Injeto Polymers’ Revenue Surge Coincided With Cash Outflows

Injeto Polymers reported revenue from operations of Rs 375.53 crore in FY26, the fiscal year ended March 31, 2026, compared with Rs 109.05 crore in FY24. However, operating activities used Rs 48.80 crore of cash in FY26, as inventory and trade receivables together absorbed Rs 94.54 crore.

How fast did Injeto Polymers’ revenue and profit increase?

Injeto Polymers more than tripled revenue from operations between FY24 and FY26, while profit after tax rose from Rs 4.44 crore to Rs 16.01 crore. Revenue increased by Rs 152.43 crore in FY25 and by another Rs 114.05 crore in FY26, taking the two-year increase to Rs 266.48 crore.

The reported cost base also expanded over the period. Purchases of stock in trade increased from Rs 36.84 crore in FY24 to Rs 211.04 crore in FY26, while materials consumed rose from Rs 51.88 crore to Rs 146.33 crore. The change in inventories of finished goods, work in progress and trade goods was negative Rs 47.10 crore in FY26, compared with negative Rs 30.13 crore in FY25 and negative Rs 6.25 crore in FY24.

Profit before tax increased by Rs 18.51 crore over FY24 to FY26, but finance cost rose by Rs 6.05 crore to Rs 12.28 crore. FY26 finance cost was Rs 3.33 crore higher than FY25, alongside a Rs 70.07 crore increase in short-term borrowings during FY26. The reported profit trend therefore occurred alongside rising interest expense and a larger current funding requirement.

Why did operating cash flow remain negative despite higher profit?

Injeto Polymers had negative net operating cash flow in each of the three reported fiscal years despite positive profit before tax. Net cash used in operating activities was Rs 12.95 crore in FY24, Rs 16.90 crore in FY25 and Rs 48.80 crore in FY26, even as profit before tax increased from Rs 4.94 crore to Rs 23.45 crore.

The difference arose from working capital, which is the cash tied up in current operating assets and current operating liabilities. During FY26, inventory increased by Rs 66.08 crore and trade receivables increased by Rs 28.46 crore, producing a combined cash outflow of Rs 94.54 crore. Higher trade payables provided Rs 13.15 crore and other current liabilities provided Rs 2.31 crore, but neither offset the expansion in inventory and receivables.

Operating profit before working-capital changes reached Rs 37.96 crore in FY26, up from Rs 22.63 crore in FY25 and Rs 12.99 crore in FY24. After working-capital movements, cash used in operations was Rs 46.85 crore in FY26; income-tax payments of Rs 1.95 crore took the net operating outflow to Rs 48.80 crore. Sustained improvement in operating cash generation would require the cash tied up in current assets to moderate, or increases in current liabilities and collections to offset it.

What does the balance sheet show about the funding requirement?

Injeto Polymers’ balance sheet shows that current assets increased by Rs 141.28 crore between March 31, 2024 and March 31, 2026, while short-term borrowings increased by Rs 104.65 crore. Total current assets rose from Rs 85.88 crore in FY24 to Rs 227.16 crore in FY26, led by inventory, which rose by Rs 100.72 crore to Rs 140.22 crore.

Trade receivables increased from Rs 31.43 crore at March 31, 2024 to Rs 64.26 crore at March 31, 2026. Inventory rose from Rs 39.50 crore to Rs 140.22 crore over the same period. These two current-asset categories accounted for Rs 133.55 crore of the Rs 141.28 crore growth in current assets over the two years.

Short-term borrowings increased from Rs 52.30 crore in FY24 to Rs 86.88 crore in FY25 and Rs 156.95 crore in FY26. The cash-flow statement records increases in short-term borrowings of Rs 19.34 crore in FY24, Rs 34.58 crore in FY25 and Rs 70.07 crore in FY26. In contrast, long-term borrowings declined from Rs 31.05 crore in FY24 to Rs 8.24 crore in FY26, changing the reported borrowing mix toward current liabilities.

How did financing and cash balances change in FY26?

Injeto Polymers’ financing activities generated Rs 51.79 crore of cash in FY26, primarily reflecting the Rs 70.07 crore increase in short-term borrowings. This financing inflow exceeded the combined Rs 48.80 crore operating outflow and Rs 3.07 crore investing outflow, but cash and cash equivalents still decreased by Rs 8.40 lakh to Rs 8.31 lakh at March 31, 2026.

The balance sheet reported cash and bank balances of Rs 6.56 crore at March 31, 2026, compared with Rs 6.83 crore a year earlier. That category is broader than the Rs 8.31 lakh cash-and-cash-equivalents balance in the cash-flow statement, which separately records a Rs 17.77 lakh change in bank balances other than cash equivalents during FY26. Property, plant and equipment purchases were Rs 4.22 crore in FY26, below Rs 10.02 crore in FY25, indicating that the disclosed FY26 cash requirement was chiefly associated with working-capital movements rather than capital expenditure.

Conclusion

Injeto Polymers’ revenue and reported profit increased substantially between FY24 and FY26, but operating cash flow moved in the opposite direction. Revenue rose by Rs 266.48 crore and profit after tax increased by Rs 11.57 crore, while inventory and receivables rose by Rs 100.72 crore and Rs 32.83 crore, respectively, and short-term borrowings increased by Rs 104.65 crore.

The next financial statements will show whether operating cash generation improves as the FY26 inventory and receivables build-up is collected or reduced. The supplied FY26 restated statements disclose no future financing plan, while they record Rs 156.95 crore of short-term borrowings and negative operating cash flow for all three reported years.