Saraswati Saree Depot Ltd payables double as inventory rises

Saraswati Saree Depot Ltd ended September 30, 2026 with trade payables of Rs 188.55 crore, more than twice the Rs 92.86 crore reported at March 31, while inventory increased Rs 60.81 crore to Rs 181.50 crore in the six-month period. The company reported Rs 30.47 crore of net operating cash flow despite the inventory and receivables build.

How much did Saraswati Saree Depot's inventory increase?

Saraswati Saree Depot's inventory increased by Rs 60.81 crore during the six months ended September 30, 2026, reaching Rs 181.50 crore from Rs 120.69 crore at March 31, 2026. Its cash-flow statement records this movement as a working-capital outflow, while the unaudited balance sheet provides the two period-end balances.

The stock increase occurred as revenue from operations declined year on year. Revenue was Rs 290.98 crore for the half year ended September 30, 2026, compared with Rs 353.16 crore in the corresponding six months of 2025, a reduction of Rs 62.18 crore. The filing identifies apparel as Saraswati Saree Depot's only reportable operating segment under Indian Accounting Standard 108.

The September inventory balance was about one-half higher than the regrouped March balance. The filing does not state whether this reflected a seasonal purchasing decision, changes in product mix, or a change in stock turnover. It establishes only that the Rs 60.81 crore increase absorbed cash in the operating cash-flow reconciliation.

How did Saraswati Saree Depot fund the working-capital build?

Saraswati Saree Depot funded much of the reported inventory and receivables increase alongside a Rs 95.69 crore rise in trade payables. Trade payables reached Rs 188.55 crore at September 30, 2026 from Rs 92.86 crore at March 31, exceeding the Rs 60.81 crore inventory increase by Rs 34.88 crore.

The cash-flow statement shows a Rs 26.50 crore net contribution from working-capital changes in the half year. Inventory and trade receivables were cash uses, but the Rs 95.69 crore payable movement was a larger identified source of cash. The statement also records movements in other current assets, other financial liabilities, other current liabilities and provisions within the working-capital calculation.

Current liabilities rose by Rs 101.89 crore to Rs 204.80 crore at September 30, broadly matching the Rs 104.71 crore increase in current assets. Trade payables were the dominant current-liability item, while other financial liabilities stood at Rs 12.68 crore, advances from customers at Rs 1.79 crore, other current liabilities at Rs 0.27 crore, provisions at Rs 0.14 crore and current tax liabilities at Rs 1.16 crore.

The company does not give a commercial explanation for the increase in supplier payables. It reports the balance-sheet movement and records the associated cash-flow impact, but does not disclose payment terms, supplier concentration or the timing of payments after September 30, 2026.

What happened to Saraswati Saree Depot's receivables and liquid balances?

Saraswati Saree Depot's trade receivables increased by Rs 12.48 crore to Rs 91.90 crore at September 30, 2026, from Rs 79.42 crore at March 31. The increase was considerably smaller than the Rs 60.81 crore inventory build, but it was also recorded as a working-capital use in the cash-flow statement.

Cash and cash equivalents rose by Rs 18.73 crore to Rs 88.66 crore over the six months. Other bank balances were Rs 11.90 crore at September 30, compared with Rs 0.02 crore at March 31, while other current assets rose to Rs 11.65 crore from Rs 11.02 crore. These balances, together with inventory and receivables, lifted total current assets to Rs 387.63 crore.

The March 31 comparative amounts require care because Saraswati Saree Depot regrouped debtor and creditor balances to present gross figures under Indian Accounting Standard 109. It recast March trade receivables to Rs 79.42 crore from Rs 72.42 crore and trade payables to Rs 92.86 crore from Rs 87.85 crore. The six-month comparison in the table therefore uses the restated gross March balances disclosed by the company.

Total assets increased to Rs 402.55 crore at September 30 from Rs 298.95 crore at March 31. Non-current assets declined to Rs 14.92 crore from Rs 16.03 crore, indicating that the reported asset increase was concentrated in current assets rather than property, investments or other longer-term balances.

What does Saraswati Saree Depot's operating cash flow show?

Saraswati Saree Depot generated Rs 30.47 crore of net cash from operating activities in the six months ended September 30, 2026. Operating profit before working-capital changes was Rs 7.27 crore, and the cash-flow statement shows Rs 26.50 crore generated from changes in working capital before direct taxes of Rs 3.30 crore.

The reported sequence shows cash generated from operations of Rs 33.77 crore before direct taxes, followed by the Rs 3.30 crore tax payment and net operating cash flow of Rs 30.47 crore. This means the payable increase was material to the period's operating cash result, as inventory and receivables together rose by Rs 73.29 crore.

Saraswati Saree Depot reported net cash from investing activities of Rs 0.62 crore and a net increase in cash and cash equivalents of Rs 18.73 crore. The supplied cash-flow table does not present legible numerical values for each financing-activity line, so it does not establish from those lines the respective effect of dividends, borrowings, lease repayments or interest on the closing cash movement.

Profit before tax was Rs 18.72 crore for the half year, compared with Rs 25.84 crore in the corresponding period of 2025. Profit for the period was Rs 13.99 crore against Rs 16.86 crore a year earlier. These earnings figures are separate from cash flow, but provide the reported profit context for the working-capital movements.

Conclusion

Saraswati Saree Depot's September 2026 balance sheet shows a substantial expansion in working-capital balances: inventory rose Rs 60.81 crore, receivables rose Rs 12.48 crore and trade payables rose Rs 95.69 crore. The larger payable movement helped produce Rs 30.47 crore of operating cash flow even as half-year revenue declined Rs 62.18 crore from the prior-year period.

The next reported item to watch is the interim dividend of Rs 3 per Rs 10 equity share, declared at the September 24, 2026 board meeting. Subsequent financial results will show whether inventory, receivables and payables move lower, remain elevated, or change further after the September 30 reporting date.