Gufic Biosciences operating cash flow falls 91% in H1

Gufic Biosciences Limited reported standalone net cash from operating activities of Rs 5.34 crore for the half year ended September 30, 2026, down 91% from Rs 59.04 crore a year earlier, despite profit rising to Rs 45.95 crore. Inventory, receivables and payables together used Rs 78.72 crore of cash.

Why did Gufic Biosciences' operating cash flow fall?

Gufic Biosciences' operating cash flow fell because working-capital movements used Rs 78.72 crore in the half year ended September 30, 2026, compared with Rs 4.44 crore in the corresponding 2025 half year. This larger cash outflow outweighed the increase in operating profit before working-capital movements to Rs 95.85 crore from Rs 70.29 crore.

Cash generated from operations consequently declined to Rs 17.12 crore from Rs 65.86 crore. Income taxes paid also increased to Rs 11.79 crore from Rs 6.82 crore, leaving net cash generated from operating activities of Rs 5.34 crore, compared with Rs 59.04 crore in the previous corresponding period.

The reported 91% decline is calculated from the two standalone operating-cash figures. Gufic Biosciences classifies its operations under one segment, Pharmaceuticals, so the filing does not provide product, geography or business-line detail for the inventory and receivable movements behind the Rs 78.72 crore working-capital outflow.

Did Gufic Biosciences' higher profit turn into cash?

Gufic Biosciences' higher reported profit did not translate proportionately into operating cash in the September 2026 half year. Standalone profit for the period increased to Rs 45.95 crore from Rs 27.01 crore, while net operating cash fell to Rs 5.34 crore from Rs 59.04 crore over the same periods.

Before working-capital changes, the cash-flow statement recorded an increase of Rs 25.55 crore in operating profit, to Rs 95.85 crore. Depreciation was broadly unchanged at Rs 15.44 crore against Rs 15.49 crore, while interest costs on financial liabilities increased to Rs 19.29 crore from Rs 18.22 crore.

Income-tax expense recognised in profit rose to Rs 15.71 crore from Rs 9.80 crore, while actual income taxes paid rose to Rs 11.79 crore from Rs 6.82 crore. The distinction matters because the cash-flow statement adjusts reported profit for non-cash items and working-capital movements before arriving at cash generated from operations.

The consolidated figures showed the same direction of change. Consolidated profit for the half year was Rs 45.78 crore, up from Rs 29.89 crore, while consolidated net cash from operating activities was Rs 5.17 crore, down from Rs 59.12 crore. The difference between standalone and consolidated operating cash was Rs 0.17 crore in the latest half year.

Which working-capital accounts used Gufic Biosciences' cash?

Gufic Biosciences used Rs 47.61 crore of cash for the increase in inventories in the half year ended September 30, 2026, compared with Rs 12.79 crore in the prior-year half. Inventory was the largest individual working-capital cash use and represented more than half of the total Rs 78.72 crore outflow.

Trade and other receivables used Rs 30.07 crore, compared with Rs 28.43 crore a year earlier. Combined, inventory and receivables absorbed Rs 77.68 crore, versus Rs 41.23 crore in the corresponding half of 2025, substantially reducing the benefit of the higher pre-working-capital operating profit.

Trade and other payables also moved from a cash source to a cash use. They provided Rs 36.79 crore in the half year ended September 30, 2025, but used Rs 1.04 crore in the latest half year, a year-on-year change of Rs 37.83 crore. The filing presents this as a combined trade-and-other-payables movement rather than identifying individual creditor categories.

The balance sheet provides period-end context for the inventory movement. Standalone inventories stood at Rs 372.08 crore on September 30, 2026, compared with Rs 324.47 crore on March 31, 2026, an increase of Rs 47.61 crore matching the cash-flow statement's inventory movement. Consolidated inventory was Rs 372.21 crore at September 30, 2026.

How did investing and financing change Gufic Biosciences' cash position?

Gufic Biosciences used Rs 42.81 crore in investing activities during the September 2026 half year, compared with Rs 15.35 crore in the previous corresponding period. Purchases of property, plant and equipment, including capital advances, totalled Rs 35.95 crore, against Rs 15.63 crore a year earlier.

The investing outflow also included Rs 6.91 crore for the purchase of investment in equity shares of a subsidiary and Rs 0.49 crore for balances in earmarked accounts. Interest received on fixed deposits was Rs 0.54 crore, compared with Rs 0.52 crore in the previous half year, partially offsetting those uses.

Financing activities generated Rs 40.69 crore, up from Rs 15.01 crore a year earlier. The principal inflow was Rs 77.06 crore from current borrowings, partly offset by Rs 12.77 crore of repayments of non-current borrowings and Rs 18.08 crore of interest paid.

The financing statement also records Rs 3.35 crore of payments on lease liabilities, Rs 1.00 crore of dividends paid and Rs 0.23 crore of processing fees paid. Standalone current borrowings were Rs 357.19 crore at September 30, 2026, versus Rs 280.13 crore at March 31, 2026, while non-current borrowings fell to Rs 92.26 crore from Rs 105.04 crore.

Across operating, investing and financing cash flows, Gufic Biosciences reported a net increase of Rs 3.22 crore in cash and cash equivalents, compared with Rs 58.70 crore in the prior-year half. Closing cash and cash equivalents were Rs 63.54 crore on September 30, 2026, up from Rs 60.32 crore at the beginning of the financial year but below Rs 73.61 crore at September 30, 2025.

Conclusion

Gufic Biosciences reported higher standalone profit of Rs 45.95 crore for the half year ended September 30, 2026, but cash conversion changed materially as working capital absorbed Rs 78.72 crore. The resulting Rs 5.34 crore operating-cash inflow was followed by Rs 42.81 crore of investing outflows, while Rs 40.69 crore of financing inflows supported the cash position.

The next disclosed corporate event is the proposed appointment of Dr. Reeta Shah as an additional non-executive independent director for a first term of five consecutive years from December 1, 2026, subject to shareholder approval. Later financial disclosures will show whether inventory, receivables and payables move differently after the September 2026 half-year working-capital outflow.