Pasura Industries cash flow falls as borrowings decline

Pasura Industries Limited generated Rs 3.66 crore in net cash from operating activities in the half year ended 30 September 2026, down from Rs 7.59 crore a year earlier, while combined reported borrowings fell by Rs 2.18 crore from 31 March 2026 to Rs 19.57 crore. The period included Rs 2.18 crore of net bank term-loan repayment.

Why did Pasura Industries' operating cash flow fall?

Pasura Industries' net cash generated from operating activities fell by Rs 3.93 crore year on year to Rs 3.66 crore in the half year ended 30 September 2026. Cash generated from operations before tax was Rs 3.89 crore, compared with Rs 7.90 crore in the half year ended 30 September 2025, while net income-tax payments were Rs 22.65 lakh against Rs 30.45 lakh.

Operating profit before working-capital changes declined to Rs 2.68 crore from Rs 3.54 crore. Working-capital movements added Rs 1.21 crore in the September 2026 half year, compared with Rs 4.36 crore in the comparable 2025 period, accounting for most of the reduction in operating cash generation.

The earlier period included a Rs 3.65 crore decrease in other current assets, whereas other current assets increased by Rs 23.54 lakh in the 2026 half year and used cash. Trade receivables released Rs 1.54 crore in 2026, up from Rs 50.45 lakh a year earlier, as the receivables balance fell to Rs 2.29 crore at 30 September 2026 from Rs 3.84 crore at 31 March 2026.

That receivables release was partly offset by a Rs 41.67 lakh decrease in other current liabilities and a Rs 10.17 lakh decrease in trade payables. Profit before tax was Rs 42.67 lakh, down from Rs 1.09 crore, while depreciation and amortisation added back Rs 1.70 crore and interest expense added back Rs 90.68 lakh in the 2026 half year.

How did Pasura Industries reduce borrowings?

Pasura Industries reported net repayment of Rs 2.18 crore of bank term loans in the half year ended 30 September 2026, compared with Rs 1.83 crore repaid in the year-earlier half. It also recorded a net repayment of Rs 19,000 in short-term borrowings, paid Rs 88.43 lakh of interest and paid Rs 6 lakh of lease liabilities.

Net cash used in financing activities was Rs 3.13 crore, compared with Rs 3.21 crore in the September 2025 half year. Although net term-loan repayment increased by Rs 35.65 lakh, interest paid declined by Rs 22.09 lakh from Rs 1.11 crore, limiting the increase in financing outflows.

Non-current borrowings were Rs 9.37 crore at 30 September 2026, down from Rs 11.50 crore at 31 March 2026. Current borrowings declined to Rs 10.19 crore from Rs 10.25 crore, taking combined reported borrowings to Rs 19.57 crore from Rs 21.75 crore over the six-month period.

The term-loan repayment reported in the cash-flow statement closely corresponds with the Rs 2.13 crore reduction in non-current borrowings. The filing does not provide a lender-wise breakdown, maturity dates or a future repayment schedule for the borrowings.

What did Pasura Industries spend on investments and cash?

Pasura Industries used Rs 52.56 lakh in investing activities in the half year ended 30 September 2026, below the Rs 4.90 crore used in the corresponding 2025 period. Purchases of property, plant and equipment, including capital advances and work in progress, were Rs 87.74 lakh, compared with Rs 2.48 crore a year earlier.

The company made no investment-property purchase in the 2026 half year, while the prior-year period included Rs 2.76 crore of such spending. Income from investment property was Rs 30.14 lakh, against Rs 31.39 lakh, and interest income received rose to Rs 5.04 lakh from Rs 2.42 lakh.

Property, plant and equipment stood at Rs 40.88 crore at 30 September 2026, compared with Rs 42.40 crore at 31 March 2026. Capital work in progress was Rs 14 lakh at the half-year date after being nil at the preceding year-end, while investment property was Rs 2.68 crore versus Rs 2.71 crore.

Cash and cash equivalents increased by Rs 81,000 to Rs 13.48 lakh at 30 September 2026 from Rs 12.67 lakh at 31 March 2026. In the half year ended 30 September 2025, cash and cash equivalents fell by Rs 51.83 lakh to Rs 7.38 lakh, as Rs 7.59 crore of operating inflow did not cover Rs 4.90 crore of investing outflow and Rs 3.21 crore of financing outflow.

How did Pasura Industries' earnings compare with last year?

Pasura Industries reported net profit after tax of Rs 23.81 lakh in the half year ended 30 September 2026, compared with Rs 81.81 lakh a year earlier. Revenue from operations rose to Rs 14.27 crore from Rs 13.74 crore, but profit before tax declined to Rs 42.67 lakh from Rs 1.09 crore.

Total income increased to Rs 14.62 crore from Rs 14.07 crore, including Rs 35.18 lakh of other income. Total expenses rose faster, to Rs 14.19 crore from Rs 12.98 crore, leaving a narrower difference between income and expenses than in the prior-year half.

Other expenses increased to Rs 5.87 crore from Rs 4.94 crore and employee-benefit expenses rose to Rs 5.72 crore from Rs 5.26 crore. Finance cost declined to Rs 90.68 lakh from Rs 1.13 crore, while depreciation and amortisation increased to Rs 1.70 crore from Rs 1.65 crore.

In the quarter ended 30 September 2026, Pasura Industries recorded a net loss after tax of Rs 35.60 lakh, after a profit of Rs 59.42 lakh in the quarter ended 30 June 2026. The company reports co-packing services as its sole reportable segment under Indian Accounting Standard 108, and its board approved the unaudited results on 14 November 2026.

Conclusion

Pasura Industries remained cash-generative in the first half of the 2026-27 financial year, producing Rs 3.66 crore of operating cash while reducing combined reported borrowings to Rs 19.57 crore. However, operating cash flow was lower than the prior-year Rs 7.59 crore because operating profit declined and the large release of other current assets recorded in the earlier period did not recur.

The filing leaves the future bank-loan repayment schedule unresolved, despite recording Rs 2.18 crore of net term-loan repayment in the half year. The next financial disclosures will show whether receivable collections, other current assets and trade-payable movements support operating cash flow after the cash balance ended 30 September 2026 at Rs 13.48 lakh.