Stellant operating cash flow turns Rs 5.5574 crore negative

Stellant Securities (India) Limited reported a Rs 5.5574 crore net operating cash outflow for the half year ended 30 September 2026, as a Rs 44.0597 crore inventory increase exceeded its Rs 23.3472 crore profit before tax and a Rs 21.7934 crore rise in trade and other payables.

Why did Stellant's operating cash flow turn negative?

Stellant's operating cash flow turned negative because working-capital movements and tax payments used more cash than operating profit produced. Operating profit before working-capital changes was Rs 23.572 crore in the half year ended 30 September 2026, but inventories increased by Rs 44.0597 crore and trade and other receivables increased by Rs 98.31 lakh on a net basis.

A Rs 21.7934 crore increase in trade and other payables partly offset the inventory and receivables movements. Cash generation from operations before tax therefore fell to Rs 32.26 lakh, after which Stellant paid Rs 5.88 crore in net income tax, resulting in the Rs 5.5574 crore operating cash outflow.

The result reversed a Rs 32.4609 crore operating cash inflow in the half year ended 30 September 2025. In that earlier period, inventories absorbed Rs 8.6489 crore, while operating profit before working-capital changes was Rs 41.2793 crore and profit before tax was Rs 41.3499 crore.

How did Stellant's working capital change during the half year?

Stellant's inventory balance rose to Rs 86.9513 crore at 30 September 2026 from Rs 42.8916 crore at 31 March 2026. The Rs 44.0597 crore movement recorded in the cash-flow statement was the largest working-capital use during the six-month period.

Trade receivables increased to Rs 2.2161 crore at 30 September 2026 from Rs 1.4024 crore at 31 March 2026. The cash-flow statement records a Rs 98.31 lakh net increase in trade and other receivables, a measure that can include balances beyond the separately reported trade-receivables line.

Current liabilities also increased during the period, partly funding the asset build. Trade payables rose to Rs 16.9994 crore from Rs 58.43 lakh, provisions increased to Rs 7.7393 crore from Rs 3.093 crore, and total current liabilities reached Rs 25.4813 crore from Rs 3.6879 crore.

The filing does not identify the products or transactions behind the Rs 44.0597 crore inventory increase. It identifies Stellant's two operating segments as securities market trading and advisory, and bullion trading, but does not allocate inventory, payables or operating cash flow between them for the half year ended 30 September 2026.

How much cash did Stellant have after the operating outflow?

Stellant closed 30 September 2026 with Rs 35.30 crore of cash and cash equivalents, down Rs 2.2441 crore from Rs 37.5441 crore at the start of the half year. The operating outflow was partly offset by Rs 3.0975 crore of financing cash inflow and Rs 21.58 lakh of investing cash inflow.

Financing cash flow included Rs 3.73 crore of proceeds from issue of equity share capital, net of expenses, and Rs 63.25 lakh of finance cost. Investing activities included Rs 41.38 lakh of interest received and Rs 14,000 of dividend, partly offset by Rs 19.94 lakh spent on fixed assets.

Stellant reported total assets of Rs 124.8377 crore at 30 September 2026, compared with Rs 81.847 crore at 31 March 2026. Current assets were Rs 124.6458 crore, including Rs 86.9513 crore of inventory and Rs 35.30 crore of cash and cash equivalents.

Equity was Rs 99.3564 crore at 30 September 2026, up from Rs 78.1591 crore at 31 March 2026, while total liabilities were Rs 25.4813 crore. The balance-sheet increase in inventory, rather than a fall in cash alone, accounts for most of the Rs 42.9907 crore increase in total assets over the period.

Which Stellant segments contributed to first-half profit?

Stellant's securities market trading and advisory segment remained the larger contributor to revenue and segment result in the half year ended 30 September 2026. Segment revenue was Rs 20.8493 crore, down from Rs 42.8603 crore a year earlier, while its segment result fell to Rs 22.8584 crore from Rs 41.2719 crore.

Bullion trading generated Rs 11.5376 crore of half-year revenue, compared with Rs 50.90 lakh in the corresponding period of 2025. Its segment result was Rs 7.36 lakh, compared with Rs 65,000 a year earlier, meaning the higher bullion revenue did not offset the reduction in the securities market trading and advisory segment's revenue.

Total revenue declined to Rs 32.3869 crore from Rs 43.3693 crore, while total segment operating income fell to Rs 22.932 crore from Rs 41.2784 crore. Other income increased to Rs 41.52 lakh from Rs 7.15 lakh, but profit before tax still declined to Rs 23.3472 crore from Rs 41.3499 crore.

Stellant reported profit after tax of Rs 17.4672 crore for the latest half year, compared with Rs 30.9399 crore in the prior-year period, after income-tax expense of Rs 5.88 crore. The filing provides revenue, result, asset and liability data by segment, but it does not provide segment-level operating cash-flow figures.

Conclusion

Stellant's first-half results show that reported profit did not translate into operating cash during the six months ended 30 September 2026. A Rs 44.0597 crore increase in inventory and a Rs 98.31 lakh rise in net receivables outweighed a Rs 23.3472 crore pre-tax profit, while higher payables offset only part of the working-capital requirement.

The next disclosed capital-development event is the preferential allotment approved by Stellant's board on 4 November 2026. Stellant approved 678,388 equity shares at Rs 602 each for cash aggregating to Rs 40.8389576 crore and 166,200 warrants at Rs 602 each, and disclosed receipt of Rs 2.50131 crore, or 25% of warrant consideration; future filings can show the cash effect and subsequent movements in inventory, receivables and payables.