Swastika Castal operating cash flow turns positive in H1

Swastika Castal Limited generated Rs 1.04 crore of net operating cash flow in the half year ended 30 September 2026, reversing a Rs 8.71 crore outflow a year earlier, as a Rs 2.81 crore fall in short-term loans and advances and a Rs 1.68 crore rise in trade payables outweighed a Rs 3.42 crore receivables increase.

What drove Swastika Castal's positive operating cash flow?

Swastika Castal turned operating cash flow positive because cash generated from operations reached Rs 1.69 crore in the half year ended 30 September 2026, against Rs 8.26 crore used in the corresponding 2025 half. After Rs 65.51 lakh of income taxes paid, net of refunds, operating cash flow was Rs 1.04 crore.

The change reflected both higher pre-working-capital profit and different movements in current assets and liabilities. Operating profit before working-capital changes rose to Rs 3.15 crore from Rs 2.60 crore, while cash generated from operations swung from a negative Rs 8.26 crore to a positive Rs 1.69 crore.

Swastika Castal prepared its cash-flow statement under the indirect method in Accounting Standard (AS) 3, Cash Flow Statements. Its Rs 2.38 crore profit before tax was adjusted for Rs 45.70 lakh of depreciation and amortisation, Rs 49.62 lakh of finance costs and Rs 18.57 lakh of interest income before working-capital changes.

How did working capital affect Swastika Castal's cash generation?

Working capital supported Swastika Castal's cash generation mainly through a Rs 2.81 crore decrease in short-term loans and advances, compared with a Rs 66.02 lakh increase in the corresponding half of 2025. The latest movement supplied cash, whereas the prior-year movement was a use of cash.

Trade payables increased by Rs 1.68 crore in the latest half, against a Rs 1.40 crore decrease a year earlier. At 30 September 2026, dues to micro and small enterprises were Rs 3.61 crore, up from Rs 2.37 crore at 31 March 2026, while dues to other creditors rose to Rs 1.24 crore from Rs 81.37 lakh.

These inflows were partly offset by a Rs 3.42 crore increase in trade receivables, larger than the Rs 2.46 crore increase in the year-earlier half. Inventories used Rs 7.56 lakh, compared with Rs 57.68 lakh a year earlier, and other current assets used Rs 55.29 lakh, against Rs 4.90 crore previously.

Other current liabilities decreased by Rs 1.18 crore and provisions fell by Rs 72.07 lakh in the September 2026 half, creating further cash uses. Those movements meant the advance reduction and trade-payables increase did not fully pass through to cash, but they contributed to positive operating cash flow.

How did Swastika Castal's profit compare with operating cash flow?

Swastika Castal reported Rs 1.70 crore of profit after tax for the half year ended 30 September 2026, up from Rs 1.31 crore a year earlier, while operating cash flow changed from an outflow of Rs 8.71 crore to an inflow of Rs 1.04 crore. Revenue from operations increased to Rs 20.76 crore from Rs 16.54 crore.

Profit before tax rose to Rs 2.38 crore from Rs 1.79 crore as total income increased to Rs 21.24 crore from Rs 17.17 crore. Total expenses were Rs 18.86 crore, versus Rs 15.37 crore, including Rs 11.44 crore of material-consumption cost and Rs 4.45 crore of other direct and manufacturing expenses.

The difference between earnings and operating cash remained affected by receivables and advances. Trade receivables on the balance sheet were Rs 16.81 crore at 30 September 2026, compared with Rs 13.39 crore at 31 March 2026, while short-term loans and advances declined to Rs 72.13 lakh from Rs 3.54 crore.

Where did Swastika Castal use and raise cash outside operations?

Swastika Castal used Rs 58.78 lakh in investing activities during the September 2026 half, less than the Rs 1.20 crore used a year earlier. Purchases of property, plant and equipment were Rs 54.88 lakh, down from Rs 1.23 crore, and net additions to capital work-in-progress were Rs 22.47 lakh after a Rs 62,000 inflow in the prior-year half.

Interest received was Rs 18.57 lakh, compared with Rs 2.06 lakh a year earlier, partly offsetting investing outflows. Property, plant and equipment stood at Rs 14.09 crore at 30 September 2026, compared with Rs 13.99 crore at 31 March 2026, while capital work-in-progress increased to Rs 55.29 lakh from Rs 32.82 lakh.

Financing activities generated Rs 73.71 lakh in the latest half, compared with Rs 11.83 crore in the corresponding 2025 half. The earlier period included Rs 14.06 crore of initial public offering proceeds, while the September 2026 half had no equity-issue proceeds, Rs 1.25 crore of net short-term borrowing proceeds and Rs 49.62 lakh of finance costs paid.

What changed in Swastika Castal's cash and borrowing balances?

Swastika Castal ended 30 September 2026 with Rs 1.32 crore of cash and cash equivalents, up from Rs 13.14 lakh at the beginning of the half. Net cash increased by Rs 1.19 crore, compared with an increase of Rs 1.91 crore in the corresponding 2025 half, which included initial public offering proceeds.

Short-term borrowings were Rs 9.85 crore at 30 September 2026, compared with Rs 8.60 crore at 31 March 2026. Long-term borrowings were Rs 1.81 crore, versus Rs 1.83 crore six months earlier, and current liabilities increased to Rs 15.45 crore from Rs 14.47 crore.

Current assets rose to Rs 31.35 crore from Rs 28.93 crore over the same six months. Inventory was Rs 9.29 crore against Rs 9.22 crore and other current assets were Rs 3.20 crore against Rs 2.65 crore, alongside the increase in trade receivables to Rs 16.81 crore.

Conclusion

Swastika Castal's Rs 1.04 crore operating cash inflow in the half year ended 30 September 2026 reversed the Rs 8.71 crore outflow recorded a year earlier. Higher operating profit, the Rs 2.81 crore reduction in short-term loans and advances, and the Rs 1.68 crore rise in trade payables offset the Rs 3.42 crore increase in receivables and other working-capital uses.

The unresolved issue for subsequent results is whether Swastika Castal converts its Rs 16.81 crore receivables balance into cash while managing Rs 9.85 crore of short-term borrowings and increased trade payables. The filing discloses no operating cash-flow target or specific cash-use plan for the next reporting period.