Citichem India clears Rs 7.72 crore short-term borrowings

Citichem India Limited reduced short-term borrowings from Rs 7.72 crore at 31 March 2026 to Rs 0.01 lakh at 30 September 2026, while generating Rs 7.66 crore of operating cash in the six-month period. Cash and cash equivalents ended at Rs 58.24 lakh, only Rs 7.35 lakh below the opening balance.

How much short-term borrowing did Citichem India clear?

Citichem India reduced reported short-term borrowings by Rs 7.72 crore between 31 March 2026 and 30 September 2026. The balance sheet shows Rs 0.01 lakh of short-term borrowings at the September reporting date, compared with Rs 7.72 crore at the preceding financial year-end, while long-term borrowings were nil at both dates.

The cash-flow statement records a Rs 7.72 crore decrease in short-term borrowings for the period ended 30 September 2026. The small difference between that cash-flow movement and the balance-sheet reduction reflects the presentation of rounded figures in lakh; the filing does not provide lender-wise balances, repayment dates or borrowing terms.

Citichem India reported interest and finance charges paid of Rs 2.51 lakh in the six-month cash-flow statement. Its half-year profit and loss statement also reported finance cost of Rs 2.51 lakh, compared with Rs 26.47 lakh in the half year ended 30 September 2025. The filing does not disclose an interest rate, security package or the nature of the remaining Rs 0.01 lakh short-term borrowing.

What generated Citichem India’s operating cash flow?

Citichem India generated Rs 7.66 crore of net cash from operating activities in the period ended 30 September 2026, compared with Rs 5.19 crore used in operating activities in the year ended 31 March 2026. Cash generated from operations before income tax was Rs 7.66 crore, and tax paid was Rs 0.21 lakh.

The principal stated driver was a Rs 15.01 crore decrease in trade receivables and loans and advances. That inflow was partly offset by a Rs 8.50 crore decrease in trade payables and other liabilities. The company also recorded a Rs 47.42 lakh decrease in inventories, resulting in a positive working-capital contribution after the movements reported in the cash-flow statement.

Before working-capital changes, Citichem India reported operating profit of Rs 68.20 lakh. This comprised profit before tax of Rs 57.48 lakh, depreciation of Rs 9.21 lakh, interest and finance charges of Rs 2.51 lakh, and Rs 1 lakh of interest received. The positive operating cash outcome therefore reflected both this pre-working-capital profit and the larger movement in receivables and loans and advances.

The comparison with the year ended 31 March 2026 shows a different working-capital pattern. In that year, operating profit before working-capital changes was Rs 1.46 crore, but cash used in operations before tax was Rs 5.11 crore. The filing records a Rs 18.83 crore decrease in trade payables and other liabilities, exceeding a Rs 12.72 crore decrease in trade receivables and loans and advances.

How did Citichem India’s working-capital balances change?

Citichem India’s trade receivables fell to Rs 30.39 crore at 30 September 2026 from Rs 37.17 crore at 31 March 2026. Inventories also declined to Rs 6.17 crore from Rs 8.65 crore, consistent with the receivables and inventory reductions reported in the interim cash-flow statement.

Other current assets declined to Rs 75.62 lakh at 30 September from Rs 15.73 crore at 31 March 2026. The cash-flow statement combines trade receivables with loans and advances, rather than providing a full reconciliation to every individual balance-sheet line, so the filing does not separately quantify how much of the Rs 15.01 crore cash-flow movement arose from each asset category.

Trade payables to parties other than micro, small and medium enterprises fell to Rs 15.21 crore from Rs 23.75 crore. Trade payables to micro, small and medium enterprises increased to Rs 83.41 lakh from Rs 80.41 lakh, while short-term provisions rose to Rs 1.43 crore from Rs 1.36 crore.

Why did cash decline only modestly after the borrowing reduction?

Citichem India ended the period with cash and cash equivalents of Rs 58.24 lakh, down from Rs 65.59 lakh at the start of the period. The Rs 7.35 lakh net decline followed Rs 7.66 crore of operating cash inflow, Rs 1 lakh of investing cash inflow and the cash-flow statement’s reported financing movements.

Investing activities generated Rs 1 lakh, entirely reflecting interest received, according to the cash-flow statement. Citichem India reported no purchase of tangible fixed assets in the period ended 30 September 2026, compared with Rs 92.11 lakh of tangible fixed-asset purchases in the year ended 31 March 2026.

The filing reports the short-term borrowing decrease of Rs 7.72 crore and interest and finance charges paid of Rs 2.51 lakh within financing activities. It separately reports total net cash used in financing activities of Rs 1.75 crore; the supplied statement does not provide a reconciliation of that total to all of the financing line items presented.

What did Citichem India report for interim earnings?

Citichem India reported total revenue of Rs 3.49 crore for the half year ended 30 September 2026, down from Rs 10.77 crore in the corresponding half year ended 30 September 2025. Revenue from operations was Rs 2.30 crore, compared with Rs 8.52 crore a year earlier, while other operating income was Rs 1.19 crore against Rs 1.58 crore.

Profit after tax was Rs 42.54 lakh for the September 2026 half year, compared with Rs 68 lakh in the corresponding prior-year half year. Profit before tax declined to Rs 57.48 lakh from Rs 91.40 lakh, and basic as well as diluted earnings per share were Rs 0.63, versus Rs 1 in the prior-year period. Citichem India states that half-year earnings per share are not annualised.

Citichem India has one reportable segment, chemicals, according to the notes accompanying the 14 November 2026 results. The board approved the unaudited financial results on that date. NGST & Associates Chartered Accountants said its review had not identified anything suggesting the statement omitted required disclosures or contained a material misstatement.

Conclusion

Citichem India’s September 2026 filing shows that operating cash of Rs 7.66 crore coincided with the near-elimination of Rs 7.72 crore of short-term borrowings. The result was supported by lower receivables, inventories and other current assets, alongside lower trade payables, while cash and cash equivalents decreased by only Rs 7.35 lakh to Rs 58.24 lakh.

The next interim or annual filing will show whether operating cash remains positive after the September working-capital movements and whether revenue improves from the Rs 3.49 crore reported in the half year ended 30 September 2026. The filing discloses no borrowing target, capital-expenditure plan or scheduled operational milestone beyond the interim results.