Saboo Sodium Chloro reports Rs 16.18 crore operating outflow

Saboo Sodium Chloro Limited recorded Rs 16.18 crore of net cash used in operating activities for the half year ended September 30, 2026, despite reporting Rs 3.57 crore of profit before tax. The cash-flow statement shows that increases in other current assets and inventories, together with liability movements, outweighed Rs 5.90 crore of operating profit before working-capital changes.

Why did Saboo Sodium Chloro report an operating cash outflow?

Saboo Sodium Chloro reported an operating cash outflow because working-capital and asset movements exceeded its Rs 5.90 crore operating profit before working-capital changes for the half year ended September 30, 2026. That operating-profit measure included Rs 3.57 crore of profit before tax, Rs 1.58 crore of finance cost and Rs 75.20 lakh of depreciation.

The largest reported use of operating cash was a Rs 17.14 crore increase in other current assets. Inventory increased by Rs 2.80 crore, while the statement records a Rs 28.65 lakh increase in non-current financial assets described as investments. These movements were partly offset by a Rs 35.90 lakh decrease in trade receivables and a Rs 7.94 lakh decrease in other current financial assets.

Changes in trade payables, borrowings, other financial liabilities, other current liabilities and non-current liabilities together used Rs 2.16 crore of cash. After these movements, cash generated from operations was negative Rs 19.79 crore, and net cash used in operations before taxes was Rs 16.06 crore. Taxes paid of Rs 12.75 lakh brought net operating cash used to Rs 16.18 crore.

How did Saboo Sodium Chloro's operating cash flow compare?

Saboo Sodium Chloro's operating cash flow changed from an inflow of Rs 6.86 crore in 2025-26 to an outflow of Rs 16.18 crore in the half year ended September 30, 2026. The comparison is not like-for-like because the cash-flow statement labels the comparative column as the previous full year, whereas the current column ends on September 30, 2026.

The latest cash outcome differed from the profit trend in the corresponding half-year comparison. Profit before tax increased to Rs 3.57 crore for April to September 2026 from Rs 3.19 crore for April to September 2025. The filing identifies balance-sheet movements, rather than a reported pre-tax loss, as the reason operating cash was negative in the latest period.

Cash and cash equivalents fell to Rs 2.60 crore at September 30, 2026, from an opening balance of Rs 15.89 crore. The reported net decrease was Rs 13.29 crore, reflecting the operating outflow, Rs 3 crore of net investing cash inflow and Rs 11.04 lakh of net financing cash used.

Did Saboo Sodium Chloro's half-year revenue and profit increase?

Saboo Sodium Chloro increased revenue from operations to Rs 34.53 crore in the half year ended September 30, 2026 from Rs 32.08 crore in the corresponding 2025 period. Total revenue, including other income, was Rs 34.69 crore compared with Rs 32.08 crore, while profit before tax rose by Rs 37.78 lakh to Rs 3.57 crore.

Salt manufacturing remained the main revenue segment, contributing Rs 33.38 crore in the latest half year compared with Rs 30.89 crore a year earlier. Its segment result before interest and tax rose to Rs 4.95 crore from Rs 3.92 crore. Hotel and resort revenue increased to Rs 1.15 crore from Rs 1.10 crore, but its segment result declined to Rs 19.65 lakh from Rs 55.37 lakh.

Total segment profit before finance cost was Rs 5.15 crore, up from Rs 4.28 crore in the prior corresponding half year. Finance cost increased to Rs 1.58 crore from Rs 1.09 crore, reducing the increase that flowed through to profit before tax. The energy segment reported no revenue or segment result for the latest half year.

What were Saboo Sodium Chloro's investing and financing cash movements?

Saboo Sodium Chloro reported Rs 3 crore of net cash from investing activities in the half year ended September 30, 2026, compared with Rs 2.47 crore used in 2025-26. The investing section records Rs 3 crore from changes in long-term loans and advances, while the comparative column includes Rs 65.08 lakh relating to investments and Rs 1.83 crore relating to capital work in progress.

Financing activities used Rs 11.04 lakh in the latest half year. The statement lists Rs 11.36 crore of borrowings procured, Rs 9.90 crore of borrowings repaid and Rs 1.58 crore of interest paid. The stated financing result therefore reflects borrowing inflows being largely offset by repayments and interest.

The statement of assets and liabilities reported total assets of Rs 88.49 crore at September 30, 2026, compared with Rs 85.77 crore at March 31, 2026. Shareholders' funds were Rs 50.67 crore versus Rs 47.10 crore, while non-current liabilities were Rs 36.02 crore compared with Rs 34.55 crore at the preceding year-end.

Were Saboo Sodium Chloro's September 2026 results audited?

Saboo Sodium Chloro's standalone results for the quarter and half year ended September 30, 2026 were unaudited and subject to limited review. Its audit committee reviewed the results and the board approved them on November 13, 2026.

R. P. Khandelwal & Associates stated that nothing had come to its attention to suggest that the unaudited statement failed to make required disclosures or contained a material misstatement. The reviewer also stated that a limited review provides less assurance than an audit and that it had not performed an audit or expressed an audit opinion.

The results were prepared under Indian Accounting Standard 34, Interim Financial Reporting, according to the limited review report. The filing also states that Saboo Sodium Chloro applies Indian Accounting Standards, known as Ind AS, under the Companies Act, 2013 and the applicable listing regulations.

Conclusion

Saboo Sodium Chloro delivered higher half-year revenue and profit before tax, led by salt manufacturing, but did not convert that profit into operating cash in the period ended September 30, 2026. The Rs 16.18 crore operating outflow principally reflected a Rs 17.14 crore increase in other current assets, a Rs 2.80 crore inventory increase and Rs 2.16 crore of net cash used by specified liability movements.

The filing does not disclose an operating-cash-flow target, a working-capital plan or a date for a further update. The next disclosed financial results will be relevant for changes in other current assets, inventory, cash and cash equivalents, borrowings and finance cost after the September 30, 2026 balances.