MRC Agrotech posts Rs 12.76 crore operating cash outflow

MRC Agrotech Limited reported net cash used in operating activities of Rs 12.76 crore at September 30, 2026, despite consolidated profit before tax of Rs 79.55 lakh for the six months ended that date. The cash-flow statement shows a Rs 35.20 crore trade-payables outflow exceeded a Rs 30.40 crore inflow from trade receivables.

Why did MRC Agrotech report negative operating cash flow?

MRC Agrotech reported negative operating cash flow because working-capital movements outweighed its Rs 79.55 lakh profit before tax for the six months ended September 30, 2026. The cash-flow statement calculated operating profit before working-capital changes at Rs 49.13 lakh after treating Rs 37.99 lakh of interest on loan as non-operating and including Rs 7.56 lakh of depreciation and public-issue expenses.

The company then reported a net Rs 12.55 crore adverse working-capital movement in its September 30, 2026 cash-flow statement. After taxes paid through tax deducted at source, or TDS, of Rs 20.68 lakh, net cash used in operating activities was Rs 12.76 crore. The filing does not disclose a management target, recovery plan or timetable specifically addressing the operating cash outflow.

The reported pre-tax profit and cash result describe different stages of the cash-flow calculation. Profit before tax was Rs 79.55 lakh, while operating profit before working-capital changes was Rs 49.13 lakh and cash used in operations was Rs 12.76 crore. The difference arose principally from the working-capital categories separately listed in the unaudited consolidated cash-flow statement.

Which working-capital movements used MRC Agrotech's cash?

Trade payables were the largest cash-use item, with MRC Agrotech reporting a Rs 35.20 crore outflow at September 30, 2026. The cash-flow statement also recorded a Rs 30.40 crore inflow from trade receivables, but that collection was Rs 4.80 crore lower than the trade-payables outflow.

Other reported uses of cash included Rs 3.98 crore in other current assets, Rs 3.09 crore in short-term borrowings and Rs 2.15 crore in short-term loans and advances. The company also recorded Rs 21.50 lakh of outflow in other current liabilities and Rs 19.20 lakh in short-term provisions. These items were partly offset by a Rs 1.39 crore cash contribution from inventory.

The September 30, 2026 balance sheet shows trade receivables at Rs 19.54 crore, down from Rs 49.76 crore at March 31, 2026. Trade payables fell to Rs 13.62 crore from Rs 48.65 crore over the same dates, while inventory decreased to Rs 35.58 lakh from Rs 1.75 crore. These balance-sheet changes are directionally consistent with the cash-flow statement's receivables collection, payables outflow and inventory movement, although the filing does not provide a line-by-line reconciliation between closing balances and cash-flow adjustments.

How does MRC Agrotech's September cash flow compare with March?

MRC Agrotech reported a Rs 12.76 crore operating cash outflow in the September 30, 2026 column, compared with a Rs 3.68 crore outflow in the cash-flow statement's March 31, 2026 comparative column. The September result was Rs 9.07 crore more negative on the figures presented. The columns are not identified as equivalent periods: the profit-and-loss statement labels September 30, 2026 as a six-month period, while the cash-flow comparative column is headed March 31, 2026.

Trade payables changed most sharply between the two columns. The March 31, 2026 column reported Rs 41.06 crore generated from trade payables, whereas the September 30, 2026 column reported Rs 35.20 crore used by trade payables. Trade receivables also reversed direction, from a Rs 39.74 crore cash use in the March column to a Rs 30.40 crore cash source in the September column.

The filing also contains two different reported figures related to profit before tax for the March 31, 2026 period. The cash-flow statement lists Rs 1.98 crore as net profit before tax and extraordinary items, while the consolidated profit-and-loss statement lists Rs 1.52 crore as profit before tax for the 12 months ended March 31, 2026. MRC Agrotech does not explain this difference in the supplied statements.

How did MRC Agrotech's cash balance increase?

MRC Agrotech increased cash and cash equivalents by Rs 22.56 lakh to Rs 67.37 lakh at September 30, 2026, despite the Rs 12.76 crore operating outflow. The cash-flow statement reported Rs 9.15 crore of net cash from investing activities and Rs 3.84 crore from financing activities, compared with opening cash and cash equivalents of Rs 44.81 lakh.

Investing activities included Rs 13.68 crore recorded under long-term loans given, partly offset by Rs 3.80 crore under other non-current assets or investments and Rs 1.40 crore of fixed-asset cash use. The statement also includes Rs 37.99 lakh under interest on investments and Rs 27.72 lakh under other long-term liabilities. It does not provide counterparties, terms or transaction-level details for these items.

Financing cash flow included Rs 6.63 crore of proceeds from issue of share capital, offset by Rs 2.91 crore under loan from other, while loan from director was Rs 11.80 lakh. Separately, the balance sheet reported share capital of Rs 31.33 crore at both March 31 and September 30, 2026. The supplied filing does not include a note reconciling the share-capital proceeds in the cash-flow statement with the unchanged reported share-capital balance.

What were MRC Agrotech's revenue and profit figures?

MRC Agrotech reported total revenue of Rs 46.06 crore for the six months ended September 30, 2026, compared with Rs 10.25 crore in the corresponding six months ended September 30, 2025. Revenue from operations was Rs 45.67 crore, up from Rs 9.93 crore, while other income was Rs 38.79 lakh compared with Rs 32.01 lakh a year earlier.

Total expenses rose to Rs 45.27 crore in the September 2026 half year from Rs 10.00 crore in the corresponding prior-year period. Purchases of stock in trade were Rs 42.41 crore, changes in inventories were Rs 1.39 crore, and finance cost was Rs 15.33 lakh. The company identifies its single primary segment as trading in agricultural products.

Profit before tax increased to Rs 79.55 lakh from Rs 24.66 lakh, while profit for the period increased to Rs 56.93 lakh from Rs 15.07 lakh. Current tax was Rs 20.68 lakh and deferred tax was a credit of Rs 41,000 for the six months ended September 30, 2026. The board took the unaudited consolidated results on record on November 14, 2026.

Conclusion

MRC Agrotech's September 2026 statements show that revenue of Rs 46.06 crore and profit before tax of Rs 79.55 lakh did not translate into operating cash generation. A Rs 35.20 crore trade-payables movement, together with other current-asset, borrowing and advances movements, produced a Rs 12.76 crore operating cash outflow despite Rs 30.40 crore of cash generated from trade receivables.

The next reported statements will show whether trade receivables of Rs 19.54 crore, trade payables of Rs 13.62 crore and other current assets of Rs 6.71 crore change after September 30, 2026. Investors can also watch for an explanation of the Rs 1.98 crore March 2026 cash-flow profit-before-tax figure versus the Rs 1.52 crore figure in the annual profit-and-loss statement, an unresolved matter in the supplied filing.