Naturite Agro inventory rise drives Rs 10.25 crore cash outflow

Naturite Agro Products Limited used Rs 10.25 crore of operating cash in the half year ended September 30, 2026, as inventory increased by Rs 14.41 crore. Additional borrowings of Rs 10.17 crore largely financed the cash requirement, but cash and cash equivalents still declined to Rs 1.26 lakh from Rs 15.83 lakh at March 31, 2026.

How did Naturite Agro finance the inventory increase?

Naturite Agro financed much of its Rs 14.41 crore inventory increase through additional borrowings of Rs 10.17 crore during the period ended September 30, 2026. The cash-flow statement records Rs 10.25 crore of net cash used in operating activities, while financing activities generated Rs 10.10 crore after Rs 7.05 lakh of interest paid. Together with Rs 29,000 of interest received, these movements resulted in a Rs 14.57 lakh decline in cash and cash equivalents.

The inventory movement was the largest working-capital cash use in the half year. Naturite Agro reported operating profit before working-capital changes of Rs 19.98 lakh, but this was outweighed by the Rs 14.41 crore inventory increase and a Rs 1.21 crore increase in other current assets. A Rs 5.00 crore reduction in trade receivables and a Rs 26.55 lakh rise in trade payables partly offset those cash uses, but operating cash flow remained negative.

The cash-flow statement also shows a different funding pattern from the preceding financial year. Borrowings decreased by Rs 4.92 crore in the year ended March 31, 2026, producing Rs 5.29 crore of net cash used in financing activities after interest payments. In the six months ended September 2026, borrowings instead rose by Rs 10.17 crore and financing activities generated Rs 10.10 crore.

How much did Naturite Agro inventory and borrowings change?

Naturite Agro’s inventory balance rose to Rs 20.82 crore at September 30, 2026, from Rs 6.41 crore at March 31, 2026, an increase of Rs 14.41 crore. Current borrowings increased to Rs 19.06 crore from Rs 8.89 crore over the same dates, also increasing by Rs 10.17 crore. The balance sheet reports no non-current borrowings at either reporting date.

Trade receivables declined to Rs 1.08 crore at September 30 from Rs 6.08 crore at March 31. Total current assets increased to Rs 24.31 crore from Rs 13.84 crore, while total assets rose to Rs 34.52 crore from Rs 24.09 crore. The reported changes show that inventory became a larger component of current assets as receivables and cash declined.

Current liabilities were Rs 22.68 crore at September 30, 2026, based on the listed balance-sheet lines, compared with Rs 12.34 crore at March 31. Besides the Rs 19.06 crore of current borrowings, trade payables were Rs 3.51 crore, up from Rs 3.25 crore. Other financial liabilities declined to Rs 2.86 lakh from Rs 11.80 lakh, while other current liabilities fell to Rs 7.68 lakh from Rs 8.39 lakh.

What changed in Naturite Agro’s operating cash flow?

Naturite Agro moved from Rs 5.41 crore of net cash generated from operating activities in the year ended March 31, 2026 to Rs 10.25 crore of net cash used in operating activities in the period ended September 30, 2026. These periods are not directly comparable because the latest figure covers six months and the earlier figure covers a full financial year. However, the disclosed working-capital lines show that the inventory movement reversed from a source of cash to a major use of cash.

Inventories released Rs 3.45 crore of cash in the year ended March 31, 2026, but absorbed Rs 14.41 crore in the latest six-month period. Trade receivables also changed direction, using Rs 43.94 lakh of cash in the year ended March 2026 but generating Rs 5.00 crore in the September 2026 period. Trade payables generated Rs 26.55 lakh in the latest period, compared with Rs 1.81 crore in the preceding full year, giving a smaller offset to working-capital needs.

Cash generated from operations before tax was negative Rs 10.25 crore for the September 2026 period, compared with positive Rs 5.41 crore for the year ended March 2026. No direct taxes paid were reported in either period. Investing activity added Rs 29,000 in the latest period through interest received, while the prior year had Rs 39,000 of interest received and no reported fixed-asset purchase.

What do Naturite Agro’s results show alongside the cash movement?

Naturite Agro reported total income of Rs 2.35 crore for the half year ended September 30, 2026, compared with Rs 21.45 crore in the corresponding half year ended September 30, 2025. Net profit was Rs 9.04 lakh, down from Rs 71.39 lakh a year earlier. Naturite Agro states that it operates in a single segment, so the filing provides no business-line revenue or margin detail for the decline.

Cost of materials consumed rose to Rs 15.75 crore in the latest half year from Rs 14.54 crore in the corresponding 2025 half year, despite the reduction in income. The income statement reported a negative Rs 14.89 crore change in inventories for the latest half year, compared with a positive Rs 4.71 crore change in inventories a year earlier. Finance cost was Rs 7.28 lakh, lower than Rs 9.07 lakh in the corresponding half year, while cash interest paid was Rs 7.05 lakh.

Profit before tax was Rs 9.04 lakh for the half year ended September 2026, compared with Rs 88.90 lakh in the corresponding prior-year half year. Basic and diluted earnings per share were Rs 0.09, compared with Rs 0.67 a year earlier. The company said comparative earnings-per-share figures were retrospectively adjusted for the subdivision of one Rs 10 equity share into two Rs 5 equity shares, effective from the September 25, 2026 record date.

How much liquidity remained at Naturite Agro at September 2026?

Naturite Agro ended September 30, 2026 with Rs 1.26 lakh in cash and cash equivalents, down from Rs 15.83 lakh at March 31, 2026. The closing balance comprised Rs 61,000 of cash on hand and Rs 65,000 in current-account bank balances. The filing reported no fixed deposits or remittances in transit within cash and cash equivalents.

Total equity rose to Rs 9.96 crore at September 30 from Rs 9.87 crore at March 31, while other equity increased to Rs 4.66 crore from Rs 4.57 crore. Equity share capital remained Rs 5.30 crore at both dates. Deferred tax liability was unchanged at Rs 1.88 crore, and property, plant and equipment declined to Rs 10.18 crore from Rs 10.22 crore.

The increase in total assets of Rs 10.43 crore broadly corresponded with the increase in current liabilities and the smaller rise in equity. The reported balance sheet records inventories of Rs 20.82 crore and current borrowings of Rs 19.06 crore, while cash was Rs 1.26 lakh. It does not provide inventory ageing, borrowing terms or a maturity schedule for the current borrowings.

Conclusion

Naturite Agro’s September 2026 filing identifies inventory accumulation as the central cash-flow movement in the half year. The Rs 14.41 crore increase in inventory exceeded the Rs 10.17 crore increase in borrowings, while the Rs 5.00 crore reduction in receivables and Rs 26.55 lakh increase in payables provided partial offsets. Operating cash flow was therefore negative Rs 10.25 crore and closing cash was Rs 1.26 lakh.

The filing does not disclose a future inventory plan, borrowing repayment schedule or next results date. The unresolved matter for later disclosures is whether the Rs 20.82 crore inventory balance converts into sales and cash collections, and whether current borrowings, which stood at Rs 19.06 crore on September 30, change alongside receivables, payables and cash.