Eiko Lifesciences reports first-half operating cash outflow

Eiko Lifesciences Limited used Rs 2.2183 crore in operating activities in the half year ended September 30, 2026, despite reporting consolidated net profit of Rs 3.0721 crore. Working-capital movements and Rs 1.0137 crore of net direct taxes paid outweighed operating profit, while cash and cash equivalents fell to Rs 3.0983 crore from Rs 13.6142 crore at March 31, 2026.

Why did Eiko Lifesciences report negative operating cash flow?

Eiko Lifesciences reported negative operating cash flow because working-capital movements exceeded its Rs 3.8590 crore operating profit before working-capital changes for the period ended September 30, 2026. The cash-flow statement recorded a Rs 4.4752 crore decrease in trade and other payables, a Rs 2.8033 crore increase in trade receivables and a Rs 0.8792 crore decrease in current borrowings.

Those outflows were partly offset by a Rs 1.4180 crore reduction in inventories and a Rs 1.6949 crore reduction in other current assets. Cash used in operations was therefore Rs 1.2046 crore before tax. Net direct taxes paid of Rs 1.0137 crore then brought net cash used in operating activities to Rs 2.2183 crore.

The available cash-flow comparison is with the year ended March 31, 2026, rather than a corresponding prior half-year statement. Eiko Lifesciences generated Rs 2.2836 crore from operations in that full year, compared with an outflow of Rs 2.2183 crore in the period ended September 30, 2026. Trade and other payables increased by Rs 9.2447 crore in the full year but decreased by Rs 4.4752 crore in the latest period.

How did Eiko Lifesciences increase profit while cash flow declined?

Eiko Lifesciences increased consolidated net profit to Rs 3.0721 crore in the half year ended September 30, 2026, from Rs 2.4020 crore a year earlier, while operating cash flow moved into an outflow. Profit before tax rose to Rs 4.0612 crore from Rs 3.1967 crore, but cash flow separately reflects changes in receivables, payables, other assets and taxes paid.

Revenue from operations rose to Rs 34.4690 crore from Rs 22.3832 crore, while total expenses increased to Rs 31.0981 crore from Rs 19.7637 crore. Cost of materials consumed was Rs 27.1589 crore, compared with Rs 15.6170 crore in the prior-year half. Finance cost increased to Rs 0.2882 crore from Rs 0.1479 crore, and current tax expense increased to Rs 0.8826 crore from Rs 0.6536 crore.

The cash-flow reconciliation began with Rs 4.0612 crore of profit before tax, added Rs 0.5122 crore of depreciation and amortisation, and deducted Rs 0.0535 crore of associate profit and Rs 0.9491 crore of interest income classified as investing cash flow. This produced Rs 3.8590 crore before working-capital changes, showing the difference between reported profit and operating cash generation in the period.

What reduced Eiko Lifesciences' cash balance by September 2026?

Eiko Lifesciences' cash balance fell mainly because investing activities used Rs 9.4848 crore, including Rs 10.4147 crore reported under deposits, loans and advances. This outflow came alongside the Rs 2.2183 crore operating outflow, while financing activities generated Rs 1.1870 crore during the period ended September 30, 2026.

Cash and cash equivalents closed at Rs 3.0983 crore on September 30, 2026, down from Rs 13.6142 crore at March 31, 2026. The Rs 10.5160 crore net decrease reflects all three cash-flow categories. The balance sheet shows loans at Rs 14.9803 crore, compared with Rs 4.5656 crore at March 31, an increase of Rs 10.4147 crore matching the amount reported in the investing cash-flow line.

Financing cash flow included Rs 1.2581 crore of proceeds from the issue of shares and Rs 0.2171 crore of net proceeds from borrowings, offset by Rs 0.2882 crore of interest paid. Current borrowings decreased to Rs 0.7953 crore from Rs 1.6745 crore, while non-current borrowings increased to Rs 3.2730 crore from Rs 3.0559 crore. Total assets were Rs 88.5192 crore at September 30, against Rs 89.3697 crore at March 31.

Which Eiko Lifesciences segments drove first-half profit growth?

Eiko Lifesciences' Speciality Chemicals & Pharma Intermediates segment drove first-half revenue and segment-result growth, while Logistics Services reported lower revenue. Speciality Chemicals & Pharma Intermediates generated Rs 31.5541 crore of revenue in the half year ended September 30, 2026, up from Rs 18.6546 crore a year earlier, and its segment result rose to Rs 2.2235 crore from Rs 1.1657 crore.

Logistics Services generated Rs 2.9149 crore of half-year revenue, down from Rs 3.7286 crore in the prior-year period. Its segment result was Rs 0.5987 crore, compared with Rs 0.6034 crore a year earlier. The two segments together reported Rs 34.4690 crore of revenue and Rs 2.8221 crore of segment results, against Rs 22.3832 crore and Rs 1.7691 crore respectively in the prior-year half.

At September 30, 2026, Speciality Chemicals & Pharma Intermediates had Rs 50.1106 crore of segment assets, compared with Rs 10.3329 crore for Logistics Services. Segment liabilities were Rs 11.7014 crore and Rs 2.6628 crore respectively. Eiko Lifesciences also reported Rs 15.3444 crore of investments in equity-accounted investees and Rs 12.7313 crore of unallocated assets, taking total assets to Rs 88.5192 crore.

Conclusion

Eiko Lifesciences reported higher first-half revenue and profit, with revenue from operations reaching Rs 34.4690 crore and net profit reaching Rs 3.0721 crore. However, the Rs 4.4752 crore fall in trade and other payables, Rs 2.8033 crore increase in trade receivables and Rs 1.0137 crore of net tax payments resulted in operating cash use of Rs 2.2183 crore.

The next financial results will indicate whether trade receivables, trade payables and the Rs 14.9803 crore loans balance change after September 30, 2026. Eiko Lifesciences also disclosed that its wholly owned LLP, Eiko Scientific Solutions LLP, will hold 50% of proposed Oval Eiko Resources Private Limited and subscribe Rs 1.25 lakh of its Rs 2.50 lakh initial capital for renewable-energy activities including compressed bio-gas production and distribution.