Tasty Bite operating cash flow falls to Rs 8.958 crore in half-year

Tasty Bite Eatables Limited generated Rs 8.958 crore of net operating cash flow in the half year ended 30 September 2026, down from Rs 58.301 crore a year earlier, even as profit before tax rose to Rs 24.023 crore from Rs 15.978 crore. Higher inventory, trade receivables and other current assets absorbed cash.

Why did Tasty Bite’s operating cash flow decline?

Tasty Bite’s operating cash flow declined because working-capital cash uses exceeded the improvement in operating profit before working-capital changes. That measure increased to Rs 44.280 crore in the half year ended 30 September 2026 from Rs 33.236 crore in the comparable 2025 period, reflecting higher profit before tax, depreciation and amortisation, and inventory-obsolescence provision.

The subsequent working-capital movements reduced available cash. Inventory used Rs 19.943 crore, trade receivables used Rs 10.948 crore, other financial assets used Rs 3.011 crore and other current assets used Rs 16.396 crore. These uses were partly offset by a Rs 18.369 crore increase in trade payables, Rs 3.678 crore from other current financial liabilities and Rs 87.6 lakh from provisions.

Cash generated from operating activities before direct taxes was Rs 16.638 crore, compared with Rs 63.257 crore a year earlier. Although trade payables provided Rs 18.369 crore of cash in the 2026 half year, versus Rs 9.441 crore in 2025, trade receivables changed from a Rs 28.194 crore source of cash to a Rs 10.948 crore use.

How did inventory and receivables change at Tasty Bite?

Tasty Bite’s inventory rose to Rs 125.515 crore at 30 September 2026 from Rs 107.681 crore at 31 March 2026, while trade receivables increased to Rs 81.077 crore from Rs 71.150 crore. The cash-flow statement records an Rs 19.943 crore cash outflow for inventory and an Rs 10.948 crore outflow for trade receivables during the half year.

Other current assets increased to Rs 46.532 crore at 30 September 2026 from Rs 30.136 crore at 31 March 2026. The cash-flow statement shows other current assets using Rs 16.396 crore, compared with Rs 2.058 crore in the prior-year half, while other financial assets used Rs 3.011 crore after providing Rs 7.183 crore in the earlier period.

Inventory-related accounting adjustments contributed to operating-profit calculation but did not remove the cash effect of stock growth. Tasty Bite recorded a net Rs 2.109 crore provision for inventory obsolescence in the 2026 half year, compared with Rs 32.1 lakh a year earlier. The company reports Prepared Foods as its sole primary business segment, with no segment split for inventory or receivables movements.

Did higher profit translate into more cash for Tasty Bite?

No. Tasty Bite’s profit after tax increased to Rs 17.816 crore in the half year ended 30 September 2026 from Rs 11.809 crore a year earlier, but net cash from operations fell by Rs 49.343 crore to Rs 8.958 crore. The Rs 8.045 crore rise in profit before tax was outweighed by the shift in working-capital cash flows and higher tax payments.

Revenue from customers increased to Rs 331.614 crore from Rs 253.589 crore, while total income rose to Rs 345.819 crore from Rs 263.797 crore. Total expenses increased to Rs 321.796 crore from Rs 247.819 crore. The higher sales and earnings coincided with increases in operating assets, notably inventory and receivables, rather than a matching increase in operating cash generation.

Direct taxes paid, net of refunds, were Rs 7.680 crore, up from Rs 4.956 crore in the 2025 half year. Depreciation and amortisation added back Rs 15.763 crore in calculating operating cash flow, compared with Rs 15.248 crore a year earlier, while finance costs added back Rs 1.911 crore, down from Rs 3.005 crore.

What happened to Tasty Bite’s cash after investing and financing?

Tasty Bite’s cash and cash equivalents fell by Rs 11.086 crore during the 2026 half year to Rs 16.216 crore at 30 September 2026, from Rs 27.302 crore at the start of the year. Net operating cash of Rs 8.958 crore did not cover the Rs 11.500 crore investing outflow and Rs 8.544 crore financing outflow.

Investing activities used Rs 11.500 crore, compared with Rs 5.033 crore in the prior-year half. Purchases of property, plant and equipment, including intangible assets, capital work-in-progress, capital-goods payables and capital advances, totalled Rs 11.719 crore. Interest received of Rs 21.9 lakh partly offset the outflow, compared with Rs 74.7 lakh in the comparable period.

Financing activities used Rs 8.544 crore, compared with Rs 10.852 crore a year earlier. Tasty Bite repaid Rs 4.067 crore of lease liabilities, paid dividends of Rs 2.566 crore, paid Rs 1.671 crore of interest on lease liabilities and paid Rs 24 lakh of other interest. The prior-year period also included Rs 3.576 crore of repayments of non-current borrowings, which is not listed for the current half year.

The cash-flow statement was prepared using the indirect method under Indian Accounting Standard 7, or Ind AS 7, on Statement of Cash Flows. Tasty Bite reported Rs 2.216 crore in current-account bank balances and Rs 14.000 crore in deposits with original maturities of less than three months at 30 September 2026, together making up the Rs 16.216 crore cash-and-cash-equivalents balance.

Conclusion

Tasty Bite’s half-year figures show that higher earnings did not translate into higher operating cash in the period ended 30 September 2026. Profit before tax increased to Rs 24.023 crore and revenue from customers reached Rs 331.614 crore, but combined cash use of Rs 50.298 crore from inventory, receivables, other financial assets and other current assets reduced operating cash flow to Rs 8.958 crore.

The next results will show whether the Rs 125.515 crore inventory balance, Rs 81.077 crore receivables balance and Rs 46.532 crore other-current-assets balance reverse or continue to consume cash. Cash generation will also be measured against investment spending after Rs 11.719 crore of purchases of property, plant and equipment and related assets in the first half; the filing does not disclose a forward capital-expenditure target or working-capital plan.