Insecticides (India) receivables rise Rs 232 crore in H1

Insecticides (India) Limited recorded a Rs 232.13 crore increase in consolidated trade receivables in the half year ended September 30, 2026, helping keep operating cash flow negative at Rs 73.39 crore despite consolidated profit after tax of Rs 100.04 crore.

Why did Insecticides (India) operating cash flow remain negative?

Insecticides (India) used Rs 73.39 crore in operating activities because working-capital movements exceeded its Rs 169.27 crore operating profit before working-capital changes in the half year ended September 30, 2026. The largest use was the Rs 234.56 crore increase in trade receivables in the consolidated cash-flow statement, followed by a Rs 33.61 crore inventory increase and an Rs 83.58 crore reduction in other current liabilities.

A Rs 92.64 crore increase in trade payables and a Rs 23.78 crore increase in other financial liabilities partly offset those uses. Cash generated from operations was negative Rs 41.64 crore, and Rs 31.75 crore of income-tax payments brought net operating cash outflow to Rs 73.39 crore. This was less negative than the Rs 121.10 crore outflow reported for the half year ended September 30, 2025.

How much did Insecticides (India) receivables increase?

Insecticides (India) reported consolidated trade receivables of Rs 719.10 crore at September 30, 2026, compared with Rs 486.97 crore at March 31, 2026. The Rs 232.13 crore balance-sheet increase was close to the Rs 234.56 crore cash-flow movement, although the filing presents these figures in separate financial statements.

Receivables were the largest stated operating-cash use for the six-month period. Insecticides (India) also reported a Rs 5.45 crore provision for impairment of trade receivables, compared with Rs 2.03 crore in the prior-year half. The supplied announcement provides no receivables ageing schedule, collection target or explanation for the increase.

Current assets rose to Rs 1,631.62 crore at September 30 from Rs 1,447.78 crore at March 31. Inventories increased by Rs 33.61 crore to Rs 813.82 crore, while cash and cash equivalents fell by Rs 51.29 crore to Rs 35.94 crore. The receivables increase exceeded the Rs 183.84 crore net rise in current assets.

Did Insecticides (India) remain profitable in first half 2026?

Insecticides (India) remained profitable, reporting consolidated profit after tax of Rs 100.04 crore for the half year ended September 30, 2026. Profit after tax declined by Rs 17.17 crore from Rs 117.21 crore in the half year ended September 30, 2025, as revenue from operations declined by Rs 31.00 crore to Rs 1,297.84 crore.

Profit before tax was Rs 134.18 crore, compared with Rs 156.31 crore a year earlier. Finance costs increased to Rs 11.28 crore from Rs 7.88 crore, employee-benefit expense rose to Rs 101.83 crore from Rs 89.30 crore, and purchases of stock-in-trade increased to Rs 183.56 crore from Rs 102.95 crore.

The group disclosed one business segment, agro-chemicals, comprising technical and formulation activities. Second-quarter profit after tax was Rs 56.17 crore, higher than Rs 43.87 crore in the June 2026 quarter but below Rs 59.11 crore in the September 2025 quarter. The first-half figures show that accounting profit did not convert into positive operating cash flow during the period.

How was Insecticides (India) cash shortfall financed?

Insecticides (India) generated Rs 78.77 crore from financing activities in the half year ended September 30, 2026, mainly through Rs 94.73 crore of proceeds from current borrowings. The financing inflow exceeded the Rs 73.39 crore operating cash outflow, but it did not cover the Rs 56.67 crore used in investing activities.

Investing cash outflow included Rs 55.76 crore spent on property, plant and equipment, intangible assets, capital work-in-progress and assets under development. Insecticides (India) also gave Rs 6.75 crore in inter-corporate loans and received Rs 4.91 crore from sale of investments, while proceeds from property, plant and equipment sales were Rs 0.71 crore.

Current borrowings rose to Rs 220.96 crore at September 30 from Rs 125.50 crore at March 31, an increase of Rs 95.46 crore. Cash and cash equivalents fell from Rs 87.23 crore at the start of the financial year to Rs 35.94 crore. Capital work-in-progress increased by Rs 40.66 crore to Rs 159.22 crore over the same period.

What other balance-sheet changes matter for Insecticides (India)?

Insecticides (India) reported total assets of Rs 2,228.95 crore at September 30, 2026, compared with Rs 2,000.18 crore at March 31. Total equity increased by Rs 99.80 crore to Rs 1,320.22 crore, alongside the Rs 100.04 crore consolidated first-half profit after tax and other comprehensive-income movements.

Total current liabilities rose to Rs 876.89 crore from Rs 740.40 crore. Trade payables due to creditors other than micro and small enterprises increased by Rs 99.03 crore to Rs 468.46 crore, while amounts due to micro and small enterprises declined by Rs 5.69 crore to Rs 64.14 crore. Other current liabilities fell by Rs 83.58 crore to Rs 39.39 crore.

The consolidated results include IIL Biologicals Limited, Kaeros Research Limited and a jointly controlled entity. The joint auditors issued their limited-review conclusion on November 5, 2026, noting that a review provides less assurance than an audit. The board approved the results on November 5, 2026, and declared an interim dividend of Rs 5 per equity share.

Conclusion

Insecticides (India) combined Rs 100.04 crore of first-half consolidated profit with a Rs 73.39 crore operating cash outflow, as the Rs 234.56 crore receivables movement absorbed more cash than the Rs 169.27 crore operating profit before working-capital changes. Operating cash flow improved by Rs 47.71 crore from the prior-year half, aided by a smaller receivables outflow and a rise in trade payables.

The next disclosed matters to watch are whether Rs 719.10 crore of trade receivables converts into cash, how Rs 220.96 crore of current borrowings changes, and progress on Rs 159.22 crore of capital work-in-progress. The filing gives no collection or capital-expenditure target, while the Rs 5 interim dividend declared on November 5, 2026, remains a disclosed future cash consideration.