S.P. Apparels operating cash reaches Rs 52.971 crore in first half

S.P. Apparels Limited generated Rs 52.971 crore of consolidated operating cash in the six months ended September 30, 2026, after inventory and trade receivables absorbed Rs 125.142 crore despite profit before tax of Rs 85.144 crore. The cash-flow statement shows that working-capital movements reduced the conversion of reported first-half earnings into cash.

How much operating cash did S.P. Apparels generate?

S.P. Apparels generated net cash from operating activities of Rs 52.971 crore in the period ended September 30, 2026. Cash generated from operations was Rs 73.782 crore before net income tax paid of Rs 20.808 crore, according to the unaudited consolidated cash-flow statement.

Operating profit before working-capital changes was Rs 124.024 crore, compared with pre-tax profit of Rs 85.144 crore. Depreciation and amortisation added Rs 26.761 crore, finance costs added Rs 20.959 crore and interest income reduced the calculation by Rs 6.453 crore.

The Rs 52.971 crore operating cash figure is lower than Rs 208.685 crore reported for the year ended March 31, 2026, although the two periods are of different lengths. The September 2026 statement covers six months, while the March 2026 figure covers a full financial year.

Why did working capital use S.P. Apparels cash?

S.P. Apparels used Rs 125.142 crore of cash through inventory and trade-receivable movements in the six months ended September 30, 2026. Inventory absorbed Rs 56.668 crore and trade receivables absorbed Rs 68.474 crore, together slightly exceeding the Rs 124.024 crore operating profit before working-capital changes.

Other working-capital lines partly offset the two outflows. Loans, advances and current assets released Rs 3.448 crore, while trade payables, other current liabilities and provisions provided Rs 71.451 crore, leaving Rs 73.782 crore of cash generated from operations before tax.

The receivables movement differed from the year ended March 31, 2026, when receivables used Rs 0.129 crore of cash. Inventory also changed direction: it released Rs 60.386 crore in the full year ended March 2026 but absorbed Rs 56.668 crore in the six months ended September 2026.

How did S.P. Apparels inventory and receivables change?

S.P. Apparels reported inventories of Rs 371.100 crore at September 30, 2026, up Rs 60.768 crore from Rs 310.332 crore at March 31, 2026. Trade receivables rose Rs 68.405 crore to Rs 321.549 crore over the same six-month balance-sheet period.

The balance-sheet movements and cash-flow movements are not identical, but both show higher funds held in inventories and receivables at September 30. Total current assets increased Rs 164.942 crore to Rs 893.344 crore, from Rs 728.402 crore at March 31.

Cash and cash equivalents increased Rs 7.760 crore to Rs 61.491 crore at September 30, 2026, while current investments rose Rs 7.262 crore to Rs 21.000 crore. Bank balances other than cash equivalents also increased to Rs 7.945 crore from Rs 5.164 crore.

Did S.P. Apparels first-half profit increase?

S.P. Apparels increased consolidated profit before tax to Rs 85.140 crore in the six months ended September 30, 2026, from Rs 77.580 crore in the corresponding 2025 period. Net profit after tax rose to Rs 61.928 crore from Rs 55.359 crore, while revenue from operations increased to Rs 853.294 crore from Rs 830.782 crore.

The September 2026 quarter produced revenue from operations of Rs 452.218 crore, compared with Rs 427.343 crore a year earlier and Rs 401.076 crore in the June 2026 quarter. Quarterly profit before tax was Rs 49.292 crore, above Rs 46.808 crore in September 2025 and Rs 35.849 crore in June 2026.

S.P. Apparels reports textile business as its only reportable operating segment under Indian Accounting Standard 108. During the September quarter, its Sri Lanka subsidiary acquired Ritz Clothing Yapahuwa (Private) Limited through the purchase of 2,100,004 equity shares at LKR 10 each.

How did S.P. Apparels fund investing and financing flows?

S.P. Apparels used Rs 20.887 crore in investing activities and Rs 25.416 crore in financing activities in the six months ended September 30, 2026. Capital expenditure on property, plant and equipment, including capital advances, accounted for Rs 17.424 crore of the investing outflow.

The combined cash flows resulted in a Rs 6.668 crore increase in cash and cash equivalents before a Rs 0.001 crore exchange-restatement effect. Long-term borrowings increased to Rs 77.812 crore from Rs 49.292 crore, while current borrowings rose to Rs 355.116 crore from Rs 350.027 crore at March 31, 2026.

Conclusion

S.P. Apparels reported higher first-half revenue and profit, but the increase in inventory and trade receivables absorbed Rs 125.142 crore of cash. The Rs 71.451 crore contribution from operating liabilities and Rs 3.448 crore release from loans, advances and current assets only partly countered that working-capital use.

The filing provides no working-capital target or timetable for reducing inventories of Rs 371.100 crore or receivables of Rs 321.549 crore. The unresolved issue for the next reported period is whether these balances stabilise or increase further, and how that affects operating cash flow.