Cera first-half operating cash flow rises to Rs 142.76 crore

Cera Sanitaryware Limited generated Rs 142.76 crore in net operating cash in the half year ended September 30, 2026, compared with Rs 75.98 crore a year earlier, as a Rs 46.76 crore cash release from trade receivables and a Rs 42.17 crore increase in trade payables outweighed a Rs 27.84 crore inventory increase.

How much operating cash did Cera generate in the first half?

Cera generated Rs 142.76 crore of net cash from operating activities in the half year ended September 30, 2026, up from Rs 75.98 crore in the corresponding half of 2025. Cera prepared its cash-flow statement using the indirect method under Indian Accounting Standard 7, or Ind AS 7, Statement of Cash Flows.

Cash generated from operations before income taxes paid increased to Rs 173.77 crore from Rs 112.81 crore. Income-tax payments declined to Rs 31.01 crore from Rs 36.83 crore, while operating profit before working-capital changes rose to Rs 123.09 crore from Rs 115.39 crore.

The Rs 66.78 crore increase in operating cash exceeded the Rs 7.70 crore rise in operating profit before working-capital changes. The difference came from movements in receivables, inventories, payables and other operating balances rather than from the pre-working-capital profit measure alone.

Why did Cera's working capital generate more cash?

Cera recorded a Rs 46.76 crore decrease in trade receivables in the six months to September 30, 2026, compared with a Rs 58.82 crore decrease in the same period of 2025. A decline in receivables releases cash because it reflects collection of amounts owed by customers, and this was the largest stated working-capital cash inflow in the half-year statement.

The balance sheet reported trade receivables of Rs 226.61 crore at September 30, 2026, down from Rs 273.87 crore at March 31, 2026. The Rs 47.26 crore reduction in the closing balance is close to the Rs 46.76 crore cash-flow movement, although the cash-flow statement records period adjustments while the balance sheet compares two reporting dates.

Trade payables increased by Rs 42.17 crore during the 2026 half year, compared with a Rs 6.74 crore increase a year earlier. At September 30, Cera reported Rs 127.30 crore due to micro and small enterprises and Rs 134.81 crore due to other creditors, against Rs 125.88 crore and Rs 94.06 crore respectively at March 31.

Other working-capital movements offset part of those inflows. Inventory increased by Rs 27.84 crore, marginally above the Rs 27.39 crore increase in the prior-year period, while other assets increased by Rs 7.79 crore against a Rs 7.25 crore increase a year earlier. Higher inventory uses cash because funds are committed to stock before it is sold and collected.

What changed in Cera's investment cash flows?

Cera used Rs 25.54 crore in investing activities in the half year ended September 30, 2026, compared with net investing cash inflow of Rs 32.14 crore in the corresponding 2025 period. The change included Rs 26.72 crore of payments for property, plant and equipment, capital work-in-progress and intangible assets, up from Rs 10.02 crore a year earlier.

Cera reported property, plant and equipment of Rs 345.03 crore at September 30, 2026, compared with Rs 330.96 crore at March 31, 2026. Capital work-in-progress, representing assets not yet ready for intended use, fell to Rs 3.46 crore from Rs 7.20 crore, so changes in fixed-asset balances do not directly equal the cash capital-expenditure figure.

The cash-flow statement shows Rs 128.00 crore of payments for purchases of mutual funds and Rs 112.04 crore of proceeds from sales of mutual funds in the 2026 half year. Separately, current investments stood at Rs 844.75 crore at September 30, compared with Rs 801.20 crore at March 31.

Cera received Rs 1.80 crore of interest in the 2026 half year, compared with Rs 1.82 crore in the prior-year period. The 2025 half-year statement included Rs 11.54 crore of proceeds from divestment in subsidiaries, while no comparable proceeds are shown for the 2026 half year.

How did operating cash affect Cera's cash balance and financing flows?

Cera used Rs 106.51 crore in financing activities in the half year ended September 30, 2026, compared with Rs 96.21 crore in the prior-year half. The financing section included Rs 96.71 crore of dividend payments on equity shares, compared with Rs 83.82 crore a year earlier, alongside lease-liability payments, short-term borrowing movements and employee stock-option-plan transactions.

Despite the Rs 25.54 crore investing outflow and Rs 106.51 crore financing outflow, the Rs 142.76 crore operating inflow produced a Rs 10.70 crore increase in cash and cash equivalents. Cash and cash equivalents closed at Rs 21.28 crore on September 30, 2026, up from Rs 10.58 crore at the beginning of the half year; the prior-year half ended with Rs 16.03 crore after a Rs 11.91 crore increase.

Cera separately reported Rs 27.11 crore in other bank balances at September 30, compared with Rs 35.22 crore at March 31. Current borrowings were Rs 0.88 crore at September 30 versus Rs 0.87 crore at March 31, while current and non-current lease liabilities together were Rs 46.82 crore.

Conclusion

Cera's first-half operating cash generation increased because lower receivables and higher trade payables created more working-capital cash than in the preceding year. The Rs 142.76 crore operating inflow covered Rs 25.54 crore of investing outflow and Rs 106.51 crore of financing outflow, leaving cash and cash equivalents Rs 10.70 crore higher.

The next reporting periods will show whether trade receivables, at Rs 226.61 crore on September 30, remain below the Rs 273.87 crore March level and whether the Rs 27.84 crore inventory increase is converted into sales and collections. Cera also said it continues to monitor Central and State rules and government clarifications on the Labour Codes after recognising Rs 7.81 crore of estimated incremental past-service liabilities in the year ended March 31, 2026.