Sarveshwar Foods H1 total income rises 12% to Rs 717.68 crore

Sarveshwar Foods Limited reported consolidated total income of Rs 717.68 crore for the half-year ended September 30, 2026, up 12.5% from Rs 637.85 crore a year earlier, while profit for the period increased 8.9% to Rs 16.61 crore. Sarveshwar Foods also reported negative operating cash flow of Rs 23.57 crore.

How did Sarveshwar Foods perform in H1 2026?

Sarveshwar Foods increased revenue from operations to Rs 714.13 crore in H1 ended September 30, 2026, from Rs 636.21 crore in H1 ended September 30, 2025. Other income rose to Rs 3.55 crore from Rs 1.64 crore, taking total income to Rs 717.68 crore from Rs 637.85 crore. The increase in total income was Rs 79.83 crore year on year.

Profit before tax rose to Rs 21.92 crore from Rs 20.23 crore, while profit for the period increased to Rs 16.61 crore from Rs 15.25 crore. Total comprehensive income was Rs 16.66 crore, compared with Rs 16.35 crore in the prior-year half. Basic and diluted earnings per share, both non-annualised, were Rs 0.13 against Rs 0.12.

Sarveshwar Foods’ consolidated results include five subsidiaries: Sarveshwar Overseas Limited, Himalayan Bio Organic Foods Limited, Green Point PTE Ltd., Natural Global Foods DMCC and Himalayan Ancient Foods Private Limited. The auditor said results for three subsidiaries were based on management-reviewed financial statements; Green Point PTE Ltd. reported revenue of Rs 47.93 crore, Natural Global Foods DMCC reported Rs 18.86 crore and Himalayan Ancient Foods Private Limited reported Rs 0.13 crore for the period.

Which costs changed for Sarveshwar Foods in H1?

Sarveshwar Foods’ total expenses rose to Rs 695.77 crore in H1 2026 from Rs 617.62 crore a year earlier, an increase of Rs 78.15 crore. Cost of materials consumed increased to Rs 184.31 crore from Rs 145.57 crore, while purchases of stock-in-trade rose to Rs 427.31 crore from Rs 380.77 crore. The company identifies processing and trading of rice as its sole business segment under Indian Accounting Standard 108.

Finance costs declined to Rs 13.12 crore from Rs 14.98 crore despite the higher expense base. Changes in inventories of finished goods, work-in-progress and stock-in-trade were Rs 48.42 crore, compared with Rs 57.69 crore, while employee-benefit expenses increased to Rs 4.86 crore from Rs 3.37 crore. Other expenses rose to Rs 16.95 crore from Rs 14.66 crore.

Sarveshwar Foods recorded revenue from operations of Rs 356.10 crore in the quarter ended September 30, 2026, compared with Rs 358.03 crore in the preceding quarter ended June 30, 2026. Quarterly profit for the period was Rs 8.39 crore, up from Rs 8.22 crore in the June quarter. Therefore, revenue declined by Rs 1.92 crore sequentially while profit increased by Rs 0.17 crore.

Why did Sarveshwar Foods report negative operating cash flow?

Sarveshwar Foods reported net cash used in operating activities of Rs 23.57 crore for H1 2026, compared with net operating cash generated of Rs 7.32 crore in H1 2025. Cash generated from operations was negative Rs 21.17 crore before income tax payments of Rs 2.40 crore. This differed from the Rs 21.92 crore profit before tax reported for the same half-year.

The cash-flow statement records substantial working-capital movements during H1 2026, including a Rs 82.55 crore increase in trade receivables and a Rs 63.35 crore increase in other current assets. These were partly offset by a Rs 30.99 crore reduction in inventory and a Rs 37.81 crore increase in trade payables. The statement reported a Rs 3.10 crore cash inflow from inventory, compared with an Rs 57.69 crore cash inflow in H1 2025.

Investing activities used Rs 3.11 crore in H1 2026, whereas they generated Rs 12.90 crore in the prior-year half. Sarveshwar Foods spent Rs 0.92 crore on property, plant and equipment and recorded a Rs 3.91 crore movement in fixed deposits. Financing activities generated Rs 26.77 crore, including Rs 40.66 crore of net proceeds from borrowings and Rs 13.12 crore of finance costs paid.

What changed in Sarveshwar Foods’ balance sheet?

Sarveshwar Foods’ total assets increased to Rs 1,242.57 crore at September 30, 2026, from Rs 1,088.80 crore at March 31, 2026. Current assets were Rs 1,229.03 crore, comprising inventory of Rs 513.77 crore, trade receivables of Rs 416.89 crore and other current assets of Rs 284.46 crore. Cash and cash equivalents on the balance sheet were Rs 9.07 crore, up from Rs 5.06 crore at the March year-end.

Trade receivables rose by Rs 80.55 crore from Rs 336.34 crore at March 31, 2026, while other current assets increased by Rs 97.71 crore from Rs 186.75 crore. Inventory moved in the opposite direction, declining by Rs 30.99 crore from Rs 544.76 crore. These asset movements occurred in the same half-year in which operating cash flow was negative Rs 23.57 crore.

Total equity increased to Rs 493.41 crore at September 30 from Rs 477.53 crore at March 31. Long-term borrowings increased to Rs 47.46 crore from Rs 4.85 crore, and short-term borrowings rose to Rs 255.99 crore from Rs 245.75 crore. Current liabilities reached Rs 699.13 crore, compared with Rs 604.26 crore, including Rs 359.91 crore of trade payables to entities other than micro and small enterprises.

What is Sarveshwar Foods planning in logistics and warehousing?

Sarveshwar Foods is evaluating alternatives to strengthen logistics and warehousing capabilities for its proposed growth in branded exports, organic products, business-to-business distribution and agricultural initiatives with state governments. The company said the evaluation was preliminary as of November 13, 2026, and that no final decision had been taken. No financial impact from the evaluation has been recognised in the September 2026 results.

Management said Sarveshwar Foods may establish a dedicated logistics and warehousing business covering domestic and international operations, potentially including third-party services. The stated aims are to improve operational efficiency, optimise logistics costs and achieve economies of scale. The company may constitute a committee to examine operating, financial, legal, tax and regulatory implications and submit recommendations to the board within 60 days of its formation.

Conclusion

Sarveshwar Foods delivered higher H1 income and profit in the half-year ended September 30, 2026, as revenue from operations rose to Rs 714.13 crore and profit for the period reached Rs 16.61 crore. However, cash conversion changed materially from the prior year, with operating cash flow moving from a Rs 7.32 crore inflow to a Rs 23.57 crore outflow alongside higher receivables and other current assets.

The next disclosed development to watch is whether Sarveshwar Foods forms the proposed committee and completes its logistics and warehousing assessment within the indicated 60-day period. Subsequent results will also show whether trade receivables of Rs 416.89 crore and other current assets of Rs 284.46 crore change after the September 2026 half-year.