Coral Laboratories reports Rs 8.03 crore operating cash outflow

Coral Laboratories Limited reported a Rs 8.03 crore net cash outflow from operating activities for the half year ended September 30, 2026, despite profit before tax of Rs 17.83 crore. The cash-flow statement recorded a Rs 12.70 crore increase in trade receivables and Rs 8.21 crore of cash used by other assets.

Why did Coral Laboratories report negative operating cash flow?

Coral Laboratories reported negative operating cash flow because working-capital movements exceeded its Rs 16.74 crore operating profit before working-capital changes in the half year ended September 30, 2026. The company prepared its cash-flow statement using the indirect method under Indian Accounting Standard 7 on cash-flow statements.

The largest reported cash use was a Rs 12.70 crore increase in trade receivables, compared with a Rs 7.28 crore cash source from receivables in the half year ended September 30, 2025. Other assets, current and non-current combined, used Rs 8.21 crore, against Rs 1.45 crore a year earlier. These movements were partly offset by Rs 3.55 crore from provisions and Rs 2.23 crore from other current liabilities.

Coral Laboratories reported Rs 6.47 crore of taxes paid, net of refunds, in its 2026 half-year cash-flow statement. Net operating cash flow therefore moved from an inflow of Rs 12.58 crore in the prior-year half to an outflow of Rs 8.03 crore, a Rs 20.61 crore change between the two periods.

How much did Coral Laboratories' receivables increase?

Coral Laboratories' current trade receivables increased by Rs 12.70 crore to Rs 42.13 crore at September 30, 2026, from Rs 29.43 crore at March 31, 2026. That balance-sheet movement corresponds with the negative Rs 12.70 crore receivables adjustment in the half-year cash-flow statement.

Revenue from operations rose to Rs 65.99 crore in the six months ended September 30, 2026, from Rs 37.86 crore in the corresponding prior-year half. The filing does not state why receivables increased, identify customers, provide collection days or disclose a collection target. It shows that receivables rose alongside a Rs 28.14 crore increase in first-half revenue.

Inventories increased by Rs 85.21 lakh to Rs 21.38 crore from Rs 20.53 crore at March 31, 2026. The cash-flow statement records that inventory movement as an Rs 85.21 lakh cash use, compared with Rs 2.21 crore used for inventories in the corresponding 2025 half year.

Which other balance-sheet movements affected Coral Laboratories' cash?

Coral Laboratories reported Rs 8.21 crore of cash used by other assets, current and non-current, in the 2026 half-year cash-flow statement. The balance sheet separately shows current tax assets rising by Rs 6.47 crore to Rs 12.13 crore, while other current assets increased by Rs 8.47 crore to Rs 27.71 crore and other non-current assets fell by Rs 26.46 lakh to Rs 48.41 lakh.

Other bank balances increased by Rs 1.86 crore during the period, which the cash-flow reconciliation presents as a use of cash. Cash and cash equivalents ended September 30, 2026 at Rs 1.61 crore, up from Rs 1.37 crore at March 31, 2026, after a reported net increase in cash of Rs 24.32 lakh.

The filing also records a Rs 1.36 crore decrease in trade payables as a cash use, compared with a Rs 64.80 lakh decrease in the previous year's first half. Other financial liabilities provided Rs 76.45 lakh, while other financial assets provided Rs 12.80 lakh in the operating-cash-flow reconciliation.

Did Coral Laboratories remain profitable in the first half?

Coral Laboratories remained profitable, reporting Rs 17.83 crore of profit before tax and Rs 13.88 crore of profit for the half year ended September 30, 2026. Profit before tax increased from Rs 11.13 crore in the half year ended September 30, 2025, while profit for the period increased from Rs 8.38 crore.

Total income reached Rs 70.39 crore, compared with Rs 42.61 crore in the prior-year half. Revenue from operations accounted for Rs 65.99 crore, while other income was Rs 4.40 crore. Total expenses increased to Rs 52.55 crore from Rs 31.80 crore, including Rs 25.83 crore of material costs and Rs 12.27 crore of other expenses.

The quarter ended September 30, 2026 contributed Rs 10.89 crore of profit before tax, compared with Rs 6.94 crore in the quarter ended June 30, 2026 and Rs 7.42 crore in the quarter ended September 30, 2025. Basic and diluted earnings per share for the half year were Rs 38.84, compared with Rs 23.46 in the previous corresponding half year.

How were Coral Laboratories' investing and financing cash flows different?

Coral Laboratories used Rs 43.02 lakh in investing activities but generated Rs 8.71 crore from financing activities in the half year ended September 30, 2026. The investing outflow was lower than the Rs 11.76 crore outflow in the prior-year half, when the statement included Rs 11.02 crore of capital work-in-progress movement.

Property, plant and equipment purchases amounted to Rs 1.30 crore in the 2026 half, while interest received was Rs 2.33 crore and dividends received were Rs 13.82 lakh. The filing separately reports an Rs 1.59 crore other comprehensive income item within investing activities, without further explanation in the cash-flow statement.

Financing cash flow changed from an outflow of Rs 2.89 crore in the 2025 half to an inflow of Rs 8.71 crore in the 2026 half. Acceptance or repayment of borrowings and loans produced a reported Rs 8.77 crore inflow, while finance costs were Rs 6.37 lakh. Current borrowings rose to Rs 13.07 crore from Rs 4.33 crore at March 31, 2026.

Conclusion

Coral Laboratories combined higher first-half revenue and profit with negative operating cash flow as receivables, other assets, inventories, other bank balances and lower trade payables absorbed cash. The Rs 8.03 crore operating outflow contrasts with Rs 12.58 crore generated in the prior-year half, even as profit before tax increased by Rs 6.70 crore.

The filing discloses no management cash-conversion target, receivables-collection plan or capital-spending plan. The next financial disclosures will show whether the Rs 42.13 crore receivables balance and the other-asset movements fall, remain elevated or continue to absorb operating cash.