Gopal Snacks cuts borrowings as operating cash reaches Rs 42.901 crore

Gopal Snacks Limited generated Rs 42.901 crore of operating cash in the half year ended September 30, 2026, spent Rs 28.382 crore on capital assets and reduced total borrowings by Rs 8.491 crore from March 31, 2026. Gopal Snacks ended the period with total borrowings of Rs 145.355 crore.

How did Gopal Snacks fund capital spending in the half year ended September 30, 2026?

Gopal Snacks used its half-year cash flows to fund Rs 28.382 crore of purchases of property, plant and equipment, including intangible assets, capital work in progress and right-of-use assets. This investing outflow was lower than Rs 51.835 crore in the half year ended September 30, 2025, a reduction of Rs 23.453 crore. Sale proceeds from property, plant and equipment added Rs 0.290 crore, while interest received was Rs 0.558 crore.

The company reported net operating cash flow of Rs 42.901 crore for the half year, exceeding its Rs 28.382 crore capital-asset purchase by Rs 14.519 crore. Cash generated in operations before tax payments was Rs 50.473 crore and net income taxes paid were Rs 7.571 crore. Operating cash generation declined from Rs 57.341 crore a year earlier, when capital spending was Rs 51.835 crore.

Why did Gopal Snacks' operating cash flow decline from the prior half year?

Gopal Snacks' operating cash flow declined by Rs 14.440 crore year on year because working-capital movements and tax payments outweighed a rise in operating profit before working-capital changes. That profit measure rose to Rs 73.654 crore in the half year ended September 30, 2026 from Rs 40.474 crore in the prior-year half, while cash generated in operations fell to Rs 50.473 crore from Rs 62.443 crore.

Inventory absorbed Rs 15.367 crore of cash in the latest half year, compared with a Rs 21.473 crore cash release in the half year ended September 30, 2025. Trade receivables generated Rs 9.342 crore in the latest half year after consuming Rs 9.639 crore a year earlier. Other current assets consumed Rs 6.968 crore, trade payables fell by Rs 13.559 crore, and other current liabilities fell by Rs 4.094 crore.

The cash-flow statement records Rs 35.317 crore of exceptional items as an adjustment to profit before tax in the latest half year, versus Rs 21.753 crore in the preceding half year. Gopal Snacks said the current-period amount was a net exceptional gain connected with the December 11, 2024 fire at a Rajkot plant. The insurer’s final claim approval supported recognition of the gain, and Gopal Snacks received the final proceeds on October 12, 2026.

How much did Gopal Snacks reduce borrowings by?

Gopal Snacks reduced total borrowings by Rs 8.491 crore to Rs 145.355 crore at September 30, 2026, from Rs 153.846 crore at March 31, 2026. Non-current borrowings declined by Rs 2.778 crore to Rs 19.444 crore, while current borrowings declined by Rs 5.713 crore to Rs 125.911 crore.

The cash-flow statement shows Rs 8.491 crore of borrowing repayments during the half year ended September 30, 2026, compared with Rs 1.566 crore in the prior-year half. Interest paid rose to Rs 6.053 crore from Rs 3.722 crore. Financing activities also included a Rs 1.049 crore dividend payment, Rs 0.038 crore of lease-liability payments and Rs 0.002 crore of proceeds from employee stock options.

What changed in Gopal Snacks' working-capital balances?

Gopal Snacks' inventories increased by Rs 15.678 crore to Rs 208.833 crore at September 30, 2026, while trade receivables decreased by Rs 9.428 crore to Rs 46.521 crore. The inventory increase broadly aligns with the Rs 15.367 crore cash outflow identified in the cash-flow statement, subject to the statement’s working-capital presentation and rounding.

Other current assets rose by Rs 39.420 crore to Rs 114.089 crore, the largest balance-sheet increase among current asset categories. Cash and cash equivalents fell by Rs 0.138 crore to Rs 0.105 crore, closely matching the Rs 0.139 crore net cash decrease reported for the half year. Bank balances other than cash equivalents were Rs 0.385 crore, down from Rs 0.508 crore at March 31, 2026.

On the liability side, trade payables to micro enterprises and small enterprises declined by Rs 6.402 crore to Rs 12.938 crore. Dues to other suppliers declined by Rs 7.157 crore to Rs 7.246 crore. Other current liabilities fell by Rs 4.536 crore to Rs 15.751 crore, while provisions increased by Rs 4.377 crore to Rs 17.073 crore.

How did Gopal Snacks' capital assets and equity change?

Gopal Snacks' total non-current assets increased by Rs 6.304 crore to Rs 395.554 crore at September 30, 2026, despite lower capital spending than in the prior-year half. Property, plant and equipment rose by Rs 38.084 crore to Rs 326.881 crore, while capital work in progress fell by Rs 36.623 crore to Rs 41.635 crore.

Right-of-use assets increased by Rs 3.753 crore to Rs 17.730 crore, while other non-current assets increased by Rs 1.189 crore to Rs 1.739 crore. Total assets rose by Rs 51.556 crore to Rs 766.263 crore. Total current assets increased by Rs 45.252 crore to Rs 370.709 crore, led by the increases in other current assets and inventory.

Total equity increased by Rs 58.794 crore to Rs 537.594 crore, comprising Rs 12.467 crore of equity share capital and Rs 525.127 crore of other equity. Gopal Snacks reported net profit of Rs 58.703 crore for the half year ended September 30, 2026, against Rs 28.216 crore in the prior-year half. Its board declared a first interim dividend of Rs 0.50 per equity share of face value Rs 1 for financial year 2026-27.

Conclusion

Gopal Snacks produced Rs 42.901 crore of operating cash in the half year ended September 30, 2026, sufficient to cover Rs 28.382 crore of capital-asset purchases while making Rs 8.491 crore of borrowing repayments. Compared with the prior-year half, operating cash flow fell by Rs 14.440 crore as inventory shifted from a cash release to a cash use and payables declined, even as operating profit before working-capital changes increased.

The next disclosed item to watch is the effect of the Rs 0.50 per-share first interim dividend on subsequent cash balances and financing flows. Gopal Snacks' next financial results can show whether the Rs 208.833 crore inventory balance, Rs 114.089 crore of other current assets and Rs 145.355 crore of total borrowings change further.