert into operating cash because receivables and inventories absorbed ₹39.49 crore. A ₹29.19 crore financing inflow, driven by a ₹31.50 crore increase in borrowings, funded the ₹25.26 crore operating outflow and ₹4.01 crore investing outflow.

The disclosed capital deployment to watch is the ₹12.88 crore IPO allocation to capital work-in-progress, which stood at ₹16.91 crore at September 30, 2026. The filing does not disclose a commissioning timeline, while receivables of ₹94.15 crore, inventories of ₹70.78 crore and borrowings of ₹73.98 crore remain the reported balances most relevant to future cash conversion.