Go Fashion (India) Limited H1 cash flow reaches Rs 125.4966 crore

Go Fashion (India) Limited reported net cash flow from operating activities of Rs 125.4966 crore for the six months ended September 30, 2026, up from Rs 95.1099 crore a year earlier. Go Fashion’s investing cash outflow rose to Rs 61.3477 crore from Rs 23.925 crore, driven by higher capital expenditure, net mutual-fund purchases and lower fixed-deposit maturities.

How did Go Fashion’s operating cash flow change in H1?

Go Fashion’s net cash flow from operating activities increased by Rs 30.3867 crore to Rs 125.4966 crore in the six months ended September 30, 2026. Cash generated from operations before income-tax payments rose to Rs 137.3235 crore from Rs 112.7673 crore, while income tax paid, net of refunds, declined to Rs 11.8269 crore from Rs 17.6574 crore.

The increase in operating cash flow came despite profit before tax declining to Rs 34.1693 crore from Rs 58.6876 crore in the corresponding six months of 2025. Depreciation and amortisation increased to Rs 69.2683 crore from Rs 65.0541 crore, while property, plant and equipment written off rose to Rs 9.8797 crore from Rs 1.7252 crore.

The financial-results statement attributes the Rs 9.88 crore write-off to consolidation of stores during the six months ended September 30, 2026. Finance costs added back in the operating-cash-flow calculation were Rs 24.9636 crore, compared with Rs 24.1281 crore a year earlier, while interest income on fixed deposits reduced the calculation by Rs 5.7087 crore, compared with Rs 7.9426 crore.

What working-capital movements supported Go Fashion’s operating cash flow?

Go Fashion reported a positive net working-capital movement of Rs 13.4077 crore in the 2026 half-year, against a negative movement of Rs 24.8348 crore in the prior-year period. This shift accompanied the Rs 24.5562 crore increase in cash generated from operations before tax payments.

Inventory generated Rs 42.245 crore of cash in the six months ended September 30, 2026, compared with an inventory-related outflow of Rs 4.0206 crore a year earlier. That inflow was partly offset by a Rs 20.0848 crore increase in trade receivables and a Rs 19.3773 crore increase in other assets.

Trade payables, other financial liabilities and other current liabilities generated Rs 9.0046 crore, compared with Rs 9.4967 crore in the preceding-year half. Provisions added Rs 1.6172 crore of cash, against Rs 6.2951 crore a year earlier, showing that the inventory movement accounted for much of the change in the working-capital outcome.

The balance sheet recorded inventory of Rs 226.4138 crore at September 30, 2026, down from Rs 268.6618 crore at March 31, 2026. Trade receivables moved in the opposite direction, rising to Rs 125.7659 crore from Rs 105.681 crore over the same dates. Go Fashion states that its operations predominantly relate to retailing women’s bottom-wear and that it has one reportable business segment.

Why did Go Fashion’s investing cash outflow more than double?

Go Fashion used Rs 61.3477 crore in investing activities during the six months ended September 30, 2026, compared with Rs 23.925 crore in the same period of 2025. The outflow rose by Rs 37.4227 crore as capital expenditure increased, fixed-deposit maturities declined and mutual-fund activity shifted to a net purchase position.

Capital expenditure on property, plant and equipment, intangible assets and capital work in progress, including capital advances and payables, was Rs 32.9866 crore. That was Rs 13.3748 crore higher than the Rs 19.6118 crore reported in the previous-year half.

Go Fashion purchased Rs 37 crore of mutual funds and received Rs 20.50 crore from mutual-fund sales, producing a net Rs 16.50 crore outflow. In the six months ended September 30, 2025, it had purchased Rs 40 crore and sold Rs 46 crore, resulting in Rs 6 crore of net sale proceeds.

Fixed-deposit placements decreased by Rs 53.9194 crore, but maturities fell by the larger Rs 58.588 crore. Interest received on fixed deposits declined to Rs 4.76 crore from Rs 6.6213 crore. Proceeds from disposal of property, plant and equipment were Rs 26.34 lakh, compared with Rs 54.93 lakh in the previous-year half.

What happened to Go Fashion’s cash after financing payments?

Go Fashion reported financing cash outflow of Rs 72.9674 crore in the six months ended September 30, 2026, compared with Rs 67.9175 crore a year earlier. Payment of lease liabilities, including interest, accounted for Rs 72.9153 crore, up from Rs 67.9174 crore in the corresponding prior-year period.

Finance costs paid were Rs 5.21 lakh, compared with Rs 10.01 lakh a year earlier. The company had no separate borrowing balance reported in current liabilities at September 30, 2026, while non-current lease liabilities stood at Rs 431.7353 crore and current lease liabilities were Rs 97.8513 crore.

Operating inflow of Rs 125.4966 crore did not fully cover the combined investing and financing outflows of Rs 134.3151 crore. As a result, cash and cash equivalents fell by Rs 8.8185 crore during the half-year and stood at Rs 8.8265 crore on September 30, 2026, compared with Rs 19.4076 crore at the end of the prior-year half.

The cash-flow statement records a Rs 4.5517 crore adjustment on initial application of amendments to Indian Accounting Standard 109, known as Ind AS 109, on April 1, 2026. Cash and cash equivalents were Rs 13.0933 crore at the start of the year before that adjustment and Rs 17.645 crore after it; the subsequent reported half-year decrease resulted in the September 30 closing balance.

Conclusion

Go Fashion’s half-year statement shows operating cash flow increasing even as profit before tax fell by Rs 24.5183 crore. The change in working capital from a Rs 24.8348 crore outflow to a Rs 13.4077 crore inflow, together with higher depreciation and the store-consolidation-related write-off, contributed to Rs 125.4966 crore of operating cash flow. Higher investment and lease-related financing payments, however, left cash and cash equivalents lower at the period end.

The filing does not disclose a capital-expenditure target, investment plan or scheduled operating event. The next financial results will show whether capital expenditure of Rs 32.9866 crore, the Rs 16.50 crore net mutual-fund purchase position and lease-liability payments of Rs 72.9153 crore continue to absorb operating cash, and whether store consolidation produces further asset write-offs.