QVC Exports reports Rs 8.02 crore operating cash outflow

QVC Exports Limited reported an Rs 8.02 crore operating cash outflow for the half year ended September 30, 2026, despite profit after tax of Rs 2.27 crore, as loans and advances used Rs 15.15 crore of cash. QVC Exports also received Rs 11.80 crore of proceeds from long-term borrowings during the period.

Why did QVC Exports report negative operating cash flow?

QVC Exports reported negative operating cash flow because working-capital movements exceeded its Rs 5.59 crore operating profit before changes in working capital. Loans and advances were the largest cash use, absorbing Rs 15.15 crore in the half year ended September 30, 2026, while trade receivables used another Rs 1.59 crore.

The company recorded Rs 1.28 crore of cash released from inventories and Rs 1.87 crore from other liabilities. Those inflows, together with Rs 40.49 lakh from trade payables, did not offset the loans-and-advances movement, finance-related operating adjustments and Rs 16.55 lakh of income tax paid. Net cash used in operating activities was therefore Rs 8.02 crore.

This was a reversal from the year ended March 31, 2026, when QVC Exports generated Rs 10.27 crore from operating activities. In that year, loans and advances released Rs 21.43 crore and trade receivables released Rs 10.83 crore, compared with cash outflows from both items in the September 2026 half year.

How did QVC Exports' financing cash flow change?

QVC Exports generated Rs 7.20 crore of net cash from financing activities in the half year ended September 30, 2026. The financing statement records Rs 11.80 crore of proceeds from long-term borrowings, offset by Rs 29.77 lakh of repayment, Rs 3.25 crore of finance costs and Rs 1.05 crore of dividend payments.

The Rs 7.20 crore financing inflow differed from an Rs 2.90 crore financing outflow in the year ended March 31, 2026. That earlier period included Rs 8.55 crore of finance costs, Rs 55.34 lakh of long-term borrowing repayments and Rs 52.26 lakh of dividends; the cash-flow statement did not show long-term borrowing proceeds for that year.

Long-term borrowings on the balance sheet rose to Rs 10.83 crore at September 30, 2026, from Rs 9.44 lakh at March 31, 2026. Short-term borrowings increased to Rs 65.04 crore from Rs 64.57 crore, taking the two disclosed borrowing balances together to Rs 75.87 crore at the half-year date, against Rs 64.66 crore at the prior year-end.

What changed in QVC Exports' loans, receivables and inventory?

QVC Exports' short-term loans and advances rose to Rs 41.41 crore at September 30, 2026 from Rs 21.22 crore at March 31, 2026. This Rs 20.19 crore increase in the balance-sheet line accompanied the Rs 15.15 crore cash-flow outflow reported for loans and advances during the half year.

Trade receivables increased to Rs 54.57 crore from Rs 52.98 crore, a change of Rs 1.59 crore that matches the receivables cash outflow in the cash-flow statement. Inventories moved in the other direction, declining to Rs 18.00 crore from Rs 19.28 crore and releasing Rs 1.28 crore of cash during the period.

Cash and cash equivalents fell to Rs 47.39 lakh at September 30, 2026 from Rs 90.19 lakh at March 31, 2026. The Rs 42.80 lakh reduction followed the Rs 8.02 crore operating outflow, Rs 39.14 lakh of net cash generated from investing activities and Rs 7.20 crore from financing activities.

Did QVC Exports remain profitable in the September 2026 half year?

QVC Exports remained profitable, reporting Rs 2.27 crore of profit after tax for the half year ended September 30, 2026. Profit after tax was Rs 1.49 crore in the half year ended September 30, 2025 and Rs 1.42 crore in the preceding half year ended March 31, 2026.

Revenue from operations was Rs 240.10 crore, compared with Rs 207.96 crore a year earlier and Rs 232.38 crore in the preceding half year. Total income reached Rs 243.46 crore, comprising operating revenue and Rs 3.36 crore of other income, while total expenses were Rs 240.81 crore and profit before tax was Rs 2.65 crore.

Finance costs declined to Rs 3.25 crore from Rs 4.38 crore in the half year ended September 30, 2025. Other expenses increased to Rs 21.38 crore from Rs 12.36 crore, while purchases of stock-in-trade rose to Rs 213.87 crore from Rs 191.41 crore over the same comparison period.

What does QVC Exports disclose about its financial reporting scope?

QVC Exports disclosed that it operates in one business segment, so segment reporting was not applicable to its standalone results for the half year ended September 30, 2026. The figures discussed are from the unaudited standalone statements approved by the board on November 13, 2026.

The statutory auditor conducted a limited review, rather than an audit, of the standalone half-year results. The review report dated November 13, 2026 stated that nothing had come to the auditor's attention indicating the statements failed to make required disclosures or contained a material misstatement.

Shareholders' funds increased to Rs 54.10 crore at September 30, 2026 from Rs 52.88 crore at March 31, 2026. Reserves and surplus rose to Rs 43.65 crore from Rs 42.42 crore, while total assets and liabilities increased to Rs 139.73 crore from Rs 124.82 crore.

Conclusion

QVC Exports recorded higher revenue of Rs 240.10 crore and profit after tax of Rs 2.27 crore in the half year ended September 30, 2026, but its cash-flow outcome differed from its profit result. The Rs 8.02 crore operating cash outflow was principally associated with Rs 15.15 crore absorbed by loans and advances, while financing activities generated Rs 7.20 crore following Rs 11.80 crore of long-term borrowing proceeds.

The unresolved matter to watch in subsequent disclosures is whether loans and advances, which stood at Rs 41.41 crore at September 30, 2026, continue to absorb operating cash or decline. The filing also leaves investors to monitor long-term borrowings, which rose to Rs 10.83 crore from Rs 9.44 lakh, and cash and cash equivalents, which ended the half year at Rs 47.39 lakh.