Khazanchi Jewellers Limited reports Rs 3.6074 crore operating cash

Khazanchi Jewellers reported net operating cash flow of Rs 3.6074 crore for the half year ended September 30, 2026, after a Rs 104.7115 crore inventory increase absorbed cash. The figure fell from Rs 11.6386 crore a year earlier despite profit before tax rising to Rs 75.967 crore and trade payables increasing by Rs 37.7611 crore.

Why did Khazanchi Jewellers' operating cash flow fall to Rs 3.6074 crore?

Khazanchi Jewellers' operating cash flow fell because the Rs 104.7115 crore inventory increase exceeded the Rs 80.6226 crore operating profit before working-capital changes in the half year ended September 30, 2026. Cash generated from operating activities before direct taxes was Rs 17.8821 crore, compared with Rs 16.2886 crore in the corresponding 2025 half year.

Net direct taxes paid were Rs 14.2747 crore in the 2026 half year, leaving net cash from operating activities of Rs 3.6074 crore. In the prior-year half, net direct taxes paid were Rs 4.65 crore and operating cash flow was Rs 11.6386 crore, so the higher tax payment also contributed to the year-on-year decline.

Profit before tax rose to Rs 75.967 crore from Rs 51.7377 crore in the half year ended September 30, 2025. After adjustments including Rs 3.5687 crore of interest expense, Rs 89.68 lakh of depreciation and amortisation, and Rs 10.56 lakh of gratuity provision, operating profit before working-capital changes increased from Rs 53.4172 crore to Rs 80.6226 crore.

How much did Khazanchi Jewellers' inventory increase during the half year?

Khazanchi Jewellers' inventory increased by Rs 104.7115 crore during the half year, reaching Rs 512.488 crore at September 30, 2026 from Rs 407.7765 crore at March 31, 2026. This was the largest working-capital movement in the cash-flow statement and was Rs 55.5179 crore greater than the Rs 49.1936 crore increase reported in the prior-year half.

The income statement records a negative Rs 104.7115 crore under changes in inventories of stock in trade and finished goods for the 2026 half year. Purchases of stock-in-trade were Rs 1,210.2586 crore, up from Rs 944.9663 crore in the half year ended September 30, 2025, while revenue from operations increased to Rs 1,191.2931 crore from Rs 952.3401 crore.

Inventory represented Rs 512.488 crore of Khazanchi Jewellers' Rs 540.6273 crore current assets at September 30, 2026. The filing does not provide a product-level breakdown of the inventory or state the reason for the build-up, and it says reportable operating segments under Indian Accounting Standard 108 are not applicable.

What working-capital movements offset Khazanchi Jewellers' inventory outflow?

Khazanchi Jewellers partly offset the inventory cash use through a Rs 37.7611 crore increase in trade payables, a Rs 3.7353 crore reduction in trade receivables, and a Rs 1.7011 crore reduction in other current financial assets. Together, those three movements provided Rs 43.1975 crore of cash, below the Rs 104.7115 crore inventory outflow.

Trade payables rose to Rs 65.1149 crore at September 30, 2026 from Rs 27.3537 crore at March 31, 2026. Trade receivables declined to Rs 18.4608 crore from Rs 22.1961 crore, while other current financial assets fell to Rs 2.7418 crore from Rs 4.704 crore.

Other working-capital changes reduced the offset. Other current provisions fell by Rs 1.3761 crore, other current liabilities declined by Rs 22.26 lakh, and other financial liabilities increased by Rs 2.4 lakh. Other current assets declined by Rs 34.81 lakh, compared with a Rs 13.0614 crore decline in the prior-year half.

How did Khazanchi Jewellers' profit, borrowing and cash balances change?

Khazanchi Jewellers reported profit after tax of Rs 56.915 crore for the half year ended September 30, 2026, up from Rs 38.6958 crore a year earlier, while operating cash flow was Rs 3.6074 crore. Earnings per share rose to Rs 22.97 from Rs 15.64, and the difference between profit and operating cash reflected the disclosed working-capital movements.

Current borrowings stood at Rs 114.2684 crore at September 30, 2026, compared with Rs 110.4 crore at March 31, 2026. The cash-flow statement records Rs 3.8684 crore of proceeds from short-term borrowings, Rs 3.5687 crore of interest on borrowings and Rs 1.2373 crore of dividend paid, resulting in financing cash outflow of Rs 93.76 lakh.

Cash and cash equivalents increased by Rs 2.1381 crore during the half year to Rs 5.651 crore, from Rs 3.5128 crore at the beginning of the period. The September 2026 balance included Rs 59.11 lakh of cash on hand and Rs 5.0598 crore in bank current accounts, while the corresponding 2025 half-year end balance was Rs 8.293 crore.

What do Khazanchi Jewellers' half-year results show beyond cash flow?

Khazanchi Jewellers' total income increased to Rs 1,191.7562 crore in the half year ended September 30, 2026 from Rs 952.758 crore a year earlier. Total expenses rose to Rs 1,115.7892 crore from Rs 901.0203 crore, resulting in the Rs 75.967 crore pre-tax profit.

Current tax expense increased to Rs 18.9762 crore from Rs 12.9934 crore, while total tax expense was Rs 19.052 crore compared with Rs 13.0419 crore. Total comprehensive income was Rs 56.845 crore, up from Rs 38.7076 crore in the prior-year half.

The Board reviewed and approved the unaudited results on November 14, 2026. PSDY & Associates issued a limited review report dated November 14, 2026 and stated that nothing had come to its attention to indicate that the results did not meet applicable accounting standards and disclosure requirements.

Conclusion

Khazanchi Jewellers generated positive operating cash in the September 2026 half year, but its Rs 3.6074 crore outcome was below the Rs 11.6386 crore reported a year earlier. Higher profit, receivable collections and increased trade payables did not fully offset the Rs 104.7115 crore inventory increase and Rs 14.2747 crore of net direct taxes paid.

The next results will show whether inventory of Rs 512.488 crore changes relative to trade payables of Rs 65.1149 crore, receivables of Rs 18.4608 crore and current borrowings of Rs 114.2684 crore at September 30, 2026. The filing discloses no inventory target, product mix plan or scheduled event beyond the financial results approved on November 14, 2026.