Kothari Sugars generates Rs 83.1097 crore operating cash

Kothari Sugars and Chemicals Limited generated Rs 83.1097 crore of net operating cash in the half year ended September 30, 2026, reversing an Rs 8.516 crore outflow a year earlier. The change was led by Rs 86.5404 crore released from inventories and Rs 11.3656 crore from trade and other receivables, partly offset by a Rs 29.6472 crore reduction in trade payables.

How did Kothari Sugars generate operating cash in September 2026?

Kothari Sugars generated Rs 83.1097 crore of net cash from operating activities in the half year ended September 30, 2026, compared with an Rs 8.516 crore net outflow in the corresponding 2025 half year. Cash generated from operations reached Rs 83.3785 crore before direct taxes, compared with an Rs 8.2382 crore outflow a year earlier. Direct taxes paid, net of refund, were Rs 26.88 lakh, compared with Rs 27.77 lakh.

The main movement was in working capital, which contributed Rs 77.1872 crore in the 2026 half year after using Rs 2.9604 crore in the previous corresponding period. Inventories generated Rs 86.5404 crore, against Rs 31.712 crore in the 2025 half year, while trade and other receivables contributed Rs 11.3656 crore, compared with Rs 6.6728 crore. Other assets contributed Rs 4.718 crore after using Rs 20.5247 crore a year earlier.

Trade payables reduced cash by Rs 29.6472 crore in the half year ended September 30, 2026, compared with a Rs 21.5421 crore reduction in the prior-year period. Other liabilities added Rs 5.0059 crore, while other financial assets used Rs 45.72 lakh and other financial liabilities used Rs 33.83 lakh. These working-capital movements outweighed the cash effect of settling trade-creditor balances.

Kothari Sugars reported Rs 6.1913 crore of operating profit before working-capital changes, compared with an Rs 5.2779 crore loss a year earlier. Profit before tax was Rs 2.3107 crore, versus an Rs 9.1547 crore loss, while depreciation and amortisation were Rs 7.4071 crore and finance costs were Rs 2.1734 crore. The cash-flow statement therefore shows that the largest part of operating cash generation came from working-capital releases rather than pre-working-capital profit.

What changed in Kothari Sugars' working-capital balances?

Kothari Sugars' balance sheet shows inventories falling to Rs 31.6564 crore at September 30, 2026, from Rs 118.1968 crore at March 31, 2026. Trade receivables declined to Rs 2.7514 crore from Rs 14.0039 crore during the same six-month period. The cash-flow statement records an Rs 86.5404 crore inventory contribution and an Rs 11.3656 crore contribution from trade and other receivables after its accounting classifications and adjustments.

Trade payables owed to creditors other than micro and small enterprises declined to Rs 12.8213 crore at September 30, 2026, from Rs 42.4745 crore at March 31, 2026. This movement corresponds with the Rs 29.6472 crore cash reduction reported for trade payables. Other current liabilities rose to Rs 4.6232 crore from Rs 2.161 crore, and short-term provisions increased to Rs 9.2149 crore from Rs 6.4243 crore.

Total current assets declined to Rs 179.1178 crore at September 30, 2026, from Rs 263.2658 crore at March 31, 2026. Total current liabilities fell to Rs 29.1966 crore from Rs 123.579 crore, while total assets decreased to Rs 353.2792 crore from Rs 445.736 crore. Total equity increased to Rs 296.744 crore from Rs 295.6241 crore over the six months.

Which Kothari Sugars segments changed during the half year?

Kothari Sugars increased revenue from operations to Rs 172.3695 crore in the half year ended September 30, 2026, from Rs 134.7338 crore a year earlier. Distillery revenue increased to Rs 87.431 crore from Rs 58.9949 crore, and sugar revenue rose to Rs 80.4483 crore from Rs 70.6829 crore. Power revenue was Rs 15.1427 crore, compared with Rs 14.9283 crore in the prior-year half.

The distillery segment reported the largest segment result before tax and interest at Rs 12.9103 crore, although this was below Rs 16.1823 crore a year earlier. Sugar narrowed its segment loss to Rs 11.0289 crore from Rs 18.208 crore, while power moved to a Rs 5.76 crore profit from an Rs 2.0717 crore loss. Total segment result consequently rose to Rs 7.6414 crore from an Rs 4.0974 crore loss.

After finance costs of Rs 2.1734 crore and unallocable expenses, net of unallocable income, of Rs 3.1573 crore, Kothari Sugars reported profit before tax of Rs 2.3107 crore. In the corresponding 2025 half year, finance costs were Rs 3.1287 crore and unallocable expenses were Rs 1.9286 crore, resulting in an Rs 9.1547 crore loss before tax. Profit after tax was Rs 1.0973 crore in the latest half year, against an Rs 5.9829 crore loss a year earlier.

How did operating cash affect Kothari Sugars' other cash flows?

Kothari Sugars used Rs 1.1107 crore in investing activities and Rs 2.1687 crore in financing activities during the half year ended September 30, 2026. Investing cash flow included Rs 1.8231 crore spent on fixed assets including capital advances and Rs 7.29 lakh used for purchases and sales of investments. The corresponding 2025 half year had generated Rs 12.2895 crore from investing activities, including a Rs 23.2583 crore inflow from investment purchase and sale movements.

Finance costs paid were Rs 2.1688 crore in the 2026 half year, lower than Rs 3.1463 crore a year earlier. The net result of operating, investing and financing activities was a Rs 79.8303 crore increase in cash and cash equivalents, compared with a Rs 62.73 lakh increase in the corresponding 2025 period. The cash-flow statement reported cash and cash equivalents of Rs 10.3935 crore at September 30, 2026.

Kothari Sugars said sugar is a seasonal industry and that a quarter's performance may not represent annual performance. The board approved the unaudited results on November 5, 2026, after review and recommendation by its audit committee. The statutory auditor conducted a limited review and said nothing had come to its attention indicating that the financial statement did not make required disclosures or contained a material misstatement.

Conclusion

Kothari Sugars' Rs 83.1097 crore operating-cash inflow represented a reversal from the Rs 8.516 crore outflow reported a year earlier. The change coincided with lower inventory and receivable balances, while revenue from operations rose to Rs 172.3695 crore and profit before tax turned to Rs 2.3107 crore from an Rs 9.1547 crore loss.

The next disclosure will show whether operating cash remains positive after the Rs 86.5404 crore inventory release and Rs 11.3656 crore receivables contribution recorded in the September 2026 half year. Kothari Sugars specifically notes the seasonal nature of sugar operations, while the next results can also show whether the sugar segment's Rs 11.0289 crore loss, distillery's Rs 12.9103 crore result and power's Rs 5.76 crore profit change further.