Swojas Foods reports Rs 11.32 crore operating cash outflow

Swojas Foods Limited reported a Rs 11.32 crore net operating cash outflow in the half year ended September 30, 2026, as a Rs 14.72 crore rise in trade receivables and a Rs 8.55 crore inventory increase outweighed a Rs 14.06 crore increase in trade payables.

Why did Swojas Foods report negative operating cash flow?

Swojas Foods reported negative operating cash flow because its working-capital movements outweighed Rs 36.64 lakh of operating profit before working-capital changes in the half year ended September 30, 2026. The cash-flow statement records cash use of Rs 8.55 crore for inventories, Rs 14.72 crore for trade receivables and Rs 2.39 crore for other non-current financial assets.

Cash generated from operations was negative Rs 11.23 crore, and an income-tax payment of Rs 9.21 lakh took net cash used in operating activities to Rs 11.32 crore. In the corresponding half year ended September 30, 2025, Swojas Foods generated Rs 1.49 crore from operations and reported Rs 1.29 crore of positive operating cash flow after paying Rs 19.73 lakh in tax.

The year-on-year movement therefore reversed operating cash flow by Rs 12.61 crore between the two half-year periods. Swojas Foods said its significant movements in inventory, trade receivables and trade payables during the September 2026 half year primarily related to business operations and working-capital requirements.

How much did Swojas Foods’ receivables and inventory rise?

Swojas Foods’ trade receivables increased to Rs 15.92 crore at September 30, 2026, from Rs 1.20 crore at March 31, 2026, while inventories rose to Rs 35.25 crore from Rs 26.70 crore. The two balance-sheet items together increased by Rs 23.26 crore during the half year.

The cash-flow statement records a Rs 14.72 crore use of cash from the increase in receivables and a Rs 8.55 crore use from the increase in inventory. In the half year ended September 30, 2025, receivables instead provided Rs 2.47 crore of cash, while inventory absorbed Rs 5.46 crore, or Rs 3.09 crore less than in the September 2026 period.

Swojas Foods did not disclose customer-level receivable balances, credit terms, ageing information or product-level inventory details in the filing. It reported one business segment and one geographical segment, India, and therefore provided no segment-level split for the Rs 15.92 crore receivables balance or the Rs 35.25 crore inventory balance.

Did higher payables offset Swojas Foods’ cash use?

Higher trade payables partly offset Swojas Foods’ cash absorption, contributing Rs 14.06 crore of cash during the half year ended September 30, 2026. That was below the Rs 23.26 crore combined cash use from inventory and receivables, before the separate Rs 2.39 crore cash use recorded under other non-current financial assets.

Trade payables rose to Rs 14.20 crore at September 30, 2026, from Rs 13.64 lakh at March 31, 2026. In the corresponding 2025 half year, the increase in trade payables supplied Rs 2.37 crore of cash, compared with Rs 14.06 crore in the September 2026 half year.

Current liabilities totalled Rs 14.78 crore at September 30, 2026, compared with Rs 66.43 lakh at March 31, 2026. The closing liabilities included Rs 14.20 crore of trade payables, Rs 52.99 lakh of current tax liabilities, Rs 3.93 lakh of other current liabilities and Rs 1.50 lakh of provisions.

What was the role of non-current loans in the outflow?

Swojas Foods’ non-current loans increased to Rs 2.39 crore at September 30, 2026, from Rs 0.50 lakh at March 31, 2026. The cash-flow statement shows a Rs 2.39 crore outflow under other non-current financial assets, matching the movement in the non-current loans line on the balance sheet.

The filing does not identify the counterparty, purpose, repayment terms or security associated with the Rs 2.39 crore non-current loans balance. Property, plant and equipment was Rs 0.34 lakh at September 30, 2026, down from Rs 0.44 lakh at March 31, and the cash-flow statement reported no fixed-asset purchases in the half year.

Other current assets rose to Rs 15.65 lakh from Rs 9.22 lakh, producing a Rs 6.43 lakh operating cash use. Other current liabilities fell by Rs 3.58 lakh in the cash-flow statement, while the company reported no movement in short-term provisions for the September 2026 half year.

How did Swojas Foods fund the operating cash deficit?

Swojas Foods funded the operating deficit through Rs 11.91 crore of financing cash flow from warrant conversions during the half year ended September 30, 2026. With no investing cash outflow reported, cash and cash equivalents increased by Rs 58.88 lakh to Rs 77.96 lakh from an opening balance of Rs 19.08 lakh.

Swojas Foods received in-principle approval from BSE Limited for up to 4,84,84,500 convertible warrants at Rs 16.50 each. Of the approved warrants, 2,59,84,500 were subscribed, and 56,41,162 warrants were converted into an equal number of equity shares during the quarter ended September 30, 2026.

The additional disclosure reports total warrant proceeds of Rs 32.16 crore as of September 30, 2026, with Rs 31.75 crore used for working-capital requirements and Rs 40.51 lakh for general corporate purposes. It reported no unutilised balance, and said the Audit Committee had reviewed utilisation of the proceeds.

Conclusion

Swojas Foods’ September 2026 half-year results show that Rs 36.54 lakh of profit before tax did not translate into operating cash generation. Inventory, receivables and non-current financial assets together absorbed Rs 25.65 crore of cash, while the Rs 14.06 crore rise in trade payables provided only a partial offset, resulting in a Rs 11.32 crore operating cash outflow.

The key disclosed matter to watch is whether inventory, receivables, payables and non-current loans change after September 30, 2026, as the filing gives no ageing, counterparty or repayment detail for those balances. Further conversions from the 2,59,84,500 subscribed warrants would also affect future financing cash flow and equity share capital.