Gennex Laboratories Limited reports Rs 11.75 crore cash outflow

Gennex Laboratories Limited reported standalone net cash used in operating activities of Rs 11.75 crore for the half year ended September 30, 2026, despite profit before tax of Rs 7.77 crore, as trade receivables absorbed Rs 26.46 crore and inventories absorbed Rs 2.59 crore. The board approved the unaudited results on November 14, 2026.

How did Gennex Laboratories' operating cash flow change?

Gennex Laboratories used Rs 11.75 crore in standalone operating activities during the half year ended September 30, 2026. Cash generated from operations was negative Rs 11.30 crore, and income taxes paid added a further Rs 0.46 crore outflow. The statement uses the indirect method under Indian Accounting Standard 7, beginning with profit before tax and adjusting for non-cash items and working-capital movements.

The reported operating outflow was lower than the Rs 40.18 crore outflow disclosed for the year ended March 31, 2026, although the source presents a six-month period against a full financial year. Cash generated from operations was negative Rs 38.07 crore for the year ended March 31, 2026, compared with negative Rs 11.30 crore in the September 2026 half year, while tax paid was Rs 2.11 crore in the full year.

Why did Gennex Laboratories report negative operating cash flow?

Gennex Laboratories reported negative operating cash flow because trade receivables absorbed Rs 26.46 crore and inventories absorbed Rs 2.59 crore in the half year ended September 30, 2026. Together, those movements used Rs 29.05 crore, exceeding the Rs 6.66 crore operating profit before working-capital changes. Trade payables and other liabilities contributed Rs 5.27 crore, while financial and other assets contributed Rs 5.35 crore.

The cash-flow bridge started with Rs 7.77 crore of profit before tax. It added back Rs 0.47 crore of depreciation and amortisation and Rs 1.54 crore of finance cost, while deducting Rs 3.11 crore of interest income, which the statement records within investing activities. These adjustments produced operating profit before working-capital changes of Rs 6.66 crore.

Gennex Laboratories did not disclose an ageing schedule, collection terms, customer-level exposure or the reason for the Rs 26.46 crore receivables movement. The filing therefore identifies the working-capital effect on cash, but not the timing of collection. Its reported operating segment is bulk-drugs manufacturing, principally involving Guaifenesin and Methocarbamol.

How did Gennex Laboratories' working-capital balances change?

Gennex Laboratories' trade receivables increased to Rs 59.83 crore at September 30, 2026 from Rs 33.37 crore at March 31, 2026. Inventories rose to Rs 44.22 crore from Rs 41.63 crore over the same period. The Rs 26.46 crore movement recorded in the cash-flow statement closely corresponds with the balance-sheet increase in receivables.

Cash and cash equivalents declined to Rs 48.11 crore at September 30, 2026 from Rs 52.40 crore at March 31, 2026. Short-term loans and advances decreased to Rs 101.34 crore from Rs 105.75 crore, while other current assets fell to Rs 3.96 crore from Rs 4.95 crore. The cash-flow statement groups movements in these categories within a Rs 5.35 crore positive adjustment for financial and other assets.

How did Gennex Laboratories' profit compare with cash generation?

Gennex Laboratories reported standalone profit before tax of Rs 7.77 crore for the half year ended September 30, 2026, compared with Rs 10.08 crore for the half year ended September 30, 2025. Revenue from operations increased to Rs 65.44 crore from Rs 54.97 crore. Thus, revenue increased by Rs 10.47 crore year on year while profit before tax declined by Rs 2.32 crore.

Net profit for the September 2026 half year was Rs 7.31 crore, compared with Rs 8.68 crore a year earlier. Total expenses rose to Rs 61.43 crore from Rs 49.19 crore, including material-consumption costs of Rs 51.60 crore against Rs 44.84 crore. Finance cost increased to Rs 1.54 crore from Rs 1.15 crore in the comparable half year.

For the September 2026 quarter, Gennex Laboratories reported revenue from operations of Rs 30.76 crore and profit before tax of Rs 3.56 crore, compared with Rs 4.21 crore of profit before tax in the June 2026 quarter. Basic earnings per share for the September 2026 half year were Rs 0.301 and were not annualised, according to the results statement.

How was Gennex Laboratories' cash shortfall funded?

Gennex Laboratories generated Rs 5.93 crore from financing activities in the half year ended September 30, 2026, partly offsetting the Rs 11.75 crore operating outflow. The cash-flow statement records Rs 2.57 crore from changes in long-term borrowings and Rs 4.90 crore from net changes in short-term borrowings. Interest paid was Rs 1.54 crore, and no proceeds from issue of capital were recorded.

Investing activities generated Rs 1.53 crore during the period because interest income of Rs 3.11 crore exceeded Rs 1.58 crore spent on property, plant and equipment. The statement records no purchase of equity shares, no sale of property, plant and equipment, and no proceeds from such asset sales in the September 2026 half year.

Long-term borrowings stood at Rs 8.49 crore at September 30, 2026, compared with Rs 3.62 crore at March 31, 2026. Short-term borrowings were Rs 25.39 crore, against Rs 22.82 crore at the March year-end, while trade payables increased to Rs 20.95 crore from Rs 15.68 crore. These balance-sheet changes occurred alongside higher receivables and inventories.

Conclusion

Gennex Laboratories generated Rs 7.77 crore of standalone pre-tax profit in the half year ended September 30, 2026 but reported Rs 11.75 crore of operating cash outflow. The disclosed difference was principally working capital: a Rs 26.46 crore receivables absorption and Rs 2.59 crore inventory absorption outweighed Rs 6.66 crore of operating profit before working-capital changes.

The next financial results will show whether trade receivables of Rs 59.83 crore and inventories of Rs 44.22 crore fall, remain elevated or increase further. The source does not provide a collection target or scheduled working-capital plan, so subsequent disclosures on cash equivalents, which were Rs 48.11 crore at September 30, 2026, and borrowings will remain relevant.