Panacea Biotec reports Rs 23.38 crore operating cash inflow

Panacea Biotec Limited reported a consolidated operating cash inflow of Rs 23.38 crore for the half year ended September 30, 2026, reversing an outflow of Rs 0.77 crore a year earlier, despite Rs 23.86 crore of cash absorbed by higher trade receivables and Rs 11.22 crore by inventory.

How did Panacea Biotec's operating cash flow change?

Panacea Biotec generated Rs 23.38 crore of consolidated net cash from operating activities in the half year ended September 30, 2026, compared with net cash used of Rs 0.77 crore in the corresponding half-year of 2025. The change followed a move in consolidated profit before tax to Rs 20.56 crore from a loss before tax of Rs 12.61 crore.

Operating profit before working-capital changes was Rs 29.24 crore in the September 2026 half year, against a loss of Rs 10.58 crore in the prior-year period. Depreciation and amortisation contributed Rs 15.18 crore to the reconciliation, while the cash-flow statement deducted Rs 5.51 crore of exceptional income from the operating-profit calculation.

The operating cash outcome was also positive on a standalone basis. Panacea Biotec reported standalone net cash from operating activities of Rs 33.75 crore, compared with cash used of Rs 58.20 crore in the half year ended September 30, 2025, after standalone profit before tax turned to Rs 16.08 crore from a loss of Rs 29.77 crore.

What working-capital movements affected Panacea Biotec's cash flow?

Panacea Biotec's consolidated working capital used a net Rs 1.33 crore of cash in the half year ended September 30, 2026, compared with a Rs 11.35 crore cash contribution in the prior-year half. Inventory absorbed Rs 11.22 crore and trade receivables absorbed Rs 23.86 crore, whereas the comparable 2025 inventory movement provided Rs 18.34 crore and receivables used only Rs 0.06 crore.

The receivables movement corresponded with the consolidated trade-receivables balance increasing to Rs 97.31 crore at September 30, 2026 from Rs 73.52 crore at March 31, 2026. Consolidated inventory rose to Rs 204.00 crore from Rs 192.79 crore over the same six-month period, consistent with the cash-flow statement's inventory outflow.

Loans and other assets used Rs 5.03 crore in consolidated cash flow, compared with a Rs 7.46 crore inflow a year earlier. The offset came from provisions and other liabilities, which generated Rs 38.78 crore of cash in the 2026 half year after using Rs 14.51 crore in the 2025 period.

The balance sheet records consolidated trade payables to creditors other than micro and small enterprises at Rs 188.50 crore on September 30, 2026, up from Rs 167.39 crore at March 31, 2026. Other current liabilities were Rs 120.23 crore, compared with Rs 107.53 crore, while provisions were Rs 37.81 crore versus Rs 39.48 crore.

Which business results supported Panacea Biotec's cash generation?

Panacea Biotec's consolidated revenue from operations rose to Rs 389.24 crore for the half year ended September 30, 2026 from Rs 307.83 crore a year earlier. Consolidated net profit after tax was Rs 14.11 crore, against a loss after tax of Rs 10.05 crore in the corresponding period.

Vaccines provided Rs 258.89 crore of consolidated half-year revenue, up from Rs 203.06 crore, and recorded segment profit before tax of Rs 24.32 crore after a Rs 20.82 crore loss a year earlier. Formulations revenue rose to Rs 130.35 crore from Rs 104.77 crore, although the segment reported a Rs 3.76 crore loss before tax compared with a Rs 8.21 crore profit in the prior-year half.

The consolidated cash-flow reconciliation included Rs 1.78 crore of finance costs, versus Rs 3.00 crore a year earlier, and Rs 1.48 crore of allowance for expected credit loss and doubtful advances. Interest income of Rs 1.79 crore was deducted from profit before working-capital changes, as it is classified outside operating cash flow in the statement.

Exceptional income was lower year on year. Panacea Biotec recognised Rs 5.51 crore of consolidated exceptional income in the half year ended September 30, 2026, compared with Rs 14.02 crore a year earlier; the 2026 amount related to deferred consideration from the sale of domestic pharmaceutical brands by its subsidiary.

How did investing and financing cash flows affect Panacea Biotec's cash balance?

Panacea Biotec used Rs 31.36 crore in consolidated investing activities during the September 2026 half year, compared with Rs 15.39 crore used in the prior-year half. The company spent Rs 13.78 crore on property, plant and equipment, intangible assets, capital work in progress and related capital advances, against Rs 25.30 crore a year earlier.

Bank-deposit investments used Rs 94.85 crore and deposit redemptions provided Rs 73.35 crore in the 2026 half year. The Group also invested Rs 84.50 crore and redeemed Rs 86.00 crore in investments, creating small net investment-related inflows that did not offset the net use in investing activities.

Consolidated financing activities generated Rs 10.07 crore, compared with Rs 2.30 crore used a year earlier. The cash-flow statement records Rs 11.02 crore of grant proceeds and Rs 0.95 crore of interest paid in the 2026 period; it does not show consolidated proceeds or repayments of borrowings in that half-year financing section.

As a result, consolidated cash and cash equivalents ended September 30, 2026 at Rs 59.53 crore, up from Rs 57.31 crore at the beginning of the financial year but below Rs 63.67 crore at September 30, 2025. Cash and cash equivalents are distinct from bank balances other than cash equivalents, which were Rs 16.04 crore at September 30, 2026.

What does Panacea Biotec's balance sheet show alongside the cash flow?

Panacea Biotec's consolidated total assets increased to Rs 1,324.82 crore at September 30, 2026 from Rs 1,262.17 crore at March 31, 2026. Current assets increased to Rs 577.10 crore from Rs 513.04 crore, led by the Rs 23.79 crore rise in receivables and the Rs 11.21 crore increase in inventory balances.

Total consolidated equity was Rs 844.11 crore at September 30, 2026, compared with Rs 828.88 crore at March 31, 2026. Non-current borrowings were Rs 24.50 crore versus Rs 23.66 crore, while current liabilities rose to Rs 390.57 crore from Rs 348.68 crore.

The standalone balance sheet showed a similar receivables direction, with trade receivables rising to Rs 42.40 crore from Rs 30.68 crore at March 31, 2026. However, standalone cash and cash equivalents increased to Rs 9.07 crore from Rs 2.41 crore, following the Rs 6.71 crore increase in net cash and cash equivalents reported for the half year.

The financial results were unaudited and were reviewed by the audit committee and approved by Panacea Biotec's board on November 14, 2026. The statutory auditor reviewed the interim standalone results under the Standard on Review Engagements 2410, a review that provides moderate assurance rather than an audit opinion.

Conclusion

Panacea Biotec converted its consolidated operating cash flow from a Rs 0.77 crore outflow to a Rs 23.38 crore inflow in the half year ended September 30, 2026. Higher operating profit, including a shift to Rs 20.56 crore of profit before tax, outweighed cash absorption from a Rs 23.86 crore receivables increase and a Rs 11.22 crore inventory increase.

The next disclosed items to watch are the remaining Rs 4.68 crore deferred consideration from the domestic pharmaceutical brands sale, which Panacea Biotec says will be recognised in subsequent quarters or years, and management's efforts to execute higher long-term vaccine orders from key institutional customers. The company also reported negative standalone retained earnings of Rs 205.10 crore at September 30, 2026, while stating that it prepared the results on a going-concern basis.