Shree Vasu Logistics nearly doubles half-year operating cash flow

Shree Vasu Logistics Limited generated Rs 30.27 crore of net operating cash flow in the half year ended 30 September 2026, compared with Rs 15.64 crore a year earlier. Operating profit before working-capital changes rose to Rs 38.78 crore, while a Rs 12.11 crore increase in trade payables helped offset higher receivables and other financial assets.

How did Shree Vasu Logistics' operating cash flow change?

Shree Vasu Logistics reported Rs 30.27 crore of net cash from operating activities for the half year ended 30 September 2026, up Rs 14.63 crore from Rs 15.64 crore in the half year ended 30 September 2025. Cash generated from operations increased to Rs 33.75 crore from Rs 10.56 crore, while direct taxes paid, net of refunds, declined to Rs 3.48 crore from Rs 3.92 crore.

The company prepared its cash-flow statement using the indirect method under Indian Accounting Standard 7, or Ind AS 7. The standalone half-year results were unaudited, reviewed by the Audit Committee and approved by the board on 4 November 2026; the filing says the statutory auditors issued an unmodified limited-review report.

The Rs 23.19 crore increase in cash generated from operations exceeded the Rs 12.13 crore rise in operating profit before working-capital changes. This indicates that the change in working-capital movements was materially more favourable than in the comparable half year, although receivables and other financial assets continued to consume cash.

What increased operating profit before working-capital changes?

Shree Vasu Logistics increased operating profit before working-capital changes to Rs 38.78 crore from Rs 26.65 crore. The cash-flow reconciliation began with profit before tax from continuing operations of Rs 10.61 crore, compared with Rs 3.91 crore in the previous half year, and then adjusted for non-cash and specified financing items.

Depreciation and amortisation rose to Rs 20.75 crore from Rs 15.80 crore, while finance cost increased to Rs 8.49 crore from Rs 8.12 crore. The 2026 reconciliation also included an Rs 80.94 lakh asset-discard adjustment and an Rs 40.96 lakh provision for gratuity and leave encashment, compared with no asset-discard amount and Rs 15.27 lakh for the provision line a year earlier.

Offsets in the reconciliation included an Rs 95.27 lakh gain on derecognition of a right-of-use asset, Rs 33.17 lakh profit on sale of property, plant and equipment, and Rs 57.12 lakh of interest income. Shree Vasu Logistics also reported Rs 30.22 lakh of employee stock option plan expense, whereas the prior-year cash-flow statement carried a Rs 4.52 lakh negative adjustment on that line.

The earnings statement showed revenue from operations of Rs 144.98 crore for the 2026 half year, up from Rs 105.72 crore. Third-party logistics, or 3PL, revenue rose to Rs 135.39 crore from Rs 97.30 crore, while retail trading revenue increased to Rs 9.59 crore from Rs 8.41 crore.

How much cash did receivables and financial assets absorb?

Shree Vasu Logistics used Rs 8.74 crore of cash through an increase in trade receivables in the half year ended 30 September 2026, compared with Rs 6.67 crore in the prior-year half. Trade receivables rose to Rs 47.46 crore at 30 September 2026 from Rs 38.71 crore at 31 March 2026.

Other financial assets absorbed Rs 8.38 crore of cash, lower than the Rs 12.18 crore outflow recorded a year earlier. Current other financial assets on the balance sheet increased to Rs 15.13 crore at 30 September 2026 from Rs 11.62 crore at 31 March 2026, though the cash-flow statement does not split the movement between current and non-current assets.

Inventories used Rs 79.38 lakh of cash, against Rs 53.97 lakh in the comparable period, and the inventory balance rose to Rs 5.16 crore from Rs 4.37 crore at 31 March 2026. Other assets used Rs 11.27 lakh, a smaller outflow than Rs 5.71 crore a year earlier.

Bank balances other than cash and cash equivalents released Rs 33.80 lakh in the 2026 half year. That was substantially below the Rs 11.83 crore contribution in the prior-year period, reducing one source of offset to the cash absorbed by receivables, inventories and financial assets.

How did trade payables affect Shree Vasu Logistics' cash flow?

Shree Vasu Logistics generated Rs 12.11 crore of cash from the increase in trade payables during the 2026 half year, compared with a Rs 34.64 lakh cash outflow in the previous half year. This was the largest positive working-capital movement and partly offset the Rs 17.12 crore combined outflow from higher trade receivables and other financial assets.

At 30 September 2026, trade payables included Rs 3.88 crore due to micro and small enterprises and Rs 12.45 crore due to other creditors. At 31 March 2026, the respective balances were Rs 7.78 lakh and Rs 4.14 crore, indicating that the rise in the reported payable balance was chiefly in amounts due to creditors other than micro and small enterprises.

Other liabilities provided Rs 1.69 crore of cash in the 2026 half year, down from Rs 5.04 crore a year earlier. Other financial liabilities used Rs 18.52 lakh, compared with a Rs 1.64 crore inflow in the prior period, while provisions had no reported working-capital movement after a Rs 15.27 lakh outflow in the 2025 half year.

What happened to investing, financing and closing cash?

Shree Vasu Logistics used Rs 17.11 crore in investing activities in the half year ended 30 September 2026, compared with Rs 20.35 crore in the corresponding 2025 period. Purchases of property, plant and equipment, intangible assets and capital work-in-progress, net of capital creditors, were Rs 21.72 crore, up from Rs 12.01 crore.

Loans and advances provided Rs 3.80 crore in the 2026 half year after using Rs 9.05 crore a year earlier. Interest income added Rs 57.12 lakh and the increase in capital creditors added Rs 14.10 lakh, compared with Rs 27.11 lakh and Rs 1.41 crore, respectively, in the previous period.

Financing activities used Rs 12.89 crore, against a Rs 4.78 crore inflow a year earlier. Principal and interest payments on lease liabilities were Rs 18.15 crore, compared with Rs 12.67 crore, while long-term borrowings provided Rs 3.83 crore and short-term borrowings provided Rs 5.59 crore.

The combined operating, investing and financing movements produced a Rs 27.31 lakh increase in cash and cash equivalents. The closing balance was Rs 1.14 crore at 30 September 2026, up from Rs 86.39 lakh at the start of the year, comprising Rs 17.84 lakh of cash in hand, Rs 81.61 lakh in current accounts and Rs 14.25 lakh in deposit accounts.

Conclusion

Shree Vasu Logistics produced Rs 30.27 crore of operating cash flow in the September 2026 half year, nearly twice the previous year's Rs 15.64 crore. Higher operating profit and the Rs 12.11 crore cash contribution from trade payables outweighed the cash absorbed by increased receivables, financial assets and inventories.

The next reported results will show whether trade receivables of Rs 47.46 crore, current other financial assets of Rs 15.13 crore and the elevated payable balance continue to determine cash conversion. The filing does not disclose a collection target or cash-flow guidance, while capital expenditure of Rs 21.72 crore and lease-related payments of Rs 18.15 crore remain relevant cash-flow items to monitor.