Goa Carbon inventory build drives Rs 184.78 crore outflow

Goa Carbon Limited reported a Rs 184.78 crore net operating cash outflow for the year to date ended September 30, 2026, chiefly alongside a Rs 181.44 crore increase in inventories, while Rs 283.62 crore of borrowing proceeds and net short-term borrowing inflows supported cash requirements during the six-month period.

What caused Goa Carbon’s operating cash outflow?

Goa Carbon’s operating cash outflow was primarily associated with its inventory accumulation. Inventories increased to Rs 271.19 crore at September 30, 2026, from Rs 89.75 crore at March 31, 2026, and the cash-flow statement records a Rs 181.44 crore use of cash for inventories during the six-month period.

The inventory movement was substantially larger than a year earlier. In the year to date ended September 30, 2025, inventories used Rs 36.21 crore of operating cash, compared with Rs 181.44 crore in the latest half year. The latest inventory cash use also exceeded the Rs 8.53 crore operating profit before working-capital changes reported for the period ended September 30, 2026.

Other working-capital movements partly offset the inventory outflow but did not reverse it. Trade receivables released Rs 42.11 crore of cash as their balance fell to Rs 86.86 crore from Rs 128.98 crore at March 31, 2026. Other current assets absorbed Rs 50.95 crore of cash, while trade payables used Rs 7.07 crore, according to the cash-flow statement.

How did Goa Carbon finance the inventory increase?

Goa Carbon generated Rs 267.53 crore of net cash from financing activities during the six months ended September 30, 2026. This comprised Rs 73.00 crore of proceeds from long-term borrowings and Rs 210.62 crore of net proceeds from short-term borrowings, offset by Rs 16.08 crore of interest paid.

Short-term borrowings on the balance sheet rose to Rs 378.02 crore at September 30, 2026, from Rs 167.40 crore at March 31, 2026, an increase of Rs 210.62 crore. Goa Carbon had no non-current borrowings reported at March 31, whereas non-current borrowings were Rs 73.00 crore at September 30. Total reported borrowings were therefore Rs 451.01 crore at the half-year end, compared with Rs 167.40 crore six months earlier.

Financing inflows exceeded the Rs 184.78 crore operating outflow and the Rs 60.49 crore investing outflow combined. Goa Carbon also reported Rs 21.88 crore of net mutual-fund redemptions, while margin money and bank deposits used Rs 83.03 crore. Cash and cash equivalents consequently increased by Rs 22.25 crore to Rs 61.77 crore at September 30, 2026.

How did Goa Carbon’s balance sheet change by September 2026?

Goa Carbon’s total assets increased to Rs 642.39 crore at September 30, 2026, from Rs 370.11 crore at March 31, 2026. Current assets accounted for most of the movement, increasing by Rs 271.34 crore to Rs 598.50 crore as inventory, bank balances and other current assets rose.

Cash and cash equivalents were Rs 61.77 crore at September 30, compared with Rs 39.52 crore at the preceding year-end. Separately, bank balances other than cash equivalents increased to Rs 98.08 crore from Rs 15.06 crore. Current investments of Rs 21.02 crore reported at March 31 were nil at September 30, consistent with the Rs 21.88 crore net mutual-fund redemption shown in investing cash flows.

Liabilities increased more than equity over the six-month period. Total liabilities rose to Rs 480.52 crore from Rs 201.48 crore, driven by borrowings, while total equity declined to Rs 161.86 crore from Rs 168.63 crore. The equity movement included Goa Carbon’s Rs 7.58 crore net loss for the year to date ended September 30, partly offset by Rs 0.81 crore of other comprehensive income.

What did Goa Carbon report on operations and earnings?

Goa Carbon reported a Rs 7.58 crore net loss for the six months ended September 30, 2026, narrower than the Rs 29.36 crore loss in the corresponding 2025 period. Total income increased to Rs 329.28 crore from Rs 306.20 crore, while total expenses rose to Rs 336.86 crore from Rs 331.98 crore.

Goa Carbon’s only reportable segment is the sale of Calcined Petroleum Coke. Net product sales for the year to date were Rs 320.60 crore, compared with Rs 301.60 crore a year earlier. Cost of materials consumed rose to Rs 326.17 crore from Rs 270.94 crore, while finance costs increased to Rs 16.08 crore from Rs 10.98 crore.

For the quarter ended September 30, 2026, Goa Carbon’s net loss narrowed to Rs 1.00 crore from Rs 21.41 crore a year earlier. Goa Carbon said its Goa and Bilaspur plants were each under scheduled maintenance shutdown for 92 days during the quarter, while the Paradeep plant had no shutdown days. The results were approved on November 5, 2026, and the statutory auditors issued an unmodified limited-review report.

Goa Carbon also disclosed an unresolved Goa Green Cess matter covering demands from financial year 2014-15 through financial year 2024-25. It deposited Rs 3.49 crore under protest, representing 50% of the total demand raised for that period, while the balance remains stayed under Supreme Court directions. Goa Carbon said it is filing monthly returns and depositing 50% of self-assessed cess under protest, and does not expect a material impact on financial results.

Conclusion

The half-year figures show that Goa Carbon’s Rs 181.44 crore inventory build was the central working-capital movement behind a Rs 184.78 crore operating cash outflow. New long-term debt and higher short-term borrowing inflows produced Rs 283.62 crore before interest payments, covering operating and investing cash uses while cash and cash equivalents ended at Rs 61.77 crore.

The next disclosures will show whether inventory of Rs 271.19 crore and short-term borrowings of Rs 378.02 crore change after the September quarter’s 92-day shutdowns at the Goa and Bilaspur plants. Goa Carbon’s continuing monthly Goa Green Cess payments under protest and the pending Supreme Court matter also remain unresolved matters to watch.