SPL Industries posts Rs 4.54 crore first-half cash outflow

SPL Industries Limited recorded a Rs 4.54 crore net cash outflow from operating activities in the half year ended 30 September 2026, compared with a Rs 20.84 crore inflow a year earlier. SPL Industries reported Rs 1.11 crore net profit after tax, but a Rs 9.73 crore reduction in trade payables and cash-flow adjustments reversed operating cash generation.

Why did SPL Industries report an operating cash outflow?

SPL Industries reported an operating cash outflow because its profit before working-capital changes was a Rs 2.33 crore deficit in the half year ended 30 September 2026, compared with a Rs 70.70 lakh surplus in the corresponding 2025 half. Profit before tax increased to Rs 2.80 crore from Rs 1.17 crore, but the cash-flow reconciliation reduced that accounting profit before working-capital movements.

Interest income of Rs 5.16 crore, rental income of Rs 1.42 crore and appreciation and income from mutual fund investments of Rs 1.65 crore were deducted in that reconciliation. These deductions were partly offset by Rs 1.73 crore of depreciation and amortisation, Rs 1.33 crore of finance costs and Rs 16.44 lakh of provision for gratuity and leave encashment. SPL Industries also recorded Rs 13.72 lakh of gratuity payments.

SPL Industries paid Rs 13.16 lakh in income tax net of refunds in the 2026 half, nearly unchanged from Rs 13.04 lakh a year earlier. Cash generated from operations consequently moved to a Rs 4.67 crore deficit from a Rs 20.97 crore inflow, before the tax payment took net cash from operating activities to Rs 4.54 crore outflow.

Which working-capital movements affected SPL Industries' cash flow?

SPL Industries' principal working-capital cash use was a Rs 9.73 crore decrease in trade payables during the half year ended 30 September 2026. Lower trade receivables released Rs 7.81 crore of cash, but this was insufficient to offset the payables movement. Inventories used Rs 53.60 lakh, while other current assets used Rs 15.34 lakh.

Other current liabilities added Rs 27.14 lakh of cash in the 2026 half, compared with a Rs 5.54 lakh use in the corresponding prior-year half. The filing therefore shows that the reported outflow was not caused by receivable growth: receivables fell. Rather, the decline in trade payables, together with the pre-working-capital deficit, resulted in a Rs 4.67 crore operating cash deficit before tax.

The year-on-year comparison shows a smaller cash release from trade receivables, at Rs 7.81 crore against Rs 16.17 crore, alongside the larger payment-related movement in trade payables. In the 2025 half, inventories added Rs 23.70 lakh and other current assets added Rs 4.23 crore, whereas both categories used cash in the 2026 half. Those changes explain the shift in cash generated from operations.

How did SPL Industries' balance sheet reflect the cash movements?

SPL Industries' current trade receivables fell to Rs 8.46 crore at 30 September 2026 from Rs 16.27 crore at 31 March 2026. That Rs 7.81 crore reduction corresponds with the cash-flow statement's receivables movement. Inventories increased to Rs 1.66 crore from Rs 1.13 crore over the same dates, consistent with the Rs 53.60 lakh operating-cash use reported for inventories.

Trade payables to creditors other than micro and small enterprises decreased to Rs 2.83 crore at 30 September 2026 from Rs 12.56 crore at 31 March 2026. The balance-sheet change is broadly consistent with the Rs 9.73 crore cash outflow from trade payables reported in the cash-flow statement. Other current liabilities increased to Rs 4.76 crore from Rs 4.49 crore, while total current liabilities fell to Rs 7.98 crore from Rs 17.45 crore.

SPL Industries ended the period with Rs 77.74 lakh of cash and cash equivalents, down from Rs 1.19 crore at 31 March 2026. Current investments rose to Rs 72.16 crore from Rs 68.78 crore, and bank balances not classified as cash equivalents increased to Rs 9.64 crore from Rs 9.29 crore. The filing separately classifies these investment and bank balances from cash and cash equivalents.

Did SPL Industries' profit and revenue rise despite negative cash flow?

SPL Industries reported Rs 1.11 crore of net profit after tax for the half year ended 30 September 2026, up from Rs 71.46 lakh in the prior-year half. Profit before tax increased to Rs 3.04 crore from Rs 1.17 crore, while total income increased to Rs 43.30 crore from Rs 38.46 crore. The difference between profit and operating cash flow reflects the adjustment items and working-capital movements recorded in the cash-flow statement.

Trading of garments reported Rs 27.25 crore of segment revenue including other income, compared with Rs 22.29 crore a year earlier. Manufacturing and processing income was Rs 16.04 crore, marginally below Rs 16.16 crore in the prior-year half. Segment results from manufacturing of garments rose to Rs 3.34 crore from Rs 1.81 crore, while trading of garments rose to Rs 6.45 crore from Rs 4.72 crore.

SPL Industries' finance cost in the standalone results was Rs 1.71 crore in the 2026 half, compared with Rs 33.98 lakh in the corresponding 2025 period. Employee cost was Rs 5.04 crore, compared with Rs 5.03 crore. The unaudited standalone results were reviewed by statutory auditors and approved by the board on 13 November 2026.

What other cash flows changed SPL Industries' cash balance?

SPL Industries generated Rs 4.13 crore from investing activities in the half year ended 30 September 2026, compared with Rs 18.77 crore used in investing activities in the prior-year half. The 2026 investing inflow included Rs 5.16 crore of interest income, Rs 1.42 crore of rental income and Rs 1.65 crore of income from mutual fund investments.

Investing outflows included Rs 1.74 crore invested in mutual funds and Rs 1.33 crore paid as premium on the purchase of debentures. Purchases of property, plant and equipment and work-in-progress were Rs 28.74 lakh, against Rs 2.26 crore a year earlier. Other financial assets used Rs 38.53 lakh, while bank balances not treated as cash equivalents used Rs 35.83 lakh.

Financing activities used Rs 3,000 in the 2026 half, recorded as interest paid, compared with Rs 1.36 lakh used a year earlier. Combining the Rs 4.54 crore operating outflow, Rs 4.13 crore investing inflow and Rs 3,000 financing outflow produced a Rs 41.56 lakh decline in cash and cash equivalents. In the corresponding 2025 half, cash and cash equivalents increased by Rs 2.05 crore to Rs 3.09 crore.

Conclusion

SPL Industries' first-half cash flow diverged from its profit result. Total income increased to Rs 43.30 crore and net profit after tax rose to Rs 1.11 crore, but operating activities used Rs 4.54 crore of cash after a Rs 9.73 crore trade-payables movement and a Rs 2.33 crore deficit before working-capital changes.

The next results will show whether trade-payable reductions continue and whether receivables, which released Rs 7.81 crore in the first half, remain a source of cash. SPL Industries disclosed no operating-cash target, cash-flow plan or scheduled cash-flow event in its 13 November 2026 filing.