Krypton Industries operating cash flow drops 59% despite profit

Krypton Industries Limited generated Rs 1.94 crore of net operating cash in the half year ended September 30, 2026, down 59% from Rs 4.77 crore a year earlier, although profit before tax increased to Rs 2.20 crore from Rs 1.55 crore. Financing outflows of Rs 4.12 crore reduced closing cash to Rs 26.21 lakh.

Why did Krypton Industries’ operating cash flow fall?

Krypton Industries’ operating cash flow fell because cash generation from operations declined to Rs 2.24 crore in the six months ended September 30, 2026, from Rs 4.97 crore in the corresponding 2025 period. After net direct-tax payments of Rs 30 lakh, net cash generated from operating activities was Rs 1.94 crore, compared with Rs 4.77 crore a year earlier.

The decline occurred despite higher pre-tax profit of Rs 2.20 crore, versus Rs 1.55 crore in the prior-year half. Depreciation and amortisation were Rs 78.14 lakh and finance costs were Rs 78.44 lakh in the latest half, taking operating profit before working-capital changes to Rs 3.77 crore, above Rs 3.10 crore a year earlier.

Cash generation from operations fell by Rs 2.72 crore even as operating profit before working-capital changes increased by Rs 66.61 lakh. The difference reflects the cash effects of inventory, financial assets, other assets, liabilities and provisions recorded after operating profit in the cash-flow statement.

Which working-capital movements affected Krypton Industries’ cash generation?

Krypton Industries recorded a Rs 2.13 crore increase in other assets in the 2026 half, compared with a Rs 1.99 crore increase in the preceding-year period, reducing cash available from operations. Inventories also used Rs 1.30 crore, whereas inventories released Rs 93.09 lakh in the half year ended September 30, 2025.

Trade and other receivables supplied Rs 36.85 lakh of cash in the latest half, reversing a Rs 62.89 lakh cash use a year earlier. Trade and other payables added Rs 1.76 crore, compared with Rs 17.70 lakh in the prior-year period, although other financial liabilities decreased by Rs 31.52 lakh and provisions decreased by Rs 35.58 lakh.

Financial assets used Rs 12.23 lakh in the latest half, while they generated Rs 3.45 crore in the 2025 half. That year-on-year reversal, combined with the inventory movement and higher outflow for other assets, reduced operating cash conversion despite the increase in pre-tax profit.

How did Krypton Industries’ revenue and segment earnings change?

Krypton Industries reported revenue from operations of Rs 26.18 crore for the half year ended September 30, 2026, up from Rs 22.89 crore in the same period of 2025. Net profit rose to Rs 1.63 crore from Rs 1.15 crore, while basic and diluted earnings per share, which were not annualised, were Rs 1.11 versus Rs 0.78.

Hospital Equipments reported Rs 2.93 crore of profit before tax and interest for the 2026 half, compared with Rs 1.12 crore a year earlier. Tyre, Rim & Wheels reported Rs 89.33 lakh, down from Rs 1.66 crore, while Footwear recorded a loss before tax and interest of Rs 84.43 lakh against a Rs 41.50 lakh loss in the prior-year half.

Hospital Equipments revenue rose to Rs 33.87 crore from Rs 26.37 crore, while Tyre, Rim & Wheels revenue was Rs 7.75 crore against Rs 7.68 crore. Total segment gross sales increased to Rs 41.61 crore from Rs 34.05 crore before elimination of inter-segment revenue of Rs 15.44 crore, resulting in reported revenue from operations of Rs 26.18 crore.

What reduced Krypton Industries’ cash balance during the half year?

Krypton Industries used Rs 4.12 crore in financing activities during the latest half, compared with Rs 2.06 crore used in the 2025 period. Net repayment of short-term borrowings was Rs 2.39 crore, repayment of long-term borrowings was Rs 75.78 lakh, finance costs paid were Rs 78.44 lakh and lease-liability payments were Rs 18.55 lakh.

Investing activities used a further Rs 72.20 lakh, lower than the Rs 1.37 crore outflow a year earlier. The latest investing outflow included Rs 26.10 lakh spent on fixed assets and Rs 50.15 lakh of net short-term-loan outflows, partly offset by Rs 4 lakh from loans to body corporates.

The combined operating, investing and financing flows resulted in a net decrease in cash and cash equivalents of Rs 2.89 crore, compared with a Rs 1.33 crore increase in the prior-year half. Opening cash and cash equivalents were Rs 3.16 crore at March 31, 2026, resulting in closing cash and cash equivalents of Rs 26.21 lakh at September 30, 2026, versus Rs 1.51 crore a year earlier.

What changed in Krypton Industries’ balance sheet?

Krypton Industries’ total assets were Rs 62.15 crore at September 30, 2026, compared with Rs 61.93 crore at March 31, 2026. Current assets rose to Rs 38.70 crore from Rs 38.17 crore, while non-current assets declined to Rs 23.05 crore from Rs 23.76 crore.

Within current assets, investments fell from Rs 8.92 crore at March 31 to nil at September 30, while cash and cash equivalents declined from Rs 3.16 crore to Rs 26.21 lakh. Inventories increased to Rs 15.44 crore from Rs 14.14 crore, short-term loans rose to Rs 5.34 crore from Rs 4.84 crore, and trade receivables stood at Rs 8.56 crore at September 30.

Total borrowings declined to Rs 18.33 crore at September 30, 2026 from Rs 21.48 crore at March 31, combining non-current borrowings of Rs 6.23 crore and current borrowings of Rs 12.10 crore. Equity increased to Rs 33.62 crore from Rs 31.99 crore, with other equity rising to Rs 18.92 crore from Rs 17.30 crore.

Conclusion

Krypton Industries produced higher revenue, pre-tax profit and net profit in the six months to September 30, 2026, but converted less of that earnings base into operating cash. The decline from Rs 4.77 crore to Rs 1.94 crore reflected working-capital and financial-asset movements, while repayments, interest and lease payments contributed to Rs 4.12 crore of financing outflows.

The unresolved issue for the next reported period is whether cash generation improves as inventories, other assets, receivables and payables move through the business. The September 30, 2026 standalone results were reviewed by the Audit Committee and taken on record by the Board on November 12, 2026, and the filing did not disclose a cash-flow target or a specific future capital-spending plan.