Gufic operating cash flow falls to Rs 5.17 crore in half-year

Gufic Biosciences Limited reported consolidated net cash generated from operating activities of Rs 5.17 crore for the half year ended September 30, 2026, down from Rs 59.12 crore a year earlier, as working-capital movements used Rs 78.73 crore. Inventory absorbed Rs 47.74 crore, while receivables absorbed Rs 30.02 crore during the period.

Why did Gufic’s operating cash flow fall?

Gufic’s operating cash flow fell because working capital consumed substantially more cash in the half year ended September 30, 2026. Consolidated operating profit before working-capital movements rose to Rs 95.68 crore from Rs 73.36 crore in the half year ended September 30, 2025, but the working-capital outflow widened to Rs 78.73 crore from Rs 7.43 crore.

Inventory was the largest cash outflow, absorbing Rs 47.74 crore in the 2026 half year, compared with Rs 12.79 crore in the corresponding 2025 period. Trade and other receivables used Rs 30.02 crore, against Rs 31.20 crore a year earlier. Trade and other payables moved from providing Rs 36.56 crore of cash in the earlier period to using Rs 0.96 crore in the latest half year.

Cash generated from operations consequently declined to Rs 16.95 crore from Rs 65.93 crore. Income taxes paid increased to Rs 11.79 crore from Rs 6.82 crore, reducing net cash generated from operating activities to Rs 5.17 crore from Rs 59.12 crore.

Did Gufic’s revenue and profit rise in the half year?

Yes, Gufic’s consolidated revenue and profit both increased in the half year ended September 30, 2026. Revenue from operations rose to Rs 549.09 crore from Rs 460.78 crore in the year-earlier period, while profit for the period increased to Rs 45.78 crore from Rs 29.89 crore.

Consolidated profit before tax rose to Rs 61.49 crore from Rs 39.88 crore, while tax expense increased to Rs 15.71 crore from Rs 9.99 crore. Depreciation was broadly unchanged at Rs 15.44 crore, compared with Rs 15.49 crore. Interest costs on financial liabilities measured at amortised cost rose to Rs 19.29 crore from Rs 18.22 crore.

The increase in profit did not translate into a similar increase in operating cash because inventory and receivables expanded. Consolidated inventories stood at Rs 372.21 crore on September 30, 2026, compared with Rs 324.47 crore on March 31, 2026. Consolidated trade receivables rose to Rs 325.97 crore from Rs 297.40 crore over the same dates.

The filing places Gufic’s business activity in a single operating segment, Pharmaceuticals. The consolidated results include Gufic UK Limited, Veira Life FZE, Gufic Ireland Limited and Gufic Prime Private Limited, as listed in the limited review report.

How much did Gufic invest in assets and subsidiaries?

Gufic used Rs 42.81 crore in consolidated investing activities in the half year ended September 30, 2026, compared with Rs 15.29 crore in the corresponding 2025 period. Purchases of property, plant and equipment, including capital advances, totalled Rs 35.95 crore, more than double the Rs 15.63 crore spent in the prior-year half year.

The 2026 investing outflow also included Rs 6.91 crore for the purchase of equity shares in a subsidiary. Interest received on fixed deposits was Rs 54.07 lakh, compared with Rs 52.34 lakh a year earlier, while balances in earmarked accounts used Rs 48.94 lakh. These inflows and outflows together left investing cash use materially higher than the operating cash generated during the half year.

Capital work-in-progress increased to Rs 52.48 crore at September 30, 2026 from Rs 22.14 crore at March 31, 2026. Property, plant and equipment declined to Rs 459.78 crore from Rs 467.07 crore, while intangible assets declined to Rs 58.94 lakh from Rs 61.64 lakh. The filing does not identify projects associated with the capital work-in-progress balance or capital expenditure.

How did Gufic finance its cash requirements?

Gufic generated Rs 40.69 crore from consolidated financing activities in the half year ended September 30, 2026, compared with Rs 15.05 crore in the corresponding 2025 period. Proceeds from current borrowings were Rs 77.06 crore, up from Rs 48.73 crore a year earlier, providing the largest financing inflow.

The company repaid Rs 12.77 crore of non-current borrowings, compared with repayments of Rs 12.67 crore in the earlier half year. It paid Rs 18.08 crore in interest, Rs 3.35 crore on lease liabilities, Rs 94.06 lakh in interest on lease liabilities and Rs 1.00 crore in equity dividends. Processing fees paid were Rs 23.32 lakh.

Consolidated current borrowings were Rs 357.19 crore at September 30, 2026, compared with Rs 280.13 crore at March 31, 2026. Non-current borrowings declined to Rs 92.26 crore from Rs 105.04 crore. Cash and cash equivalents increased by Rs 3.05 crore during the half year and closed at Rs 65.23 crore, compared with an increase of Rs 58.88 crore in the corresponding 2025 period.

Current liabilities rose to Rs 593.55 crore at September 30, 2026 from Rs 517.85 crore at March 31, 2026. Trade payables due to entities other than micro and small enterprises declined to Rs 188.76 crore from Rs 198.55 crore, while borrowings accounted for most of the increase in current liabilities.

Conclusion

Gufic reported higher consolidated revenue and profit for the half year ended September 30, 2026, but its cash conversion changed markedly from the prior-year period. A Rs 78.73 crore working-capital outflow reduced operating cash flow to Rs 5.17 crore, while investing activities used Rs 42.81 crore and financing activities generated Rs 40.69 crore.

The filing does not disclose a working-capital target, a capital-expenditure plan or a timetable for reducing inventory and receivables. The unresolved matters disclosed by the September 30, 2026 balance sheet are the Rs 372.21 crore inventory balance, Rs 325.97 crore of trade receivables and Rs 357.19 crore of current borrowings.