Sunraj Diamond Exports reports Rs 28.61 lakh H1 cash outflow

Sunraj Diamond Exports Limited reported a Rs 28.61 lakh net cash outflow from operating activities for the half year ended September 30, 2026, reversing a Rs 89.28 lakh inflow a year earlier. Sunraj Diamond Exports reported Rs 29 lakh of net borrowings during the period, which helped offset the operating cash requirement, and closed with Rs 5.76 lakh of cash and cash equivalents.

Why did Sunraj Diamond Exports’ operating cash flow turn negative?

Sunraj Diamond Exports’ operating cash flow turned negative because a Rs 15.90 lakh pre-tax loss and a Rs 48.91 lakh reduction in trade and other payables outweighed cash released from receivables and inventories in the half year ended September 30, 2026. Net cash from operations was an outflow of Rs 28.61 lakh, compared with an inflow of Rs 89.28 lakh in the corresponding half of 2025.

Sunraj Diamond Exports recorded an operating loss before working-capital changes of Rs 12.15 lakh in the latest half year, against an operating profit of Rs 0.73 lakh a year earlier. The loss incorporated Rs 0.82 lakh of depreciation and amortisation, a Rs 2.66 lakh exchange-rate difference and Rs 0.28 lakh of finance costs, following the reported pre-tax loss of Rs 15.90 lakh.

Working-capital movements partly offset the operating loss. Trade receivables generated Rs 27.25 lakh of cash, while the inventory movement contributed Rs 11.20 lakh. In the prior-year half, receivables generated Rs 67.42 lakh and the inventory movement was a Rs 24.60 lakh cash outflow.

The main counterweight was the Rs 48.91 lakh cash outflow associated with trade and other payables, alongside a Rs 6 lakh outflow relating to other assets. In the prior-year half, the cash-flow statement showed a Rs 45.84 lakh inflow from trade and other payables. The change in the direction of payable movements contributed to the shift from operating cash inflow to outflow.

How did Sunraj Diamond Exports fund its cash requirement?

Sunraj Diamond Exports funded the Rs 28.61 lakh operating cash deficit primarily through Rs 29 lakh of net borrowings during the half year ended September 30, 2026. After Rs 0.28 lakh of finance costs, financing activities produced a Rs 28.72 lakh net cash inflow, compared with a Rs 82.53 lakh financing outflow in the corresponding 2025 period.

The cash-flow statement was prepared using the indirect method under Indian Accounting Standard 7, or Ind AS 7, on statements of cash flows. It shows no reported purchases or sales of property, plant and equipment in the latest half year, whereas the prior-year period included Rs 0.07 lakh from the sale of such assets. Investing activities therefore did not provide a material funding source in the 2026 period.

Cash and cash equivalents were Rs 5.76 lakh at September 30, 2026, compared with Rs 11.31 lakh at September 30, 2025. The latest cash balance comprised Rs 4.11 lakh in current accounts and Rs 1.65 lakh in cash on hand, while the prior-year balance comprised Rs 10.77 lakh in current accounts and Rs 0.53 lakh in cash on hand.

The balance sheet separately reported current borrowings of Rs 14.97 crore at September 30, 2026, down from Rs 15.94 crore at September 30, 2025. That closing balance is a point-in-time measure, whereas the Rs 29 lakh in the cash-flow statement is the reported net borrowing movement during the half year. The filing does not provide a detailed reconciliation between the two presentations.

What were Sunraj Diamond Exports’ half-year operating results?

Sunraj Diamond Exports reported revenue from operations of Rs 88.60 lakh in the half year ended September 30, 2026, down from Rs 90.71 lakh a year earlier, while its pre-tax loss widened to Rs 15.90 lakh from Rs 0.98 lakh. Total income declined to Rs 88.61 lakh from Rs 1.14 crore because the prior-year period included Rs 23.26 lakh of other income.

Total expenses fell to Rs 1.05 crore from Rs 1.15 crore, but the reduction did not match the decline in total income. Purchases of stock-in-trade declined to Rs 68.85 lakh from Rs 1.12 crore, while the change in inventories moved to an expense of Rs 11.20 lakh from a credit of Rs 24.60 lakh in the comparable period.

Employee-benefit expense increased to Rs 9.39 lakh from Rs 8.09 lakh, while other expenses declined to Rs 13.65 lakh from Rs 14.42 lakh. Finance costs reduced to Rs 0.28 lakh from Rs 1.02 lakh and depreciation and amortisation declined to Rs 0.82 lakh from Rs 0.88 lakh. These items fed into the half-year loss before tax and operating cash deficit.

For the September 2026 quarter alone, Sunraj Diamond Exports reported revenue from operations of Rs 44.18 lakh, compared with Rs 67.78 lakh in the September 2025 quarter. The quarterly pre-tax result was a Rs 8.07 lakh loss, compared with a Rs 13.85 lakh profit a year earlier. Sunraj Diamond Exports stated that it operates in trading and manufacturing of gems and precious metals, and that segment reporting under Ind AS 108 was not applicable.

What does Sunraj Diamond Exports’ balance sheet show about working capital?

Sunraj Diamond Exports reported inventories of Rs 16.35 crore at September 30, 2026, lower than Rs 17.32 crore a year earlier, while trade receivables older than three years were Rs 8.27 crore versus Rs 8.47 crore. The inventory balance was the largest current-asset line in the filing and the aged receivable balance exceeded cash and cash equivalents of Rs 5.76 lakh.

Total assets stood at Rs 25.20 crore at September 30, 2026, compared with Rs 26.48 crore at September 30, 2025. Property, plant and equipment declined to Rs 4.72 lakh from Rs 6.42 lakh, and Sunraj Diamond Exports reported no non-current borrowings in either balance-sheet column. Other equity was negative Rs 4.56 crore, compared with negative Rs 4.35 crore a year earlier.

Trade payables due beyond three years were Rs 9.31 crore at September 30, 2026, compared with Rs 3.36 lakh a year earlier. Payables between two and three years were Rs 5.58 lakh, against Rs 9.17 crore a year earlier. These maturity changes provide balance-sheet context for the Rs 48.91 lakh cash outflow from trade and other payables in the half-year cash-flow statement.

Conclusion

Sunraj Diamond Exports’ half-year filing shows that operating activities consumed Rs 28.61 lakh of cash rather than generating the Rs 89.28 lakh recorded a year earlier. Lower revenue, the absence of prior-year other income, a pre-tax loss of Rs 15.90 lakh and the outflow from payables combined to produce the reversal, while Rs 29 lakh of net borrowings supplied the principal cash offset.

The filing does not disclose a future plan, target or scheduled event. The unresolved matters for subsequent disclosures include whether receivables, including Rs 8.27 crore older than three years, and Rs 16.35 crore of inventories convert into cash, and whether financing inflows remain necessary after cash and cash equivalents closed at Rs 5.76 lakh.