Ganga Papers India Limited reports Rs 5.96 crore operating cash inflow

Ganga Papers generated Rs 5.96 crore of net cash from operating activities in the half year ended September 30, 2026, reversing a Rs 3.00 crore outflow a year earlier. A Rs 6.04 crore inventory reduction and Rs 7.65 crore increase in trade and other payables outweighed a Rs 11.01 crore cash use for trade and other receivables.

How did Ganga Papers return to positive operating cash flow?

Ganga Papers returned to positive operating cash flow by reporting Rs 6.13 crore of cash generated from operations before income-tax payments for the half year ended September 30, 2026. After paying Rs 16.59 lakh of income tax, it recorded net cash generated by operating activities of Rs 5.96 crore, against net cash used in operating activities of Rs 3.00 crore in the corresponding half year ended September 30, 2025.

The company began with operating profit before working-capital changes of Rs 3.45 crore, compared with Rs 3.21 crore in the prior-year half. The current-period measure included reported profit before tax of Rs 1.42 crore, depreciation and amortisation expense of Rs 1.16 crore, interest expense of Rs 91.41 lakh and non-operating interest income of Rs 4.48 lakh.

Ganga Papers reported revenue from operations of Rs 170.39 crore for the September 2026 half year, up from Rs 132.06 crore in the corresponding 2025 period. Profit before tax in the income statement was Rs 1.42 crore, compared with Rs 81.96 lakh a year earlier, while profit for the period rose to Rs 1.06 crore from Rs 61.33 lakh. The company identifies paper manufacturing as its sole primary business segment.

What working-capital movements produced Ganga Papers' cash inflow?

Ganga Papers reported a Rs 6.04 crore positive cash-flow adjustment from inventories in the September 2026 half year, compared with a Rs 5.83 crore negative adjustment in the year-earlier period. Its inventory balance fell to Rs 18.34 crore at September 30, 2026 from Rs 24.38 crore at March 31, 2026, a reduction of Rs 6.04 crore.

Trade and other payables contributed Rs 7.65 crore to operating cash flow, compared with a Rs 3.24 crore contribution in the September 2025 half year. Trade payables on the balance sheet increased to Rs 23.23 crore at September 30 from Rs 16.06 crore at March 31, an increase of Rs 7.17 crore. Other current liabilities were Rs 3.24 crore at September 30, broadly unchanged from Rs 3.25 crore at the March year-end.

The receivables movement absorbed part of the cash released elsewhere in working capital. The cash-flow statement recorded a Rs 11.01 crore use of cash for trade and other receivables, compared with a Rs 3.82 crore use in the corresponding 2025 half year. This cash-flow line covers trade and other receivables, while the balance sheet separately shows trade receivables rising by Rs 9.74 crore to Rs 51.04 crore from Rs 41.30 crore.

How did Ganga Papers' balance sheet change by September 2026?

Ganga Papers reported total assets of Rs 102.23 crore at September 30, 2026, compared with Rs 100.32 crore at March 31, 2026. Current assets rose to Rs 80.22 crore from Rs 77.13 crore, as the Rs 9.74 crore increase in trade receivables and Rs 1.26 crore rise in other current assets more than offset the Rs 6.04 crore inventory reduction.

Cash and cash equivalents declined to Rs 10.87 lakh at September 30 from Rs 4.05 crore at March 31. Bank balances other than cash and cash equivalents increased to Rs 3.29 crore from Rs 1.23 crore over the same period. The cash-flow statement reports a Rs 3.94 crore net decrease in cash and cash equivalents during the half year, from opening cash of Rs 4.05 crore to closing cash of Rs 10.87 lakh.

Total equity increased to Rs 33.32 crore at September 30 from Rs 32.26 crore at March 31. Other equity rose to Rs 22.53 crore from Rs 21.47 crore, while equity share capital remained Rs 10.79 crore. The balance-sheet change in equity broadly reflects the reported Rs 1.06 crore profit for the September 2026 half year.

What financing and investing flows affected Ganga Papers' cash balance?

Ganga Papers used Rs 7.89 crore in financing activities during the September 2026 half year, compared with an inflow of Rs 3.84 crore in the corresponding 2025 half year. The reported outflow included Rs 3.38 crore of repayment of a related-party loan, Rs 3.63 crore of net working-capital-loan reduction and Rs 91.41 lakh of interest paid. It also reported Rs 2.67 lakh of term-loan proceeds.

Current borrowings decreased to Rs 36.60 crore at September 30 from Rs 40.23 crore at March 31. Non-current borrowings fell to Rs 73.16 lakh from Rs 4.08 crore. The reduction in current borrowings is consistent with the Rs 3.63 crore net working-capital-loan outflow disclosed in the financing cash-flow section, although the balance sheet does not separately identify the cash-flow categories within borrowings.

Investing activities used Rs 2.01 crore in the September 2026 half year, against Rs 11.70 lakh in the prior-year half. The company reported Rs 2.06 crore of investment in fixed deposits and bonds, partly offset by Rs 4.48 lakh of interest on fixed deposits and bonds and Rs 57,000 received from government authorities. No fixed-asset purchase was reported for the current half year, while the prior-year half showed Rs 59.47 lakh of such purchases.

Conclusion

Ganga Papers' September 2026 half-year filing shows that operating cash generation turned positive, with Rs 5.96 crore generated after a Rs 3.00 crore outflow in the prior-year period. Lower inventory and higher trade and other payables provided cash, but the Rs 11.01 crore cash use for trade and other receivables and the Rs 9.74 crore increase in trade receivables indicate that a larger amount remained tied up in customer balances.

The next financial results should indicate whether trade receivables are converted into cash and whether the inventory reduction and payables increase continue. The filing also shows Rs 7.89 crore of financing cash outflow, including related-party loan repayment and a reduction in working-capital loans, making subsequent borrowing and cash-balance movements relevant measures to monitor.