OsiajeeTexfab posts Rs 55.12 lakh operating cash outflow

OsiajeeTexfab Limited recorded a Rs 55.12 lakh cash outflow from operating activities in the half year ended September 30, 2026, despite Rs 51.60 lakh of profit before tax. A Rs 2.53 crore rise in non-current financial loan assets and a Rs 1.23 crore net working-capital movement exceeded the Rs 67.69 lakh operating profit before working capital.

Why did OsiajeeTexfab report negative operating cash flow?

OsiajeeTexfab reported negative operating cash flow because its Rs 1.23 crore net working-capital movement was larger than its Rs 67.69 lakh operating profit before working capital for the half year ended September 30, 2026. The cash-flow statement starts with profit before tax of Rs 51.60 lakh and adds back Rs 16.09 lakh of interest paid to arrive at that pre-working-capital figure.

The largest disclosed cash-use item was the Rs 2.53 crore increase in non-current financial loan assets. Trade receivables increased by Rs 15.02 lakh and other current assets increased by Rs 1.46 lakh, adding to the cash requirement. These movements were partly offset by a Rs 1.51 crore increase in trade payables, while other current liabilities fell by Rs 4.14 lakh.

The filing reports Rs 4.37 crore of operating cash inflow for the year ended March 31, 2026, compared with the Rs 55.12 lakh outflow in the six months to September 30, 2026. Profit before tax was Rs 5.55 crore in the full financial year, versus Rs 51.60 lakh in the latest half year. The comparison shows that the current period combined lower reported profit with a working-capital cash outflow.

How did OsiajeeTexfab's loan assets change during the half year?

OsiajeeTexfab's non-current loans increased to Rs 13.04 crore at September 30, 2026 from Rs 10.51 crore at March 31, 2026. The Rs 2.53 crore balance-sheet increase aligns with the Rs 2.53 crore deduction for non-current financial loan assets in the cash-flow statement.

The related-party disclosure identifies unsecured loans involving wholly owned subsidiary Osiajee Agro Farms Limited. OsiajeeTexfab reported Rs 2.56 crore of unsecured loans given to the subsidiary and Rs 91.42 lakh received back. The reported closing balance was Rs 3.62 crore, compared with an opening balance of Rs 1.97 crore.

OsiajeeTexfab states that it operates in a single segment and that its consolidated results include Osiajee Agro Farms Limited. It also says the September 30, 2025 comparative results and the previous period were standalone figures, rather than consolidated figures. That disclosure means the Rs 13.04 crore loan balance at September 30, 2026 cannot be directly compared with the prior half-year consolidated position using this filing.

Which liabilities increased at OsiajeeTexfab?

OsiajeeTexfab's total current liabilities increased to Rs 5.00 crore at September 30, 2026 from Rs 2.64 crore at March 31, 2026. The Rs 2.36 crore increase was led by trade payables, which rose to Rs 2.00 crore from Rs 49.55 lakh, and current borrowings, which rose to Rs 2.64 crore from Rs 1.75 crore.

The Rs 1.51 crore increase in trade payables was recorded as a favourable working-capital movement in the cash-flow statement. Current borrowings increased by Rs 89.00 lakh, and the financing cash-flow statement separately reports Rs 89.00 lakh of short-term borrowings. This means the funding increase shown in the balance sheet is also reflected in the reported financing cash movement.

Other current liabilities declined to Rs 12.83 lakh at September 30, 2026 from Rs 16.97 lakh at March 31, 2026, a reduction of Rs 4.14 lakh. Current tax liabilities remained unchanged at Rs 22.83 lakh. Non-current borrowings were unchanged at Rs 3.81 crore on both balance-sheet dates, leaving the reported borrowing increase concentrated in current liabilities.

What happened to OsiajeeTexfab's half-year earnings?

OsiajeeTexfab reported total income of Rs 1.12 crore for the half year ended September 30, 2026, down from Rs 2.91 crore in the half year ended September 30, 2025. Revenue from operations declined to Rs 1.11 crore from Rs 2.48 crore. Other income was Rs 96,000 in the latest half year, compared with Rs 42.51 lakh in the corresponding period shown in the results statement.

Total expenditure declined to Rs 60.55 lakh from Rs 80.34 lakh, but the decrease was smaller than the reduction in total income. Profit before tax therefore fell to Rs 51.60 lakh from Rs 2.11 crore. The filing records no tax expense for either half-year figure, leaving net profit at Rs 51.60 lakh for the latest period.

In the September 2026 quarter, profit before tax was Rs 17.24 lakh, compared with Rs 34.36 lakh in the June 2026 quarter and Rs 1.71 crore in the September 2025 quarter. Finance costs were Rs 25.65 lakh for the half year ended September 30, 2026. The cash-flow statement separately records Rs 16.09 lakh of interest paid, which the filing presents as a cash-flow line rather than a stated reconciliation to finance costs.

How did investing and financing activities affect OsiajeeTexfab's cash?

OsiajeeTexfab reported Rs 2.45 crore of cash inflow from investing activities for the half year ended September 30, 2026, which the cash-flow statement attributes to sale of investments. This inflow exceeded the Rs 55.12 lakh operating cash outflow and was the largest reported source of cash during the half year.

Financing activities generated Rs 72.91 lakh, comprising Rs 89.00 lakh of short-term borrowings less Rs 16.09 lakh of interest paid. Combining the operating outflow, investing inflow and financing inflow, OsiajeeTexfab reported a net cash increase of Rs 20.24 lakh for the half year.

The cash-flow statement lists an opening cash balance of Rs 27.98 lakh and a closing cash balance of Rs 48.22 lakh. The September 30, 2026 balance sheet separately shows Rs 47.44 lakh of cash and cash equivalents and Rs 77,000 of other balances with banks. The filing does not provide a narrative reconciliation between the cash-flow closing figure and these balance-sheet classifications.

Conclusion

OsiajeeTexfab's latest consolidated filing shows that Rs 51.60 lakh of half-year profit before tax did not translate into operating cash generation. The Rs 2.53 crore increase in non-current loan assets, together with receivable and other current-asset movements, resulted in a Rs 55.12 lakh operating cash outflow despite higher trade payables and Rs 89.00 lakh of additional short-term borrowings.

The next disclosures should be assessed for movement in the Rs 13.04 crore non-current loan balance, including the Rs 3.62 crore reported related-party balance with Osiajee Agro Farms Limited. It will also be relevant to track whether the Rs 2.00 crore trade-payable balance and Rs 2.64 crore current-borrowing balance remain elevated, as the filing provides no operating cash-flow target or funding plan.