Weizmann operating cash flow falls 58% in September half-year

Weizmann Limited generated Rs 7.5111 crore of net operating cash flow in the half year ended September 30, 2026, down 57.68% from Rs 17.7487 crore a year earlier, as cash generated from operations declined despite higher profit before tax. Purchases of fixed assets and capital work-in-progress fell 69.65% to Rs 3.33 crore.

Why did Weizmann’s operating cash flow decline?

Weizmann’s operating cash flow declined because cash generated from operations fell to Rs 8.5599 crore in the half year ended September 30, 2026 from Rs 19.0478 crore in the corresponding 2025 period. After net income-tax payments of Rs 1.0488 crore, compared with Rs 1.2991 crore a year earlier, net cash from operating activities was Rs 7.5111 crore against Rs 17.7487 crore.

The cash-flow result differed from the movement in profit before tax, which increased to Rs 3.3218 crore in the September 2026 half year from Rs 2.9733 crore a year earlier. Operating profit before working-capital changes decreased to Rs 6.1420 crore from Rs 7.6734 crore, while the contribution from working-capital movements also reduced substantially.

The Rs 10.2366 crore year-on-year decline in net operating cash flow was larger than the Rs 1.5314 crore fall in operating profit before working-capital changes. This indicates that movements in inventories, receivables, other assets and liabilities had a greater effect on the cash comparison than the Rs 0.3485 crore increase in profit before tax.

How did working capital affect Weizmann’s cash generation?

Weizmann received a Rs 2.4179 crore cash contribution from working-capital movements in the September 2026 half year, compared with a Rs 11.3744 crore contribution in the prior-year period. The Rs 8.9565 crore reduction explains most of the decrease in cash generated from operations between the two half years.

Inventories used Rs 2.0458 crore of cash in the latest period, whereas inventories released Rs 0.4337 crore in the corresponding 2025 half year. Other current and non-current assets used Rs 1.3892 crore in 2026, compared with a Rs 7.0770 crore cash release a year earlier. These changes offset cash releases from trade receivables and increases in operating liabilities.

Trade receivables released Rs 2.4009 crore of cash in the latest half year, while trade payables provided Rs 1.6700 crore and other financial liabilities provided Rs 1.8750 crore. Provisions used Rs 0.1995 crore, compared with a Rs 0.0352 crore use in the prior-year period, according to the cash-flow statement.

The September 30, 2026 balance sheet reflected these movements. Inventories rose to Rs 9.9307 crore from Rs 7.8849 crore at March 31, 2026, while trade receivables declined to Rs 10.4057 crore from Rs 12.8003 crore. Other current assets increased to Rs 6.5095 crore from Rs 5.1203 crore over the same period.

How much did Weizmann spend on fixed assets?

Weizmann spent Rs 3.33 crore on fixed assets, including capital work-in-progress, in the half year ended September 30, 2026, compared with Rs 10.9732 crore in the corresponding 2025 period. The Rs 7.6432 crore reduction equals a 69.65% decline, based on the cash-flow statement.

Net cash used in investing activities was Rs 3.0728 crore in the latest half year, down from Rs 10.8492 crore a year earlier. The 2026 investing cash flows included Rs 0.10 crore of proceeds from sale or discard of fixed assets and Rs 0.1845 crore of interest received, alongside the Rs 3.33 crore outlay on fixed assets and capital work-in-progress.

Property, plant and equipment stood at Rs 31.8540 crore at September 30, 2026, compared with Rs 31.9075 crore at March 31, 2026. Capital work-in-progress increased to Rs 1.4099 crore from Rs 0.0168 crore. The balance-sheet change therefore did not consist solely of an increase in completed property, plant and equipment.

Weizmann operates in processing and manufacture of textiles and reports one business segment under Indian Accounting Standard 108, Operating Segments. The filing does not provide a separate segment-level capital-expenditure breakdown or a capital-expenditure target beyond the Rs 3.33 crore cash outlay reported for the September 2026 half year.

How did Weizmann fund its half-year cash movements?

Weizmann used Rs 4.1686 crore in financing activities during the half year ended September 30, 2026, compared with Rs 4.7332 crore used in the corresponding prior-year period. The latest financing cash flows included Rs 2.3241 crore of short-term borrowing repayments, Rs 0.8589 crore of lease-principal payments and Rs 0.7747 crore of dividends paid.

Combining Rs 7.5111 crore from operations, Rs 3.0728 crore used in investing and Rs 4.1686 crore used in financing resulted in a Rs 0.2697 crore increase in cash and cash equivalents. Cash and cash equivalents rose to Rs 2.1117 crore at September 30, 2026 from Rs 1.8420 crore at the beginning of the year.

The closing cash balance comprised Rs 0.0667 crore of cash on hand and Rs 2.0450 crore in current bank accounts. In addition, bank balances other than cash equivalents were Rs 0.3187 crore at September 30, 2026, compared with Rs 0.3198 crore at March 31, 2026.

Current borrowings fell to Rs 3.1307 crore at September 30, 2026 from Rs 5.4548 crore at March 31, 2026, and non-current borrowings declined to Rs 0.7233 crore from Rs 0.7826 crore. Total current liabilities increased to Rs 29.1013 crore from Rs 24.7417 crore, including current lease liabilities of Rs 3.1089 crore compared with Rs 0.0172 crore at the March year-end.

Conclusion

Weizmann’s September 2026 half-year cash profile combined lower operating cash generation with a smaller investing outflow. Net operating cash flow fell to Rs 7.5111 crore from Rs 17.7487 crore as the working-capital contribution reduced to Rs 2.4179 crore, while fixed-asset and capital-work-in-progress purchases fell to Rs 3.33 crore from Rs 10.9732 crore. Financing outflows of Rs 4.1686 crore still left cash and cash equivalents Rs 0.2697 crore higher at Rs 2.1117 crore.

The filing does not disclose a cash-flow target or capital-expenditure plan beyond the reported September 2026 half-year figures. The unresolved item for subsequent disclosures is whether inventory, other assets, receivables and operating liabilities again generate or use cash after the latest Rs 2.4179 crore working-capital contribution, alongside the reported reduction in current borrowings to Rs 3.1307 crore.