United Foodbrands operating cash inflow reaches Rs 140.208 crore

United Foodbrands Limited generated Rs 140.208 crore of net cash from operating activities in the six months ended September 30, 2026, despite a Rs 5.682 crore loss before tax. Operating cash inflow increased from Rs 87.667 crore a year earlier, as operating profit before working-capital changes rose to Rs 127.234 crore and trade payables increased by Rs 21.095 crore.

How did United Foodbrands generate cash despite a pre-tax loss?

United Foodbrands generated operating cash because non-cash and financing-related reconciliation items exceeded its Rs 5.682 crore pre-tax loss for the six months ended September 30, 2026. The comparable loss before tax was Rs 40.142 crore in the six months ended September 30, 2025, while the post-tax loss narrowed to Rs 4.130 crore from Rs 39.177 crore.

Depreciation and amortisation of Rs 94.668 crore was the largest adjustment from accounting profit to operating cash. Interest on lease liabilities was Rs 32.443 crore, interest on borrowings was Rs 5.889 crore and employee share-based payments were Rs 4.683 crore, taking operating profit before working-capital changes to Rs 127.234 crore from Rs 83.094 crore.

The cash inflow did not remove the reported loss because the first-half earnings measure before finance costs, tax, depreciation and amortisation, or EBITDA, was Rs 135.572 crore, while finance costs were Rs 46.586 crore and depreciation and amortisation were Rs 94.668 crore. Those charges resulted in the Rs 5.682 crore loss before tax.

What working-capital movements supported United Foodbrands' cash flow?

United Foodbrands recorded a net Rs 12.253 crore working-capital contribution in the six months ended September 30, 2026. Trade payables rose by Rs 21.095 crore, other financial and current liabilities increased by Rs 2.722 crore, and provisions increased by Rs 1.073 crore, partly offset by a Rs 12.677 crore inventory increase and a Rs 0.074 crore rise in trade receivables.

The year-on-year mix changed materially in inventories and trade payables. Inventories provided Rs 4.184 crore of cash in the six months ended September 30, 2025, but used Rs 12.677 crore in the latest period, while the trade-payables increase rose to Rs 21.095 crore from Rs 6.998 crore.

Cash generated from operations consequently increased to Rs 139.487 crore from Rs 89.487 crore. Income taxes produced a Rs 0.721 crore inflow in the 2026 first half, compared with Rs 1.820 crore of tax cash outflow in the preceding first half, resulting in net operating cash flow of Rs 140.208 crore.

How much did United Foodbrands invest during the first half?

United Foodbrands used Rs 65.058 crore in investing activities in the six months ended September 30, 2026, compared with Rs 61.335 crore in the corresponding 2025 period. Purchases of property, plant and equipment, intangible assets, capital work-in-progress and capital advances totalled Rs 68.674 crore, up from Rs 56.734 crore.

The filing does not split the Rs 68.674 crore of purchases by restaurant, geography or project. The investing outflow was partly offset by Rs 3.018 crore received from margin-money deposits and Rs 0.593 crore of interest income; no consideration was paid for acquisition of a subsidiary in the 2026 period, compared with Rs 4.924 crore in the prior-year period.

Property, plant and equipment stood at Rs 464.636 crore at September 30, 2026, compared with Rs 434.078 crore at March 31, 2026. Right-of-use assets increased to Rs 639.374 crore from Rs 617.047 crore, while capital work-in-progress declined to Rs 8.254 crore from Rs 13.621 crore.

How did United Foodbrands fund its investing and financing cash flows?

United Foodbrands used Rs 64.291 crore in financing activities during the six months ended September 30, 2026, compared with Rs 26.577 crore used a year earlier. Repayment of lease liabilities was the largest outflow at Rs 75.035 crore, followed by repayment of non-current borrowings of Rs 15.317 crore and interest paid of Rs 5.889 crore.

New non-current borrowings supplied Rs 32.314 crore, below Rs 39.248 crore in the comparable period. Net current borrowings used Rs 1.196 crore, compared with a Rs 15.901 crore inflow a year earlier, while employee stock-option exercises generated Rs 0.832 crore.

Net cash and cash equivalents increased by Rs 10.859 crore after the Rs 140.208 crore operating inflow, Rs 65.058 crore investing outflow and Rs 64.291 crore financing outflow. Cash and cash equivalents were Rs 36.443 crore at September 30, 2026, up from Rs 25.584 crore at March 31, 2026, including Rs 29.668 crore in bank current accounts.

What did United Foodbrands report on revenue and operations?

United Foodbrands reported revenue from operations of Rs 855.244 crore for the six months ended September 30, 2026, up from Rs 601.738 crore in the corresponding prior-year period. EBITDA increased to Rs 135.572 crore from Rs 93.789 crore, while the group continued to report one operating segment, restaurant business.

India generated Rs 772.825 crore of first-half revenue and overseas markets generated Rs 82.419 crore. In the prior-year first half, India contributed Rs 547.845 crore and overseas operations contributed Rs 53.893 crore, leaving India as the larger revenue contributor in both periods.

United Foodbrands said the amalgamation of Blue Planet Foods Private Limited with Red Apple Kitchen Consultancy Private Limited became effective from April 1, 2024, following approval by the National Company Law Tribunal, Bengaluru Bench, on May 29, 2026. The company said the amalgamation had no impact on group assets, liabilities, revenue, EBITDA, profit or loss, or cash flows, although comparative allocations between owners and non-controlling interests were revised.

Conclusion

United Foodbrands increased first-half operating cash flow by Rs 52.541 crore year on year while its loss before tax narrowed by Rs 34.460 crore. Higher EBITDA, Rs 94.668 crore of depreciation and amortisation, and the Rs 21.095 crore increase in trade payables supported cash generation, which exceeded the Rs 68.674 crore spent on asset, intangible and capital-work purchases.

The next reporting period will indicate how the Rs 12.677 crore inventory increase and Rs 21.095 crore trade-payables movement develop. United Foodbrands also said it continues to monitor final Central and State rules and government clarifications on the Labour Codes after restructuring employee compensation from April 1, 2026, and will account for any further impact as developments require.