My Mudra Fincorp Reports Rs 5.61 Crore Operating Cash Outflow

My Mudra Fincorp Limited reported an operating cash outflow of Rs 5.61 crore for the half year ended September 30, 2026, despite profit after tax of Rs 6.05 crore. A Rs 7.76 crore increase in short-term loans and advances, a Rs 2.95 crore rise in receivables and Rs 4.20 crore of tax payments absorbed cash.

Why did My Mudra Fincorp report an operating cash outflow?

My Mudra Fincorp reported an operating cash outflow because working-capital movements and tax payments exceeded its Rs 9.80 crore operating profit before working-capital changes in the half year ended September 30, 2026. Trade receivables used Rs 2.95 crore of cash, while short-term loans and advances used Rs 7.76 crore.

Trade payables decreased by Rs 44.43 lakh and other current liabilities decreased by Rs 14.94 lakh during the period, adding to the cash requirement. These movements took cash generated from operations to negative Rs 1.41 crore before income taxes paid of Rs 4.20 crore, resulting in negative operating cash flow of Rs 5.61 crore.

The latest half-year result contrasts with the year ended March 31, 2026, when My Mudra Fincorp generated Rs 2.06 crore of operating cash flow. In that full year, cash generated from operations was Rs 5.24 crore before Rs 3.18 crore of tax payments, compared with negative Rs 1.41 crore before tax in the September 2026 half-year.

How did My Mudra Fincorp’s working-capital balances change?

My Mudra Fincorp’s trade receivables rose to Rs 23.86 crore at September 30, 2026 from Rs 20.91 crore at March 31, 2026, while short-term loans and advances increased to Rs 29.24 crore from Rs 21.48 crore. The balance-sheet changes correspond with the cash-flow statement’s Rs 2.95 crore receivables outflow and Rs 7.76 crore outflow for short-term loans and advances.

Together, receivables and short-term loans and advances totalled Rs 53.10 crore at September 30, 2026, up Rs 10.71 crore from Rs 42.39 crore at March 31, 2026. The filing identifies these balances as the largest disclosed uses of operating cash, but does not provide a customer, product or counterparty breakdown.

Other current assets declined to Rs 6.43 lakh from Rs 14.90 lakh, and the cash-flow statement recorded an Rs 8.47 lakh inflow from this movement. Trade payables to parties other than micro, small and medium enterprises fell to Rs 97.76 lakh from Rs 1.42 crore, while other current liabilities fell to Rs 84.60 lakh from Rs 99.53 lakh.

My Mudra Fincorp has one reportable business segment under Accounting Standard 17, according to the results notes. As a result, the filing does not split the Rs 29.24 crore short-term loans and advances or Rs 23.86 crore receivables by segment.

How did My Mudra Fincorp finance its cash requirement?

My Mudra Fincorp generated Rs 5.17 crore from financing activities in the September 2026 half-year, principally through a Rs 6.12 crore increase in short-term borrowings. That inflow was partly offset by Rs 92.65 lakh of interest paid and a Rs 2.03 lakh decrease in long-term borrowings.

Short-term borrowings stood at Rs 14.43 crore on September 30, 2026, compared with Rs 8.32 crore at March 31, 2026. Long-term borrowings were Rs 2.93 crore, compared with Rs 2.95 crore at the previous year-end, and the cash-flow statement recorded no proceeds from share-capital issuance or share premium.

For the year ended March 31, 2026, financing activities generated Rs 6.39 crore, including a Rs 6.58 crore increase in short-term borrowings and a Rs 1.16 crore increase in long-term borrowings. The September 2026 half-year therefore continued to show financing inflows, but without an increase in long-term borrowings.

On November 12, 2026, the board considered unsecured inter-corporate deposits, conversion of existing and future loans into equity shares, and an increase in authorised share capital. It deferred all three proposals to a subsequent meeting, so the announcement disclosed no approval, funding amount, conversion terms or Extraordinary General Meeting date.

What happened to My Mudra Fincorp’s cash balance and investments?

My Mudra Fincorp’s cash and cash equivalents declined by Rs 2.60 crore to Rs 12.27 crore at September 30, 2026 from Rs 14.87 crore at March 31, 2026. The cash-flow statement attributes the movement to negative Rs 5.61 crore from operations, negative Rs 2.17 crore from investing activities and Rs 5.17 crore from financing activities.

Investing activities included Rs 1.20 crore of purchases of fixed assets, including capital work in progress, and a Rs 96.49 lakh increase in long-term loans and advances. Property, plant, equipment and intangible assets totalled Rs 18.24 crore at September 30, 2026, compared with Rs 17.85 crore at March 31, while long-term loans and advances rose to Rs 8.79 crore from Rs 7.83 crore.

The investing outflow was lower than the Rs 10.68 crore reported for the year ended March 31, 2026, which included Rs 8.15 crore of fixed-asset and capital-work-in-progress purchases. Current assets increased to Rs 65.44 crore at September 30, 2026 from Rs 57.41 crore, but the increase was concentrated in receivables and short-term loans and advances rather than cash.

Did My Mudra Fincorp remain profitable during the cash outflow?

My Mudra Fincorp remained profitable in the half year ended September 30, 2026, reporting revenue from operations of Rs 64.42 crore, profit before tax of Rs 8.03 crore and profit after tax of Rs 6.05 crore. Revenue rose from Rs 58.45 crore and profit after tax rose from Rs 5.37 crore in the half year ended September 30, 2025.

Profit after tax was lower than Rs 6.63 crore in the half year ended March 31, 2026. Finance cost rose to Rs 1.06 crore from Rs 71.97 lakh in the preceding half-year, while other expenses increased to Rs 49.09 crore from Rs 43.25 crore.

Basic and diluted earnings per share were Rs 5.31 for the September 2026 half-year, compared with Rs 5.82 in the March 2026 half-year and Rs 4.72 a year earlier. Paid-up equity capital was unchanged at Rs 11.39 crore, while reserves and surplus rose to Rs 60.07 crore from Rs 54.02 crore.

Conclusion

My Mudra Fincorp’s September 2026 half-year disclosure shows a difference between reported earnings and operating cash generation. Revenue increased year on year to Rs 64.42 crore and profit after tax reached Rs 6.05 crore, but rising receivables, short-term loans and advances, and taxes paid resulted in a Rs 5.61 crore operating cash outflow.

The next disclosed event to watch is the subsequent board meeting on deferred funding matters, including unsecured inter-corporate deposits and possible loan-to-equity conversions. The November 12, 2026 announcement gave no timing or terms, while cash was Rs 12.27 crore and short-term borrowings were Rs 14.43 crore at September 30, 2026.