Jagan Lamps reports Rs 81 lakh H1 operating cash outflow

Jagan Lamps reported an operating cash outflow of Rs 81.40 lakh for the half year ended September 30, 2026, despite profit before tax of Rs 2.67 crore, as trade receivables rose Rs 4.70 crore to Rs 12.30 crore. The outflow was marginally lower than Rs 87.52 lakh in the corresponding 2025 half year.

Why did Jagan Lamps report negative operating cash flow?

Jagan Lamps reported negative net cash flow from operating activities of Rs 81.40 lakh for the half year ended September 30, 2026 because working-capital movements and direct taxes absorbed more cash than operating profit and non-cash adjustments generated. The company reported profit before tax of Rs 2.67 crore for the period, compared with Rs 1.18 crore a year earlier.

The net change in current assets and current liabilities was a cash outflow of Rs 3.94 crore, against an outflow of Rs 2.81 crore in the half year ended September 30, 2025. Jagan Lamps also paid direct taxes of Rs 49.39 lakh, up from Rs 35.58 lakh. Depreciation and amortisation of Rs 67.03 lakh and interest expense of Rs 28.51 lakh were included in the cash-flow reconciliation, but did not offset the working-capital cash use.

The company’s operating cash deficit narrowed by Rs 6.12 lakh from the prior-year period even as the working-capital outflow increased by Rs 1.13 crore. That outcome reflects higher profit before tax in the latest half year, while the cash-flow statement separately records the timing of collections, payments and taxes rather than only reported earnings.

How much did Jagan Lamps’ trade receivables increase?

Jagan Lamps’ trade receivables increased Rs 4.70 crore during the half year ended September 30, 2026, reaching Rs 12.30 crore from Rs 7.60 crore at March 31, 2026. The cash-flow statement records that increase as an operating cash outflow because the receivables represent revenue recognised but not collected by the reporting date.

The latest receivables build-up exceeded the Rs 2.63 crore increase recorded in the corresponding 2025 half year by Rs 2.07 crore. It was also the largest identified individual working-capital outflow in the September 2026 half-year cash-flow statement, exceeding the Rs 37.97 lakh reduction in trade payables and the Rs 6.69 lakh rise in inventories.

Inventories stood at Rs 25.71 crore on September 30, 2026, compared with Rs 25.64 crore on March 31, 2026. Other current assets fell by Rs 85.42 lakh during the half year, providing an offsetting source of cash, whereas they had increased by Rs 1.56 crore in the corresponding 2025 period. The trade-payables movement also changed direction: payables fell by Rs 37.97 lakh in the latest period after rising by Rs 1.06 crore a year earlier.

Did Jagan Lamps increase short-term borrowings?

Jagan Lamps increased short-term borrowings by Rs 1.59 crore on a net basis during the half year ended September 30, 2026, taking current borrowings to Rs 5.67 crore from Rs 4.08 crore at March 31, 2026. The financing cash inflow helped fund the operating cash outflow and the Rs 2.52 lakh net investing outflow.

Net cash from financing activities was Rs 1.30 crore, compared with Rs 70.86 lakh in the corresponding 2025 half year. The financing section includes Rs 1.59 crore of net proceeds from short-term borrowings and Rs 28.51 lakh of interest paid, against interest paid of Rs 41.05 lakh in the prior-year period.

Jagan Lamps spent Rs 4.86 lakh on property, plant, equipment and intangible assets during the latest half year. A Rs 2.34 lakh decrease in other bank balances partly offset that spending, leaving investing cash flow negative by Rs 2.52 lakh, compared with a Rs 14.82 lakh outflow in the half year ended September 30, 2025.

Net cash increased by Rs 46.35 lakh in the latest half year, reversing a Rs 31.49 lakh decline a year earlier. Closing cash and cash equivalents were Rs 49.84 lakh on September 30, 2026, compared with Rs 3.49 lakh at the start of the period. Of the closing cash-equivalent balance, Rs 49.74 lakh was held in an Exchange Earners’ Foreign Currency account.

What were Jagan Lamps’ half-year revenue and profit figures?

Jagan Lamps reported revenue from operations of Rs 27.19 crore for the half year ended September 30, 2026, up from Rs 19.88 crore in the corresponding 2025 period. Total income rose to Rs 27.48 crore from Rs 20.17 crore, while profit after tax increased to Rs 1.94 crore from Rs 87.24 lakh.

Total expenses rose to Rs 24.81 crore from Rs 18.99 crore. Material costs increased to Rs 18.63 crore from Rs 15.14 crore, while employee-benefit expense rose to Rs 2.84 crore from Rs 2.03 crore. Finance costs declined to Rs 28.51 lakh from Rs 41.05 lakh, despite the increase in current borrowings by the September 2026 balance-sheet date.

For the quarter ended September 30, 2026, revenue from operations was Rs 14.30 crore, compared with Rs 12.89 crore in the preceding June 2026 quarter and Rs 10.90 crore in the September 2025 quarter. Quarterly profit after tax was Rs 92.76 lakh, below Rs 1.06 crore in the June 2026 quarter but above Rs 50.14 lakh a year earlier.

Jagan Lamps disclosed that its business falls within one primary business segment and that it has no reportable segments. The filing therefore does not provide a product-level or business-line split for the Rs 27.19 crore half-year revenue or the movement in receivables.

How did Jagan Lamps’ balance sheet change by September 2026?

Jagan Lamps’ total assets rose to Rs 54.48 crore on September 30, 2026 from Rs 50.86 crore on March 31, 2026, led by current assets increasing to Rs 39.29 crore from Rs 35.05 crore. The Rs 4.70 crore receivables increase accounted for more than the overall rise in current assets, while other current assets declined to Rs 60.43 lakh from Rs 1.46 crore.

Total current liabilities increased to Rs 15.43 crore from Rs 13.78 crore over the same period. Current borrowings rose by Rs 1.59 crore, while trade payables declined to Rs 8.06 crore from Rs 8.44 crore. Other financial liabilities increased to Rs 1.41 crore from Rs 1.11 crore.

Equity rose to Rs 37.19 crore at September 30, 2026 from Rs 35.21 crore at March 31, 2026. Equity share capital remained Rs 7.30 crore, while other equity increased to Rs 29.90 crore from Rs 27.91 crore, consistent with the Rs 1.94 crore half-year profit after tax reported in the results.

Conclusion

Jagan Lamps’ September 2026 half-year filing shows that higher reported revenue and profit did not produce positive operating cash flow. Revenue rose to Rs 27.19 crore and profit before tax reached Rs 2.67 crore, but the Rs 4.70 crore increase in receivables, lower trade payables and Rs 49.39 lakh of direct taxes paid left operating cash flow at negative Rs 81.40 lakh.

What to watch next is the movement in the Rs 12.30 crore receivables balance and the resulting operating cash flow in subsequent financial results. The filing also leaves current borrowings at Rs 5.67 crore after Rs 1.59 crore of net short-term borrowing proceeds during the half year, making changes in borrowing and cash balances relevant to the working-capital position.