Dharmaj Crop Guard Limited H1 cash flow rises to Rs 31.082 crore

Dharmaj Crop Guard Limited generated Rs 31.082 crore of net operating cash in the half year ended September 30, 2026, compared with Rs 0.245 crore a year earlier, despite a Rs 130.783 crore cash outflow from trade receivables. Inventory reduction and higher liabilities, provisions and trade payables partly offset the receivables movement.

How much operating cash did Dharmaj Crop Guard generate?

Dharmaj Crop Guard generated Rs 31.082 crore in net cash from operating activities in the half year ended September 30, 2026, against Rs 0.245 crore in the corresponding 2025 period. Cash generated from operating activities before tax payments rose to Rs 39.392 crore from Rs 8.525 crore, accounting for most of the year-on-year improvement.

Net income taxes paid were Rs 8.310 crore in the 2026 half year, compared with Rs 8.280 crore a year earlier. The Rs 0.030 crore increase in cash taxes was small relative to the Rs 30.837 crore rise in net operating cash, leaving working-capital movements as the main driver of the change.

The consolidated cash-flow statement applies the indirect method under Indian Accounting Standard 7, Statement of Cash Flows. This method starts with profit before tax, adjusts for items including depreciation, finance costs and foreign-exchange movements, and then records working-capital changes before deducting income taxes paid.

What changed between profit and operating cash flow?

Dharmaj Crop Guard reported Rs 68.626 crore of consolidated profit before tax in the half year ended September 30, 2026, while its operating profit before working-capital changes was Rs 85.490 crore. The reconciliation included Rs 9.801 crore of depreciation and amortisation, Rs 6.196 crore of finance costs, and a Rs 2 crore allowance for credit losses on trade receivables.

The same reconciliation included a Rs 1.775 crore net gain on mark-to-market valuation of outstanding derivative contracts and a Rs 0.264 crore gain on disposal of property, plant and equipment and intangible assets. Unrealised foreign-exchange losses on trade receivables and payables were Rs 0.780 crore, while the unrealised loss on buyer's credit was Rs 0.152 crore.

Revenue from operations was Rs 714.995 crore in the 2026 half year, nearly unchanged from Rs 714.646 crore in the prior-year half year. Consolidated profit after tax increased to Rs 51.315 crore from Rs 49.923 crore, while operating profit before working-capital changes declined by Rs 0.815 crore to Rs 85.490 crore.

How did receivables and inventory affect Dharmaj Crop Guard's cash?

Dharmaj Crop Guard recorded a Rs 130.783 crore cash outflow from trade receivables in the half year ended September 30, 2026, compared with a Rs 203.542 crore outflow in the corresponding 2025 period. Receivables remained the largest individual use of working-capital cash, although the outflow was Rs 72.759 crore lower year on year.

Trade receivables on the consolidated balance sheet stood at Rs 409.885 crore on September 30, 2026, compared with Rs 280.728 crore on March 31, 2026. The Rs 129.157 crore increase in the balance-sheet amount differs from the Rs 130.783 crore cash-flow movement; the cash-flow statement also separately records unrealised foreign-exchange effects on receivables and payables.

Inventory generated Rs 33.372 crore of cash during the six months to September 30, 2026, reversing a Rs 26.907 crore cash use in the prior-year period. The inventory balance declined to Rs 174.026 crore from Rs 207.398 crore at March 31, 2026, matching the inventory release disclosed in the cash-flow statement.

Non-current and current financial and other assets generated Rs 5.626 crore of cash, compared with Rs 14.439 crore a year earlier. Non-current and current financial and other liabilities, provisions and trade payables provided Rs 45.687 crore, lower than the Rs 138.227 crore inflow in the prior-year half year but still an offset to the receivables outflow.

How did operating cash compare with investing and financing flows?

Dharmaj Crop Guard's Rs 31.082 crore operating cash inflow exceeded its Rs 10.381 crore net investing cash outflow and Rs 20.517 crore financing cash outflow in the half year ended September 30, 2026. The combined movements resulted in a Rs 0.184 crore increase in cash and cash equivalents during the period.

Payments for property, plant and equipment and intangible assets were Rs 10.771 crore, compared with Rs 14.207 crore in the prior-year half year. Proceeds from asset disposals were Rs 0.163 crore, net investment in bank deposits was Rs 0.037 crore, and interest received was Rs 0.264 crore, producing the Rs 10.381 crore investing outflow.

Financing activities used Rs 20.517 crore, compared with a Rs 16.952 crore inflow a year earlier. The 2026 outflow comprised Rs 6.296 crore of long-term borrowing repayments, Rs 8.047 crore of net short-term borrowing repayments and Rs 6.174 crore of finance costs paid; in the prior-year period, short-term borrowings had provided Rs 28.730 crore of cash.

Cash and cash equivalents were Rs 0.459 crore on September 30, 2026, compared with Rs 0.275 crore at the beginning of the financial year. The balance reflects the near-offset between Rs 31.082 crore of operating cash, Rs 10.381 crore of investing outflow and Rs 20.517 crore of financing outflow.

Conclusion

Dharmaj Crop Guard produced Rs 31.082 crore of operating cash in the half year ended September 30, 2026, despite Rs 130.783 crore being absorbed by trade receivables. A Rs 33.372 crore inventory release and Rs 45.687 crore inflow from liabilities, provisions and trade payables helped lift operating cash from Rs 0.245 crore in the corresponding prior-year period.

The next reported periods will show whether the Rs 409.885 crore receivables balance at September 30, 2026 converts into cash. Dharmaj Crop Guard also disclosed a plan to obtain necessary approvals to incorporate a wholly owned subsidiary in Brazil, while noting that its Agri-Inputs business is seasonal and can be affected by weather conditions and cropping patterns.