Cantabil inventory reaches Rs 346.6 crore as cash falls

Cantabil ended September 2026 with Rs 346.6 crore of inventory, Rs 3.6 crore of cash and cash equivalents, and Rs 27.2 crore of current borrowings, after inventory increased Rs 51.6 crore from March 2026. In H1FY27, net cash from operating activities rose to Rs 44 crore from Rs 36 crore a year earlier.

Why did Cantabil’s working-capital requirement increase?

Cantabil’s working-capital requirement increased as inventories, receivables and other current assets rose, despite declines in cash and loans. Current assets reached Rs 429.3 crore in September 2026 from Rs 380.6 crore in March 2026. Inventory accounted for Rs 346.6 crore, up from Rs 295.0 crore in March 2026 and Rs 279.1 crore in March 2025.

The Rs 51.6 crore inventory increase since March 2026 coincided with a Rs 6.7 crore increase in trade receivables to Rs 19.2 crore. Other current assets rose to Rs 32.1 crore from Rs 18.6 crore, while current tax assets were Rs 6.9 crore. These increases were partly offset by loans falling to Rs 15.0 crore from Rs 25.0 crore and cash declining by Rs 21.8 crore on the balance sheet.

Compared with March 2025, inventory was higher by Rs 67.5 crore and total current assets were higher by Rs 91.8 crore in September 2026. Total assets stood at Rs 1,050.0 crore in September 2026, compared with Rs 941.2 crore in March 2025, although they were lower than Rs 1,149.8 crore in March 2026.

How did Cantabil’s cash position change in H1FY27?

Cantabil’s cash-flow statement shows closing cash of Rs 3 crore in H1FY27, down from an opening balance of Rs 25 crore and below the Rs 15 crore reported at the end of H1FY26. The net change in cash and cash equivalents was negative Rs 22 crore, compared with negative Rs 13 crore in H1FY26. The September 2026 balance sheet reports Rs 3.6 crore of cash and cash equivalents, while the cash-flow statement uses rounded figures.

Operating activities supplied Rs 44 crore of net cash in H1FY27, compared with Rs 36 crore a year earlier. Investing activities used Rs 30 crore, against Rs 33 crore in H1FY26, while financing activities used Rs 36 crore, more than the Rs 16 crore outflow in the earlier period. The combined Rs 66 crore investing and financing outflow exceeded the Rs 44 crore net operating cash inflow by Rs 22 crore.

What funding liabilities appeared by September 2026?

Cantabil reported Rs 27.2 crore of current borrowings in September 2026 after reporting no current borrowings in either March 2026 or March 2025. Current liabilities rose to Rs 240.6 crore from Rs 157.4 crore over the six months. The presentation does not state the purpose, interest rate, repayment terms or maturity schedule of the current borrowings.

Trade payables rose by Rs 21.4 crore from March 2026 to Rs 86.0 crore, and current lease liabilities increased by Rs 27.2 crore to Rs 88.7 crore. At the same time, non-current lease liabilities declined from Rs 482.6 crore to Rs 282.3 crore. Total non-current liabilities fell to Rs 314.5 crore from Rs 514.4 crore, while equity increased to Rs 494.9 crore from Rs 478.0 crore.

Did operating cash flow keep pace with earnings?

Cantabil generated Rs 44 crore of net cash from operating activities in H1FY27, while earnings before interest, tax, depreciation and amortisation, or EBITDA, were Rs 103.8 crore. Operating profit before working-capital changes was Rs 106 crore, compared with Rs 92 crore in H1FY26. Working-capital changes consumed Rs 45 crore, slightly more than the Rs 42 crore absorbed in the prior-year half.

Cash generated from operations rose to Rs 61 crore from Rs 51 crore, but direct taxes paid increased to Rs 17 crore from Rs 15 crore. Profit before tax, or PBT, was Rs 30 crore in the cash-flow statement, versus Rs 28 crore in H1FY26. The profitability table reports PBT of Rs 29.7 crore and profit after tax of Rs 23.4 crore, with the cash-flow statement presenting rounded figures.

How did the inventory build coincide with sales and margins?

Cantabil’s inventory build coincided with H1FY27 revenue growth of 11% to Rs 370.5 crore, from Rs 334.7 crore in H1FY26. Gross margin increased to Rs 232 crore from Rs 203 crore, and EBITDA rose 14% to Rs 103.8 crore from Rs 91.1 crore. The reported EBITDA margin improved to 28.0% from 27.2% over the same comparison.

The cost mix also changed during the half. Raw-material expense was almost unchanged at Rs 89.4 crore versus Rs 89.2 crore, while employee expense increased to Rs 90.9 crore from Rs 77.1 crore and other expense rose to Rs 86.4 crore from Rs 77.2 crore. Profit after tax grew 9% to Rs 23.4 crore, but the reported profit-after-tax margin was 6.3%, compared with 6.4% a year earlier.

Conclusion

Cantabil’s September 2026 balance sheet shows that the Rs 51.6 crore inventory increase was accompanied by lower cash, higher receivables and a new Rs 27.2 crore current-borrowing balance. Net operating cash improved by Rs 8 crore year on year to Rs 44 crore, but working-capital absorption, investing outflows and financing outflows resulted in a Rs 22 crore reduction in cash during H1FY27.

The next results should show whether inventory, trade receivables and cash change from their September 2026 levels. Investors can also watch for disclosure on the Rs 27.2 crore current borrowings because the presentation gives the balance but does not disclose their use, interest rate, maturity schedule or repayment terms.