Laxmi Organic operating cash flow falls to Rs 27.574 crore

Laxmi Organic Industries Limited generated Rs 27.574 crore of net operating cash flow in the six months ended September 30, 2026, down from Rs 150.876 crore a year earlier, after trade receivables absorbed Rs 202.297 crore of cash and total working-capital movements turned into a Rs 210.415 crore outflow.

Why did Laxmi Organic’s operating cash flow decline?

Laxmi Organic’s operating cash flow declined because working-capital movements shifted to a Rs 210.415 crore cash outflow in the six months ended September 30, 2026, from a Rs 73.950 crore inflow in the corresponding six months of 2025. That Rs 284.365 crore adverse movement outweighed the increase in operating cash flow before working-capital changes to Rs 239.892 crore from Rs 78.844 crore.

Cash generated from operations was Rs 29.477 crore in the September 2026 half-year, compared with Rs 152.794 crore in the previous-year period. Net income tax paid was Rs 1.903 crore, nearly unchanged from Rs 1.918 crore, resulting in net operating cash flow of Rs 27.574 crore.

The lower cash outcome came despite higher reported profit before tax, which increased to Rs 166.308 crore from Rs 29.689 crore. Depreciation and amortisation rose to Rs 48.611 crore from Rs 36.967 crore, while total adjustments to profit before working-capital changes were Rs 73.584 crore compared with Rs 49.155 crore.

How much did trade receivables affect Laxmi Organic’s cash flow?

Laxmi Organic recorded a Rs 202.297 crore operating cash outflow from trade receivables in the six months ended September 30, 2026, compared with a Rs 65.251 crore inflow in the corresponding period a year earlier. It was the largest individual working-capital outflow in the consolidated cash-flow statement.

Trade receivables stood at Rs 717.148 crore at September 30, 2026, compared with Rs 523.554 crore at March 31, 2026. The period-end balance therefore increased by Rs 193.594 crore, while the cash-flow statement reported the separate operating-cash movement related to receivables.

Trade payables also used Rs 74.648 crore of cash in the September 2026 half-year, reversing a Rs 21.533 crore cash inflow in the year-earlier period. Inventories consumed Rs 18.466 crore, compared with a Rs 14.895 crore cash release in the six months ended September 30, 2025.

What other working-capital movements offset the outflows?

Laxmi Organic received Rs 54.352 crore of cash from non-financial assets during the September 2026 half-year, compared with Rs 4.552 crore a year earlier. Financial assets contributed Rs 3.965 crore, reversing a Rs 20.695 crore outflow in the corresponding 2025 period.

Non-financial liabilities supplied Rs 19.179 crore of cash, against a Rs 6.929 crore use of cash a year earlier, and financial liabilities added Rs 8.082 crore after a Rs 6.603 crore outflow. Provisions used Rs 0.582 crore, compared with a Rs 1.946 crore cash contribution in the prior-year half.

Inventories were Rs 383.597 crore at September 30, 2026, while other current assets were Rs 192.490 crore, down from Rs 206.768 crore at March 31, 2026. Laxmi Organic reports one business segment, Chemical Business, under Indian Accounting Standard 108, so the filing does not provide cash-flow or receivable data by chemical product line.

Did Laxmi Organic’s earnings rise while cash generation fell?

Laxmi Organic’s earnings increased even as operating cash generation fell, with revenue from operations rising to Rs 2,051.060 crore in the six months ended September 30, 2026 from Rs 1,392.675 crore a year earlier. Profit before tax rose to Rs 166.308 crore from Rs 29.689 crore over the same periods.

Finance cost increased to Rs 14.125 crore from Rs 10.617 crore, while depreciation and amortisation increased by Rs 11.644 crore year on year. The cash-flow statement also recorded a Rs 3.672 crore allowance for expected credit loss, compared with Rs 0.027 crore in the prior-year first half.

Cash and cash equivalents were Rs 46.028 crore at September 30, 2026, down from Rs 60.138 crore at the start of the financial year. The group reported a net cash decrease of Rs 14.110 crore during the half-year, whereas it had reported a Rs 29.645 crore increase in the six months ended September 30, 2025.

How did investing and financing flows change Laxmi Organic’s cash balance?

Laxmi Organic used Rs 182.923 crore in investing activities in the September 2026 half-year, compared with Rs 173.599 crore in the previous-year period. Capital expenditure on property, plant and equipment, including capital work in progress and capital advances, and intangible assets was Rs 135.775 crore, lower than Rs 335.464 crore a year earlier.

Mutual-fund purchases totalled Rs 725.468 crore and sale proceeds were Rs 682.294 crore in the latest half-year. In the year-earlier period, purchases were Rs 847.458 crore and sale proceeds were Rs 937.998 crore.

Financing activities generated Rs 141.239 crore, against Rs 52.368 crore in the corresponding 2025 half-year. Laxmi Organic received Rs 100.000 crore from non-current borrowings and Rs 83.387 crore from net current borrowings, while interest paid was Rs 25.369 crore and dividends paid were Rs 8.316 crore.

Total borrowings were Rs 708.685 crore at September 30, 2026, comprising Rs 577.632 crore of non-current borrowings and Rs 131.053 crore of current borrowings. The comparable March 31, 2026 balances were Rs 493.158 crore and Rs 47.665 crore, respectively.

Conclusion

Laxmi Organic converted substantially less of its first-half earnings into operating cash than a year earlier. Revenue and profit before tax increased, but the Rs 202.297 crore receivables outflow, together with cash absorbed by trade payables and inventories, reduced net operating cash flow to Rs 27.574 crore.

The next results will show whether the September 30, 2026 trade-receivables balance of Rs 717.148 crore changes and how the Rs 708.685 crore borrowing balance develops. Separately, the company disclosed that it will seek shareholder approval through a postal ballot for the appointment of Harshvardhan Goenka as Managing Director and Chief Executive Officer.