Safari receivables leave half-year operating cash at Rs 1.58 crore

Safari Industries (India) Limited reported consolidated net operating cash flow of Rs 1.58 crore for the six months ended 30 September 2026, after a Rs 148.89 crore increase in trade receivables absorbed cash. The group reported consolidated profit for the period of Rs 84.68 crore, while operating cash flow was down from Rs 61.64 crore a year earlier.

Why did Safari's operating cash flow fall in the six months to September 2026?

Safari's net cash generated from operating activities fell to Rs 1.58 crore in the six months ended 30 September 2026 from Rs 61.64 crore in the corresponding six months a year earlier. The largest listed working-capital cash use was the Rs 148.89 crore increase in trade receivables, although this was lower than the Rs 164.81 crore increase recorded in the prior-year period.

Consolidated operating profit before working-capital changes was Rs 139.38 crore, down from Rs 156.81 crore in the six months ended 30 September 2025. Working-capital movements reduced this amount to cash generated from operations of Rs 27.68 crore, compared with Rs 90.38 crore a year earlier, before net income-tax payments of Rs 26.10 crore reduced operating cash flow to Rs 1.58 crore.

How did Safari's receivables and working capital change?

Safari's consolidated trade receivables rose to Rs 409.94 crore at 30 September 2026 from Rs 261.11 crore at 31 March 2026. The balance-sheet increase was Rs 148.83 crore, while the cash-flow statement reported a Rs 148.89 crore increase in trade receivables during the six-month period.

Other working-capital movements also reduced cash generation. Consolidated inventories increased by Rs 6.73 crore in the six months ended 30 September 2026, compared with a Rs 44.74 crore decrease in the prior-year period, while other financial assets increased by Rs 26.42 crore against a Rs 0.90 crore increase a year earlier.

Those cash uses were partly offset by a Rs 74.01 crore increase in trade payables, compared with a Rs 35.41 crore increase in the six months ended 30 September 2025. The filing does not disclose the cause of the receivables increase, customer categories or receivables ageing, and it recorded Rs 0.06 crore of allowance for expected credit loss in the consolidated cash-flow reconciliation.

Did Safari's revenue and profit rise with operating cash flow?

Safari's consolidated revenue from operations increased to Rs 1,170.80 crore in the six months ended 30 September 2026 from Rs 1,061.38 crore a year earlier, while profit for the period declined to Rs 84.68 crore from Rs 97.43 crore. Revenue therefore rose by Rs 109.42 crore, but reported profit was Rs 12.75 crore lower and operating cash flow was Rs 60.06 crore lower.

Consolidated profit before tax declined to Rs 106.72 crore from Rs 125.57 crore as total expenses rose to Rs 1,078.51 crore from Rs 947.36 crore. Cost of materials consumed increased to Rs 446.97 crore from Rs 328.23 crore, other expenses rose to Rs 305.50 crore from Rs 272.57 crore, and purchases of stock-in-trade increased to Rs 203.20 crore from Rs 193.02 crore.

What changed in Safari's September 2026 balance sheet?

Safari reported consolidated current assets of Rs 1,057.01 crore at 30 September 2026, up from Rs 904.88 crore at 31 March 2026. Trade receivables accounted for Rs 409.94 crore of current assets, while inventories were Rs 336.79 crore and bank balances other than cash and cash equivalents were Rs 262.46 crore.

Cash and cash equivalents declined to Rs 2.52 crore at 30 September 2026 from Rs 8.49 crore at 31 March 2026, in line with the Rs 5.97 crore net decrease in cash shown in the consolidated cash-flow statement. The group also reported Rs 37.17 crore of current borrowings at the September-end, while financing activities generated Rs 7.67 crore during the six months.

Consolidated dues to micro and small enterprises rose to Rs 114.35 crore at 30 September 2026 from Rs 51.99 crore at 31 March 2026. Trade payables to creditors other than micro and small enterprises were Rs 127.17 crore, compared with Rs 116.56 crore six months earlier.

What should readers watch after Safari's September 2026 results?

Safari's subsequent disclosures can show whether the Rs 409.94 crore receivables balance declines, remains elevated or rises further after 30 September 2026. The half-year results show Rs 1,170.80 crore of consolidated revenue from operations and Rs 1.58 crore of net operating cash flow after tax payments.

Safari disclosed a manufacturing expansion through wholly owned subsidiary Safari Manufacturing Limited. The subsidiary has existing capacity of 10 lakh pieces a month at 100% utilisation and plans to add 6 lakh pieces a month by June 2028, with investment of up to Rs 60 crore funded through internal accruals.

The board declared an interim dividend of Rs 2 per equity share of face value Rs 2 at its meeting on 5 November 2026. The results also state that Safari operates in a single luggage-business segment, so the filing does not provide segment-level receivables or cash-flow data.

Conclusion

Safari's half-year statements show that the increase in receivables absorbed much of the cash generated by operations. Consolidated profit was Rs 84.68 crore and revenue from operations was Rs 1,170.80 crore, but a Rs 148.89 crore trade-receivables increase and other working-capital movements left net operating cash flow at Rs 1.58 crore.

The disclosed item to watch next is Safari Manufacturing Limited's planned 6 lakh pieces-a-month capacity addition, targeted for completion by June 2028 and requiring investment of up to Rs 60 crore from internal accruals. Future filings can show changes in receivables, inventories, trade payables, cash balances and funding as that plan progresses.