C.J. Gelatine Products Limited funds cash outflow with borrowings

C.J. Gelatine Products Limited reported Rs 181.48 lakh of net cash used in operating activities for the half year ended September 30, 2026, while receiving Rs 323.22 lakh from borrowings. C.J. Gelatine Products ended the period with Rs 17.25 lakh in cash and cash equivalents, compared with Rs 0.47 lakh at the start.

How did C.J. Gelatine Products finance its half-year cash needs?

C.J. Gelatine Products received Rs 323.22 lakh in proceeds from borrowings during the half year ended September 30, 2026, and reported a net financing cash inflow of Rs 221.59 lakh. The difference reflects Rs 101.63 lakh of interest paid, while the cash-flow statement shows no reported amount for borrowings repaid, lease-liability payments, dividends paid or share issuance in the period.

Operating activities used Rs 181.48 lakh and investing activities used Rs 35.65 lakh in the same six months. The investment outflow included Rs 37.58 lakh spent on property, plant and equipment, partly offset by Rs 1.93 lakh of interest received. Financing was therefore the reported positive cash-flow category for the half year.

Cash and cash equivalents increased by Rs 16.78 lakh in the cash-flow statement, rising from Rs 0.47 lakh at the beginning of the period to Rs 17.25 lakh at September 30, 2026. The accompanying balance sheet lists cash and cash equivalents at Rs 17.26 lakh, a Rs 0.01 lakh difference from the cash-flow statement that the filing does not explain.

What drove C.J. Gelatine Products' operating cash outflow?

C.J. Gelatine Products reported Rs 181.48 lakh of net cash used in operating activities, compared with Rs 87.93 lakh used in the year ended March 31, 2026. The two periods are not directly comparable because the latest figure covers six months and the earlier figure covers a full year, but the reported half-year cash outflow was higher.

The cash-flow statement records a Rs 112.12 lakh increase in inventories and a Rs 218.08 lakh movement in trade payables within the operating reconciliation. These were partly offset by Rs 43.86 lakh from current trade receivables and Rs 27.78 lakh from non-current trade receivables, as presented in the statement.

Profit before tax was Rs 12.32 lakh for the half year ended September 30, 2026. The operating cash reconciliation also included Rs 31.65 lakh of depreciation and amortisation, Rs 10.94 lakh of current provisions, Rs 7.88 lakh of other non-cash adjustments and Rs 101.63 lakh of finance costs.

How did C.J. Gelatine Products' borrowing balances change?

C.J. Gelatine Products' total reported borrowings increased to Rs 26.8734 crore at September 30, 2026 from Rs 23.6412 crore at March 31, 2026. This total combines non-current borrowings of Rs 18.2201 crore and current borrowings of Rs 8.6533 crore at the September reporting date.

Non-current borrowings rose by Rs 4.7304 crore from Rs 13.4897 crore at March 31, 2026. Current borrowings fell by Rs 1.4982 crore from Rs 10.1515 crore, meaning the increase in the combined balance was concentrated in the non-current category.

The announcement does not identify lenders, borrowing instruments, repayment dates, interest rates or the intended use of the Rs 323.22 lakh borrowing proceeds. It states that the company did not fall within the Securities and Exchange Board of India definition of a large corporate as at March 31, 2026, and that there was no outstanding default on loans or debt securities during the reporting quarter.

What changed in C.J. Gelatine Products' working-capital balances?

C.J. Gelatine Products reported inventories of Rs 23.8131 crore at September 30, 2026, up from Rs 22.6919 crore at March 31, 2026. The Rs 1.1212 crore increase corresponds with the Rs 112.12 lakh inventory movement reported in the half-year cash-flow statement.

Trade receivables declined to Rs 3.45 crore from Rs 3.8886 crore over the same period. Current trade payables declined to Rs 44.72 lakh from Rs 1.3893 crore, while other current liabilities decreased to Rs 1.166 crore from Rs 2.4047 crore.

Total assets increased to Rs 34.6927 crore at September 30, 2026 from Rs 34.1668 crore at March 31, 2026. Property, plant and equipment declined to Rs 5.2845 crore from Rs 5.5077 crore, even as the cash-flow statement recorded Rs 37.58 lakh of property, plant and equipment purchases during the half year.

Did C.J. Gelatine Products return to profit in the half year?

C.J. Gelatine Products reported profit after tax of Rs 14.462 lakh for the half year ended September 30, 2026, compared with a loss after tax of Rs 9.922 lakh in the corresponding half year ended September 30, 2025. Revenue from operations was Rs 20.45338 crore, marginally lower than Rs 20.52218 crore a year earlier.

The half-year result included an exceptional item of Rs 7.881 lakh. The notes describe this as a prior-period adjustment relating to recognition of minimum alternate tax credit entitlement and reversal of a previous-year income-tax provision.

Finance cost was Rs 1.0163 crore for the half year ended September 30, 2026, against Rs 61.093 lakh for the year ended March 31, 2026. C.J. Gelatine Products operates in one disclosed segment, manufacturing gelatine and related by-products, and the financial results were subject to a limited review by S P A R K & Associates, Chartered Accountants LLP.

Conclusion

C.J. Gelatine Products' half-year filing shows borrowing proceeds of Rs 323.22 lakh alongside Rs 181.48 lakh of operating cash outflow and Rs 35.65 lakh of investing cash outflow. Cash and cash equivalents increased to Rs 17.25 lakh, while aggregate current and non-current borrowings increased to Rs 26.8734 crore.

The next reported results will show whether inventory, receivable and payable movements change after September 30, 2026, and whether operating cash flow moves closer to the reported Rs 14.462 lakh half-year profit. The filing does not disclose a borrowing-repayment plan, maturity schedule or stated use for the new borrowing proceeds.