Darshan Orna Limited operating outflow rises to Rs 66.04 lakh

Darshan Orna Limited reported a Rs 66.04 lakh net operating cash outflow for the half year ended September 30, 2026, compared with an outflow of Rs 54.17 lakh a year earlier. A Rs 1.3888 crore increase in trade receivables and lower trade payables outweighed its Rs 8.66 lakh profit after tax.

Why did Darshan Orna's operating cash outflow widen?

Darshan Orna's operating cash outflow widened by Rs 11.87 lakh year on year to Rs 66.04 lakh in the half year ended September 30, 2026. Cash generated from operations was negative Rs 64.54 lakh, compared with negative Rs 39.17 lakh in the corresponding half of 2025, before Rs 1.50 lakh of taxes paid took net operating cash flow to negative Rs 66.04 lakh.

Profit before tax was Rs 10.16 lakh for the six months, down from Rs 60.23 lakh in the prior-year half. Adding depreciation of Rs 0.09 lakh and finance cost of Rs 3.83 lakh, and deducting other income of Rs 0.02 lakh, resulted in operating profit before working-capital changes of Rs 14.06 lakh, versus Rs 63.72 lakh a year earlier.

Working-capital movements reversed the positive operating profit before those changes in the latest half. Inventory generated Rs 3.1975 crore of cash during the 2026 half, but this was below the Rs 11.8579 crore generated in the 2025 half, while movements in receivables, payables and short-term borrowings consumed cash.

How did receivables affect Darshan Orna's cash flow?

Darshan Orna used Rs 1.3888 crore of cash through the increase in trade receivables in the half year ended September 30, 2026. This was smaller than the Rs 11.5493 crore receivables outflow in the corresponding 2025 half, but it remained the largest individual negative working-capital movement reported for the latest period.

Current trade receivables stood at Rs 15.3577 crore on September 30, 2026, up from Rs 13.9689 crore at March 31, 2026. The Rs 1.3888 crore increase in the balance-sheet figure corresponds to the receivables movement reported in the cash-flow statement for the six-month period.

Revenue from operations rose to Rs 26.0035 crore in the half year ended September 30, 2026 from Rs 21.0955 crore a year earlier. The revenue increase occurred alongside the receivables increase, although the filing does not provide customer-level collection terms, receivables ageing or management commentary on the balance movement.

What other working-capital movements used cash?

Darshan Orna's trade payables fell by Rs 2.1417 crore in the 2026 half, creating a cash outflow, compared with a Rs 18.95 lakh decline in the prior-year half. Loans and advances used Rs 15.55 lakh, other current assets used Rs 11.19 lakh, current liabilities used Rs 1.77 lakh, and short-term borrowings declined by Rs 18.59 lakh.

Current trade payables due to creditors other than micro and small enterprises were Rs 1.1032 crore at September 30, 2026, down from Rs 3.2449 crore at March 31, 2026. Dues to micro and small enterprises also declined to Rs 73.61 lakh from Rs 92.20 lakh, while total current financial liabilities fell to Rs 1.8393 crore from Rs 4.1669 crore.

Inventory provided the principal offset, with the cash-flow statement recording a Rs 3.1975 crore release in the latest half. Inventory on the balance sheet declined to Rs 13.8524 crore at September 30 from Rs 17.0499 crore at March 31, a reduction equal to the cash release reported for the period.

How much cash did Darshan Orna have at September 30?

Darshan Orna closed September 30, 2026 with Rs 21.06 lakh of cash and cash equivalents, down Rs 69.87 lakh from an opening balance of Rs 90.93 lakh. In the corresponding 2025 half, cash and cash equivalents increased by Rs 18.20 lakh to close at Rs 21.60 lakh from Rs 3.40 lakh.

The latest cash decline reflected negative operating cash flow of Rs 66.04 lakh and negative financing cash flow of Rs 3.83 lakh. The financing outflow equalled the finance cost reported in the cash-flow statement, while investing cash flow was nil, compared with an investing inflow of Rs 15.53 lakh in the first half of 2025.

Cash and cash equivalents of Rs 21.06 lakh were accompanied by current loans of Rs 23.18 lakh at September 30, compared with Rs 7.63 lakh at March 31. Total current assets decreased to Rs 33.5596 crore from Rs 35.7996 crore, while total current liabilities fell to Rs 2.6631 crore from Rs 4.9904 crore.

Did Darshan Orna remain profitable despite the cash outflow?

Darshan Orna remained profitable in accounting terms, reporting profit after tax of Rs 8.66 lakh for the half year ended September 30, 2026, but this was down from Rs 45.23 lakh in the corresponding 2025 half. The filing's working-capital movements, including higher receivables and lower payables, explain why the reported profit did not result in positive operating cash flow.

For the September 2026 quarter, profit after tax was Rs 3.57 lakh, compared with Rs 5.09 lakh in the June 2026 quarter and Rs 23.75 lakh in the September 2025 quarter. September-quarter revenue was Rs 13.5366 crore, above Rs 12.4669 crore in June and Rs 6.3131 crore a year earlier; the filing identifies the company as operating in a single primary business segment.

Other equity increased to Rs 15.3571 crore on September 30 from Rs 15.2705 crore at March 31. Total equity was Rs 35.3688 crore and total liabilities were Rs 3.0145 crore, compared with total liabilities of Rs 5.3418 crore at the March 2026 year-end.

Conclusion

Darshan Orna's first-half filing shows that revenue of Rs 26.0035 crore and profit after tax of Rs 8.66 lakh did not translate into operating cash generation. The Rs 66.04 lakh operating outflow was Rs 11.87 lakh larger than a year earlier, as the Rs 1.3888 crore rise in receivables and Rs 2.1417 crore fall in trade payables outweighed the Rs 3.1975 crore inventory release.

The next financial filing will show whether cash collection changes from the September 30 receivables balance of Rs 15.3577 crore and whether cash and cash equivalents recover from Rs 21.06 lakh. The Board approved the unaudited September-quarter and half-year results on November 2, 2026, while the filing gives no separate receivables-collection target or cash-flow forecast.