B C C Fuba operating cash flow turns negative in first half

B C C Fuba India Limited reported a Rs 338.36 lakh net operating cash outflow for the six months ended September 30, 2026, even as profit after tax rose to Rs 7.9969 crore from Rs 2.767 crore a year earlier. A Rs 11.0943 crore rise in receivables and a Rs 6.90 crore inventory increase absorbed cash.

Why did B C C Fuba report negative operating cash flow?

B C C Fuba reported negative operating cash flow because working-capital outflows exceeded Rs 12.1361 crore of profit from operating activities before working-capital changes. Trade receivables increased by Rs 11.0943 crore, inventories rose by Rs 6.90 crore and other current assets increased by Rs 1.8228 crore during the six months ended September 30, 2026.

The company partly offset these outflows through a Rs 5.6116 crore increase in trade payables and a Rs 3.33 lakh increase in other current provisions. Cash generated from operations before tax was negative Rs 2.2427 crore, compared with positive Rs 8.7186 crore in the corresponding period of 2025, and income-tax payments of Rs 1.1409 crore resulted in the Rs 338.36 lakh operating cash outflow.

How did B C C Fuba's profit rise while cash flow fell?

B C C Fuba's profit rose while operating cash flow fell because reported earnings increased alongside cash tied up in customer balances and stock. Revenue from operations reached Rs 54.625 crore in the six months ended September 30, 2026, versus Rs 32.5097 crore in the prior-year period, while profit after tax increased by Rs 5.2299 crore to Rs 7.9969 crore.

The cash-flow statement reconciled profit after tax to Rs 12.1361 crore of profit from operating activities through adjustments including Rs 3.2686 crore of income-tax expense, Rs 97.12 lakh of depreciation and amortisation, and Rs 53 lakh of finance costs. It deducted Rs 44.82 lakh of interest income, Rs 15.38 lakh of net foreign-currency gain, Rs 2.36 lakh of realised mutual-fund gain and Rs 20,000 of dividend income.

The September 30 balance sheet reflected the same working-capital movements. Trade receivables stood at Rs 30.1306 crore, up from Rs 19.0363 crore at March 31, 2026, while inventories rose to Rs 21.335 crore from Rs 14.435 crore and other current assets increased to Rs 2.6089 crore from Rs 78.61 lakh.

Where did B C C Fuba use cash outside operations?

B C C Fuba used Rs 31.5509 crore in investing activities in the six months ended September 30, 2026, compared with Rs 10.1887 crore in the corresponding period of 2025. Purchases of investments totalled Rs 46.7537 crore, exceeding Rs 31.7781 crore of proceeds from investment sales by Rs 14.9756 crore.

Property, plant and equipment purchases were Rs 14.4238 crore, compared with Rs 6.1845 crore in the previous corresponding period. The company received Rs 6 lakh from sale of property, plant and equipment and Rs 17.05 lakh of interest income, while deposits with banks reduced cash by Rs 2.384 crore.

Investment balances increased in both balance-sheet classifications by September 30, 2026. Current investments were Rs 6.5006 crore against Rs 4.5015 crore at March 31, while non-current investments were Rs 13.8303 crore against Rs 55.26 lakh; the filing does not specify the instruments purchased or management's purpose for those investments.

How did B C C Fuba finance its cash use?

B C C Fuba generated Rs 18.2761 crore from financing activities in the six months ended September 30, 2026, compared with Rs 2.2697 crore a year earlier. Proceeds from issue of shares were Rs 17.0436 crore, while net borrowings contributed Rs 1.7493 crore after Rs 9.4874 crore of borrowings and Rs 7.7381 crore of repayments.

Finance costs paid were Rs 51.68 lakh during the period. Current borrowings were Rs 16.1207 crore at September 30, 2026, up from Rs 14.4886 crore at March 31, and non-current borrowings increased to Rs 1.7346 crore from Rs 1.6042 crore.

Cash and cash equivalents declined by Rs 16.6584 crore to Rs 61.91 lakh at September 30, 2026 from Rs 17.2775 crore at the beginning of the period. Other bank balances rose to Rs 3.8145 crore from Rs 1.4305 crore, while total current assets were Rs 65.0087 crore and total current liabilities were Rs 40.5512 crore at the reporting date.

Conclusion

B C C Fuba's first-half results showed higher revenue and profit alongside a reversal in operating cash generation. Revenue increased by Rs 22.1153 crore year on year and profit after tax rose by Rs 5.2299 crore, but receivables, inventories and other current assets produced a Rs 14.3788 crore net working-capital outflow, turning operating cash flow negative.

The next financial results will show whether receivables of Rs 30.1306 crore and inventories of Rs 21.335 crore convert into cash and whether operating cash flow changes from the Rs 338.36 lakh outflow. Investors can also track subsequent investment purchases, capital expenditure after Rs 14.4238 crore in the first half, and the use of Rs 17.0436 crore of share-issue proceeds.