Nath Bio-Genes receivables triple as cash falls to Rs 99 lakh

Nath Bio-Genes (India) Limited reported trade receivables of Rs 264.3746 crore at September 30, 2026, more than three times the Rs 83.7907 crore recorded on March 31, while cash and cash equivalents fell to Rs 99.36 lakh. The receivables increase of Rs 180.5839 crore was the largest stated working-capital movement in the half-year cash-flow statement.

Why did Nath Bio-Genes report negative operating cash flow?

Nath Bio-Genes reported net cash used in operating activities of Rs 43.8628 crore for the half year ended September 30, 2026, primarily because trade receivables increased by Rs 180.5839 crore. This outflow exceeded the Rs 38.4246 crore cash release from inventories and the Rs 25.3824 crore increase in trade payables during the six-month period.

Operating profit before working-capital changes was Rs 44.6444 crore, according to the standalone cash-flow statement. After the reported movements in receivables, inventory, loans and advances, other assets, trade payables and other current liabilities, cash generated from operations before tax and extraordinary items was negative Rs 42.2468 crore. Income tax paid of Rs 1.616 crore brought the operating cash outflow to Rs 43.8628 crore.

The filing's reported cash-flow comparison shows a marked change in receivables and inventories. For the year ended 31.08.2026, as labelled in the cash-flow statement, trade receivables increased by Rs 1.1402 crore and inventories consumed Rs 113.8885 crore of cash. In the half year ended September 30, 2026, receivables absorbed Rs 180.5839 crore while lower inventories released Rs 38.4246 crore.

How much did Nath Bio-Genes' receivables increase?

Nath Bio-Genes' standalone trade receivables rose by Rs 180.5839 crore to Rs 264.3746 crore between March 31, 2026 and September 30, 2026. The closing balance was about 3.15 times the opening balance of Rs 83.7907 crore, matching the receivables movement reported in operating cash flow.

The receivables build-up came during a period of higher sales. Standalone revenue from operations increased to Rs 360.1101 crore in the six months ended September 30, 2026 from Rs 319.9425 crore a year earlier. The filing, however, does not provide the ageing of receivables, customer categories, collection terms, overdue balances or an explanation for the increase.

Nath Bio-Genes identifies Seed Cultivation as its only major product segment and therefore did not publish segmental reporting. The absence of segment data means the filing does not separate receivables or revenue by seed product, geography or customer type. Its consolidated results include Nath Bio-Genes CA, Uzbekistan, in which the company holds 90% equity, but the balance-sheet and cash-flow figures discussed here are standalone.

What happened to Nath Bio-Genes' cash balance?

Nath Bio-Genes' cash and cash equivalents declined by Rs 69.6743 crore in the half year to Rs 99.36 lakh at September 30, 2026, from Rs 70.6679 crore at the start of the period. The reported net decrease reconciles to cash used in operating, investing and financing activities.

Investing activities used Rs 3.2095 crore in the half year ended September 30, 2026, compared with an inflow of Rs 3.4574 crore in the year ended 31.08.2026 as labelled in the statement. The half-year investing section records purchases of tangible fixed assets of Rs 6.6502 crore and interest received of Rs 3.4357 crore, while property, plant and equipment on the balance sheet increased to Rs 249.1151 crore from Rs 243.6669 crore.

Financing activities used Rs 22.602 crore in the half year, compared with Rs 6.5079 crore used in the reported annual comparison. The filing records Rs 9.3971 crore of interest paid, Rs 3.8008 crore of dividends paid and a Rs 50.356 crore increase in short-term borrowings. It reports the net financing outflow without a further narrative explaining the combined effect of every listed financing movement.

Did Nath Bio-Genes rely more on short-term borrowings?

Nath Bio-Genes' short-term borrowings increased by Rs 50.356 crore to Rs 171.5353 crore at September 30, 2026. The increase corresponds with the short-term borrowing movement disclosed in the half-year financing cash-flow statement and occurred as cash and cash equivalents reduced to Rs 99.36 lakh.

Trade payables rose by Rs 25.3824 crore to Rs 155.9204 crore, providing an operating-cash offset to the receivables increase. Total current liabilities increased to Rs 478.8781 crore at September 30 from Rs 388.032 crore at March 31. Long-term borrowings moved lower, declining to Rs 16.23 lakh from Rs 55.34 lakh over the same dates.

Current assets rose to Rs 821.5661 crore from Rs 764.2064 crore, despite the Rs 38.4246 crore reduction in inventories. The balance-sheet increase was led by receivables, while total assets increased to Rs 1,204.6573 crore from Rs 1,082.9024 crore. Shareholders' funds rose to Rs 720.4441 crore from Rs 689.3702 crore, including the half-year profit retained in reserves and surplus.

How did Nath Bio-Genes' revenue and profit change?

Nath Bio-Genes' standalone revenue increased by Rs 40.1676 crore year on year to Rs 360.1101 crore in the six months ended September 30, 2026, but net profit fell by Rs 7.4804 crore to Rs 34.9265 crore. Profit before tax declined to Rs 36.5425 crore from Rs 43.7077 crore in the corresponding six months of 2025.

Finance cost increased to Rs 9.2971 crore from Rs 6.1937 crore in the year-earlier half, an increase of Rs 3.1034 crore. Production and seed conditioning expenses were Rs 131.3992 crore versus Rs 128.7879 crore, while selling and distribution expenses rose to Rs 114.795 crore from Rs 91.6262 crore. These movements were reported alongside higher revenue but lower half-year profit.

The Audit Committee reviewed the results on November 13, 2026 and the board approved them on November 14, 2026. The statutory auditor's limited review of the standalone results said nothing had come to its attention that caused it to believe the statement had not disclosed the information required under the applicable SEBI regulations.

Conclusion

Nath Bio-Genes' September 2026 standalone filing shows that a Rs 180.5839 crore rise in trade receivables was the central cash-flow movement during the first half. The inventory reduction and higher trade payables partly offset that movement, but operating cash flow was negative Rs 43.8628 crore, cash declined to Rs 99.36 lakh and short-term borrowings increased by Rs 50.356 crore.

The key issue for subsequent disclosures is whether the Rs 264.3746 crore receivables balance converts into cash and changes the reported cash position and short-term borrowing balance. The filing provides neither receivables ageing nor a collection target or liquidity plan, leaving collection timing and the funding of working capital unresolved.