Manoj Ceramic profit coincides with higher borrowing and receivables

Manoj Ceramic Limited reported Rs 9.94 crore profit after tax for the half year ended September 30, 2026, while trade receivables increased by Rs 70.36 crore and operating activities used Rs 4.02 crore. Manoj Ceramic recorded a Rs 15.30 crore net financing inflow as short-term and long-term borrowings rose from March 31, 2026.

How did working capital affect Manoj Ceramic's cash flow?

Manoj Ceramic's working-capital movements resulted in negative operating cash flow for the half year ended September 30, 2026, despite Rs 17.35 crore of operating profit before working-capital changes. The largest cash use was a Rs 70.36 crore increase in trade receivables, followed by a Rs 11.91 crore increase in inventories. A Rs 61.96 crore reduction in other current assets partly offset those outflows.

Manoj Ceramic's operating cash outflow was lower than the Rs 18.86 crore used in the half year ended September 30, 2025, but the movements within working capital changed. The receivables outflow increased from Rs 26.26 crore to Rs 70.36 crore, while the reduction in other current assets increased from Rs 7.44 crore to Rs 61.96 crore. Net income tax paid was Rs 3.31 crore in the September 2026 half year.

Which balance-sheet lines show Manoj Ceramic's working-capital build-up?

Manoj Ceramic's standalone trade receivables rose to Rs 133.25 crore at September 30, 2026 from Rs 62.91 crore at March 31, 2026, consistent with the Rs 70.36 crore cash-flow movement. Inventories increased to Rs 73.17 crore from Rs 61.26 crore over the same six-month period. Together, those two current-asset categories increased by Rs 82.25 crore.

Other current assets fell to Rs 39.17 crore at September 30 from Rs 101.13 crore at March 31, a Rs 61.96 crore movement that corresponds with the cash-flow statement. Total current assets still rose to Rs 248.74 crore from Rs 228.80 crore because the increase in receivables and inventories exceeded the decline in other current assets. Cash and other bank balances were Rs 3.14 crore at September 30, compared with Rs 3.49 crore at March 31.

Manoj Ceramic's trade payables did not rise in line with the expansion of receivables and inventory. Dues to creditors other than micro and small enterprises declined to Rs 20.98 crore at September 30 from Rs 21.86 crore at March 31, while dues to micro and small enterprises increased to Rs 4.68 crore from Rs 3.96 crore. Other current liabilities rose to Rs 2.87 crore and short-term provisions to Rs 9.52 crore, from Rs 2.00 crore and Rs 7.97 crore respectively.

How did Manoj Ceramic finance its cash requirements?

Manoj Ceramic reported Rs 15.30 crore of net cash from financing activities in the half year ended September 30, 2026, compared with Rs 12.75 crore in the corresponding 2025 half year. The cash-flow statement shows Rs 13.34 crore of net proceeds from current borrowings and Rs 5.62 crore of net proceeds from non-current borrowings. Interest expenses paid were Rs 4.14 crore during the period.

Short-term borrowings stood at Rs 70.34 crore at September 30, 2026, up from Rs 57.00 crore at March 31. Long-term borrowings increased to Rs 19.51 crore from Rs 13.89 crore over the same period. Those balance-sheet increases occurred while operating activities used Rs 4.02 crore and investing activities used Rs 11.64 crore.

Financing cash flows also included Rs 1.61 crore of proceeds from fresh share issues and a Rs 1.13 crore movement for conversion of share warrants. Share capital was Rs 16.31 crore at September 30, compared with Rs 16.21 crore at March 31, while the Rs 1.13 crore balance under money received against share warrants at March 31 was absent at September 30. Total shareholders' funds increased to Rs 149.11 crore from Rs 138.69 crore.

Did Manoj Ceramic remain profitable despite negative operating cash flow?

Manoj Ceramic remained profitable in the half year ended September 30, 2026, reporting Rs 9.94 crore of profit after tax against Rs 5.53 crore in the half year ended September 30, 2025. Revenue from operations was Rs 163.28 crore, compared with Rs 81.49 crore a year earlier. Profit before tax rose to Rs 12.96 crore from Rs 7.39 crore.

Purchases of stock-in-trade increased to Rs 151.45 crore in the September 2026 half year from Rs 74.27 crore in the year-earlier period. Finance costs in the profit and loss statement increased to Rs 4.14 crore from Rs 3.47 crore. Manoj Ceramic reported one business segment, trading of ceramic products and sanitary ware.

Profit and cash flow reflected different movements during the six months to September 30, 2026. Profit after tax was Rs 9.94 crore, while the increase in receivables and inventories affected cash collections and stock funding, resulting in the Rs 4.02 crore operating outflow. Cash and cash equivalents under the cash-flow statement ended the period at Rs 84.71 lakh, down from Rs 1.20 crore at the beginning of the year.

Conclusion

Manoj Ceramic's September 2026 half-year results show that higher revenue and profit coincided with cash absorbed by trade receivables and inventories. The Rs 70.36 crore increase in receivables was the largest working-capital movement, while borrowings increased and financing activities generated a Rs 15.30 crore net inflow.

The next disclosed accounting matter to watch is the year-end provision for gratuity liability, which the auditor said will be made under management policy at year-end. Subsequent results will show whether receivables of Rs 133.25 crore, inventories of Rs 73.17 crore and cash equivalents of Rs 84.71 lakh change alongside operating cash generation.