India Gelatine operating cash flow drops 45% in half year

India Gelatine & Chemicals Limited generated Rs 11.02 crore of net operating cash in the half year ended September 30, 2026, 45% below Rs 20.09 crore a year earlier, despite profit rising to Rs 15.32 crore. The principal movement was a Rs 6.32 crore increase in trade and other receivables, which absorbed cash.

Why did India Gelatine’s operating cash flow decline?

India Gelatine’s operating cash flow declined because working capital used Rs 4.37 crore in the half year ended September 30, 2026, compared with a Rs 6.35 crore cash release in the corresponding 2025 period. Trade and other receivables accounted for a Rs 6.32 crore cash use, against a Rs 1.53 crore source of cash in the prior-year half year.

Cash generated from operating activities before direct taxes was Rs 15.38 crore, down from Rs 24.14 crore a year earlier. Direct taxes paid, net of refunds, increased to Rs 4.37 crore from Rs 4.05 crore, leaving net cash from operating activities at Rs 11.02 crore rather than Rs 20.09 crore.

Operating profit before working-capital changes rose to Rs 19.75 crore from Rs 17.79 crore. The movement indicates that the lower operating cash result arose after working-capital changes rather than from a reduction in the reported pre-working-capital operating result.

How did profit and working capital move at India Gelatine?

India Gelatine’s profit for the half year increased 13% to Rs 15.32 crore from Rs 13.52 crore, while revenue from operations rose 6% to Rs 90.88 crore from Rs 86.00 crore. Profit before tax also increased to Rs 20.29 crore from Rs 18.04 crore, creating a divergence between reported profit growth and cash conversion during the six-month period.

Trade receivables were Rs 14.84 crore at September 30, 2026, compared with Rs 9.86 crore at March 31, 2026. That Rs 4.98 crore balance-sheet increase differs from the Rs 6.32 crore cash-flow movement because the cash-flow statement combines trade receivables with other receivable movements, while the balance sheet separately reports trade receivables.

Inventory provided Rs 1.07 crore of cash in the latest half year, compared with Rs 1.63 crore in the corresponding period of 2025. Inventories declined to Rs 34.34 crore from Rs 35.41 crore at March 31, while trade and other payables contributed Rs 87.98 lakh of cash, below the Rs 3.18 crore contribution a year earlier.

India Gelatine reports a single Chemical Business segment under Indian Accounting Standard 108, or Ind AS 108. The September 2026 filing therefore does not provide a product, customer or sub-segment split for the Rs 6.32 crore movement in trade and other receivables.

What did India Gelatine spend on investing and financing activities?

India Gelatine used Rs 3.21 crore in investing activities in the half year ended September 30, 2026, compared with Rs 17.82 crore a year earlier. Purchases of property, plant, equipment and intangible assets increased to Rs 9.33 crore from Rs 7.93 crore, while net investment movements used Rs 81 lakh rather than Rs 10.92 crore in the prior-year period.

The investing outflow was partly offset by Rs 5.30 crore released from changes in bank balances other than cash equivalents. India Gelatine received Rs 1.24 crore of interest and dividend income, compared with Rs 1.57 crore in the prior-year half, and received Rs 38.45 lakh from sales of property, plant and equipment, below Rs 7.17 crore a year earlier.

Financing activities used Rs 5.78 crore, compared with Rs 1.53 crore in the corresponding 2025 half year. The latest outflow included Rs 4.20 crore of dividend payments, Rs 1.37 crore of net borrowing repayments, Rs 19.47 lakh of finance costs and Rs 1.96 lakh of lease-liability payments.

Capital work-in-progress rose to Rs 28.59 crore at September 30 from Rs 20.05 crore at March 31, an increase of Rs 8.54 crore. Property, plant and equipment declined to Rs 60.09 crore from Rs 60.91 crore, while intangible assets under development were Rs 25.07 lakh at September 30 after no reported balance at March 31.

What does India Gelatine’s September balance sheet show?

India Gelatine’s cash and cash equivalents increased by Rs 2.03 crore to Rs 3.05 crore at September 30, 2026, from Rs 1.02 crore at the start of the half year. The reported increase followed Rs 11.02 crore of operating inflow, Rs 3.21 crore of investing outflow and Rs 5.78 crore of financing outflow.

Total assets reached Rs 229.23 crore at September 30, compared with Rs 217.16 crore at March 31. Current assets increased to Rs 127.34 crore from Rs 119.96 crore, including current investments of Rs 62.84 crore, while bank balances other than cash equivalents fell to Rs 5.40 crore from Rs 9.50 crore.

Total equity increased to Rs 204.80 crore from Rs 193.56 crore, as other equity rose to Rs 197.71 crore from Rs 186.47 crore. Non-current borrowings were nil at September 30, versus Rs 1.37 crore at March 31, while current borrowings were broadly unchanged at Rs 2.73 crore versus Rs 2.73 crore.

Current liabilities rose to Rs 15.32 crore from Rs 13.47 crore. Dues to creditors other than micro and small enterprises increased to Rs 6.52 crore from Rs 3.41 crore, while other current liabilities declined to Rs 2.50 crore from Rs 5.25 crore.

Conclusion

India Gelatine reported higher half-year revenue and profit for the period ended September 30, 2026, but generated Rs 9.07 crore less operating cash than a year earlier. The change reflected a shift from a Rs 6.35 crore working-capital release to a Rs 4.37 crore use of cash, led by trade and other receivables.

The next results will show whether the Rs 14.84 crore trade-receivables balance changes and whether the Rs 28.59 crore capital-work-in-progress balance progresses into operating assets. The filing also records Rs 9.33 crore of purchases of property, plant, equipment and intangible assets during the half year, making later capital spending relevant to track.