India Pesticides: Inventory Build Cuts Half-Year Cash to Rs 59 Crore

India Pesticides Limited generated Rs 59.10 crore of standalone net operating cash in the half year ended 30 September 2026, down from Rs 93.01 crore a year earlier, after a Rs 100.01 crore inventory increase absorbed cash despite a Rs 52.02 crore reduction in trade receivables.

Why did India Pesticides' operating cash flow fall?

India Pesticides' standalone net cash generated from operating activities fell by Rs 33.91 crore, or about 36%, year on year to Rs 59.10 crore in the half year ended 30 September 2026. Cash generated from operations before direct taxes declined to Rs 68.11 crore from Rs 108.89 crore, while net direct taxes paid fell to Rs 9.01 crore from Rs 15.88 crore.

The decline began before working-capital movements. Operating profit before working-capital changes was Rs 72.10 crore, compared with Rs 103.87 crore in the half year ended 30 September 2025. Standalone profit before tax fell to Rs 57.07 crore from Rs 95.13 crore over the same periods, while depreciation, impairment and amortisation added back Rs 11.58 crore, against Rs 10.36 crore a year earlier.

The cash-flow result is a standalone measure and differs from the consolidated figure. On a consolidated basis, net operating cash was Rs 48.02 crore for the half year ended 30 September 2026, compared with Rs 89.73 crore in the prior-year half year, while the consolidated inventory cash outflow was Rs 104.06 crore.

How much inventory did India Pesticides build up?

India Pesticides increased standalone inventories to Rs 383.70 crore at 30 September 2026 from Rs 283.69 crore at 31 March 2026, a Rs 100.01 crore rise. The same amount appears as a cash outflow in the standalone cash-flow statement, making inventories the largest identified working-capital use during the six-month period.

The inventory increase was substantially larger than the Rs 32.33 crore cash use recorded in the half year ended 30 September 2025. The income statement also recorded a Rs 90.46 crore negative change in inventories of finished goods and work in progress for the current half year, compared with Rs 22.23 crore in the prior-year half year; this expense-line presentation is separate from the cash-flow working-capital adjustment.

Consolidated inventories rose to Rs 391.48 crore at 30 September 2026 from Rs 287.42 crore at 31 March 2026. That Rs 104.06 crore increase exceeded the standalone rise by Rs 4.05 crore and coincided with a consolidated reduction in operating cash of Rs 41.71 crore year on year.

Did lower receivables offset India Pesticides' inventory cash use?

India Pesticides recovered Rs 52.02 crore of cash from trade receivables in the half year ended 30 September 2026, partly offsetting the Rs 100.01 crore inventory outflow. Standalone trade receivables declined to Rs 306.18 crore at 30 September 2026 from Rs 362.05 crore at 31 March 2026, a balance-sheet reduction of Rs 55.87 crore.

The receivables movement changed sharply from the prior-year period, when receivables consumed Rs 18.83 crore of cash. Other current assets also provided Rs 14.49 crore in the current half year, compared with a Rs 21.13 crore cash use a year before, while other financial assets consumed Rs 0.42 crore compared with Rs 0.85 crore previously.

Supplier funding provided another partial offset. Trade payables increased cash by Rs 35.39 crore in the current half year, below the Rs 70.00 crore contribution in the prior-year half year. At 30 September 2026, standalone dues to creditors other than micro and small enterprises were Rs 149.71 crore, up from Rs 118.05 crore at 31 March 2026, while dues to micro and small enterprises were Rs 21.30 crore, up from Rs 17.55 crore.

What changed in India Pesticides' earnings and cash position?

India Pesticides reported standalone revenue from operations of Rs 478.75 crore for the half year ended 30 September 2026, down from Rs 565.03 crore a year earlier. Profit after tax was Rs 42.43 crore, compared with Rs 67.42 crore, and profit before tax was Rs 57.07 crore versus Rs 95.13 crore.

Cash and cash equivalents fell to Rs 21.23 crore at 30 September 2026 from Rs 24.95 crore at the beginning of the period. The company recorded a Rs 26.09 crore net cash outflow from investing activities and a Rs 36.73 crore outflow from financing activities, producing a Rs 3.72 crore decrease in cash and cash equivalents.

Standalone investing cash outflow was lower than the Rs 48.00 crore outflow in the prior-year half year. Purchases of property, plant and equipment, intangible assets and capital work in progress were Rs 15.66 crore, compared with Rs 31.33 crore, while investment in a subsidiary was Rs 12.47 crore, compared with Rs 15.92 crore.

How did India Pesticides' borrowings and financing cash flow change?

India Pesticides reduced standalone short-term borrowings by Rs 22.63 crore on a net basis during the half year ended 30 September 2026, compared with a Rs 23.73 crore net repayment in the prior-year half year. Current borrowings stood at Rs 47.32 crore at 30 September 2026, down from Rs 69.95 crore at 31 March 2026, and non-current borrowings declined to Rs 3.48 crore from Rs 4.05 crore.

Financing cash outflow totalled Rs 36.73 crore, compared with Rs 35.58 crore a year earlier. It included Rs 8.63 crore of dividend payments, Rs 3.72 crore of interest paid on borrowings and Rs 1.06 crore of lease-liability payments; long-term borrowing repayments were Rs 0.73 crore.

India Pesticides reported total standalone current assets of Rs 857.18 crore at 30 September 2026, compared with Rs 835.00 crore at 31 March 2026. The Rs 100.01 crore inventory expansion was partly balanced by lower receivables, lower cash and cash equivalents, and other movements within current assets, while total current liabilities rose to Rs 269.03 crore from Rs 255.56 crore.

Conclusion

India Pesticides' half-year cash generation was reduced by both lower operating profit and a much larger inventory investment. Receivables released Rs 52.02 crore of cash and higher payables provided Rs 35.39 crore, but those inflows did not fully offset the Rs 100.01 crore inventory build, leaving standalone operating cash at Rs 59.10 crore.

The disclosed unresolved matter to watch is the income-tax appeal filed on 24 July 2026. India Pesticides said an additional tax demand, including interest, of Rs 7.10 crore is under appeal and that the financial impact remains unascertainable pending finalisation of the assessment proceedings.