Prima Agro H1 operating cash flow falls to Rs 1.026 crore

Prima Agro Limited reported net cash inflow from operating activities of Rs 1.026 crore for the six months ended 30 September 2026, down from Rs 2.012 crore a year earlier, while financing activities moved to a Rs 1.132 crore outflow from an Rs 86.9 lakh inflow. Cash and cash equivalents on the balance sheet nevertheless rose to Rs 33.8 lakh from Rs 19.4 lakh at 31 March 2026.

Why did Prima Agro’s operating cash flow decline?

Prima Agro’s operating cash inflow declined by Rs 98.6 lakh year on year because cash generated from operations fell to Rs 1.226 crore for the six months ended 30 September 2026 from Rs 2.112 crore in the corresponding 2025 period, while net advance income tax paid increased to Rs 20 lakh from Rs 10 lakh. The cash-flow statement was prepared under the indirect method prescribed by Indian Accounting Standard 7, or Ind AS 7.

The decline occurred despite an improvement in reported profit before tax and exceptional items, which rose to Rs 62.7 lakh from Rs 13.8 lakh. Depreciation and amortisation was Rs 37 lakh, compared with Rs 36 lakh a year earlier, lifting operating profit before working-capital changes to Rs 99.7 lakh from Rs 49.8 lakh.

Working-capital movements changed substantially between the two half years. Other current assets used Rs 18.2 lakh in the 2026 half year after generating Rs 2.099 crore in the prior-year period, while inventories used Rs 2.4 lakh after providing Rs 10.5 lakh. Those movements were partly offset by cash inflows of Rs 20.4 lakh from other current liabilities, Rs 11.9 lakh from other financial liabilities and Rs 8.5 lakh from trade payables.

Trade receivables generated Rs 2.7 lakh of cash in the six months ended 30 September 2026, compared with a Rs 1.5 lakh cash use a year earlier. At 30 September 2026, trade receivables were Rs 24.2 lakh, down from Rs 26.9 lakh at 31 March 2026, while inventories increased to Rs 24.1 lakh from Rs 21.6 lakh.

How did Prima Agro’s investing and financing cash flows change?

Prima Agro generated Rs 52.9 lakh from investing activities in the six months ended 30 September 2026, reversing a Rs 2.578 crore outflow in the prior-year half, while financing activities changed to a Rs 1.132 crore outflow from an Rs 86.9 lakh inflow. Dividend payments were nil in both periods, according to the cash-flow statement.

The 2026 investing inflow included Rs 74.1 lakh from other non-current assets and Rs 40 lakh under additions or repayments in investments. These were partly offset by Rs 42.6 lakh relating to other non-current liabilities and Rs 18.7 lakh under advances given. In the 2025 half year, the investing outflow included Rs 1.697 crore for advances given, Rs 1.10 crore for capital work-in-progress and Rs 8 lakh of property, plant and equipment payments.

The financing outflow comprised Rs 70.4 lakh under additions or repayments of borrowings, Rs 47.3 lakh under additions or repayments of advances taken, and Rs 4.5 lakh of interest paid. In the 2025 half year, the equivalent lines showed inflows of Rs 68.8 lakh from borrowings and Rs 18.1 lakh from advances taken, with no interest paid. The filing does not identify the facilities, counterparties or terms behind these borrowing and advance movements.

What do Prima Agro’s cash figures show at 30 September 2026?

Prima Agro reported a Rs 42.3 lakh net increase in cash and cash equivalents for the six months ended 30 September 2026, compared with an increase of Rs 30.3 lakh a year earlier. Its balance sheet reported closing cash and cash equivalents of Rs 33.8 lakh at 30 September 2026, compared with Rs 19.4 lakh at 31 March 2026.

The cash-flow statement’s opening-cash figure does not match the 31 March balance-sheet figure. It shows opening cash and cash equivalents of Rs 8.5 lakh and closing cash of Rs 33.8 lakh, while separately reporting a Rs 42.3 lakh net increase. Adding the stated opening cash and net increase gives Rs 50.8 lakh, not the reported closing amount, and the filing does not explain this difference.

Cash and cash equivalents include cash in hand, current-account balances and deposit-account balances under Prima Agro’s note. The cash-flow statement and the balance sheet both report Rs 33.8 lakh at 30 September 2026, but the starting-balance discrepancy means the announced half-year cash bridge cannot be fully reconciled from the disclosed figures.

What changed in Prima Agro’s balance sheet and earnings?

Prima Agro’s total assets rose to Rs 27.428 crore at 30 September 2026 from Rs 25.899 crore at 31 March 2026, an increase of Rs 1.529 crore. The standalone and consolidated statements show identical amounts at both dates, including equity share capital of Rs 5.195 crore and total assets of Rs 27.428 crore at the half-year end.

Current investments increased to Rs 14.065 crore from Rs 13.679 crore, while non-current investments rose to Rs 1.185 crore from Rs 1.023 crore. Other non-current assets increased to Rs 5.989 crore from Rs 5.248 crore, whereas property, plant and equipment declined to Rs 3.995 crore from Rs 4.256 crore.

Non-current borrowings rose to Rs 6.886 crore at 30 September 2026 from Rs 6.460 crore at 31 March 2026, despite the Rs 70.4 lakh financing cash outflow recorded under additions or repayments of borrowings. Trade payables increased to Rs 32.6 lakh from Rs 24.1 lakh, other financial liabilities to Rs 41.5 lakh from Rs 29.6 lakh, and other current liabilities to Rs 52.4 lakh from Rs 32 lakh.

Revenue from operations for the six months ended 30 September 2026 increased to Rs 5.497 crore from Rs 5.259 crore a year earlier, while profit after tax rose to Rs 45.9 lakh from Rs 2.2 lakh. Total expenses declined to Rs 5.056 crore from Rs 5.321 crore, with employee-benefit expense falling to Rs 1.819 crore from Rs 2.005 crore and power and fuel expense rising to Rs 1.207 crore from Rs 1.089 crore.

For the September 2026 quarter, Prima Agro reported revenue from operations of Rs 2.759 crore, compared with Rs 2.738 crore in the June 2026 quarter and Rs 2.66 crore in the September 2025 quarter. Quarterly profit after tax was Rs 27.4 lakh, above Rs 18.5 lakh in the preceding quarter but below Rs 33.3 lakh a year earlier; there were no exceptional items in the reported half year.

Conclusion

Prima Agro’s half-year disclosure shows higher revenue, profit before tax and profit after tax alongside lower operating cash generation. The fall in operating cash flow to Rs 1.026 crore reflected working-capital movements, particularly the reversal in other current assets, while investing activities turned cash-positive and financing moved from an inflow to an outflow.

The next financial disclosure will be relevant for whether operating cash generation changes from the Rs 1.226 crore of cash generated from operations reported in the six months ended 30 September 2026. It should also clarify the unresolved difference between the cash-flow statement’s Rs 8.5 lakh opening cash figure, its Rs 42.3 lakh reported increase and its Rs 33.8 lakh closing balance.