Bhandari Hosiery Exports reports Rs 13.18 crore cash outflow

Bhandari Hosiery Exports Limited recorded a Rs 13.18 crore net cash outflow from trading activities for the period ended September 30, 2026, after a Rs 34.77 crore increase in debtors and receivables outweighed Rs 12.16 crore of operating profit before working-capital changes.

Why did Bhandari Hosiery Exports report negative operating cash flow?

Bhandari Hosiery Exports generated negative Rs 7.40 crore of cash from operations for the period ended September 30, 2026. Its cash-flow statement starts with Rs 3.85 crore of profit before tax and extraordinary items, then adds Rs 3.55 crore of depreciation and Rs 4.76 crore of interest and financial expenses to arrive at Rs 12.16 crore of operating profit before working-capital changes.

The Rs 34.77 crore increase in debtors and receivables was the largest working-capital movement. A Rs 9.03 crore inventory reduction and a Rs 6.17 crore increase in trade payables partly offset that cash absorption, but cash generated from operations remained negative. Interest paid of Rs 4.76 crore and direct tax paid of Rs 1.02 crore then took cash flow before extraordinary items to negative Rs 13.18 crore.

The filing labels the final operating measure as net cash from trading activities, which was negative Rs 13.18 crore for the September 30, 2026 period. The comparative cash-flow column is for the year ended March 31, 2026, when net cash from trading activities was negative Rs 7.38 crore, so it is not a like-for-like half-year comparison.

How much did Bhandari Hosiery Exports' receivables rise?

Bhandari Hosiery Exports reported trade receivables of Rs 129.55 crore at September 30, 2026, compared with Rs 91.38 crore at March 31, 2026. The balance-sheet increase was therefore Rs 38.17 crore over six months, while the cash-flow statement recorded a Rs 34.77 crore increase in debtors and receivables.

The two measures use different labels and are not reconciled in the filing. The balance sheet specifically identifies trade receivables, whereas the cash-flow statement refers to debtors and receivables. Bhandari Hosiery Exports does not disclose customer ageing, collection dates, geographical exposure, credit terms or the reason for the movement.

Trade receivables were the largest current-asset line at September 30, 2026, exceeding inventories of Rs 85.40 crore and cash and cash equivalents of Rs 6.48 crore. Total current assets rose to Rs 259.58 crore from Rs 246.62 crore at March 31, 2026, despite inventories declining from Rs 94.44 crore.

What happened to Bhandari Hosiery Exports' cash and borrowings?

Bhandari Hosiery Exports' cash and cash equivalents fell by Rs 12.66 crore to Rs 6.48 crore at September 30, 2026 from Rs 19.15 crore at the start of the period. The closing figure in the cash-flow statement was Rs 6.48 crore, which aligns with the Rs 6.48 crore balance-sheet amount after rounding.

Investing activities used Rs 73.73 lakh, entirely for fixed-asset purchases. Financing activities provided Rs 1.26 crore, comprising a Rs 1.59 crore increase in bank borrowing less Rs 33.30 lakh of dividends paid. The current-period cash-flow statement did not report a fresh capital issue or share premium.

Current borrowings declined to Rs 75.77 crore at September 30, 2026 from Rs 83.41 crore at March 31, while non-current borrowings increased to Rs 27.00 crore from Rs 17.78 crore. The two borrowing categories totalled Rs 102.77 crore at September 30, compared with Rs 101.18 crore six months earlier; lease liabilities were reported separately at Rs 4.74 crore.

Did Bhandari Hosiery Exports remain profitable in the half year?

Bhandari Hosiery Exports remained profitable, reporting net profit of Rs 2.83 crore for the half year ended September 30, 2026, versus Rs 3.69 crore for the half year ended September 30, 2025. Revenue from operations declined to Rs 129.31 crore from Rs 131.24 crore, while profit before tax fell to Rs 3.85 crore from Rs 4.84 crore.

Material consumed declined to Rs 87.99 crore from Rs 99.58 crore in the corresponding prior-year half year. However, the change in inventories was an expense of Rs 1.93 crore in the 2026 half year, compared with an income effect of Rs 9.60 crore in the prior-year period; employee-benefit expense increased to Rs 7.06 crore from Rs 6.68 crore.

Finance cost declined to Rs 4.76 crore from Rs 5.15 crore, while other expenses fell to Rs 20.16 crore from Rs 21.21 crore. The results cover Bhandari Hosiery Exports' single Textiles segment under Indian Accounting Standard 108, and the board approved the unaudited standalone results on November 14, 2026.

Conclusion

Bhandari Hosiery Exports reported a profitable half year but negative cash generation from trading activities in the period ended September 30, 2026. The Rs 34.77 crore cash-flow increase in debtors and receivables was larger than the cash released by the Rs 9.03 crore inventory reduction and the Rs 6.17 crore rise in trade payables, contributing to the Rs 13.18 crore outflow.

The key unresolved matter is the collection profile behind the Rs 129.55 crore trade-receivables balance, as the filing provides no ageing analysis, collection target or management plan. Future financial statements would show whether receivables, cash of Rs 6.48 crore and total borrowings of Rs 102.77 crore change after September 30, 2026.