KRM Ayurveda posts Rs 4.53 crore operating cash outflow

KRM Ayurveda Limited reported a Rs 4.53 crore net operating cash outflow for the half year ended September 30, 2026, despite profit after tax of Rs 17.31 crore. A Rs 16.36 crore rise in trade receivables and a Rs 7.57 crore inventory increase absorbed cash, reversing the Rs 2.28 crore operating inflow reported a year earlier.

Why did KRM Ayurveda report an operating cash outflow?

KRM Ayurveda reported an operating cash outflow because working-capital absorption and taxes paid exceeded cash generated by operations in the half year ended September 30, 2026. Profit before tax was Rs 23.11 crore, and operating profit before working-capital changes was Rs 22.62 crore after adjustments including Rs 64.53 lakh of depreciation and amortisation and Rs 1.16 crore of interest income.

Trade receivables absorbed Rs 16.36 crore and inventories absorbed Rs 7.57 crore during the half year. Loans and advances used Rs 62.57 lakh, while other current assets used Rs 1.03 crore; these movements outweighed Rs 1.30 crore added through higher trade payables and Rs 1.13 crore from other current liabilities.

Cash generated from operations consequently turned to a deficit of Rs 53.93 lakh, compared with Rs 4.36 crore generated in the half year ended September 30, 2025. Net direct taxes paid rose to Rs 3.99 crore from Rs 2.08 crore, resulting in the final Rs 4.53 crore operating outflow.

How did KRM Ayurveda's receivables and inventories change?

KRM Ayurveda's trade receivables increased to Rs 39.09 crore at September 30, 2026, from Rs 22.73 crore at March 31, 2026. The Rs 16.36 crore balance-sheet increase corresponds with the receivables movement reported in the cash-flow statement for the six-month period.

Inventories rose to Rs 16.60 crore from Rs 9.03 crore over the same period, creating a Rs 7.57 crore use of cash. In the corresponding 2025 half year, inventory movement added Rs 3.42 lakh to cash, rather than using cash, marking a change in the working-capital contribution to operating cash flow.

Trade payables increased to Rs 4.49 crore from Rs 3.19 crore, while other current liabilities rose to Rs 3.93 crore from Rs 2.80 crore. Short-term provisions also increased to Rs 2.72 crore from Rs 82.26 lakh, although the cash-flow statement does not separately identify provisions within its working-capital adjustments.

KRM Ayurveda discloses one business segment: trading of Ayurvedic medicines and providing Ayurvedic therapies. The filing does not split the Rs 39.09 crore receivables balance or the Rs 16.60 crore inventory balance between those two activities, and it gives no collection or inventory-reduction target.

Did KRM Ayurveda's revenue and profit increase?

KRM Ayurveda's profit after tax increased to Rs 17.31 crore for the half year ended September 30, 2026, from Rs 8.22 crore in the corresponding prior-year period. Revenue from operations rose to Rs 67.04 crore from Rs 48.36 crore, while total income reached Rs 68.22 crore after Rs 1.19 crore of other income.

Total expenses increased to Rs 45.12 crore from Rs 37.65 crore, while finance costs fell to Rs 14.37 lakh from Rs 1.71 crore. Current tax expense rose to Rs 5.88 crore from Rs 2.77 crore, and basic as well as diluted earnings per equity share were Rs 8.14, compared with Rs 5.30 a year earlier.

For the quarter ended September 30, 2026, KRM Ayurveda reported profit after tax of Rs 8.23 crore, below Rs 9.08 crore in the quarter ended June 30, 2026. September-quarter revenue increased to Rs 34.71 crore from Rs 32.32 crore in June, but profit before tax declined to Rs 10.87 crore from Rs 12.23 crore.

The September 2025 quarterly comparative figures were compiled by management from its records and were not subject to limited review, according to the auditor. The September 2026 standalone half-year results were reviewed by the audit committee and approved by the board on November 13, 2026.

What happened to KRM Ayurveda's cash, funding and investments?

KRM Ayurveda's cash and cash equivalents fell by Rs 2.89 crore during the half year to Rs 6.58 crore at September 30, 2026, from Rs 9.47 crore at the beginning of the year. The Rs 4.53 crore operating outflow and Rs 1.62 crore investing outflow were partly offset by a Rs 3.26 crore financing inflow.

Investing activities included Rs 2.93 crore spent on property, plant and equipment and capital work-in-progress, Rs 1.96 crore in long-term loans and advances, and Rs 1.00 crore used in other bank deposits on a net basis. These cash uses were partly offset by Rs 3.55 crore of proceeds from sale of property, plant and equipment and Rs 72.36 lakh of interest received.

Financing cash flow included Rs 3.28 crore of proceeds from short-term borrowings and Rs 1.88 lakh of interest paid. The balance sheet reported short-term borrowings of Rs 3.28 crore at September 30, 2026, whereas no short-term-borrowing balance was reported at March 31, 2026.

Non-current investments rose to Rs 14.64 crore at September 30 from Rs 29 lakh at March 31, while current investments declined to Rs 24.67 crore from Rs 38.01 crore. Property, plant and equipment declined to Rs 25.08 crore from Rs 26.32 crore, alongside the reported asset-sale proceeds of Rs 3.55 crore.

Conclusion

KRM Ayurveda's half-year figures show that higher reported earnings did not convert into operating cash during the period ended September 30, 2026. Revenue increased by Rs 18.68 crore and profit after tax rose by Rs 9.09 crore year on year, but receivables and inventories together absorbed Rs 23.93 crore of cash.

The main unresolved disclosure issue is the absence of a split of receivables and inventory between medicines trading and Ayurvedic therapies, as well as the absence of a working-capital target. Readers can watch subsequent disclosures for changes from the September 30 balances of Rs 39.09 crore in receivables, Rs 16.60 crore in inventories and Rs 3.28 crore in short-term borrowings.