Mangalam Seeds Limited reports Rs 7.1391 crore pre-tax profit

Mangalam Seeds Limited reported standalone profit before tax of Rs 7.1391 crore for the half year ended September 30, 2026, compared with Rs 6.9808 crore a year earlier, while operating activities used Rs 8.155 crore as inventory, biological assets and trade receivables absorbed cash. The unaudited results were approved on November 6, 2026.

What were Mangalam Seeds’ half-year standalone results?

Mangalam Seeds reported standalone profit before tax of Rs 7.1391 crore for the half year ended September 30, 2026, an increase from Rs 6.9808 crore in the corresponding period ended September 30, 2025. The difference was Rs 15.83 lakh, according to the unaudited standalone financial results.

The statement of profit and loss showed interest and finance costs of Rs 1.7171 crore in the 2026 half year, against Rs 1.9952 crore in the prior-year period. That was a reduction of Rs 27.81 lakh, while the cash-flow statement added back Rs 93.75 lakh of depreciation and amortisation in reconciling pre-tax profit to operating cash flow.

The results are standalone figures, so they cover Mangalam Seeds rather than the wider group identified in the consolidated review report. The company’s notes state that it has one reportable business segment, comprising the manufacture, trading, production, purchase and sale of hybrid seeds through dealers and distributors.

Why did Mangalam Seeds report negative operating cash flow?

Mangalam Seeds used Rs 8.155 crore in operating activities in the half year ended September 30, 2026 despite reporting Rs 7.1391 crore of pre-tax profit. In the half year ended September 30, 2025, operating activities used Rs 25.24 lakh, showing that the cash deficit widened by Rs 7.9026 crore year on year.

The cash-flow statement starts with pre-tax profit, then adjusts for Rs 93.75 lakh of depreciation and amortisation and Rs 1.7171 crore of interest and finance costs. It subsequently records movements in operating assets and liabilities, which can differ from income and expenses recognised under the Indian Accounting Standards, or Ind AS, financial statements.

The largest stated outflow was the Rs 13.6728 crore increase in inventory. Trade receivables increased by Rs 9.3399 crore, meaning the cash-flow statement recorded a further use of cash from amounts not collected from customers or distribution-channel counterparties by September 30, 2026.

Which working-capital movements used Mangalam Seeds’ cash?

Mangalam Seeds recorded operating cash outflows of Rs 13.6728 crore for inventory, Rs 1.5304 crore for biological assets and Rs 9.3399 crore for trade receivables in the 2026 half year. The statement presents each increase in these operating assets as a use of cash.

Other current assets increased by Rs 3.7101 crore, adding to the operating cash requirement. These movements were partly offset by a Rs 8.887 crore increase in trade payables, which the cash-flow statement records as an operating cash inflow because unpaid supplier balances increased during the period.

Other operating movements included a Rs 1.9528 crore decrease in other current liabilities, a Rs 1.16 lakh decrease in other current financial liabilities and a Rs 21.82 lakh increase in short-term provisions. The increase in trade payables therefore did not offset the combined cash absorbed by inventory, biological assets, receivables and other current assets.

The notes also describe the accounting treatment of sales returns and discounts. Mangalam Seeds records allowances for expected returns and discounts when revenue is recognised, using factors that include historical experience, distribution-channel inventory and, for returns, estimated shelf life; it later reverses or adjusts allowances based on actual returns or discounts.

What does Mangalam Seeds’ September 2026 balance sheet show?

Mangalam Seeds reported current assets of Rs 58.1615 crore at September 30, 2026, compared with Rs 53.1976 crore in the comparative balance-sheet column. The increase of Rs 4.9639 crore is consistent with the half-year cash-flow statement reporting higher inventory, biological assets, receivables and other current assets.

Cash and cash equivalents were Rs 51.69 lakh at September 30, 2026, versus Rs 1.591 crore in the comparative column. The balance-sheet statement accompanies the half-year results, while the cash-flow statement separately sets out operating, investing and financing movements for the periods ended September 30, 2026 and September 30, 2025.

In financing activities, Mangalam Seeds reported Rs 3.2692 crore of net proceeds from long-term borrowings and Rs 5.6109 crore from short-term borrowings for the 2026 half year. The same statement records Rs 1.7171 crore of interest and finance-cost payments, linking borrowing-related cash movements to the period’s financing costs.

How were Mangalam Seeds’ half-year results reviewed?

Mangalam Seeds’ audit committee and board reviewed and approved the standalone results on November 6, 2026. Ashish Sheth & Associates issued its limited review report on the same date for the unaudited standalone results for the quarter and year-to-date period ended September 30, 2026.

The auditor stated that nothing had come to its attention to indicate that the standalone statement had failed to disclose information required by Regulation 33 of the Securities and Exchange Board of India listing regulations, or contained a material misstatement. The report also says a review is narrower than an audit and provides moderate rather than audit assurance.

Mangalam Seeds said its results were prepared under Ind AS 34, Interim Financial Reporting, prescribed under Section 133 of the Companies Act, 2013. The notes further say that basic and diluted earnings per share use the weighted average number of equity shares outstanding and are not annualised.

Conclusion

Mangalam Seeds produced a Rs 15.83 lakh year-on-year increase in standalone pre-tax profit, reaching Rs 7.1391 crore for the half year ended September 30, 2026. Its cash result moved in the other direction: operating activities used Rs 8.155 crore, with inventory, biological assets, trade receivables and other current assets absorbing more cash than the rise in trade payables supplied.

The next disclosed matter to watch is the proposed sale of Mangalam Seeds’ entire 25% equity holding in Sharayu Mangalam Bioseeds Private Limited. The filing says a definitive agreement will be executed on a mutually agreed date and that consideration has not yet been determined, subject to mutually agreed terms and customary adjustments.