Flex Foods operating cash reaches Rs 22.33 crore in first half

Flex Foods Limited generated Rs 22.33 crore of net operating cash in the six months ended 30 September 2026 despite a Rs 13.15 crore loss before tax. A Rs 18.04 crore reduction in trade receivables, current financial assets and other current assets helped support the cash inflow, while Flex Foods repaid Rs 22.24 crore of non-current borrowings.

How did Flex Foods generate cash despite a pre-tax loss?

Flex Foods generated Rs 22.33 crore of net cash from operating activities despite the Rs 13.15 crore pre-tax loss for the six months ended 30 September 2026. The cash-flow reconciliation added back Rs 8.81 crore of depreciation and amortisation and Rs 13.20 crore of interest expense, while recording a Rs 2.42 crore net exchange-rate fluctuation adjustment.

These items resulted in operating profit before working-capital changes of Rs 6.21 crore, compared with a negative Rs 6.85 crore in the cash-flow statement's comparative six months ended 30 September 2023. The comparative pre-tax loss was Rs 28.74 crore, versus Rs 13.15 crore in the latest six-month period.

The largest working-capital cash source was the Rs 18.04 crore decrease in trade receivables, current financial assets and other current assets. This was partly offset by an Rs 8.45 crore increase in inventories and an Rs 0.56 crore increase in non-current financial and other assets, while trade payables, financial liabilities, other liabilities and current provisions increased by Rs 3.76 crore.

Flex Foods reported Rs 19.91 crore of cash generated from operating activities before the separately presented Rs 2.42 crore exchange-rate fluctuation. The filing does not provide an amount for income tax paid in this cash-flow reconciliation, although it shows net operating cash of Rs 22.33 crore.

What changed in Flex Foods' cash flows from the prior period?

Flex Foods' operating cash flow moved from a Rs 7.18 crore outflow in the six months ended 30 September 2023 to a Rs 22.33 crore inflow in the six months ended 30 September 2026. The shift coincided with receivables and related current assets changing from a Rs 3.94 crore cash use in the comparative period to a Rs 18.04 crore cash source in the latest period.

Flex Foods used Rs 0.27 crore in investing activities in the latest six months, compared with Rs 3.08 crore used in the comparative period. The latest outflow included Rs 0.41 crore spent on property, plant and equipment, capital work-in-progress, investment property and intangible assets under development, partly offset by Rs 0.13 crore of interest received and Rs 0.01 crore of proceeds from asset sales.

Financing cash flow reversed from an Rs 11.15 crore inflow in the comparative period to an Rs 22.66 crore outflow in the latest period. The latest financing movements included the Rs 22.24 crore non-current borrowing repayment, Rs 13.02 crore of net proceeds from current borrowings, Rs 13.16 crore of interest and finance charges, and Rs 0.28 crore of lease-liability payments.

How much non-current debt did Flex Foods repay?

Flex Foods reported a Rs 22.24 crore net repayment of non-current borrowings in the six months ended 30 September 2026. The comparative cash-flow statement reported Rs 24.63 crore of net proceeds from non-current borrowings for the six months ended 30 September 2023, representing a Rs 46.87 crore change in direction between the two periods.

The statement of assets and liabilities listed Rs 191.59 crore of non-current borrowings and Rs 105.84 crore of current borrowings at 30 September 2026. Lease liabilities were reported separately at Rs 0.13 crore under non-current liabilities and Rs 0.53 crore under current liabilities.

Flex Foods reported negative total equity of Rs 1.25 crore at 30 September 2026, comprising Rs 12.45 crore of equity share capital and negative Rs 13.70 crore of other equity. Total non-current liabilities were Rs 194.77 crore and total current liabilities were Rs 198.37 crore, including Rs 24.33 crore due to micro and small enterprises and Rs 14.25 crore due to other trade creditors.

The filing does not identify the lenders, borrowing instruments, interest rates or repayment maturities associated with the Rs 22.24 crore non-current borrowing repayment. It also does not attribute that repayment to a specific source of operating cash, so the reported cash-flow statement shows movements rather than a designated use of cash receipts.

What happened to Flex Foods' cash balance?

Flex Foods' cash and cash equivalents fell by Rs 0.60 crore during the six months ended 30 September 2026, closing at Rs 1.37 crore from Rs 1.97 crore at the start of the year. The Rs 22.33 crore operating inflow was largely offset by Rs 22.66 crore used in financing activities and Rs 0.27 crore used in investing activities.

The 30 September 2026 balance sheet reported Rs 1.22 crore of cash and cash equivalents and Rs 0.15 crore of bank balances other than cash and cash equivalents, together matching the Rs 1.37 crore closing figure in the cash-flow statement. The cash-flow note says Rs 0.15 crore includes dividend-account amounts, including unclaimed balances, demand deposits exceeding three months, margin money for bank guarantees and letters of credit.

Flex Foods reported Rs 94.24 crore of revenue from operations and Rs 94.68 crore of total income in the six-month period. Total expenses were Rs 107.83 crore, including Rs 28.29 crore of other expenses, Rs 20.25 crore of power and fuel expense, and Rs 15.27 crore of employee-benefit expense, resulting in the Rs 13.15 crore pre-tax loss.

Conclusion

Flex Foods converted a first-half pre-tax loss into Rs 22.33 crore of operating cash primarily through non-cash adjustments and a Rs 18.04 crore release from trade receivables and related current assets. That inflow coincided with a Rs 22.24 crore net repayment of non-current borrowings, while cash and cash equivalents declined by Rs 0.60 crore to Rs 1.37 crore.

The key matter to watch in later disclosures is the composition and maturity of Flex Foods' Rs 191.59 crore of non-current borrowings and Rs 105.84 crore of current borrowings at 30 September 2026. The filing does not disclose lender names, interest rates, maturity schedules or a stated borrowing-repayment target, leaving the sustainability of future debt reduction unaddressed.