KSH International H1 operating cash flow turns positive

KSH International Limited generated Rs 42.57 crore of net operating cash flow in the six months ended September 30, 2026, reversing an Rs 45.69 crore outflow a year earlier, as a Rs 294.82 crore increase in trade payables partly offset Rs 257.70 crore absorbed by receivables and Rs 117.09 crore by inventories.

How did KSH International generate positive operating cash flow in H1?

KSH International generated Rs 42.57 crore from operating activities after income-tax payments in the six months ended September 30, 2026, compared with Rs 45.69 crore used in the corresponding 2025 period. Cash generated from operations before tax was Rs 77.18 crore, compared with cash used of Rs 34.29 crore a year earlier, while income tax paid rose to Rs 34.61 crore from Rs 11.39 crore.

The company reported operating profit before working-capital changes of Rs 180.27 crore for the 2026 half year, up from Rs 94.46 crore in the 2025 half year. That measure included Rs 39.53 crore of finance cost, Rs 17.53 crore of depreciation and amortisation, and Rs 4.00 crore of net unrealised foreign-exchange loss, while profit before tax increased to Rs 120.75 crore from Rs 70.07 crore.

What working-capital movements supported KSH International cash flow?

KSH International recorded a Rs 294.82 crore increase in trade payables in the six months ended September 30, 2026, compared with a Rs 17.05 crore increase in the corresponding 2025 period. This was the largest positive working-capital movement and helped move cash generated from operations to Rs 77.18 crore from an outflow of Rs 34.29 crore before tax.

The payable increase did not fully offset other working-capital cash uses. Trade receivables absorbed Rs 257.70 crore and inventories absorbed Rs 117.09 crore, compared with Rs 73.23 crore and Rs 47.61 crore respectively in the prior-year half. Other assets used Rs 14.92 crore, while other financial liabilities and other current liabilities declined by Rs 4.84 crore and Rs 3.86 crore respectively.

Provisions contributed Rs 0.57 crore of cash in the 2026 half year, while other financial assets used Rs 0.06 crore. The cash-flow statement therefore shows that the positive operating result depended on the trade-payables movement alongside the higher Rs 180.27 crore operating profit before working-capital changes, rather than on releases from receivables or inventory.

How did KSH International's balance-sheet working capital change?

KSH International reported trade receivables of Rs 58.64 crore at September 30, 2026, against Rs 33.27 crore at March 31, 2026. Inventories rose to Rs 54.20 crore from Rs 42.49 crore over the same dates, consistent with the receivables and inventory cash outflows reported for the six-month period.

Trade payables owed to creditors other than micro and small enterprises were Rs 41.38 crore at September 30, 2026, compared with Rs 11.67 crore at March 31, 2026. Dues to micro and small enterprises declined to Rs 0.44 crore from Rs 0.68 crore, meaning the reported expansion in balance-sheet payables was concentrated among creditors other than micro and small enterprises.

What were KSH International's other H1 cash movements?

KSH International used Rs 57.66 crore in investing activities in the six months ended September 30, 2026, compared with Rs 62.46 crore in the corresponding 2025 period. Purchases of property, plant and equipment accounted for Rs 42.34 crore, and investment in or redemption of fixed deposits used Rs 17.47 crore, partly offset by Rs 2.15 crore of interest income.

Financing activities used Rs 15.47 crore in the 2026 half year, whereas they generated Rs 106.36 crore in the 2025 half year. Net short-term borrowings provided Rs 26.67 crore and long-term borrowing proceeds were Rs 2.54 crore, but finance-cost payments totalled Rs 36.75 crore; long-term borrowings repaid and lease-liability payments were Rs 4.17 crore and Rs 3.77 crore.

Cash and cash equivalents fell by Rs 30.55 crore during the six months to Rs 41.56 crore at September 30, 2026, from Rs 72.12 crore at March 31, 2026. The closing balance comprised Rs 41.00 crore of bank deposits with original maturities of less than three months, Rs 0.54 crore in current accounts and Rs 0.03 crore of cash on hand.

How did KSH International's profit compare with cash flow?

KSH International reported revenue from operations of Rs 248.39 crore for the six months ended September 30, 2026, compared with Rs 127.09 crore in the corresponding 2025 period. Profit after tax increased to Rs 9.02 crore from Rs 5.23 crore, while profit before tax rose to Rs 12.08 crore from Rs 7.01 crore.

Finance cost was Rs 39.53 crore in the 2026 half year, compared with Rs 16.58 crore in the previous corresponding period, while depreciation and amortisation increased to Rs 17.53 crore from Rs 7.20 crore. Current borrowings stood at Rs 31.84 crore at September 30, 2026, up from Rs 29.02 crore at March 31, 2026, and the filing does not provide a management forecast for working capital or cash generation.

Conclusion

KSH International's operating cash flow changed from an Rs 45.69 crore outflow in the 2025 half year to a Rs 42.57 crore inflow in the 2026 half year. The improvement combined a rise in operating profit before working-capital changes to Rs 180.27 crore with a Rs 294.82 crore trade-payables increase, despite Rs 374.79 crore of combined cash absorption by inventories and trade receivables.

The unresolved issue is whether the September 30 balances of Rs 58.64 crore in receivables, Rs 54.20 crore in inventories and Rs 41.38 crore in payables to larger creditors change in later disclosures. The filing identifies no forward target or cash-flow plan, while it records Rs 42.34 crore of property, plant and equipment purchases and a Rs 30.55 crore decline in cash during the half year.