Nahar Poly Films Limited reports first-half negative cash flow

Nahar Poly Films Limited reported a Rs 28.1312 crore net cash outflow from operating activities for the half year ended 30 September 2026, despite profit before tax of Rs 44.8909 crore. A combined Rs 49.3705 crore cash absorption in receivables, inventories and other current assets outweighed Rs 57.7584 crore of operating profit before working-capital changes.

How did Nahar Poly Films’ operating cash flow change?

Nahar Poly Films moved to a Rs 28.1312 crore operating cash outflow in the half year ended 30 September 2026, from a Rs 3.9401 crore inflow in the corresponding half of 2025. Cash flow from operating activities before direct taxes was negative Rs 18.1387 crore, compared with a positive Rs 14.2873 crore a year earlier, before net direct taxes paid of Rs 9.9925 crore.

The reversal occurred even as operating profit before working-capital changes increased to Rs 57.7584 crore from Rs 56.5040 crore. The cash-flow statement starts with profit before tax of Rs 44.8909 crore, versus Rs 44.5222 crore in the prior-year half, and adjusts for depreciation and amortisation of Rs 16.3958 crore and finance costs of Rs 3.2686 crore.

The reported profit therefore did not translate into operating cash in the period. Nahar Poly Films’ standalone profit after tax rose to Rs 35.0667 crore from Rs 32.1565 crore, while operating cash flow changed by Rs 32.0713 crore from an inflow to an outflow.

What working-capital movements absorbed Nahar Poly Films’ cash?

Receivables, inventories and other current assets together absorbed Rs 49.3705 crore in the half year ended 30 September 2026. The cash-flow statement records outflows of Rs 10.8973 crore from trade receivables and other receivables, Rs 13.4222 crore from inventories and Rs 25.0510 crore from other current assets.

Those three lines had a combined positive cash effect of Rs 14.2187 crore in the corresponding 2025 half. Receivables generated Rs 10.7667 crore and inventories Rs 7.9977 crore in that period, while other current assets absorbed Rs 4.5457 crore, compared with outflows across all three categories in 2026.

The balance sheet shows the related asset balances increasing between 31 March 2026 and 30 September 2026. Trade receivables rose to Rs 34.9474 crore from Rs 24.0501 crore, inventories increased to Rs 83.5455 crore from Rs 70.1232 crore, and other current assets climbed to Rs 46.6956 crore from Rs 21.6446 crore.

Some liability movements partly offset the operating-asset outflows. Other current liabilities supplied Rs 21.1844 crore, other financial liabilities added Rs 3.3528 crore and trade and other payables added Rs 0.7014 crore in the cash-flow statement. Current borrowings rose by Rs 12.4900 crore to Rs 46.7417 crore at 30 September 2026 and were included as a positive operating-cash-flow movement in the filing.

How much did Nahar Poly Films spend on investment activity?

Nahar Poly Films spent Rs 33.6396 crore on fixed assets, including capital advances and creditors for capital goods, in the half year ended 30 September 2026. This was more than three times the Rs 9.9311 crore reported in the corresponding 2025 half, although cash used in investing activities narrowed to Rs 14.0479 crore from Rs 45.7785 crore.

The fixed-asset purchase outflow was partly offset by Rs 1.3400 crore of proceeds from fixed-asset sales. Nahar Poly Films bought investments worth Rs 20.3218 crore and reported Rs 36.1723 crore of proceeds from investment sales; loans given as inter-corporate deposits, or ICDs, were Rs 57.5000 crore, while ICD repayments received were Rs 52.5000 crore.

Property, plant and equipment increased to Rs 187.5723 crore at 30 September 2026 from Rs 179.9145 crore at 31 March 2026. Capital work in progress rose to Rs 29.5321 crore from Rs 22.2907 crore over the same six months, while the filing does not identify individual projects or disclose a capital-expenditure target.

What did Nahar Poly Films report for profit and financing?

Nahar Poly Films reported standalone profit before tax of Rs 44.8909 crore for the half year ended 30 September 2026, marginally above Rs 44.5222 crore a year earlier. Revenue from operations increased to Rs 418.8480 crore from Rs 369.0533 crore, while total expenses rose to Rs 383.6490 crore from Rs 334.0636 crore.

Materials consumed increased to Rs 304.3996 crore from Rs 247.2127 crore, and employee benefit expense rose to Rs 17.0348 crore from Rs 15.9265 crore. Finance costs declined to Rs 3.2686 crore from Rs 4.2480 crore, while depreciation and amortisation was Rs 16.3958 crore, compared with Rs 16.3099 crore. Nahar Poly Films identifies BOPP Films, or biaxially oriented polypropylene films, as its single operating segment.

Financing activities used Rs 11.9822 crore in cash, compared with Rs 23.2340 crore in the prior-year half. Nahar Poly Films repaid Rs 11.0090 crore of long-term borrowings, received Rs 5.9835 crore of long-term borrowing proceeds, paid Rs 3.2685 crore of interest and paid Rs 3.6882 crore of dividends.

Non-current borrowings declined to Rs 39.6746 crore at 30 September 2026 from Rs 44.7000 crore at 31 March 2026. This reduction occurred alongside the Rs 12.4900 crore increase in current borrowings and a Rs 21.8646 crore rise in total equity to Rs 611.4148 crore in the standalone balance sheet.

Conclusion

The half-year statements show that higher operating assets and fixed-asset purchases absorbed cash despite higher revenue and a modest increase in pre-tax profit. Investment in fixed assets reached Rs 33.6396 crore, while the increase in inventories, receivables and other current assets was a principal factor behind the operating cash outflow.

The next financial results will show whether the Rs 193.0035 crore current-asset balance, including Rs 46.6956 crore of other current assets, changes as cash is collected or deployed. The filing also leaves the timing and intended use of the Rs 29.5321 crore capital work-in-progress balance unspecified.