Jayant Agro-Organics operating cash outflow widens to Rs 259 crore

Jayant Agro-Organics Limited reported net cash used in operating activities of Rs 259.32 crore for the half year ended September 30, 2026, compared with Rs 46.35 crore a year earlier, as inventory movements absorbed Rs 269.99 crore and trade receivables absorbed Rs 41.04 crore. Jayant Agro-Organics reported profit before tax of Rs 57.26 crore in the same period.

Why did Jayant Agro-Organics use Rs 259.32 crore in operating cash?

Jayant Agro-Organics used Rs 259.32 crore in operating cash because working-capital movements outweighed its operating profit in the half year ended September 30, 2026. Profit before tax increased to Rs 57.26 crore from Rs 34.58 crore in the corresponding 2025 half year, while operating profit before working-capital changes rose to Rs 85.29 crore from Rs 56.33 crore.

Cash used in operations reached Rs 249.32 crore, compared with Rs 35.63 crore in the prior-year period. Taxes paid were Rs 10.01 crore, down from Rs 10.72 crore, taking the net operating cash outflow to Rs 259.32 crore. The outflow therefore widened by Rs 212.97 crore year on year despite the Rs 22.68 crore increase in profit before tax.

Brackets denote cash outflows in the cash-flow statement, while the Rs 117.31 crore trade-receivables figure for the 2025 half year represented a cash release. Finance costs included in the operating-profit reconciliation rose to Rs 14.91 crore from Rs 9.87 crore, and depreciation and amortisation rose to Rs 11.98 crore from Rs 10.66 crore.

What drove Jayant Agro-Organics' working-capital outflow?

Inventory was the largest driver of Jayant Agro-Organics' operating cash requirement, using Rs 269.99 crore during the half year ended September 30, 2026, against Rs 178.40 crore in the prior corresponding period. The latest inventory cash use was Rs 184.70 crore more than the Rs 85.29 crore operating profit before working-capital changes.

The consolidated balance sheet recorded inventories of Rs 540.29 crore on September 30, 2026, up from Rs 266.34 crore on March 31, 2026. That was a Rs 273.95 crore increase in the reported inventory balance. The balance-sheet increase differs from the Rs 269.99 crore inventory movement in the cash-flow statement, and the filing does not provide a reconciliation between those amounts.

Trade receivables also consumed Rs 41.04 crore of cash, compared with a Rs 117.31 crore cash release in the half year ended September 30, 2025. Receivables stood at Rs 340.01 crore at September 30, 2026, versus Rs 300.16 crore at March 31, 2026. Other current assets used Rs 11.81 crore of cash, while a Rs 21.83 crore decline in trade payables added to the operating cash requirement.

How did Jayant Agro-Organics finance its cash requirements?

Jayant Agro-Organics reported Rs 324.28 crore of net proceeds from borrowings for the half year ended September 30, 2026. Net cash from financing activities was Rs 297.27 crore, compared with Rs 60.15 crore a year earlier, after Rs 10.50 crore of dividends, Rs 2.00 crore of lease-obligation payments and Rs 14.51 crore of finance-cost payments.

Current borrowings were Rs 447.30 crore at September 30, 2026, compared with Rs 121.59 crore at March 31, 2026. Non-current borrowings fell to Rs 3.60 crore from Rs 5.03 crore over the same dates. The cash-flow statement reports borrowing proceeds on a net basis and does not identify the gross drawdowns and repayments underlying the movement.

Investing activities used Rs 43.03 crore during the 2026 half year, against Rs 12.42 crore in the earlier period. This included Rs 17.72 crore spent on property, plant and equipment and Rs 25.37 crore paid as consideration for a controlling stake in a joint venture. Capital work-in-progress was Rs 16.37 crore at September 30, 2026, up from Rs 10.04 crore at March 31, 2026.

Cash and cash equivalents ended at Rs 8.35 crore, down from the Rs 11.95 crore opening balance. The cash-flow statement reported a Rs 5.08 crore net decrease in cash equivalents and separately recorded Rs 1.48 crore added on obtaining the controlling stake in the joint venture.

What do Jayant Agro-Organics' earnings and segments show?

Jayant Agro-Organics reported higher earnings alongside the operating cash outflow. Revenue from operations rose to Rs 1,583.95 crore in the half year ended September 30, 2026 from Rs 1,171.77 crore a year earlier, while consolidated profit before tax increased to Rs 57.26 crore from Rs 34.58 crore. Net profit after tax and share of profit of the joint venture was Rs 42.25 crore, compared with Rs 25.57 crore.

Castor Oil was the largest revenue segment at Rs 855.74 crore, followed by Castor Oil Derivatives at Rs 725.13 crore and Power Generation at Rs 3.08 crore. In the corresponding 2025 half year, Castor Oil revenue was Rs 586.59 crore and Castor Oil Derivatives revenue was Rs 583.44 crore, meaning Castor Oil recorded the larger absolute revenue increase in the latest period.

Castor Oil Derivatives generated the highest segment result at Rs 55.88 crore, ahead of Castor Oil at Rs 14.32 crore and Power Generation at Rs 1.81 crore. Total segment results increased to Rs 72.02 crore from Rs 44.15 crore, before unallocable dividend and interest income and finance costs of Rs 14.91 crore.

The filing shows that accounting earnings and operating cash moved differently during the half year. The Rs 269.99 crore cash use for inventory and Rs 41.04 crore use for receivables exceeded the Rs 57.26 crore profit-before-tax figure, while the reported revenue increase was Rs 412.18 crore year on year.

Conclusion

Jayant Agro-Organics' half-year results showed higher revenue and profit, but a larger amount of cash tied up in operating balances. The Rs 269.99 crore inventory movement, Rs 41.04 crore receivables movement and Rs 21.83 crore reduction in trade payables contributed to a Rs 259.32 crore operating cash outflow, compared with Rs 46.35 crore a year earlier.

The next reported results will show whether inventories of Rs 540.29 crore and receivables of Rs 340.01 crore convert into cash and how current borrowings of Rs 447.30 crore develop. The filing also records Rs 16.37 crore of capital work-in-progress and a Rs 25.37 crore payment for a controlling stake in a joint venture, both of which may remain relevant to future cash movements.