N R Vandana Tex profit rises 8% while operating cash outflows

N R Vandana Tex Industries Limited reported standalone profit after tax of Rs 6.1872 crore for the half-year ended September 30, 2026, up 8.18% from Rs 5.7195 crore a year earlier, while operating cash flow was negative Rs 5.8439 crore after higher inventories and receivables absorbed cash. The board approved the unaudited results on November 12, 2026.

How did N R Vandana Tex perform in the September 2026 half year?

N R Vandana Tex increased revenue from operations by 5.79% year on year to Rs 138.1344 crore in the half-year ended September 30, 2026, from Rs 130.5752 crore in the corresponding 2025 period. Other income rose to Rs 0.6246 crore from Rs 0.0604 crore, taking total income to Rs 138.759 crore from Rs 130.6356 crore.

Profit before tax increased 8.17% to Rs 8.2673 crore from Rs 7.6431 crore, while profit after tax rose to Rs 6.1872 crore from Rs 5.7195 crore. Basic and diluted earnings per share were Rs 2.66, compared with Rs 2.70 a year earlier; the filing states that the half-year earnings per share were not annualised.

The September 2026 half-year revenue was lower than Rs 173.5745 crore reported for the half-year ended March 31, 2026, but profit after tax was above the preceding half-year’s Rs 4.7399 crore. The notes say the March 2026 half-year figures are balancing figures derived from the audited full-year result and the audited September 2025 half-year result.

What changed in N R Vandana Tex’s costs and profit drivers?

N R Vandana Tex’s pre-tax profit increased by Rs 0.6242 crore year on year despite higher manufacturing, employee and financing costs. Manufacturing expenses rose to Rs 32.2587 crore from Rs 29.3644 crore, employee benefits expense increased to Rs 2.2069 crore from Rs 1.8545 crore, and finance costs climbed to Rs 5.7427 crore from Rs 3.6089 crore.

Cost of materials consumed was Rs 83.0259 crore, compared with Rs 82.3433 crore a year earlier. Changes in inventories of finished goods were an expense of Rs 3.0542 crore, compared with a credit of Rs 0.2666 crore in the prior-year half, while other expenses fell to Rs 3.9586 crore from Rs 5.9196 crore.

N R Vandana Tex operates one business segment, manufacturing and trading textile goods under the Vandana brand, and therefore reported no segment-level revenue or profit split. The standalone results were prepared under Accounting Standards rather than Indian Accounting Standards because the filing cites the SME exchange exemption from mandatory Indian Accounting Standards adoption.

Why did N R Vandana Tex report negative operating cash flow?

N R Vandana Tex reported net operating cash outflow of Rs 5.8439 crore because working-capital movements exceeded operating profit in the September 2026 half year. Profit before tax was Rs 8.2673 crore, and operating profit before working-capital changes was Rs 13.666 crore after adjustments including Rs 5.7427 crore of finance costs and Rs 0.2447 crore of depreciation.

Inventories increased by Rs 19.5656 crore and trade receivables increased by Rs 15.4443 crore in the cash-flow statement. Other receivables rose by Rs 3.7082 crore, while increases of Rs 18.6226 crore in trade payables and Rs 1.7279 crore in other payables partly offset the cash use.

Cash generated from operations was negative Rs 4.7016 crore before direct taxes paid of Rs 1.1423 crore. The filing compares this half-year cash-flow statement with the year ended March 31, 2026, when net operating cash flow was also negative at Rs 36.9799 crore; it uses the indirect method prescribed under Accounting Standard 3.

How did N R Vandana Tex fund its cash requirement?

N R Vandana Tex generated Rs 11.0559 crore of net cash from financing activities during the half year, exceeding the Rs 5.8439 crore operating outflow. Net long-term borrowings contributed Rs 15.8958 crore and net short-term borrowings contributed Rs 0.9028 crore, while finance costs paid were Rs 5.7427 crore.

Investing activities generated Rs 0.2249 crore, as interest income of Rs 0.6012 crore exceeded fixed-asset purchases of Rs 0.3763 crore. Cash and cash equivalents increased by Rs 5.4369 crore to Rs 17.7803 crore at September 30, 2026, from Rs 12.3434 crore at March 31, 2026.

The closing cash balance included Rs 12.1942 crore of fixed deposits, Rs 4.6143 crore in current accounts and Rs 0.9718 crore in cash in hand. The financing cash flow does not identify lender terms, borrowing maturities or interest rates beyond the Rs 5.7427 crore finance-cost line.

What changed in N R Vandana Tex’s working capital and borrowings?

N R Vandana Tex’s inventory rose to Rs 92.9942 crore at September 30, 2026, from Rs 73.4286 crore at March 31, 2026, while trade receivables increased to Rs 177.6006 crore from Rs 162.1563 crore. Short-term loans and advances also increased to Rs 6.0528 crore from Rs 2.627 crore over the same period.

Long-term borrowings rose to Rs 26.9657 crore from Rs 11.0696 crore, and short-term borrowings increased to Rs 91.2673 crore from Rs 90.3645 crore. Trade payables other than dues to micro and small enterprises rose to Rs 102.9504 crore from Rs 84.6138 crore.

Total current assets increased to Rs 300.5217 crore from Rs 257.0769 crore, while current liabilities rose to Rs 204.646 crore from Rs 183.1717 crore. Shareholders’ funds increased to Rs 74.3547 crore from Rs 68.1675 crore, with share capital unchanged at Rs 23.2948 crore and reserve and surplus at Rs 51.0599 crore.

Conclusion

N R Vandana Tex recorded higher revenue and an 8.18% increase in half-year profit after tax, but the increase in inventory and receivables coincided with a Rs 5.8439 crore operating cash outflow. Financing inflows of Rs 11.0559 crore, including Rs 15.8958 crore of net long-term borrowings, supported the increase in cash and cash equivalents to Rs 17.7803 crore.

The next reported results will show whether inventory of Rs 92.9942 crore and receivables of Rs 177.6006 crore convert into operating cash and how the September increase in long-term borrowings affects finance costs. The filing discloses no earnings guidance, cash-flow target, capital-expenditure plan or borrowing repayment schedule.