Shri Jagdamba reports Rs 49.822 crore H1 cash outflow

Shri Jagdamba Polymers Limited reported a Rs 49.822 crore net cash outflow from operating activities for the half year ended September 30, 2026, despite consolidated net profit after tax of Rs 42.1441 crore. The principal disclosed cash use was a Rs 91.2913 crore increase in trade receivables, alongside higher inventories and other current assets.

Why did Shri Jagdamba report an operating cash outflow despite profit?

Shri Jagdamba reported an operating cash outflow because working-capital movements exceeded cash generated before those changes. Profit before tax was Rs 56.5398 crore for the half year ended September 30, 2026, while operating profit before working-capital changes was Rs 68.0047 crore after adjustments including Rs 7.3815 crore of depreciation and amortisation and Rs 5.038 crore of finance costs.

Interest income of Rs 0.8959 crore and a Rs 0.0587 crore gain on sale of property, plant and equipment reduced the non-cash and financing adjustments. Working-capital and other operating movements then took Rs 106.8116 crore of cash, leaving cash generated from operations negative at Rs 38.8069 crore. Direct taxes paid of Rs 11.0151 crore took net cash used in operating activities to Rs 49.822 crore.

The filing therefore shows a difference between accounting profit and cash collection during April to September 2026. Shri Jagdamba prepared the unaudited consolidated results under Indian Accounting Standard 34, or Ind AS 34, covering the company and subsidiary Global Polyweave Private Limited. The statutory auditor issued a limited-review conclusion dated November 7, 2026, stating that nothing had come to its attention to suggest the consolidated statement did not meet applicable disclosure requirements.

How much did Shri Jagdamba's trade receivables increase?

Shri Jagdamba recorded a Rs 91.2913 crore cash outflow from an increase in trade receivables in the half-year cash-flow statement. This was the largest individual operating cash use disclosed and was greater than the Rs 68.0047 crore operating profit before working-capital changes. In the cash-flow statement column dated March 31, 2026, trade receivables had instead provided Rs 14.3975 crore of cash.

The consolidated balance sheet reported trade receivables of Rs 208.4188 crore at September 30, 2026, compared with Rs 119.9462 crore at March 31, 2026. That balance-sheet increase was Rs 88.4726 crore, while the cash-flow statement records Rs 91.2913 crore. The filing does not provide a reconciliation between the two reported movements.

Inventories absorbed Rs 15.524 crore of cash, other current assets used Rs 10.6159 crore, and non-current assets used Rs 4.6158 crore. These uses were partly offset by a Rs 5.0792 crore increase in trade payables, an Rs 8.3311 crore increase in provisions and a Rs 0.9883 crore increase in other financial liabilities.

What were Shri Jagdamba's half-year profit and income figures?

Shri Jagdamba reported consolidated net profit after tax of Rs 42.1441 crore for the half year ended September 30, 2026, compared with Rs 19.7473 crore in the corresponding half year ended September 30, 2025. Profit before tax rose to Rs 56.5397 crore from Rs 28.5593 crore, while tax expense increased to Rs 14.3956 crore from Rs 8.812 crore.

Total income increased to Rs 398.0715 crore from Rs 254.8638 crore in the prior-year half year. Manufactured-goods income was Rs 384.6777 crore, traded-goods income was Rs 10.4728 crore and other income was Rs 3.131 crore. Total expenses rose to Rs 341.5318 crore from Rs 229.1627 crore, producing the higher pre-tax profit while operating cash flow moved into an outflow.

The consolidated results include Global Polyweave Private Limited. The auditor’s report states that, before consolidation adjustments, the subsidiary had total assets of Rs 138.8437 crore at September 30, 2026. It reported year-to-date revenue of Rs 15.343 crore and net profit after tax of Rs 1.0518 crore for the period ended on that date.

How did Shri Jagdamba fund its cash requirements?

Shri Jagdamba generated Rs 21.6518 crore from financing activities in the half year, primarily through Rs 27.5656 crore of net proceeds from borrowings. Interest paid was Rs 5.038 crore and dividend and related tax paid were Rs 0.8758 crore. The financing inflow partly offset the operating cash outflow but did not cover it in full.

Investing activities generated Rs 7.2318 crore, including a Rs 6.1683 crore decrease in investments and Rs 0.8959 crore of interest income. Property, plant and equipment generated Rs 0.1677 crore in the cash-flow statement. In the column dated March 31, 2026, investing activities had used Rs 76.1909 crore, compared with the latest half-year inflow.

Cash and cash equivalents fell by Rs 20.9384 crore to Rs 10.6215 crore at September 30, 2026 from an opening balance of Rs 31.5599 crore. Current borrowings rose to Rs 56.7652 crore from Rs 51.075 crore at March 31, 2026, while non-current borrowings increased to Rs 52.0358 crore from Rs 41.7403 crore. Total equity increased to Rs 370.3237 crore from Rs 329.0554 crore over the same dates.

Conclusion

Shri Jagdamba’s half-year figures show that earnings and operating cash flow moved in different directions through September 30, 2026. Net profit after tax was Rs 42.1441 crore and total income was Rs 398.0715 crore, but receivables, inventories and other current assets consumed sufficient cash to produce a Rs 49.822 crore operating outflow.

The next point to watch is whether the Rs 208.4188 crore receivables balance and Rs 60.7784 crore inventory balance decline after September 30, 2026, which would affect future working-capital cash flows. The filing also leaves investors to monitor borrowings, which included Rs 27.5656 crore of net financing proceeds during the half year and stood at Rs 108.801 crore across current and non-current categories at period end.