Nutricircle Limited receivables build-up drives cash outflow

Nutricircle Limited reported a Rs 126.60 lakh operating cash outflow for the six months ended September 30, 2026, after trade receivables rose Rs 150.21 lakh to Rs 2.30 crore. The cash use occurred despite Rs 6.97 lakh of profit before tax, while Rs 127.20 lakh received from borrowings largely funded the operating shortfall.

Why did Nutricircle report negative operating cash flow?

Nutricircle reported negative operating cash flow because the Rs 150.21 lakh increase in trade receivables exceeded the Rs 7.39 lakh operating profit before working-capital changes. The cash-flow statement starts with profit before tax and exceptional items of Rs 6.97 lakh for the period ended September 30, 2026, and adds Rs 0.42 lakh of depreciation and amortisation expense.

The company recorded net cash used in operating activities of Rs 126.60 lakh for the period ended September 30, 2026. Trade receivables were the largest disclosed working-capital movement in the reconciliation, at Rs 150.21 lakh, indicating that a substantial part of reported sales had not yet been collected in cash by the reporting date.

Nutricircle prepared the statement under the indirect method prescribed by Indian Accounting Standard 7, Statement of Cash Flows. This method adjusts accounting profit for non-cash items and changes in operating assets and liabilities, so the Rs 6.97 lakh pre-tax profit did not result in positive cash generation when receivables expanded.

The comparative cash-flow column, labelled in the filing as “For the Year Ended 30.09.2025”, shows net cash used in operating activities of Rs 181.44 lakh. The latest outflow of Rs 126.60 lakh was therefore Rs 54.84 lakh lower than that reported in the column for September 30, 2025, although the filing’s cash-flow heading does not label that comparative period as a half year.

How much did Nutricircle’s trade receivables increase?

Nutricircle’s trade receivables increased by Rs 150.21 lakh over the six months, reaching Rs 2.30 crore at September 30, 2026 from Rs 80.15 lakh at March 31, 2026. The change in the balance sheet matches the receivables amount recorded in the operating cash-flow reconciliation.

The receivables rise occurred alongside higher revenue. Revenue from operations was Rs 11.60 crore in the half year ended September 30, 2026, compared with Rs 7.34 crore in the corresponding half year ended September 30, 2025, an increase of Rs 4.26 crore.

Current assets fell to Rs 6.28 crore at September 30, 2026 from Rs 6.55 crore at March 31, 2026, despite the rise in receivables. Inventory was unchanged at Rs 21.85 lakh, cash and cash equivalents increased to Rs 2.52 lakh from Rs 2.40 lakh, and other financial assets decreased to Rs 54.91 lakh from Rs 55.69 lakh.

The filing identifies Nutricircle as operating in a single reportable segment because its chief operating decision maker reviews operations on that basis. It therefore does not provide a segment-level split that could show whether the Rs 2.30 crore receivables balance arose from particular products, customers or business lines.

Did Nutricircle remain profitable in the first half?

Nutricircle remained profitable, reporting profit after tax of Rs 6.97 lakh for the half year ended September 30, 2026. Profit after tax was Rs 9.54 lakh in the corresponding half year ended September 30, 2025, so it declined by Rs 2.57 lakh even as revenue increased.

Total income rose to Rs 11.63 crore from Rs 7.34 crore, while total expenses increased to Rs 11.56 crore from Rs 7.25 crore. Material consumption was Rs 10.41 crore, compared with Rs 6.70 crore a year earlier, and other expenses rose to Rs 1.06 crore from Rs 47.11 lakh, leaving profit before tax at Rs 6.97 lakh.

For the September 2026 quarter alone, revenue from operations was Rs 6.10 crore, above Rs 5.50 crore in the June 2026 quarter. Quarterly profit after tax was Rs 3.19 lakh, compared with Rs 3.78 lakh in the preceding quarter, showing that the second-quarter revenue increase did not produce a higher quarterly profit.

The September 30, 2026 results are unaudited and were approved by the board on November 14, 2026. The statutory auditor’s limited review stated that nothing had come to its attention to indicate that the statement failed to make the disclosures required under the listing regulations or contained a material misstatement.

How did borrowings affect Nutricircle’s cash balance?

Nutricircle received Rs 127.20 lakh from borrowings during the period, broadly offsetting the Rs 126.60 lakh operating cash outflow and Rs 0.48 lakh investing outflow. Net cash and cash equivalents consequently increased by Rs 0.12 lakh, ending at Rs 2.52 lakh on September 30, 2026 versus Rs 2.40 lakh at the beginning of the year.

Non-current borrowings rose to Rs 2.39 crore at September 30, 2026 from Rs 1.12 crore at March 31, 2026, an increase of Rs 1.27 crore. The balance-sheet movement aligns closely with the Rs 127.20 lakh financing inflow, while the financing section records no amounts from share issues or share warrants.

Investing activities used Rs 0.48 lakh for purchases of property, plant and equipment. Property, plant and equipment stood at Rs 2.78 lakh at September 30, 2026, compared with Rs 2.72 lakh at March 31, 2026, while product under development was unchanged at Rs 4.32 lakh.

Nutricircle’s total assets increased to Rs 9.46 crore at September 30, 2026 from Rs 8.23 crore at March 31, 2026. Total equity was Rs 6.99 crore at September 30, compared with Rs 6.92 crore at the March reporting date, while the receivables and borrowing movements accounted for much of the six-month balance-sheet change.

Conclusion

Nutricircle’s first-half figures show a gap between reported profitability and cash conversion: revenue increased by Rs 4.26 crore to Rs 11.60 crore, but a Rs 150.21 lakh receivables increase contributed to a Rs 126.60 lakh operating cash outflow. Borrowing proceeds of Rs 127.20 lakh preserved cash and left the September 30 balance at Rs 2.52 lakh.

The filing does not disclose when the Rs 2.30 crore receivables balance will be collected or the terms of the additional non-current borrowings. The next financial-results disclosure will show whether receivables decline from the September 30, 2026 level, operating cash flow changes direction, and borrowings remain near Rs 2.39 crore.