Duroply Industries Limited posts Rs 10.65 crore operating cash

Duroply Industries Limited generated Rs 10.65 crore of net operating cash in the half year ended September 30, 2026, compared with Rs 6.43 crore used a year earlier, as a Rs 17.69 crore rise in trade payables outweighed Rs 14.73 crore of cash absorbed by higher inventories.

What was Duroply’s operating cash flow in the first half?

Duroply reported net cash flow from operating activities of Rs 10.65 crore for the half year ended September 30, 2026, reversing net cash used of Rs 6.43 crore in the half year ended September 30, 2025. The year-on-year movement was Rs 17.08 crore, taking the company from an operating cash outflow to an inflow.

Cash generated from operating activities before direct taxes was Rs 11.90 crore in the latest half year, against cash used of Rs 6.56 crore in the comparable 2025 period. Direct taxes paid, net of refunds, were Rs 1.25 crore in the 2026 half year, while the prior-year cash-flow statement recorded Rs 12.34 lakh under that line.

Operating profit before working-capital changes increased to Rs 13.04 crore from Rs 11.41 crore. Profit before tax rose to Rs 5.90 crore from Rs 4.55 crore, while depreciation and amortisation, a non-cash adjustment in the operating cash-flow calculation, increased to Rs 3.68 crore from Rs 2.73 crore.

Which working-capital movements supported Duroply’s cash flow?

Trade payables provided the largest positive working-capital movement, increasing by Rs 17.69 crore in the half year ended September 30, 2026. In the half year ended September 30, 2025, trade payables decreased by Rs 2.01 crore, making this line a Rs 19.69 crore swing between the two periods.

Inventories absorbed Rs 14.73 crore of cash in the latest half year, compared with Rs 8.22 crore in the prior-year period. Other current assets used Rs 4.01 crore, although that was lower than the Rs 8.37 crore cash use reported a year earlier.

Trade receivables used Rs 16.30 lakh of cash in the six months to September 2026, compared with Rs 5.85 lakh a year earlier. Non-current other financial assets used Rs 11.96 lakh and other current financial assets used Rs 12.11 lakh, while long-term provisions added Rs 31.74 lakh to operating cash.

How did Duroply’s profit compare with operating cash generation?

Duroply’s revenue from operations rose to Rs 221.86 crore in the half year ended September 30, 2026, from Rs 198.03 crore a year earlier. Net profit after tax increased to Rs 4.98 crore from Rs 3.96 crore, while net operating cash flow reached Rs 10.65 crore after the prior-year outflow.

The Rs 1.03 crore increase in net profit was smaller than the Rs 17.08 crore improvement in operating cash flow. The cash-flow statement shows that movements in payables, inventories and other assets, together with non-cash adjustments, bridged profit before tax of Rs 5.90 crore to the operating cash inflow.

Finance costs declined to Rs 3.86 crore in the latest half year from Rs 4.56 crore a year earlier. At the same time, purchases of stock-in-trade rose to Rs 83.97 crore from Rs 74.50 crore, and cost of materials consumed increased to Rs 71.08 crore from Rs 62.30 crore.

Where did Duroply use cash outside operations?

Duroply used Rs 5.71 crore in investing activities during the half year ended September 30, 2026, compared with Rs 4.79 crore used in the corresponding prior-year period. Additions to property, plant and equipment accounted for Rs 4.70 crore, while additions to intangible fixed assets were Rs 51.36 lakh.

Net financing activities used Rs 4.90 crore in the latest half year, reversing an inflow of Rs 26.85 crore a year earlier. The previous period included Rs 20.00 crore of proceeds from equity shares and Rs 19.14 crore from working-capital loans, whereas the latest period recorded Rs 1.74 crore of proceeds from working-capital loans and no equity-share proceeds.

After operating, investing and financing movements, cash and cash equivalents increased by Rs 3.01 lakh in the six months to September 2026. Closing cash and cash equivalents were Rs 11.15 lakh, compared with opening cash and cash equivalents of Rs 8.14 lakh.

What does Duroply’s balance sheet show about working capital?

Duroply’s inventories were Rs 118.62 crore at September 30, 2026, compared with Rs 103.89 crore at March 31, 2026. Trade receivables were Rs 46.41 crore at September 30, compared with Rs 46.25 crore at the preceding financial year-end, broadly reflecting the Rs 16.30 lakh cash-flow increase in receivables.

Current liabilities increased to Rs 136.22 crore at September 30, 2026, from Rs 117.72 crore at March 31, 2026. Trade payables to micro and small enterprises were Rs 28.26 crore, while payables to creditors other than micro and small enterprises were Rs 40.75 crore, compared with Rs 22.09 crore and Rs 29.24 crore, respectively, at year-end.

Current borrowings rose to Rs 56.74 crore from Rs 55.50 crore over the same period. Non-current borrowings declined to Rs 8.75 crore from Rs 9.35 crore, while combined current and non-current lease liabilities decreased to Rs 7.08 crore from Rs 8.28 crore.

What unresolved balance-sheet matter did Duroply disclose?

Duroply disclosed a Rs 2.27 crore loan recoverable from a company that is under litigation as of September 30, 2026. No interest is being charged on the outstanding amount, and management expects the balance to be recoverable without an impairment or expected-credit-loss provision.

The statutory auditor drew attention to the Rs 2.27 crore recoverable balance in its limited review report dated November 13, 2026. The auditor’s conclusion was not modified, and the financial results were reviewed by the audit committee and approved by the board on the same date.

Conclusion

Duroply’s first-half operating cash position improved to an inflow of Rs 10.65 crore from an outflow of Rs 6.43 crore a year earlier, alongside revenue growth to Rs 221.86 crore and net profit after tax of Rs 4.98 crore. The cash-flow change was substantially associated with a Rs 17.69 crore increase in trade payables, while inventory growth consumed Rs 14.73 crore.

The next disclosed financial results will show whether inventories, at Rs 118.62 crore on September 30, 2026, and trade payables continue to move at similar levels. Investors can also monitor the unresolved Rs 2.27 crore loan litigation, for which management expects recovery and has not recorded an impairment provision.