Transpek H1 operating cash flow falls 92% to Rs 4.03 crore

Transpek Industry Limited generated standalone net operating cash of Rs 4.03 crore in the half year ended September 30, 2026, down 92% from Rs 48.91 crore a year earlier, despite reporting Rs 38.89 crore of profit before tax. Inventory absorbed Rs 50.59 crore and trade receivables absorbed Rs 19.87 crore of cash.

Why did Transpek’s operating cash flow fall in H1?

Transpek’s operating cash flow fell because working-capital movements reduced cash generated from operations to Rs 13.42 crore in the half year ended September 30, 2026 from Rs 54.92 crore in the half year ended September 30, 2025, before net income-tax payments of Rs 9.39 crore. Inventories used Rs 50.59 crore of cash and trade receivables used Rs 19.87 crore.

The prior-year comparison shows a reversal in both major working-capital lines. Trade receivables generated Rs 8.82 crore of cash in the half year ended September 30, 2025, while inventories used Rs 4.72 crore. The receivables movement therefore changed by Rs 28.69 crore year on year, and inventory cash absorption increased by Rs 45.87 crore.

Trade payables partly offset the cash outflows, contributing Rs 21.53 crore in the half year ended September 30, 2026, compared with an outflow of Rs 2.27 crore a year earlier. Other current and non-current liabilities added Rs 8.03 crore, versus Rs 0.78 crore in the prior-year period, but these inflows did not cover the inventory and receivables movements.

How did Transpek’s working-capital balances change?

Transpek’s standalone inventory balance rose to Rs 100.91 crore at September 30, 2026 from Rs 50.32 crore at March 31, 2026. Trade receivables increased to Rs 170.56 crore from Rs 150.31 crore over the same six-month period, while the cash-flow statement recorded a Rs 19.87 crore receivables-related cash outflow.

Current assets increased to Rs 402.11 crore at September 30, 2026 from Rs 336.50 crore at March 31, 2026. Bank balances other than cash equivalents rose to Rs 80.57 crore from Rs 57.31 crore, while cash and cash equivalents declined to Rs 26.10 crore from Rs 57.80 crore.

Transpek’s current liabilities rose to Rs 197.64 crore from Rs 132.67 crore during the period. Trade payables due to parties other than micro and small enterprises increased by Rs 23.85 crore to Rs 82.60 crore, while other current liabilities rose to Rs 11.39 crore from Rs 3.36 crore; dues to micro and small enterprises declined to Rs 8.45 crore from Rs 10.64 crore.

Did Transpek’s profit rise despite lower cash generation?

Transpek reported standalone profit before tax of Rs 38.89 crore for the half year ended September 30, 2026, compared with Rs 37.83 crore for the half year ended September 30, 2025. The Rs 1.06 crore increase in reported pre-tax profit contrasted with the Rs 44.88 crore decline in net operating cash flow.

Depreciation and amortisation was Rs 21.02 crore, compared with Rs 24.66 crore in the preceding-year period, while finance costs were Rs 3.08 crore versus Rs 4.87 crore. Interest income of Rs 2.88 crore and dividend income of Rs 5.91 crore were deducted in the reconciliation to operating profit before working-capital changes.

Consolidated cash-flow figures were almost identical to the standalone amounts. Consolidated net cash from operating activities was Rs 4.03 crore in the half year ended September 30, 2026, against Rs 48.91 crore a year earlier, while consolidated profit before tax was Rs 38.89 crore. The consolidated results include Transpek Creative Chemistry Private Limited, Transpek’s wholly owned subsidiary, and the filing identifies chemicals as Transpek’s sole operating segment.

How was Transpek’s cash outflow funded in H1?

Transpek recorded a net investing cash outflow of Rs 44.93 crore in the half year ended September 30, 2026, compared with Rs 45.79 crore in the prior-year half. Purchases of property, plant and equipment increased to Rs 29.28 crore from Rs 17.68 crore, while deposits placed with banks declined to Rs 22.92 crore from Rs 35.82 crore.

Financing activities generated Rs 9.20 crore of cash, compared with a Rs 40.82 crore financing outflow in the half year ended September 30, 2025. Transpek received Rs 36.15 crore from short-term borrowings, whereas short-term borrowings had reduced by Rs 12.49 crore in the preceding-year period; it also repaid Rs 4.59 crore of long-term borrowings.

Current borrowings stood at Rs 64.42 crore at September 30, 2026, up from Rs 28.08 crore at March 31, 2026. Non-current borrowings fell to Rs 9.78 crore from Rs 14.37 crore, while the company paid Rs 11.17 crore of dividends, Rs 8.38 crore of lease principal and Rs 2.00 crore of finance costs during the half year.

What happened to Transpek’s cash balance?

Transpek’s standalone cash and cash equivalents decreased by Rs 31.70 crore during the half year ended September 30, 2026, closing at Rs 26.10 crore compared with Rs 57.80 crore at the beginning of the period. In the corresponding 2025 half year, cash and cash equivalents decreased by Rs 37.70 crore to Rs 18.78 crore.

The September 2026 closing balance comprised Rs 15.75 crore in current-account bank balances, Rs 8.38 lakh of cash on hand and Rs 10.27 crore in bank deposits with maturities below three months. The opening balance included Rs 32.34 crore in such short-term deposits, compared with Rs 10.27 crore at the period end.

Conclusion

Transpek’s half-year figures show a substantial gap between reported pre-tax profit of Rs 38.89 crore and net operating cash flow of Rs 4.03 crore. The gap reflected cash absorbed by inventory and receivables, partly offset by higher trade payables, alongside a rise in short-term borrowings and investing outflows of Rs 44.93 crore.

The next financial statements will show whether inventory of Rs 100.91 crore, trade receivables of Rs 170.56 crore and current borrowings of Rs 64.42 crore change after September 30, 2026. Transpek’s board approved the half-year results on November 13, 2026, and the statutory auditors carried out a limited review.