SSMD Agrotech India reports Rs 6.76 crore operating outflow

SSMD Agrotech India Limited recorded a Rs 6.76 crore operating cash outflow for the half year ended September 30, 2026, even as net profit was Rs 5.02 crore, because inventory and trade receivables absorbed Rs 37.80 crore. A Rs 23.86 crore increase in trade payables only partly offset that working-capital use.

Why did SSMD Agrotech India report an operating cash outflow?

SSMD Agrotech India reported the outflow because its Rs 7.24 crore operating profit before working-capital changes was outweighed by cash absorbed in operating assets. Inventory increased by Rs 18.69 crore, trade receivables increased by Rs 19.10 crore, short-term loans and advances increased by Rs 14.17 lakh, and other current assets increased by Rs 1.47 lakh during the half year.

The cash-flow statement used the indirect method under Accounting Standard 3, or AS 3. It began with Rs 5.02 crore profit after tax and included Rs 21.50 lakh depreciation, Rs 1.74 crore tax provision, Rs 25.55 lakh finance cost and Rs 3.52 lakh gratuity and leave-encashment provision, while deducting Rs 2.48 lakh interest received.

No direct taxes paid were reported for the half year ended September 30, 2026, leaving net operating cash flow at a negative Rs 6.76 crore. This was a larger outflow than the negative Rs 78.16 lakh reported for the half year ended September 30, 2025, when inventory and receivables absorbed less cash and the rise in trade payables was Rs 7.95 crore.

How much did SSMD Agrotech India's inventory and receivables increase?

SSMD Agrotech India's inventory and trade receivables together absorbed Rs 37.80 crore of cash in the half year ended September 30, 2026. The balance sheet showed inventory of Rs 33.99 crore at September 30, 2026, compared with Rs 15.30 crore at March 31, 2026, while trade receivables rose to Rs 37.19 crore from Rs 18.09 crore.

The inventory increase of Rs 18.69 crore was substantially above the Rs 1.71 crore increase in the half year ended September 30, 2025. The Rs 19.10 crore increase in trade receivables also exceeded the prior-period increase of Rs 12.82 crore by Rs 6.28 crore.

Revenue from operations rose to Rs 71.69 crore from Rs 52.13 crore a year earlier, while purchases and consumables increased to Rs 79.75 crore from Rs 45.16 crore. SSMD Agrotech India disclosed that it operates in one segment under Accounting Standard 17, or AS 17, and did not provide product, customer or segment-level details for the inventory and receivable movements.

What funding offset SSMD Agrotech India's working-capital requirement?

SSMD Agrotech India partly offset the working-capital requirement through a Rs 23.86 crore increase in trade payables and a Rs 4.85 crore increase in short-term borrowings. The increase in trade payables was the largest positive working-capital movement and exceeded the Rs 7.95 crore increase reported in the corresponding prior-year half.

Amounts due to creditors other than micro and small enterprises were Rs 27.16 crore at September 30, 2026, up from Rs 3.78 crore at March 31, 2026. Amounts due to micro and small enterprises rose to Rs 2.12 crore from Rs 1.64 crore, taking reported trade payables to Rs 29.28 crore from Rs 5.42 crore over the six-month period.

Short-term borrowings stood at Rs 5.47 crore at September 30, 2026, compared with Rs 61.95 lakh at March 31, 2026. Financing activities generated Rs 4.41 crore of net cash after Rs 18.50 lakh of repayments of non-current borrowings and Rs 25.55 lakh of finance cost paid, compared with Rs 42.84 lakh of financing inflow a year earlier.

What happened to SSMD Agrotech India's cash balance and profit?

SSMD Agrotech India's cash and cash equivalents declined by Rs 2.63 crore to Rs 10.19 crore at September 30, 2026, from Rs 12.82 crore at the beginning of the half year. The negative Rs 6.76 crore operating cash flow and Rs 28.54 lakh investing outflow were only partly covered by the Rs 4.41 crore financing inflow.

The closing cash balance comprised Rs 9.18 crore in short-term deposits or sweep-in fixed deposits, Rs 71.66 lakh in cash in hand and Rs 29.76 lakh in current accounts. Investing activities included Rs 31.02 lakh spent on property, plant and equipment, partly offset by Rs 2.48 lakh of interest received.

Net profit nevertheless rose to Rs 5.02 crore from Rs 3.84 crore in the half year ended September 30, 2025, while profit before tax increased to Rs 6.76 crore from Rs 5.18 crore. Total income was Rs 71.72 crore against Rs 52.13 crore, and total expenses were Rs 64.96 crore against Rs 46.95 crore; basic earnings per share, not annualised, were Rs 5.79 compared with Rs 6.56.

Conclusion

SSMD Agrotech India's September 2026 half-year results show that profit and operating cash flow moved in opposite directions. Net profit of Rs 5.02 crore coincided with a Rs 6.76 crore operating outflow as the Rs 37.80 crore cash absorption in inventory and receivables exceeded the partial support from higher trade payables and borrowings.

The disclosed unresolved matter to watch is the monitoring agency report on the use of initial public offering proceeds for the quarter ended March 31, 2026. The November 14, 2026 board announcement said the report had not yet been received from the monitoring agency and therefore was not considered or adopted at that meeting.