Srivari Spices reports Rs 5.74 crore operating cash outflow

Srivari Spices and Foods Limited reported Rs 5.74 crore of net cash used in operating activities in the half year ended 30 September 2026, as a Rs 35.79 crore increase in inventory and trade receivables exceeded its Rs 20.30 crore operating profit before working-capital changes. Srivari Spices funded the combined operating and investing outflows with Rs 7.13 crore of financing inflow.

How did working capital cause Srivari Spices' operating cash outflow?

Srivari Spices recorded the Rs 5.74 crore operating cash outflow because inventory and trade receivables together absorbed Rs 35.79 crore during the half year ended 30 September 2026. Inventory increased by Rs 17.06 crore and trade receivables increased by Rs 18.73 crore, against operating profit before working-capital changes of Rs 20.30 crore.

An increase of Rs 9.41 crore in trade payables and other liabilities partly offset the cash absorbed by inventory and receivables. A Rs 24.78 lakh reduction in loans, advances and other assets and a Rs 9.69 lakh increase in provisions also added cash. These movements left cash generated from operations at negative Rs 5.74 crore before income taxes.

Srivari Spices paid Rs 12,000 of income taxes, net of refunds, in the half year, taking net operating cash flow from negative Rs 5.74 crore before tax to negative Rs 5.74 crore after tax when presented in crore. The cash-flow statement was prepared using the indirect method under Accounting Standard 3, Cash Flow Statements.

The underlying profit calculation included Rs 1.51 crore of depreciation and amortisation and Rs 2.16 crore of finance costs, both added back in arriving at operating profit before working-capital changes. The filing therefore separates accounting profit adjustments from the Rs 35.79 crore cash investment in inventory and customer receivables.

Which balance-sheet accounts changed at Srivari Spices?

Srivari Spices' current assets increased to Rs 138.79 crore at 30 September 2026 from Rs 103.25 crore at 31 March 2026. The increase was led by inventory, which rose to Rs 62.71 crore from Rs 45.65 crore, and trade receivables, which rose to Rs 75.96 crore from Rs 57.24 crore.

The Rs 17.06 crore rise in the inventory balance and the Rs 18.73 crore increase in receivables shown in the cash-flow statement broadly correspond to those closing balance-sheet movements. The filing reports no separate inventory category or customer breakdown, as Srivari Spices operates in one segment: manufacture and trading of spices and food products in India.

Cash and cash equivalents were Rs 47,000 at 30 September 2026, compared with Rs 43,000 at 31 March 2026. Short-term loans and advances declined to Rs 8.92 lakh from Rs 33.69 lakh, while other current assets were unchanged at Rs 2.07 lakh across the two balance-sheet dates.

Non-current assets were Rs 18.60 crore at 30 September 2026, marginally lower than Rs 18.66 crore at 31 March 2026. Property, plant and equipment declined to Rs 18.19 crore from Rs 18.32 crore, despite Rs 1.39 crore of purchases during the half year, reflecting the period's depreciation and other asset movements reported in the statements.

How did Srivari Spices fund its cash requirements?

Srivari Spices generated Rs 7.13 crore from financing activities in the half year ended 30 September 2026. Net proceeds from non-current borrowings supplied Rs 4.20 crore, while net changes in current borrowings supplied Rs 5.08 crore; finance costs paid used Rs 2.16 crore.

The financing inflow exceeded the combination of the Rs 5.74 crore operating outflow and Rs 1.39 crore investing outflow by Rs 4,000. As a result, cash and cash equivalents rose by Rs 4,000 during the period, from Rs 43,000 at the start to Rs 47,000 at 30 September 2026.

Long-term borrowings on the balance sheet increased to Rs 11.57 crore at 30 September 2026 from Rs 6.19 crore at 31 March 2026. Short-term borrowings increased to Rs 31.75 crore from Rs 27.85 crore, while current liabilities as a whole rose to Rs 59.52 crore from Rs 41.24 crore.

The borrowing balances should not be equated directly with the financing cash-flow lines because the statement reports net movements during the period whereas the balance sheet reports closing amounts. Srivari Spices also reported trade payables and other liabilities of Rs 13.87 crore at 30 September 2026, compared with Rs 4.13 crore six months earlier.

How does Srivari Spices' cash flow compare with the prior year?

Srivari Spices' Rs 5.74 crore operating cash outflow in the six months ended 30 September 2026 was lower than the Rs 14.03 crore operating cash outflow reported for the year ended 31 March 2026. The periods differ in length, but both cash-flow statements show inventory and receivables absorbing cash rather than releasing it.

For the year ended 31 March 2026, inventory absorbed Rs 19.24 crore and trade receivables absorbed Rs 27.48 crore, a combined Rs 46.71 crore. That amount was partly offset by a Rs 4.62 crore increase in trade payables and other liabilities, leaving cash generated from operations at negative Rs 13.09 crore before Rs 94.57 lakh of net tax payments.

Financing activities supplied Rs 13.98 crore in the year ended 31 March 2026, compared with Rs 7.13 crore in the September 2026 half year. The prior-year financing cash flow included Rs 3.11 crore of net non-current borrowing proceeds and Rs 14.37 crore from changes in current borrowings, offset by Rs 3.08 crore of finance costs paid and Rs 42.81 lakh of dividends paid.

Investing activities used Rs 1.39 crore in the September 2026 half year, against a Rs 5.36 lakh inflow in the year ended 31 March 2026. The earlier full-year figure included Rs 61.50 lakh from the sale of an investment in a subsidiary and Rs 56.14 lakh spent on property, plant and equipment; the filing states that the wholly owned subsidiary was disposed of on 30 September 2025.

Conclusion

Srivari Spices' half-year statements show that a Rs 35.79 crore build-up in inventory and trade receivables outweighed Rs 20.30 crore of operating profit before working-capital changes. Higher payables and other liabilities provided a Rs 9.41 crore offset, but operating activities still used Rs 5.74 crore, while financing activities provided Rs 7.13 crore.

The filing does not disclose a working-capital target, borrowing repayment plan, or future results date. The unresolved matter shown by the 30 September 2026 statements is whether the Rs 62.71 crore inventory and Rs 75.96 crore receivables balances convert into operating cash while the Rs 31.75 crore short-term borrowing balance remains on the balance sheet.