Chadha Papers operating cash rises to Rs 16.45 crore

Chadha Papers Limited generated Rs 16.45 crore of net cash from operating activities in the half year ended September 30, 2026, compared with Rs 4.59 crore in the year ended March 31, 2026, while its cash-flow statement continued to show a negative cash-equivalent balance after letter-of-credit and cash-credit utilisation.

How did Chadha Papers’ operating cash flow change?

Chadha Papers reported Rs 16.45 crore of net cash from operating activities for the half year ended September 30, 2026, against Rs 4.59 crore for the year ended March 31, 2026. The periods are not directly comparable because the latest result covers six months whereas the earlier result covers a full financial year, but the disclosed half-year inflow exceeded the prior full-year amount.

Operating profit before working-capital changes was Rs 14.28 crore in the September 2026 half year, and cash generated from operations reached Rs 16.67 crore before direct taxes. Direct taxes paid, net of refunds, were Rs 22.43 lakh, leaving the Rs 16.45 crore reported operating cash inflow under the indirect method prescribed by Indian Accounting Standard 7.

Chadha Papers’ profit before tax was Rs 4.65 crore for the half year ended September 30, 2026, compared with a Rs 7.94 crore loss before tax in the corresponding half year of 2025. Revenue from operations rose to Rs 254.99 crore from Rs 238.22 crore, while profit after tax was Rs 4.27 crore against a Rs 6.04 crore loss in the earlier half year.

What supported Chadha Papers’ operating cash generation?

Chadha Papers’ largest disclosed working-capital source was an Rs 8.52 crore decrease in trade receivables during the half year ended September 30, 2026. Its standalone balance sheet shows receivables at Rs 33.55 crore on September 30, 2026, down from Rs 42.06 crore on March 31, 2026, consistent with collections contributing to cash generation.

The receivables movement was partly offset by cash absorbed elsewhere in working capital. Inventories used Rs 67.93 lakh, other current and non-current assets used Rs 4.10 crore, and trade payables declined by Rs 2.10 crore. Other financial liabilities added Rs 1.33 crore, while loans used Rs 46,000, according to the cash-flow statement.

Non-cash and financing-related adjustments also contributed to the operating cash bridge. Depreciation on property, plant and equipment, including intangible assets, was Rs 5.00 crore, interest expense was Rs 4.49 crore and unwinding of interest on financial liabilities at amortised cost was Rs 1.27 crore. Interest income on fixed deposits was Rs 1.13 crore and other interest income was Rs 9.62 lakh.

The operating-cash outcome therefore reflected both the move to a Rs 4.65 crore pre-tax profit and movements in receivables, inventories, payables and other asset balances. The filing identifies Chadha Papers as a single reportable segment, so it does not provide a segment-level breakdown of cash generation or revenue for the half year.

Why is Chadha Papers’ cash-flow balance still negative?

Chadha Papers’ cash-flow reconciliation listed cash and cash equivalents of Rs 13.54 crore at September 30, 2026 and letter-of-credit and cash-credit utilisation of Rs 51.69 crore. The statement listed the resulting balance as Rs 38.36 crore negative, indicating that bank-facility utilisation remained greater than cash held for this cash-flow presentation.

At March 31, 2026, the same reconciliation listed Rs 13.46 crore of cash and cash equivalents, Rs 57.10 crore of letter-of-credit and cash-credit utilisation, and a Rs 43.64 crore negative balance. Letter-of-credit and cash-credit utilisation was therefore Rs 5.41 crore lower at September 30, while reported cash and cash equivalents were Rs 7.67 lakh higher.

The cash-flow statement also reports a Rs 5.28 crore net increase in cash and cash equivalents for the half year, following a Rs 15.02 crore decrease in the year ended March 31, 2026. The detailed reconciliation includes figures that do not fully arithmetically match the stated balance, so the filing does not support deriving an alternative net cash figure beyond the amounts it reports.

What do Chadha Papers’ investment and borrowing figures show?

Chadha Papers used Rs 6.60 crore in investing activities in the half year ended September 30, 2026, compared with Rs 11.28 crore in the year ended March 31, 2026. Purchases of property, plant and equipment, including intangible assets and capital work-in-progress, were Rs 6.73 crore, partly offset by Rs 13.91 lakh of interest income.

Property, plant and equipment stood at Rs 148.84 crore on September 30, 2026, compared with Rs 145.82 crore at March 31, 2026. Capital work-in-progress, or CWIP, was Rs 6.88 crore, down from Rs 8.18 crore, showing that the disclosed investing outflow occurred alongside a higher recorded property, plant and equipment balance and a lower CWIP balance.

Chadha Papers used Rs 4.57 crore in financing activities during the half year, compared with Rs 6.75 crore in the preceding financial year. Its standalone balance sheet showed current borrowings of Rs 70.42 crore at September 30, 2026, down from Rs 76.29 crore at March 31, while non-current borrowings increased to Rs 29.67 crore from Rs 28.56 crore.

The Rs 51.69 crore letter-of-credit and cash-credit amount in the cash-flow reconciliation is narrower than the Rs 70.42 crore of current borrowings on the standalone balance sheet. The filing therefore does not present the reconciliation figure as total short-term debt, and it should not be read as a full measure of Chadha Papers’ borrowing obligations.

Conclusion

Chadha Papers’ half-year filing shows Rs 16.45 crore of operating cash generation, supported by an Rs 8.52 crore reduction in trade receivables and a return to Rs 4.65 crore of profit before tax. Investment cash outflow of Rs 6.60 crore and financing cash outflow of Rs 4.57 crore still left the cash-flow reconciliation with a stated Rs 38.36 crore negative balance.

The next filing will show whether Chadha Papers sustains receivables collections, contains working-capital outflows and further reduces letter-of-credit and cash-credit utilisation from Rs 51.69 crore. Management also disclosed that the lease for part of its Bilaspur, Rampur factory land has expired after a 30-year term from 1991 and is being renewed; it said no eviction communication has been received and no material operational implication is currently expected.