Lehar Footwears cash flow turns negative as receivables rise

Lehar Footwears Limited reported a Rs 28.93 lakh net operating cash outflow for the half year ended 30 September 2026, compared with a Rs 18.0945 crore inflow a year earlier, as trade receivables absorbed Rs 17.0171 crore and property, plant and equipment purchases totalled Rs 14.09 crore.

Why did Lehar Footwears' operating cash flow turn negative?

Lehar Footwears' operating cash flow turned negative because working-capital movements reduced cash generated from operations to Rs 1.2935 crore in H1 2026 from Rs 20.1837 crore in H1 2025. After income-tax payments of Rs 1.5828 crore, operating activities used Rs 28.93 lakh of cash. In the comparable half year, tax payments of Rs 2.0892 crore still left a Rs 18.0945 crore operating inflow.

The largest movement was the Rs 17.0171 crore increase in trade receivables during H1 2026, compared with a Rs 1.7502 crore increase in H1 2025. Other current assets consumed a further Rs 9.1107 crore, compared with a Rs 2.1639 crore cash source a year earlier. Financial assets used Rs 79.31 lakh, while inventories used Rs 23.81 lakh after generating Rs 7.1829 crore in the previous-year half.

These outflows were partly offset by a Rs 12.7529 crore increase in other current liabilities, which was a cash source in H1 2026. In H1 2025, other current liabilities had used Rs 11.9052 crore. Profit before income tax also declined to Rs 10.1338 crore from Rs 19.80 crore, reducing cash generation before movements in operating assets and liabilities.

How much did Lehar Footwears' receivables and current assets increase?

Lehar Footwears' trade receivables increased to Rs 94.7161 crore at 30 September 2026 from Rs 77.699 crore at 31 March 2026, a rise of Rs 17.0171 crore. That balance-sheet increase matches the receivables cash outflow recorded in the cash-flow statement for H1 2026.

Other current assets rose to Rs 21.2598 crore at 30 September 2026 from Rs 16.8599 crore at 31 March 2026, an increase of Rs 4.3999 crore. The cash-flow statement records a Rs 9.1107 crore outflow under changes in current assets and a Rs 79.31 lakh outflow from financial assets. The filing does not give a category-by-category explanation for those cash-flow movements.

Inventories were broadly unchanged, rising by Rs 23.81 lakh to Rs 78.9556 crore at 30 September 2026 from Rs 78.7176 crore six months earlier. Revenue from operations, however, declined to Rs 175.0093 crore in H1 2026 from Rs 282.7172 crore in H1 2025, while the receivables balance increased.

The Footwear, Accessories and other like Products segment reported H1 revenue of Rs 159.9238 crore, up from Rs 107.8123 crore a year earlier. Toolkit and Others reported Rs 16.6269 crore, down from Rs 193.3975 crore. In the September 2026 quarter, Toolkit and Others recorded negative revenue of Rs 17.43 lakh because sales returns of Rs 32.48 lakh exceeded fresh sales.

How much did Lehar Footwears spend on fixed assets?

Lehar Footwears paid Rs 14.09 crore for property, plant and equipment in H1 2026, more than double the Rs 6.4154 crore paid in H1 2025. It also paid Rs 1.0237 crore as advances for capital goods, compared with Rs 92,000 in the prior-year half. These two disclosed capital-spending outflows totalled Rs 15.1137 crore in H1 2026.

Investing activities used Rs 13.762 crore in H1 2026, compared with an inflow of Rs 11.4275 crore in H1 2025. The movement reflected higher equipment purchases and a Rs 1.2828 crore increase in other bank balances and cash not available for immediate use. H1 2026 also included Rs 2.5372 crore of subsidy received against fixed assets and Rs 9.51 lakh of interest income.

Property, plant and equipment stood at Rs 96.8993 crore at 30 September 2026, up from Rs 83.1828 crore at 31 March 2026. Capital work-in-progress fell from Rs 2.4506 crore to nil, while intangible assets increased from Rs 30.60 lakh to Rs 38.40 lakh. The filing does not identify the projects, capacity additions or completion dates associated with the spending.

How did Lehar Footwears' borrowings and cash balances change?

Lehar Footwears generated Rs 11.9985 crore from financing activities in H1 2026, after a Rs 15.0135 crore financing outflow in H1 2025. Net short-term borrowing proceeds were Rs 5.88 crore, against net repayments of Rs 3.4122 crore a year earlier. Net long-term borrowing proceeds were Rs 10.6506 crore, compared with net repayments of Rs 8.2528 crore in H1 2025.

Non-current borrowings stood at Rs 11.3441 crore at 30 September 2026, up from Rs 61.93 lakh at 31 March 2026. Current borrowings increased to Rs 57.6879 crore from Rs 51.8821 crore. Total current and non-current borrowings were therefore Rs 69.032 crore, compared with Rs 52.5014 crore at the financial year-end, excluding lease liabilities.

Financing inflows did not cover the combined operating and investing cash outflows. Cash and cash equivalents declined by Rs 2.0527 crore during H1 2026, from Rs 2.2464 crore at the start of the year to Rs 19.38 lakh at 30 September 2026. The financing section also records Rs 2.5755 crore of finance costs, a Rs 88.39 lakh dividend payment and Rs 79.32 lakh of lease-principal payments.

Conclusion

Lehar Footwears' H1 2026 accounts show that Rs 10.1338 crore of profit before tax did not convert into operating cash, principally because receivables increased by Rs 17.0171 crore and other current assets absorbed Rs 9.1107 crore. Property, plant and equipment purchases of Rs 14.09 crore added to the funding requirement, while financing activities generated Rs 11.9985 crore and cash ended the half year at Rs 19.38 lakh.

The next financial disclosure will show whether the Rs 94.7161 crore receivables balance is collected and whether operating cash flow returns to an inflow. It will also clarify how Lehar Footwears funds its expanded fixed-asset base after property, plant and equipment rose to Rs 96.8993 crore; the filing does not disclose a project timetable or borrowing-reduction target.