Precot operating cash hit Rs 36.26 crore as working capital rose

Precot Limited generated Rs 36.26 crore of net operating cash in the half year ended 30 September 2026, after working-capital movements absorbed Rs 55.30 crore. Cash generated from operations was Rs 49.73 crore before direct-tax payments of Rs 13.47 crore, while inventories and other assets accounted for most of the cash use.

How much operating cash did Precot generate in the first half?

Precot generated Rs 36.26 crore of net cash from operating activities in the half year ended 30 September 2026. The result followed Rs 49.73 crore of cash generated from operations and Rs 13.47 crore of direct taxes paid, compared with Rs 90.45 crore of net operating cash in the year ended 31 March 2026.

Operating profit before working-capital changes was Rs 105.04 crore in the half year, against Rs 116.25 crore in the preceding full year. The reconciliation included Rs 16.35 crore of depreciation, amortisation and impairment expense, Rs 15.22 crore of finance costs and Rs 80.04 lakh of interest income.

The half-year operating cash figure was lower than the prior full-year amount because working-capital absorption was Rs 36.92 crore greater. Precot reported profit before tax of Rs 74.40 crore for the half year, compared with Rs 23.55 crore in the corresponding half year ended 30 September 2025.

What consumed Precot's working capital during the period?

Precot's working capital absorbed Rs 55.30 crore, led by a Rs 32.68 crore increase in inventories and a Rs 24.48 crore increase in other assets. Trade receivables used a further Rs 3.52 crore, while loans and other financial assets generated Rs 1.39 crore of cash.

Inventories rose to Rs 194.28 crore on 30 September 2026 from Rs 161.61 crore on 31 March 2026. Other current assets increased to Rs 62.34 crore from Rs 38.07 crore, while the cash-flow statement recorded a Rs 24.48 crore outflow under other assets.

Trade payables supplied Rs 4.13 crore of cash and partly offset the asset build-up. Other financial liabilities used Rs 77.80 lakh, while other liabilities and provisions supplied Rs 64.24 lakh; in contrast, inventory movement had generated Rs 49.03 crore of cash in the year ended 31 March 2026.

How did Precot's current assets and liabilities change?

Precot's current assets increased by Rs 68.44 crore to Rs 418.75 crore at 30 September 2026, while current liabilities increased by Rs 33.56 crore to Rs 341.58 crore. Inventory, other current assets and trade receivables drove the expansion in current assets over the six months.

Current borrowings increased to Rs 240.94 crore from Rs 214.45 crore, an increase of Rs 26.49 crore. Current tax liabilities rose to Rs 5.22 crore from Rs 2.13 crore, while trade payables owed to creditors other than micro and small enterprises increased to Rs 52.39 crore from Rs 49.83 crore.

Cash and cash equivalents stood at Rs 2.98 crore at 30 September 2026, compared with Rs 1.35 crore at the preceding year-end. Bank balances other than cash equivalents increased to Rs 9.23 crore from Rs 3.46 crore, and current investments rose to Rs 10.06 crore from Rs 9.22 crore.

How did Precot fund investing and financing cash flows?

Precot used Rs 9.00 crore in investing activities and Rs 19.85 crore in financing activities during the half year, leaving a Rs 7.41 crore increase in cash and cash equivalents. Its Rs 36.26 crore operating-cash inflow was greater than the combined Rs 28.85 crore of investing and financing outflows.

Purchase of property, plant and equipment, intangible assets, capital work-in-progress and capital advances used Rs 13.20 crore. Sale of property, plant and equipment generated Rs 2.03 crore, proceeds from assets held for sale and investment property were Rs 96.91 lakh, and net current-investment transactions supplied Rs 1.53 crore.

Financing cash flows included Rs 15.08 crore of interest paid, Rs 4.80 crore of dividends paid and Rs 18.67 crore of net repayment of long-term borrowings. These outflows were partly offset by Rs 19.78 crore of proceeds from loans repayable on demand, while non-current borrowings fell to Rs 108.14 crore from Rs 130.30 crore.

What did Precot report alongside its cash-flow movement?

Precot reported total income of Rs 530.32 crore for the half year ended 30 September 2026, up from Rs 421.49 crore in the corresponding half year of 2025. Profit after tax rose to Rs 56.87 crore from Rs 18.33 crore, while finance costs declined to Rs 15.22 crore from Rs 18.05 crore.

Precot reports textiles as its only reportable operating segment under Indian Accounting Standard 108, or Ind AS 108. Cost of materials consumed increased to Rs 249.74 crore from Rs 229.37 crore and employee-benefit expense increased to Rs 53.10 crore from Rs 45.99 crore.

The company recognised a foreign-exchange restatement loss of Rs 81.78 lakh during the period ended 30 September 2026. Its board approved the unaudited results on 13 November 2026 after audit committee review, and the statutory auditors conducted a limited review.

Conclusion

Precot's half-year results show that Rs 36.26 crore of operating cash was generated despite Rs 55.30 crore being absorbed by working capital. The increase in inventories of Rs 32.68 crore and other current assets of Rs 24.27 crore occurred alongside higher profit after tax of Rs 56.87 crore and a Rs 22.16 crore decline in non-current borrowings.

The next disclosures will show whether the inventory and other-asset increases convert into cash and how the borrowing mix changes after current borrowings rose by Rs 26.49 crore. Precot also disclosed that Precot Holdings Limited, incorporated on 6 July 2026, and Precot International (FZE), incorporated on 22 September 2026, had not commenced business and their capital remained to be remitted.