Harshdeep Hortico cash falls as inventory and receivables rise

Harshdeep Hortico Limited ended the half year to September 30, 2026 with Rs 54.69 lakh of cash and cash equivalents, down Rs 41.97 lakh from March 31, after Rs 2.43 crore of property, plant and equipment purchases exceeded its Rs 2.34 crore operating cash inflow.

Why did Harshdeep Hortico's cash balance fall?

Harshdeep Hortico's cash balance fell because operating cash generation did not cover investing outflows, while financing activities also used cash in the half year ended September 30, 2026. Net cash from operating activities was Rs 2.34 crore, compared with Rs 2.51 crore used in investing activities and Rs 25.07 lakh used in financing activities, producing a Rs 41.97 lakh fall in cash.

The company reported Rs 2.84 crore of cash generated from operations before income tax, after working-capital movements. Income tax payments of Rs 50.19 lakh reduced this to Rs 2.34 crore of operating cash flow, while property, plant and equipment purchases, including capital work in progress, accounted for Rs 2.43 crore of the investing outflow.

Cash and cash equivalents comprised Rs 43.33 lakh of cash in hand and Rs 11.36 lakh of bank balances at September 30, 2026. The Rs 54.69 lakh closing balance was below the Rs 96.66 lakh opening balance at March 31, 2026; the cash-flow statement was prepared under the indirect method prescribed by Accounting Standard 3.

How much did inventory and receivables rise at Harshdeep Hortico?

Harshdeep Hortico's inventory increased by Rs 4.26 crore to Rs 42.47 crore at September 30, 2026, while trade receivables rose by Rs 82.20 lakh to Rs 20.77 crore from March 31, 2026. At the prior year-end, inventory was Rs 38.21 crore and receivables were Rs 19.94 crore.

The cash-flow statement records Rs 4.26 crore used by the increase in inventory, which matches the balance-sheet movement between March and September. It separately records Rs 1.07 crore used by higher trade receivables, compared with the Rs 82.20 lakh increase shown on the balance sheet; Harshdeep Hortico does not explain this difference in the filing.

Other current assets increased to Rs 2.94 crore from Rs 2.79 crore, and short-term loans and advances rose to Rs 7.50 lakh from Rs 6.62 lakh. In the cash-flow statement, increases in other current assets and loans and advances used Rs 39.49 lakh and Rs 88,000 respectively during the September half year.

Did Harshdeep Hortico remain profitable in the September half year?

Harshdeep Hortico remained profitable, reporting Rs 7.30 crore of profit for the half year ended September 30, 2026, up from Rs 5.70 crore in the half year ended September 30, 2025. Revenue from operations increased to Rs 41.21 crore from Rs 32.64 crore in the comparable prior-year half.

Profit before tax rose to Rs 8.75 crore from Rs 6.88 crore, while total tax expense increased to Rs 1.45 crore from Rs 1.18 crore. The September 2026 tax charge included current tax of Rs 1.49 crore and a deferred-tax credit of Rs 4.12 lakh.

Costs also increased with revenue. Materials consumed rose to Rs 29.03 crore from Rs 25.16 crore, while other expenses were Rs 3.43 crore in both the September 2026 and September 2025 halves. The income statement reported a Rs 4.95 crore reduction in inventories of finished goods, work in progress and stock-in-trade, compared with a Rs 7.13 crore reduction a year earlier.

Harshdeep Hortico reported a single business segment, manufacturing of flower pots. Basic and diluted earnings per share were each Rs 4.53 for the September 2026 half year, compared with Rs 3.54 in the prior-year half, and the company said half-year earnings per share were not annualised.

What did Harshdeep Hortico spend on fixed assets and funding?

Harshdeep Hortico spent Rs 2.43 crore on property, plant and equipment, including capital work in progress, during the September 2026 half year. This amount exceeded the Rs 2.34 crore operating cash inflow by Rs 9.19 lakh, before the company also recorded Rs 7.99 lakh used by an increase in long-term loans and advances.

Property, plant and equipment stood at Rs 17.86 crore at September 30, 2026, compared with Rs 17.38 crore at March 31, 2026. The half-year income statement included Rs 1.89 crore of depreciation and amortisation, which the cash-flow statement added back as a non-cash item in deriving operating cash flow.

Financing activities used Rs 25.07 lakh, consisting of a Rs 13.67 lakh decrease in secured loans and Rs 11.40 lakh of interest paid. On the balance sheet, long-term borrowings increased to Rs 2.10 crore from Rs 1.93 crore, while short-term borrowings declined to Rs 1.16 crore from Rs 1.92 crore.

How did Harshdeep Hortico's current liabilities change?

Harshdeep Hortico's trade payables increased by Rs 2.50 crore to Rs 8.94 crore at September 30, 2026 from Rs 6.43 crore at March 31, 2026. The cash-flow statement likewise records Rs 2.50 crore of cash generated by the increase in trade payables during the half year.

Dues to micro and small enterprises increased to Rs 3.66 crore from Rs 2.99 crore, while amounts payable to other enterprises rose to Rs 5.28 crore from Rs 3.45 crore. Other current liabilities declined to Rs 3.36 crore from Rs 7.85 crore, and short-term provisions increased to Rs 3.66 crore from Rs 2.54 crore.

The cash-flow statement separately reports Rs 5.23 crore used by changes in current liabilities and provisions, excluding its trade-payables line. Together with the Rs 4.26 crore inventory movement, the Rs 1.07 crore receivables movement and the reported increases in other current assets and advances, these changes reduced adjusted cash before working capital of Rs 11.30 crore to Rs 2.84 crore generated from operations before tax.

Conclusion

Harshdeep Hortico reported higher revenue of Rs 41.21 crore and profit of Rs 7.30 crore for the September 2026 half year, but its cash position declined as working capital and investment absorbed funds. Inventory increased by Rs 4.26 crore, while fixed-asset purchases of Rs 2.43 crore exceeded the Rs 2.34 crore operating cash inflow.

The next disclosed matter to watch is the transition in the secretarial-auditor role. Dilip Swarnkar & Associates resigned with effect from November 12, 2026, citing other professional commitments and internal resource allocation, and said it would provide reasonable cooperation in the transition to a newly appointed secretarial auditor.