Pashupati Cotspin posts Rs 3.3096 crore H1 operating outflow

Pashupati Cotspin Limited posted a Rs 3.3096 crore net operating cash outflow in the half year ended September 30, 2026, reversing a Rs 21.1737 crore inflow a year earlier, as a Rs 41.7324 crore increase in other receivables outweighed higher pre-tax profit and cash released from trade receivables.

Why did Pashupati Cotspin’s operating cash flow turn negative?

Pashupati Cotspin’s operating cash flow turned negative because working-capital changes used Rs 28.0638 crore in the half year ended September 30, 2026, compared with a Rs 5.0146 crore cash source in the corresponding period of 2025-26. Cash generated from operating activities was a Rs 4.0149 crore outflow before direct tax, and the reported Rs 70.53 lakh direct-tax refund resulted in the Rs 3.3096 crore net operating outflow.

The main cash use was a Rs 41.7324 crore increase in other receivables, compared with a Rs 1.2274 crore cash release from that line in the year-earlier half. The cash-flow statement does not provide the composition of other receivables. Separately, other current assets on the standalone balance sheet rose by Rs 43.0685 crore to Rs 62.7398 crore at September 30, 2026, from Rs 19.6713 crore at March 31, 2026.

The increase in other receivables was partly offset by a Rs 14.1757 crore reduction in trade and other receivables, against a Rs 1.4541 crore cash use in the earlier period. Inventories used Rs 5.0849 crore, compared with Rs 2.1954 crore a year earlier, while trade and other payables decreased by Rs 16.26 lakh after adding Rs 7.4971 crore to cash in the comparable half.

How did Pashupati Cotspin’s profit compare with cash generation?

Pashupati Cotspin’s standalone profit before tax increased to Rs 16.3173 crore in the half year ended September 30, 2026, from Rs 8.6376 crore a year earlier, even as operating cash flow moved to an outflow. The contrast reflects the Rs 28.0638 crore working-capital absorption, rather than a decline in reported pre-tax earnings.

Standalone net profit rose to Rs 12.3438 crore from Rs 6.0747 crore, and total comprehensive income increased to Rs 12.4158 crore from Rs 5.8745 crore. Revenue from operations declined to Rs 291.5735 crore from Rs 347.9307 crore, while total income decreased to Rs 296.6508 crore from Rs 354.0250 crore in the same comparison.

Operating profit before working-capital changes increased to Rs 24.0489 crore from Rs 16.2848 crore. The 2026-27 amount included Rs 4.3928 crore of depreciation and amortisation, Rs 5.9835 crore of finance cost, and Rs 2.6717 crore of interest and dividend income, compared with Rs 4.4078 crore, Rs 5.6691 crore and Rs 3.2907 crore, respectively, in 2025-26.

The cash-flow figures are from Pashupati Cotspin’s unaudited standalone results. The statutory auditor’s limited review report stated that nothing had come to its attention to suggest that the half-year statement failed to disclose required information or contained a material misstatement.

Which balance-sheet movements were linked to the cash outflow?

Pashupati Cotspin’s current assets increased to Rs 188.1657 crore at September 30, 2026, from Rs 167.6390 crore at March 31, 2026, led by other current assets of Rs 62.7398 crore. The balance-sheet classification is not identical to each cash-flow working-capital line, but the Rs 43.0685 crore increase in other current assets was close to the Rs 41.7324 crore cash use recorded as other receivables.

Inventories increased to Rs 54.1096 crore from Rs 49.0247 crore during the six months, consistent with the Rs 5.0849 crore inventory cash outflow. Trade receivables declined to Rs 34.4036 crore from Rs 48.6066 crore, consistent with the Rs 14.1757 crore cash release within trade and other receivables in the cash-flow statement.

Current investments fell to Rs 28.1909 crore at September 30 from Rs 38.3866 crore at March 31. Pashupati Cotspin recorded Rs 10.4540 crore of net proceeds from sale, redemption or purchase of investments in investing activities, compared with a Rs 1.4374 crore net investment outflow in the prior-year half.

Current liabilities increased to Rs 83.4842 crore from Rs 78.2007 crore. Other current liabilities rose to Rs 9.3947 crore from Rs 3.2085 crore, while current borrowings declined to Rs 51.9349 crore from Rs 54.1895 crore and trade payables to parties other than micro and small enterprises declined to Rs 14.3651 crore from Rs 14.9289 crore.

How did Pashupati Cotspin fund the overall cash movement?

Pashupati Cotspin generated Rs 12.7656 crore from investing activities in the half year ended September 30, 2026, but this did not offset the Rs 3.3096 crore operating outflow and Rs 11.1217 crore financing outflow. Cash and cash equivalents therefore declined by Rs 1.6657 crore, from Rs 1.6835 crore at the start of the period to Rs 1.78 lakh at September 30, 2026.

Investing cash flow included Rs 10.4540 crore of net investment proceeds and Rs 2.6717 crore of interest and dividend received. Purchases of property, plant, equipment and intangible assets used Rs 64,000, while changes in bank balances other than cash equivalents used Rs 35.37 lakh.

Financing activities used Rs 11.1217 crore, compared with a Rs 24.4196 crore outflow in the first half of 2025-26. Net repayment of borrowings was Rs 5.0954 crore against Rs 18.7081 crore a year earlier, while interest paid increased to Rs 5.9838 crore from Rs 5.6691 crore; lease-liability payments were Rs 4.25 lakh in 2026-27 and Rs 4.24 lakh in 2025-26.

Pashupati Cotspin’s total borrowings, combining current and non-current borrowings, were Rs 85.8621 crore at September 30, 2026, compared with Rs 90.9575 crore at March 31, 2026. The Rs 5.0954 crore reduction broadly corresponds with the net borrowing repayment reported in financing cash flow, although the filing does not separately explain every movement in borrowings.

Conclusion

Pashupati Cotspin’s first-half reversal in operating cash flow was principally a working-capital event: the Rs 41.7324 crore increase in other receivables outweighed a Rs 7.6797 crore year-on-year rise in standalone profit before tax and the Rs 14.1757 crore cash release from trade and other receivables. Investing cash inflow of Rs 12.7656 crore and lower borrowings did not prevent cash and cash equivalents from falling to Rs 1.78 lakh.

The next disclosed dates are November 23, 2026, the record date for Pashupati Cotspin’s interim dividend of Rs 0.02 per Rs 1 face-value equity share, and payment on or before December 5, 2026. Shareholders are also awaiting approval and required statutory and regulatory clearances for the board-recommended 3:2 bonus equity-share issue announced on October 3, 2026.