Manorama Industries Limited posts profit, Rs 245.5831 crore outflow

Manorama reported Rs 227.1023 crore of standalone profit before tax for the six months ended 30 September 2026, but used Rs 245.5831 crore in operating activities after working-capital movements and direct taxes. Operating profit before working-capital changes was Rs 251.4426 crore, which did not convert into operating cash during the half year.

What did Manorama report for the September 2026 half year?

Manorama reported higher standalone revenue and profit for the six months ended 30 September 2026. Revenue from operations rose to Rs 860.0069 crore from Rs 612.8601 crore in the corresponding six months ended 30 September 2025, while total income increased to Rs 891.2904 crore from Rs 618.5841 crore. The statement recorded no exceptional items in either half-year period.

Profit before tax increased to Rs 227.1023 crore from Rs 143.6303 crore a year earlier. Net profit after tax rose to Rs 169.4049 crore from Rs 105.4587 crore, while current tax expense increased to Rs 59.5756 crore from Rs 37.4973 crore. Deferred tax was a credit of Rs 1.8782 crore in the September 2026 half, compared with an expense of Rs 67.43 lakh in the prior-year half.

The September 2026 quarter accounted for Rs 456.0475 crore of revenue from operations and Rs 117.8891 crore of profit before tax. That quarterly revenue was above Rs 403.9593 crore in the June 2026 quarter and Rs 323.3093 crore in the September 2025 quarter. Half-year finance cost rose to Rs 21.2097 crore from Rs 16.9747 crore a year earlier.

Why did Manorama use operating cash despite making a profit?

Manorama used operating cash because Rs 251.4426 crore of operating profit before working-capital changes was more than offset by Rs 453.2751 crore of working-capital and related movements. Cash used in operations was Rs 201.8325 crore, and direct taxes paid, net of refunds, were Rs 43.7508 crore. This resulted in Rs 245.5831 crore of net cash used in operating activities.

The largest stated cash absorption was a Rs 247.3027 crore increase in other current assets. Inventory increased by Rs 86.1428 crore and trade receivables increased by Rs 54.0504 crore in the cash-flow statement. Trade payables declined by Rs 43.5268 crore, while other financial liabilities declined by Rs 7.1075 crore and other liabilities and provisions declined by Rs 9.817 crore.

The following bridge uses the indirect cash-flow method under Indian Accounting Standard 7, or Ind AS 7. It separates reported operating profit from the balance-sheet movements that reduced cash during the six months ended 30 September 2026.

The source's comparative cash-flow column is labelled year ended 31 March 2025 and reports Rs 259.3687 crore of net cash generated from operating activities. That is a full-year comparison rather than a matching six-month period, but it contrasts with the reported operating outflow in the September 2026 half. The standalone cash-flow statement was prepared using the indirect method.

Which working-capital balances increased at Manorama?

Manorama's standalone inventory rose to Rs 796.5456 crore at 30 September 2026 from Rs 710.4028 crore at 31 March 2026. This Rs 86.1428 crore balance-sheet increase matches the inventory movement reported in the cash-flow statement. The company identifies manufacturing of exotic seed-based fats and butters, including cocoa butter equivalent, as its sole reportable business segment.

Trade receivables increased to Rs 110.2806 crore at 30 September 2026 from Rs 56.2669 crore at 31 March 2026. Other current assets rose more sharply to Rs 313.7698 crore from Rs 66.4671 crore over the same dates. The balance-sheet change in other current assets was Rs 247.3027 crore, the largest stated operating cash use in the half-year cash-flow statement.

Total current assets increased to Rs 1,688.5241 crore from Rs 925.1382 crore, while non-current assets rose to Rs 288.7827 crore from Rs 275.3632 crore. Bank balances other than cash and cash equivalents rose to Rs 461.4408 crore from Rs 83.9339 crore. Total standalone assets therefore increased to Rs 1,977.3069 crore from Rs 1,200.5014 crore, with the larger movement concentrated in current assets.

How did Manorama fund its cash movements?

Manorama recorded Rs 623.8249 crore of net cash generated from financing activities in the September 2026 half. The financing inflow included Rs 487.9207 crore of net proceeds from issuing share capital including premium and Rs 164.5379 crore of net proceeds from short-term borrowings. It also included a Rs 2.2396 crore repayment of long-term borrowings.

Investing activities used Rs 385.3092 crore during the six months. Deposits with banks maturing after more than three months accounted for Rs 354.1798 crore, while purchases of property, plant and equipment, including capital work in progress and capital advances, used Rs 17.5199 crore. Purchases of non-current investments used a further Rs 24.5834 crore, partly offset by Rs 10.9739 crore of interest received.

Cash and cash equivalents fell by Rs 7.0674 crore during the period, from Rs 743.08 lakh at the beginning of the year to Rs 36.34 lakh at 30 September 2026. The closing amount comprised Rs 12.18 lakh of cash in hand, Rs 19.50 lakh in current accounts and Rs 4.66 lakh in cash-credit or overdraft accounts. These cash equivalents are separately classified from the Rs 461.4408 crore of other bank balances on the balance sheet.

Conclusion

Manorama's September 2026 standalone accounts show a clear divergence between reported earnings and operating cash flow. Profit before tax rose to Rs 227.1023 crore and revenue reached Rs 860.0069 crore, but expanding inventory, receivables and other current assets, alongside lower payables and liabilities, resulted in a Rs 245.5831 crore operating cash outflow.

The next point to watch is whether the Rs 796.5456 crore inventory, Rs 110.2806 crore trade-receivables balance and Rs 313.7698 crore other-current-assets balance convert into cash in subsequent reporting periods. The board approved the unaudited September 2026 results on 12 November 2026, while the filing also records Rs 487.9207 crore of equity-issue proceeds and Rs 164.5379 crore of net short-term borrowing proceeds during the half year.