V-Guard operating cash flow rises to Rs 458 crore in H1

V-Guard Industries Limited generated Rs 458.35 crore in net operating cash flow for the half year ended September 30, 2026, compared with Rs 195.08 crore a year earlier. A Rs 280.82 crore inventory increase absorbed cash, but Rs 381.82 crore of operating profit before working-capital changes and cash released from receivables and payables offset that investment.

How did V-Guard generate Rs 458.35 crore of operating cash?

V-Guard generated Rs 458.35 crore of net cash from operating activities in the half year ended September 30, 2026, after paying Rs 71.40 crore of income tax. Cash generated from operations before tax payments was Rs 529.75 crore, compared with Rs 246.73 crore in the half year ended September 30, 2025. Profit before tax rose to Rs 321.61 crore from Rs 183.34 crore over the same periods.

V-Guard's operating profit before working-capital changes was Rs 381.82 crore, against Rs 258.36 crore a year earlier. The reconciliation included Rs 56.55 crore of depreciation and amortisation, Rs 12.79 crore of share-based payment expense and Rs 6.06 crore of finance costs. These additions were partly offset by Rs 9.81 crore of net gains on sale of investments and Rs 5.39 crore of fair-value gains on investments.

What was the effect of V-Guard's inventory build-up?

V-Guard's inventory build-up used Rs 280.82 crore of cash in the half year ended September 30, 2026, compared with Rs 2.11 crore in the corresponding prior-year period. Closing inventories stood at Rs 1,304.75 crore on September 30, 2026, up from Rs 1,023.93 crore on March 31, 2026. The balance-sheet increase matches the inventory movement reported in the cash-flow statement.

V-Guard reported Rs 3,663.54 crore in revenue from operations for the six months, compared with Rs 2,807.00 crore in the prior-year period. In the income statement, the increase in inventories of finished goods, work-in-progress and stock-in-trade was Rs 285.93 crore, versus Rs 1.20 crore a year earlier. This income-statement measure differs from the Rs 280.82 crore cash-flow movement, which records the balance-sheet change in inventories.

V-Guard recorded higher six-month revenue in each of its four business segments. Electronics revenue was Rs 1,168.70 crore versus Rs 855.36 crore, Electricals was Rs 1,464.37 crore versus Rs 1,087.32 crore, Consumer Durables was Rs 891.93 crore versus Rs 745.67 crore, and Sunflame was Rs 141.77 crore versus Rs 118.65 crore. The filing does not allocate the inventory increase among those segments.

Which working-capital movements offset V-Guard's inventory use?

V-Guard's working-capital movements generated Rs 147.93 crore of cash in the half year ended September 30, 2026, reversing a Rs 11.63 crore use of cash in the prior-year period. The largest source was a Rs 325.84 crore increase in trade payables, while a Rs 144.60 crore decrease in trade receivables also released cash. Provisions added Rs 30.07 crore of cash.

V-Guard's trade receivables fell to Rs 388.87 crore at September 30, 2026 from Rs 532.85 crore at March 31, 2026. Aggregate trade payables rose to Rs 1,065.34 crore from Rs 738.47 crore over the same dates. The closing payables included Rs 108.76 crore due to micro and small enterprises and Rs 956.58 crore due to other creditors.

V-Guard also recorded cash uses of Rs 79.27 crore from other assets, Rs 3.39 crore from other financial assets and Rs 0.29 crore from loans. Other financial liabilities provided Rs 11.36 crore, while other liabilities used Rs 17 lakh. These movements, together with receivables and payables, exceeded the cash absorbed by the inventory increase.

How did operating cash flow affect V-Guard's cash balance?

V-Guard's cash and cash equivalents rose by Rs 43.94 crore to Rs 90.86 crore at September 30, 2026 from Rs 46.92 crore at March 31, 2026. The Rs 458.35 crore operating inflow exceeded Rs 333.10 crore of investing outflows and Rs 81.31 crore of financing outflows. Closing cash comprised Rs 60.55 crore in current bank accounts, Rs 30.24 crore in fixed deposits with original maturity below three months and Rs 7 lakh in cash on hand.

V-Guard used Rs 94.69 crore to purchase property, plant and equipment, intangible assets, capital work-in-progress, intangible assets under development and capital advances. It also used Rs 240.19 crore for net purchases of current investments, taking investing cash outflow to Rs 333.10 crore from Rs 119.05 crore a year earlier. Current investments increased to Rs 436.09 crore at September 30, 2026 from Rs 180.70 crore at March 31, 2026.

V-Guard's financing outflow was Rs 81.31 crore, compared with Rs 83.04 crore in the previous corresponding period. Dividends paid accounted for Rs 65.54 crore, payments of the principal portion of lease liabilities were Rs 9.74 crore and finance costs paid were Rs 6.06 crore. Net short-term borrowings declined by Rs 83 lakh, while current borrowings stood at Rs 8.01 crore at September 30, 2026.

What changed in V-Guard's balance sheet by September 2026?

V-Guard's total assets increased by Rs 562.55 crore to Rs 4,276.27 crore at September 30, 2026 from Rs 3,713.72 crore at March 31, 2026. Current assets rose by Rs 517.34 crore to Rs 2,481.85 crore, driven by inventories, a Rs 255.39 crore increase in current investments and the Rs 43.94 crore cash increase. Non-current assets increased by Rs 45.21 crore to Rs 1,794.42 crore.

V-Guard's total equity rose by Rs 190.03 crore to Rs 2,563.08 crore, while total liabilities increased by Rs 372.52 crore to Rs 1,713.19 crore. Current liabilities were Rs 1,462.55 crore, compared with Rs 1,089.53 crore at March 31, 2026. Capital work-in-progress rose to Rs 55.41 crore from Rs 19.93 crore, and property, plant and equipment increased to Rs 673.09 crore from Rs 661.84 crore.

Conclusion

V-Guard converted higher profit before tax and a net Rs 147.93 crore cash release from working-capital movements into Rs 458.35 crore of operating cash flow for the half year ended September 30, 2026. The Rs 280.82 crore inventory increase was offset by the Rs 325.84 crore rise in trade payables and the Rs 144.60 crore reduction in trade receivables, helping raise cash and cash equivalents to Rs 90.86 crore.

The disclosed matter to watch is the proposed merger of Sunflame Enterprises Private Limited with V-Guard, for which the board granted in-principle approval on July 29, 2025, subject to necessary approvals. The filing says the merger is intended to capture synergies with V-Guard, but provides no completion date or further approval status as of October 29, 2026.