NAPS Global cash falls to Rs 16.75 lakh after Rs 8.1634 crore outflow

NAPS Global India Limited ended the half year on September 30, 2026 with Rs 16.75 lakh in cash and bank balances after a Rs 8.1634 crore operating cash outflow. NAPS Global reported consolidated profit after tax of Rs 2.2592 crore, while new borrowings generated Rs 4.7809 crore of financing cash inflow.

Why did NAPS Global's cash balance fall to Rs 16.75 lakh?

NAPS Global's cash and cash equivalents fell by Rs 3.4711 crore during the half year ended September 30, 2026, from Rs 3.6386 crore at March 31, 2026 to Rs 16.75 lakh. The closing balance comprised Rs 1.82 lakh of cash on hand and Rs 14.93 lakh in bank balances, compared with Rs 3.94 lakh and Rs 3.5992 crore, respectively, at the prior year-end.

The decline reflected operating and investing cash uses that exceeded financing inflows. Net cash used in operating activities was Rs 8.1634 crore and investing activities used Rs 8.86 lakh, while financing activities generated Rs 4.7809 crore. The company prepared the cash-flow statement using the indirect method under Accounting Standard 3, starting with profit before tax and adjusting for non-cash items and working-capital changes.

Operating cash flow changed from an inflow of Rs 1.0345 crore for the year ended March 31, 2026 to an outflow of Rs 8.1634 crore in the six months ended September 30, 2026. The periods are not like for like, and NAPS Global says it prepared consolidated financial statements for the first time for the year ended March 31, 2026; consequently, no consolidated half-year figure for September 2025 was presented.

What drove NAPS Global's operating cash outflow?

NAPS Global's operating outflow was driven by working-capital movements that exceeded its Rs 3.2460 crore operating profit before working-capital changes. Trade receivables increased by Rs 1.6296 crore, inventories rose by Rs 2.4480 crore and short-term loans and advances increased by Rs 3.8888 crore. A Rs 4.8505 crore decrease in trade payables was another use of cash.

These outflows were partly offset by a Rs 2.4016 crore increase in current liabilities and a Rs 18.93 lakh increase in provisions. Other long-term liabilities decreased by Rs 40.35 lakh, while other current assets declined by Rs 1.46 lakh. Cash used in operations before direct taxes was Rs 7.3815 crore, and direct taxes paid of Rs 78.19 lakh brought the reported net operating outflow to Rs 8.1634 crore.

The difference between profit and cash flow arose from the adjustments and working-capital movements in the statement. NAPS Global reported profit before tax of Rs 3.0434 crore; depreciation and amortisation added back Rs 3.69 lakh and finance cost added Rs 30.95 lakh, while interest income of Rs 14.38 lakh was deducted before calculating operating profit before working-capital changes.

On the income statement, NAPS Global reported consolidated profit after tax of Rs 2.2592 crore on revenue from operations of Rs 73.3565 crore for the half year ended September 30, 2026. Profit attributable to owners was Rs 1.9385 crore and non-controlling interest accounted for Rs 32.07 lakh. Purchase of stock-in-trade was Rs 70.5030 crore, and the company identifies manufacturing and trading of garments and fabrics as its single reportable business segment.

How did NAPS Global fund the cash shortfall?

NAPS Global partly funded its cash requirement with Rs 3.4122 crore of long-term borrowing proceeds and Rs 1.6783 crore of short-term borrowing proceeds. After finance cost of Rs 30.95 lakh, net financing cash inflow was Rs 4.7809 crore, compared with Rs 76.25 lakh for the year ended March 31, 2026.

Closing long-term borrowings rose to Rs 3.8583 crore at September 30, 2026 from Rs 44.61 lakh at March 31, 2026. Short-term borrowings increased to Rs 1.6873 crore from Rs 90,000. Combined closing borrowings were therefore Rs 5.5456 crore, compared with Rs 45.51 lakh at the March year-end.

Investing activities used Rs 8.86 lakh in the half year, against an outflow of Rs 2.3262 crore in the year ended March 31, 2026. NAPS Global spent Rs 3.24 lakh on property, plant and equipment and Rs 20 lakh on fixed deposits, partly offset by Rs 14.38 lakh of interest income. Current investments were Rs 3.20 crore at September 30, 2026, compared with Rs 3 crore at March 31, 2026.

What changed in NAPS Global's working-capital balances?

NAPS Global's current assets rose to Rs 41.2512 crore at September 30, 2026 from Rs 36.5705 crore at March 31, 2026, while current liabilities declined to Rs 16.6848 crore from Rs 17.2661 crore. The asset increase was concentrated in receivables, inventory and short-term loans and advances rather than cash.

Trade receivables increased by Rs 1.6296 crore, inventories by Rs 2.4480 crore and short-term loans and advances by Rs 3.8888 crore, matching the operating cash-flow uses reported for these categories. In contrast, trade payables due to others fell by Rs 5.0330 crore on the balance sheet, including the Rs 4.8505 crore cash-flow movement reported under trade payables.

NAPS Global's total assets and liabilities rose to Rs 41.9155 crore at September 30, 2026 from Rs 37.2289 crore at March 31, 2026. Share capital was unchanged at Rs 4.43 crore, reserves and surplus increased to Rs 15.9812 crore from Rs 14.0426 crore, and non-controlling interest rose to Rs 96.13 lakh from Rs 64.06 lakh. The audit committee and board approved the results on November 5, 2026, and the filing says the statutory auditor expressed an unmodified opinion following a limited review.

Conclusion

NAPS Global reported Rs 2.2592 crore of consolidated half-year profit, but its cash flow showed Rs 8.1634 crore leaving operations as receivables, inventories and short-term loans and advances rose and trade payables declined. Borrowing proceeds of Rs 5.0905 crore provided financing cash, yet cash and bank balances closed at Rs 16.75 lakh on September 30, 2026.

The filing does not disclose a cash-balance target, a borrowing repayment timetable, or a scheduled liquidity-related event after September 30, 2026. The disclosed issue to watch in subsequent results is whether the Rs 24.7424 crore receivables, Rs 7.5739 crore inventories and Rs 5.5545 crore short-term loans and advances produce cash while closing borrowings of Rs 5.5456 crore change.