Green Asia Impex operating cash flow turns negative in H1

Green Asia Impex Limited used Rs 10.7892 crore in operating activities during April–September 2026, against a Rs 7.5297 crore inflow a year earlier, as trade receivables absorbed Rs 25.5296 crore and short-term loans and advances used Rs 5.5932 crore despite a rise in profit after tax.

Why did Green Asia Impex report negative operating cash flow?

Green Asia Impex reported negative operating cash flow because working-capital movements exceeded its Rs 20.8136 crore operating profit before working-capital changes in April–September 2026. That pre-working-capital profit was above Rs 14.4212 crore in April–September 2025, but receivables, advances and other current assets absorbed more cash than the operating business generated.

The largest movement was the Rs 25.5296 crore increase in trade receivables, recorded as a cash outflow, compared with a Rs 3.6511 crore release in the corresponding 2025 period. Short-term loans and advances used a further Rs 5.5932 crore, versus a Rs 2.2617 crore release a year earlier, while other current assets consumed Rs 1.0867 crore.

Inventory released Rs 99.38 lakh in April–September 2026 after using Rs 7.9147 crore in April–September 2025. The company also recorded a Rs 30.61 lakh decrease in trade payables, while other current liabilities increased by Rs 47.14 lakh and short-term provisions rose by Rs 4.60 lakh, providing limited cash offsets.

Cash generated from operations consequently moved to an outflow of Rs 10.1908 crore from an inflow of Rs 8.2954 crore a year earlier. Taxes paid of Rs 59.84 lakh took net cash used in operating activities to Rs 10.7892 crore for the half year ended September 30, 2026.

How did Green Asia Impex’s working capital change?

Green Asia Impex’s trade receivables and short-term loans and advances increased between March 31, 2026 and September 30, 2026, while inventory declined. Trade receivables rose by Rs 25.5611 crore on the balance sheet to Rs 122.9159 crore, broadly corresponding with the Rs 25.5296 crore cash-flow outflow recorded for receivables.

Inventories fell by Rs 99.38 lakh to Rs 116.6114 crore at September 30, 2026 from Rs 117.6052 crore at March 31, 2026. Short-term loans and advances increased by Rs 5.5932 crore to Rs 24.2319 crore, and other current assets rose by Rs 1.0863 crore to Rs 3.3277 crore.

Trade payables owed to creditors other than micro and small enterprises decreased to Rs 106.7597 crore from Rs 107.10 crore, while dues to micro and small enterprises increased to Rs 12.17 lakh from Rs 5.92 lakh. The cash-flow statement separately shows the overall trade-payables movement as a Rs 30.61 lakh use of cash during the September 2026 half year.

Did Green Asia Impex increase profit despite the cash outflow?

Green Asia Impex increased profit after tax to Rs 10.3827 crore in April–September 2026 from Rs 7.5587 crore in April–September 2025, even as operating cash flow turned negative. Profit before tax rose to Rs 14.0006 crore from Rs 10.2462 crore, while revenue from operations increased to Rs 227.6561 crore from Rs 179.5694 crore.

Purchases rose to Rs 192.8387 crore from Rs 158.5788 crore alongside the higher revenue. Finance costs increased to Rs 5.5739 crore from Rs 3.5414 crore and employee-benefit expense increased to Rs 2.6662 crore from Rs 2.4143 crore, while operating expenses declined to Rs 5.634 crore from Rs 6.395 crore.

The difference between Rs 10.3827 crore of profit after tax and Rs 10.7892 crore of operating cash used reflects the cash absorbed by receivables and advances. Basic and diluted earnings per share were Rs 6.96 for April–September 2026, compared with Rs 5.11 in the corresponding prior-year period; Green Asia Impex stated that half-year earnings per share were not annualised.

How did Green Asia Impex fund the cash outflow and change its cash balance?

Green Asia Impex generated Rs 10.9272 crore from financing activities in April–September 2026, partly funding the operating outflow and an investing outflow of Rs 45.11 lakh. Financing cash flow included Rs 11.5502 crore of borrowing proceeds, Rs 67.10 lakh from equity share capital and Rs 4.496 crore from securities premium.

Interest paid of Rs 5.5739 crore and borrowing repayments of Rs 21.61 lakh reduced financing inflows. Investing activities included Rs 23.28 lakh spent on fixed assets and Rs 21.41 lakh used for long-term loans and advances, partly offset by Rs 3.35 lakh of interest received on deposits.

Cash and cash equivalents fell by Rs 31.31 lakh to Rs 21.34 lakh at September 30, 2026 from Rs 52.65 lakh at the beginning of the year. In April–September 2025, cash and cash equivalents had declined by Rs 17.09 lakh to Rs 74.43 lakh.

Long-term borrowings increased to Rs 19.2071 crore at September 30, 2026 from Rs 7.657 crore at March 31, 2026, while short-term borrowings were broadly unchanged at Rs 91.5946 crore from Rs 91.8107 crore. Shareholders’ funds rose to Rs 56.9753 crore from Rs 41.4256 crore, including a September 2026 allotment of 671,045 equity shares at Rs 77 each that raised Rs 5.167 crore.

Conclusion

Green Asia Impex reported higher revenue, profit before tax and profit after tax in April–September 2026, but its operating cash flow moved from a Rs 7.5297 crore inflow to a Rs 10.7892 crore outflow. The cash-flow statement identifies the Rs 25.5296 crore rise in trade receivables and Rs 5.5932 crore increase in short-term loans and advances as the principal uses of cash, while inventory released Rs 99.38 lakh.

The next disclosed funding event occurred after the reporting date. Green Asia Impex said Rs 40.03 crore of net fresh-issue proceeds from its small and medium enterprises initial public offering was credited to its operating current account on October 9, 2026, after the September 30 reporting date; it classified the receipt as a subsequent event with nil deviation or variation status for H1 FY27.