Pajson Agro’s operating cash outflow reaches Rs 22.7456 crore

Pajson Agro India Limited reported a Rs 22.7456 crore net operating cash outflow for the half year ended 30 September 2026, versus a Rs 7.1246 crore outflow a year earlier, as a Rs 58.0991 crore inventory build exceeded its Rs 18.7512 crore operating profit before working-capital changes.

Why did Pajson Agro report an operating cash outflow?

Pajson Agro reported an operating cash outflow because working-capital movements converted Rs 18.7512 crore of operating profit before working-capital changes into negative Rs 17.8807 crore of cash generated from operations in the half year ended 30 September 2026. Net income taxes paid of Rs 4.8649 crore then took net cash used in operating activities to Rs 22.7456 crore.

The cash result differed from the accounting profit for the same period. Pajson Agro reported profit before tax of Rs 16.9124 crore and net profit after tax of Rs 12.5563 crore, while revenue from operations rose to Rs 143.3918 crore from Rs 118.3707 crore in the half year ended 30 September 2025.

Under the indirect cash-flow method, Pajson Agro added back Rs 1.1352 crore of depreciation and amortisation and Rs 2.2605 crore of finance costs to profit before tax. Interest income of Rs 1.3752 crore and an unrealised foreign-currency gain of Rs 0.4139 crore reduced the adjustments, resulting in the reported Rs 18.7512 crore operating profit before working-capital changes.

How much did inventory increase at Pajson Agro?

Pajson Agro’s inventory absorbed Rs 58.0991 crore of cash during the half year ended 30 September 2026, compared with Rs 55.5554 crore in the corresponding 2025 half year. Inventories on the balance sheet rose to Rs 95.687 crore at 30 September 2026 from Rs 37.5879 crore at 31 March 2026.

Inventory was the largest individual working-capital cash outflow in the September 2026 half year, exceeding Pajson Agro’s Rs 16.9124 crore profit before tax. The company reports a single business segment, the processing of cashew nuts, with all of its products included in that reportable segment.

Trade receivables used a further Rs 2.4292 crore of cash in the September 2026 half year, although this was lower than the Rs 15.2821 crore cash use a year earlier. Receivables stood at Rs 20.6732 crore at 30 September 2026, compared with Rs 18.2441 crore at 31 March 2026.

Which items partly offset the inventory cash use?

Pajson Agro received Rs 14.2613 crore of cash from changes in loans, advances and other current assets during the September 2026 half year, compared with Rs 1.286 crore in the prior-year period. Its short-term loans and advances balance fell to Rs 18.1755 crore at 30 September 2026 from Rs 31.9544 crore at 31 March 2026.

Trade payables and other current liabilities provided Rs 9.6671 crore of cash, substantially below the Rs 44.9741 crore contribution in the half year ended 30 September 2025. Trade payables to creditors other than micro and small enterprises rose to Rs 28.8566 crore from Rs 20.138 crore, while other current liabilities increased to Rs 12.6927 crore from Rs 2.7543 crore.

The comparison shows that the lower contribution from payables and other current liabilities changed the cash-flow mix between the two periods. In the September 2025 half year, the Rs 44.9741 crore inflow from that line offset much of the Rs 55.5554 crore inventory outflow, whereas the September 2026 contribution was far smaller than the Rs 58.0991 crore inventory cash use.

How did Pajson Agro fund its working-capital requirement?

Pajson Agro reported Rs 25.1856 crore of proceeds from short-term borrowings during the half year ended 30 September 2026, compared with Rs 25.4944 crore a year earlier. Short-term borrowings on the balance sheet increased to Rs 59.2466 crore at 30 September 2026 from Rs 34.061 crore at 31 March 2026.

The cash-flow statement reported a Rs 22.036 crore net financing inflow after Rs 0.0478 crore of long-term borrowing repayments and Rs 2.7018 crore of finance costs. This financing inflow was lower than the Rs 22.7456 crore operating cash outflow, while finance costs in the income statement increased to Rs 2.2605 crore from Rs 1.067 crore in the corresponding 2025 half year.

Cash and cash equivalents declined by Rs 2.502 crore during the period to Rs 1.1498 crore at 30 September 2026, from Rs 3.6518 crore at the beginning of the year. The balance sheet separately showed cash and bank balances of Rs 42.377 crore at 30 September 2026, down from Rs 55.099 crore at 31 March 2026.

What capital spending and IPO use did Pajson Agro disclose?

Pajson Agro used Rs 2.7924 crore in investing activities in the September 2026 half year, compared with Rs 8.6236 crore in the prior-year half. It spent Rs 6.7148 crore on property, plant and equipment including capital work-in-progress, paid Rs 7.7549 crore as advances for capital assets, received Rs 10.2199 crore from fixed deposits on a net basis, and recorded Rs 1.4574 crore of interest income.

The company allocated Rs 57 crore of initial public offer proceeds to a new manufacturing unit and related plant and machinery. By 30 September 2026, it had used Rs 18.2699 crore for that purpose, leaving Rs 38.7301 crore unutilised, while capital work-in-progress rose to Rs 16.3715 crore from Rs 0.3264 crore at 31 March 2026.

Pajson Agro listed on the BSE SME platform on 18 December 2025 and raised Rs 74.4533 crore through the issue disclosed in its results. Total utilisation was Rs 35.6365 crore at 30 September 2026, leaving Rs 38.8168 crore unutilised, including Rs 8.67 lakh allocated to general corporate purpose.

Conclusion

Pajson Agro’s September 2026 half-year results show that revenue growth and a Rs 12.5563 crore net profit did not produce operating cash generation. The Rs 58.0991 crore inventory increase and Rs 2.4292 crore receivables outflow were only partly offset by changes in advances, payables and other current liabilities, resulting in a Rs 22.7456 crore operating cash outflow.

The disclosed point to watch is use of the remaining Rs 38.7301 crore assigned to the new manufacturing unit and plant and machinery at 30 September 2026. Changes in the Rs 95.687 crore inventory balance, Rs 59.2466 crore short-term borrowings and capital work-in-progress will indicate how the expansion plan and working-capital requirement develop.