Orient Press posts Rs 144.51 lakh operating cash outflow

Orient Press Limited reported net cash used in operating activities of Rs 144.51 lakh for the half year ended September 30, 2026, reversing a Rs 7.34 crore inflow a year earlier. A Rs 6.95 crore reduction in trade and other payables outweighed Rs 5.84 crore generated from trade and other receivables.

Why did Orient Press report an operating cash outflow?

Orient Press reported an operating cash outflow because its working-capital movements absorbed more cash than operations generated in the half year ended September 30, 2026. Cash generated from operations was negative Rs 98.09 lakh, and income-tax payments of Rs 46.42 lakh increased net cash used in operating activities to Rs 144.51 lakh.

The shift was marked against the corresponding half year ended September 30, 2025, when Orient Press generated Rs 7.34 crore from operating activities. Cash generated from operations changed from an inflow of Rs 7.80 crore in the prior-year period to an outflow of Rs 98.09 lakh, while tax paid was broadly unchanged at Rs 45.93 lakh a year earlier.

Before working-capital changes, operating profit was Rs 175.75 lakh in the latest half year, compared with Rs 135.40 lakh in the prior-year half. The reconciliation included Rs 3.04 crore of finance costs and Rs 2.16 crore of depreciation and amortisation, against Rs 3.17 crore and Rs 2.21 crore respectively a year earlier.

How did payables, receivables and inventory affect cash flow?

Orient Press recorded a Rs 6.95 crore cash outflow from trade and other payables during the six months to September 30, 2026, compared with a Rs 2.24 crore cash inflow from that line in the prior-year half. This represents a Rs 9.20 crore year-on-year reversal in the cash effect of trade and other payables.

The balance sheet shows that dues to creditors other than micro and small enterprises fell to Rs 21.92 crore on September 30, 2026, from Rs 29.90 crore on March 31, 2026. The cash-flow category is broader than this balance-sheet line because it includes trade and other payables, but both disclosures point to a reduction in amounts owed during the period.

Trade and other receivables generated Rs 5.84 crore of cash in the latest half year, versus Rs 2.70 crore in the year-earlier period. Trade receivables on the balance sheet declined to Rs 23.11 crore at September 30, 2026, from Rs 28.72 crore at March 31, 2026, consistent with cash being released from receivables.

Inventories used Rs 93.93 lakh of cash, compared with a Rs 1.75 crore cash contribution in the corresponding prior-year half. Inventory increased to Rs 61.95 crore at September 30 from Rs 61.01 crore at March 31, while revenue from operations in the half year fell to Rs 51.56 crore from Rs 63.85 crore a year earlier.

What does Orient Press's September balance sheet show?

Orient Press had cash and cash equivalents of Rs 19.46 lakh at September 30, 2026, compared with Rs 15.80 lakh at March 31, 2026. The cash-flow statement therefore reported a Rs 3.66 lakh net increase in cash and cash equivalents for the half year despite the Rs 144.51 lakh operating outflow.

Cash and cash equivalents comprised Rs 17.15 lakh in current accounts and Rs 2.31 lakh of cash on hand at September 30. Separately classified bank balances stood at Rs 3.31 crore, compared with Rs 3.24 crore at March 31; the filing says fixed deposits with banks and unpaid-dividend balances are not considered cash equivalents.

Current borrowings increased to Rs 55.05 crore at September 30 from Rs 52.77 crore six months earlier. Non-current borrowings rose to Rs 4.38 crore from Rs 3.38 crore, while total current liabilities declined to Rs 82.77 crore from Rs 87.45 crore as trade payables reduced.

Total current assets were Rs 92.73 crore at September 30, down from Rs 99.08 crore at March 31. Total equity declined to Rs 62.67 crore from Rs 64.52 crore, alongside the reported half-year net loss of Rs 1.89 crore.

How did Orient Press's operating performance change?

Orient Press reported revenue from operations of Rs 51.56 crore for the half year ended September 30, 2026, down from Rs 63.85 crore in the prior-year half. Loss before tax widened to Rs 2.57 crore from Rs 2.12 crore, although total expenses fell to Rs 56.23 crore from Rs 59.74 crore.

The half-year net loss was Rs 1.89 crore, compared with a Rs 1.55 crore loss a year earlier. Other income decreased to Rs 2.11 crore from Rs 2.76 crore, while finance costs fell by Rs 13.70 lakh to Rs 3.04 crore.

Printing revenue decreased to Rs 16.53 crore from Rs 28.49 crore, and its segment result declined to Rs 4.93 crore from Rs 6.05 crore. Flexible Packaging revenue fell to Rs 22.71 crore from Rs 25.81 crore, while its segment loss widened to Rs 4.56 crore from Rs 1.93 crore.

Paper Board Packaging was the only reportable segment with higher revenue, at Rs 11.94 crore compared with Rs 9.87 crore a year earlier. Its segment result increased to Rs 44.23 lakh from Rs 7.83 lakh; Orient Press identifies Printing, Flexible Packaging and Paper Board Packaging as its reportable segments under Indian Accounting Standard 108.

What did the auditor say about Orient Press's results?

Orient Press's statutory auditor, Sarda & Pareek LLP, stated that nothing had come to its attention to indicate that the unaudited financial statements for the quarter and half year ended September 30, 2026 contained a material misstatement. The auditor conducted a limited review rather than a full audit.

The Board of Directors approved the unaudited financial results, statement of assets and liabilities, and cash-flow statement on November 5, 2026. The company said the cash-flow statement was prepared under the indirect method set out in Indian Accounting Standard 7, Statement of Cash Flows.

The auditor's report says a limited review consists primarily of inquiries of company personnel and analytical procedures, providing less assurance than an audit. It also says the half-year statements were prepared under Indian Accounting Standard 34, Interim Financial Reporting, and the applicable listing regulations.

Conclusion

Orient Press's operating cash position deteriorated in the half year ended September 30, 2026 as Rs 6.95 crore of cash used by trade and other payables and Rs 93.93 lakh used by inventory exceeded Rs 5.84 crore released from receivables. The result was a Rs 144.51 lakh operating outflow despite a Rs 1.76 crore operating profit before working-capital changes.

The next disclosed reporting event will be the company's subsequent financial-results announcement. Investors can watch whether receivables remain below the Rs 23.11 crore reported at September 30, 2026, whether payables continue to decline from Rs 21.92 crore, and how the Rs 55.05 crore of current borrowings changes.