Tirupati Sarjan reports Rs 4.97695 crore cash outflow

Tirupati Sarjan Limited reported a Rs 4.97695 crore cash outflow before extraordinary items for the half year ended September 30, 2026, despite profit before tax of Rs 3.4595 crore. A Rs 7.7003 crore inventory increase and Rs 9.1914 crore increase in non-current assets outweighed operating profit and cash generated from higher payables and other liabilities.

Why did Tirupati Sarjan report negative operating cash flow?

Tirupati Sarjan reported negative operating cash flow because working-capital and non-current-asset movements consumed more cash than its operating profit generated in the half year ended September 30, 2026. Profit before tax was Rs 3.4595 crore, while depreciation of Rs 57 lakh and interest-related adjustments lifted operating profit before working-capital changes to Rs 4.4556 crore.

The company reported cash generated from operations of negative Rs 4.00485 crore after working-capital changes, compared with positive Rs 9.5397 crore in the column for the year ended March 31, 2026. After Rs 97.21 lakh of net income-tax payments, cash flow before extraordinary items was negative Rs 4.97695 crore, versus positive Rs 7.5142 crore in the March 2026 column. The filing labels the September 2026 cash-flow column “Year ended”, although its heading and the board announcement describe the period as the half year ended September 30, 2026.

Which balance-sheet movements used Tirupati Sarjan’s cash?

Tirupati Sarjan’s largest disclosed cash uses were a Rs 9.1914 crore increase in non-current assets and a Rs 7.7003 crore increase in inventory during the half year ended September 30, 2026. Trade and other receivables used another Rs 95.25 lakh, while current tax assets and other current assets used Rs 74.78 lakh. These movements exceeded the cash available from operating profit before working-capital changes.

The balance sheet shows inventories at Rs 68.9125 crore on September 30, 2026, up from Rs 61.2122 crore on March 31, 2026. Total non-current assets increased to Rs 99.5625 crore from Rs 91.2599 crore, with other non-current assets rising to Rs 22.8233 crore from Rs 11.7311 crore. Property, plant and equipment declined to Rs 9.5541 crore from Rs 9.9571 crore, while investments fell to Rs 10.6385 crore from Rs 11.1242 crore.

The increase in trade payables and other liabilities provided Rs 10.1316 crore of cash, partly offsetting the asset increases. At September 30, 2026, dues to creditors other than micro and small enterprises were Rs 34.5783 crore, compared with Rs 29.4147 crore at March 31, 2026. Other current liabilities declined to Rs 4.1999 crore from Rs 7.6025 crore, showing that the liability movements were not uniform across balance-sheet lines.

Did Tirupati Sarjan’s revenue and profit rise in the half year?

Tirupati Sarjan’s half-year revenue and net profit both rose even as operating cash flow turned negative. Total revenue was Rs 87.1484 crore for the half year ended September 30, 2026, compared with Rs 69.1528 crore in the corresponding half year ended September 30, 2025. Net profit was Rs 2.4874 crore, up from Rs 2.0946 crore in the prior-year half year.

The tender division was the main revenue contributor, reporting Rs 85.6466 crore in half-year sales, compared with Rs 66.8904 crore a year earlier. Construction-business sales were Rs 50.18 lakh, down from Rs 1.0812 crore, while other operating income was Rs 81.14 lakh versus Rs 68.53 lakh. Tirupati Sarjan states that it constructs houses and complexes and undertakes government tender work, but identifies construction activity as its sole segment under Indian Accounting Standard 108.

Profit before tax increased to Rs 3.4595 crore from Rs 2.9443 crore in the half year ended September 30, 2025. Finance cost fell to Rs 1.9282 crore from Rs 2.1024 crore, while depreciation and amortisation increased to Rs 57 lakh from Rs 46.28 lakh. The cash-flow statement captures the cash absorbed by inventories, receivables and non-current assets during the period, which differs from the profit measure.

How did the operating outflow affect Tirupati Sarjan’s cash and funding?

Tirupati Sarjan’s cash and cash equivalents decreased by Rs 3.8351 crore in the half year ended September 30, 2026, falling from Rs 4.1653 crore at the beginning of the period to Rs 33.02 lakh at the end under the cash-flow statement. Financing activities used Rs 4.84 lakh after Rs 2.8871 crore of net loan borrowings, Rs 1.6378 crore of long-term loan repayments and Rs 1.2977 crore of interest paid.

The cash-flow statement reports Rs 1.1902 crore under “Net Cash used in Investment Activities”, shown as a positive figure for the September 2026 half year, compared with negative Rs 2.4383 crore in the March 2026 year. The period included Rs 48.57 lakh from the sale of investments, Rs 85.48 lakh of interest income, Rs 1.68 lakh of dividend received, Rs 33.54 lakh spent on property, plant and equipment, and Rs 16.84 lakh from fixed-asset sales.

The September 30, 2026 balance sheet reports cash and cash equivalents of Rs 33.04 lakh, Rs 2,000 higher than the Rs 33.02 lakh closing figure in the cash-flow statement. Current borrowings increased to Rs 19.3898 crore from Rs 16.5027 crore at March 31, 2026, while non-current borrowings decreased to Rs 22.2637 crore from Rs 23.9015 crore. Total equity rose to Rs 96.4549 crore from Rs 93.9674 crore, while other equity increased to Rs 79.9559 crore from Rs 77.4684 crore.

Conclusion

Tirupati Sarjan’s filing shows that higher reported activity did not produce positive cash flow in the September 2026 half year. Revenue increased by Rs 17.9956 crore year on year and net profit increased by Rs 39.28 lakh, but additions to inventory and non-current assets exceeded the cash contribution from operating profit and increased liabilities.

What remains unresolved in the filing is the composition and timing of the Rs 9.1914 crore non-current-asset cash use and the reconciliation of the Rs 2,000 difference between its two closing-cash figures. Tirupati Sarjan disclosed no cash-flow target, capital-spending plan or management guidance, leaving subsequent working-capital movements and cash reconciliation as the relevant matters to watch.