Rishiroop Limited reports Rs 6.33 crore operating cash outflow

Rishiroop Limited reported a Rs 6.33 crore net operating cash outflow for the six months ended September 30, 2026, as Rs 13.85 crore of working-capital use exceeded Rs 9.30 crore of operating profit before working-capital changes. The outflow occurred despite Rs 14.65 crore of half-year net profit, compared with Rs 8.89 crore a year earlier.

Why did Rishiroop report negative operating cash flow?

Rishiroop reported negative operating cash flow because increases in inventory and receivables, together with other working-capital movements and tax payments, outweighed cash generated before those items. Its cash-flow statement shows operating profit before working-capital changes of Rs 9.30 crore for the six months ended September 30, 2026, followed by a Rs 13.85 crore combined working-capital use.

After those movements, cash generated from operations was negative Rs 4.55 crore. Rishiroop then paid net taxes of Rs 1.71 crore, taking net cash used in operating activities to Rs 6.33 crore. In the corresponding six months ended September 30, 2025, the company used Rs 1.57 crore in operating activities, so the latest half-year outflow was Rs 4.76 crore larger.

The difference between reported profit and operating cash flow reflects the adjustments made before working capital. Rishiroop's profit before tax was Rs 18.36 crore in the latest half-year, versus Rs 10.53 crore a year earlier, but the cash-flow statement deducted items including Rs 6.08 crore of fair-value gains on investments, Rs 1.40 crore of interest income and Rs 1.06 crore of long-term gains on investment sales. These adjustments reduced operating profit before working capital to Rs 9.30 crore.

What working-capital items used Rishiroop's cash?

Rishiroop's largest working-capital cash use was a Rs 7.99 crore increase in receivables and advances during the six months ended September 30, 2026. This contrasts with the prior-year six-month cash-flow statement, which recorded a Rs 1.55 crore decrease in receivables and advances, meaning that item released cash in the earlier period.

Inventory was the second-largest item, using Rs 4.85 crore of cash in the latest half-year, compared with Rs 2.65 crore in the six months ended September 30, 2025. Trade payables, liabilities and provisions also used Rs 1.01 crore, compared with a Rs 1.53 crore use in the previous period. Together, these three movements account for the Rs 13.85 crore working-capital outflow.

The balance sheet shows higher reported inventories and trade receivables at September 30, 2026 than at September 30, 2025. Inventories were Rs 24.36 crore, up from Rs 16.73 crore, while trade receivables were Rs 19.50 crore, up from Rs 11.13 crore. These balance-sheet dates differ from the opening balances used in the six-month cash-flow calculation, but both categories were higher year on year.

Current liabilities also increased on the balance sheet. Trade payables to creditors other than the category separately identified in the filing were Rs 16.79 crore at September 30, 2026, against Rs 11.48 crore a year earlier, while other current liabilities were Rs 86.68 lakh compared with Rs 28.26 lakh. The cash-flow statement nevertheless reports a Rs 1.01 crore net cash use from the combined movement in trade payables, liabilities and provisions.

How did Rishiroop's profit compare with its cash flow?

Rishiroop's reported profit increased while its operating cash flow moved further into outflow. Net profit for the six months ended September 30, 2026 was Rs 14.65 crore, up Rs 5.76 crore from Rs 8.89 crore in the corresponding prior-year period. Net operating cash flow changed from an outflow of Rs 1.57 crore to an outflow of Rs 6.33 crore.

Total income for the latest half-year was Rs 66.95 crore, compared with Rs 43.64 crore a year earlier. This included Rs 6.02 crore of gain on fair valuation of investments, compared with Rs 6.11 crore in the previous corresponding half-year, and Rs 3.31 crore of other income, compared with Rs 2.21 crore. The cash-flow statement deducts fair-value gains when deriving cash generated from operations.

Rishiroop's primary business segment is Polymers & Compound, according to the notes to its standalone results. Revenue from operations for the half-year was Rs 57.56 crore, up from Rs 35.32 crore in the corresponding 2025 period, while total expenses rose to Rs 48.59 crore from Rs 33.01 crore. Purchases of stock-in-trade increased to Rs 34.62 crore from Rs 23.11 crore, providing context for the inventory-related cash use.

For the September 2026 quarter alone, revenue from operations was Rs 32.51 crore, compared with Rs 17.66 crore in the September 2025 quarter. Quarterly net profit was Rs 1.96 crore versus Rs 21.85 lakh, but the filing presents the cash-flow statement only for the six-month period. It therefore does not separately identify whether the Rs 7.99 crore receivables-and-advances movement arose mainly in the September quarter or the June quarter.

What happened to Rishiroop's cash after operating activities?

Rishiroop's investment-related inflows partly offset the operating cash outflow, producing Rs 6.61 crore of net cash from investing activities in the latest half-year. The company sold investments worth Rs 47.27 crore and purchased investments worth Rs 39.27 crore, while receiving Rs 1.56 crore of interest. In the corresponding prior period, investing activities generated Rs 1.04 crore.

Financing activities used Rs 1.51 crore during the six months ended September 30, 2026, almost unchanged from Rs 1.50 crore a year earlier. The latest figure comprised Rs 1.37 crore of dividends paid and Rs 13.46 lakh of lease-liability payments. Rishiroop reported no borrowing proceeds or repayments in the financing section of the supplied cash-flow statement.

Combining the Rs 6.33 crore operating outflow, Rs 6.61 crore investing inflow and Rs 1.51 crore financing outflow resulted in a Rs 1.23 crore net decrease in cash and cash equivalents. Cash and cash equivalents under the cash-flow statement fell from Rs 2.39 crore at the beginning of the period to Rs 1.16 crore at September 30, 2026. The statement separately identifies bank current-account balances of Rs 27.45 lakh and cash in hand of Rs 34,000.

Conclusion

Rishiroop's half-year figures show a divergence between accounting profit and operating cash generation. Net profit rose to Rs 14.65 crore and revenue from operations reached Rs 57.56 crore, yet a Rs 7.99 crore receivables-and-advances increase and a Rs 4.85 crore inventory increase contributed to a Rs 6.33 crore operating cash outflow.

The unresolved matter is whether the Rs 13.85 crore working-capital use reverses or continues in later cash-flow disclosures. Rishiroop's September 30, 2026 balance sheet reported inventories of Rs 24.36 crore and trade receivables of Rs 19.50 crore, while the filing discloses no separate target or timetable for reducing either balance.