Yash Chemex reports Rs 235.90 lakh operating cash outflow

Yash Chemex Limited reported a Rs 235.90 lakh net cash outflow from operating activities for the half year ended September 30, 2026, despite net profit of Rs 214.25 lakh, as trade receivables increased by Rs 369.06 lakh and inventories increased by Rs 288.99 lakh. The consolidated results include subsidiary Yasons Chemex Care Limited.

Why did Yash Chemex report an operating cash outflow?

Yash Chemex reported the Rs 235.90 lakh operating cash outflow because working-capital movements more than offset its Rs 295.80 lakh operating profit before working-capital changes. The cash-flow statement records increases in inventories, trade receivables and other current financial assets, other current assets and loans that together used Rs 726.10 lakh of cash during the first half.

Inventories used Rs 288.99 lakh of cash and trade receivables used a further Rs 369.06 lakh. Trade payables provided Rs 259.72 lakh, partly offsetting those uses, while other current liabilities and provisions declined by Rs 17.29 lakh. Cash generated from operations was consequently negative Rs 187.87 lakh before direct taxes paid of Rs 48.03 lakh.

How did receivables and inventory change at Yash Chemex?

Yash Chemex's trade receivables rose to Rs 53.59 crore at September 30, 2026, from Rs 49.89 crore at March 31, 2026, while inventories increased to Rs 27.57 crore from Rs 24.68 crore. Those balance-sheet increases correspond with the Rs 369.06 lakh receivables outflow and Rs 288.99 lakh inventory outflow reported in the half-year cash-flow statement.

Other current assets increased to Rs 1.56 crore from Rs 88.27 lakh, while bank balances other than cash and cash equivalents rose to Rs 2.31 crore from Rs 2.27 crore. Cash and cash equivalents declined to Rs 4.48 lakh at September 30 from Rs 5.69 lakh at March 31, consistent with the reported Rs 1.21 lakh net decrease in cash and cash equivalents.

The working-capital movement occurred while the two reported operating segments moved in opposite directions. Manufacturing segment revenue was Rs 19.20 crore in the half year, compared with Rs 12.10 crore a year earlier, while trading segment revenue was Rs 42.78 crore, down from Rs 64.25 crore. After inter-segment revenue, consolidated revenue from operations declined to Rs 56.61 crore from Rs 68.75 crore.

Did first-half profit convert into operating cash at Yash Chemex?

No, Yash Chemex's first-half profit did not convert into positive operating cash, with Rs 214.25 lakh of net profit followed by a Rs 235.90 lakh operating cash outflow. Profit before tax increased to Rs 271.61 lakh from Rs 222.60 lakh in the half year ended September 30, 2025, but higher working-capital balances absorbed cash.

The bridge from profit before tax included Rs 68.78 lakh of finance costs, Rs 3.16 lakh of depreciation and amortisation, and Rs 3.04 lakh of expected credit-loss allowance. It also deducted Rs 43.11 lakh for the share of profit from investment in a limited liability partnership, Rs 7.59 lakh of interest income and Rs 9,000 of dividend income, producing Rs 295.80 lakh before working-capital changes.

The comparison with the prior full financial year shows a different cash outcome. For the year ended March 31, 2026, Yash Chemex reported Rs 42.60 lakh of net cash generated from operating activities, after Rs 157.64 lakh of cash generated from operations and Rs 115.04 lakh of direct taxes paid. In the half year to September 2026, cash generated from operations instead was negative Rs 187.87 lakh.

How were Yash Chemex's funding and liabilities affected?

Yash Chemex drew net current borrowings of Rs 245.05 lakh in the half year and repaid Rs 12.30 lakh of non-current borrowings, resulting in Rs 163.97 lakh of net cash from financing activities. Finance costs paid were Rs 68.78 lakh. This financing inflow, together with the Rs 70.72 lakh investing inflow, did not fully offset the operating outflow, leaving cash and cash equivalents lower by Rs 1.21 lakh.

Current borrowings increased to Rs 16.42 crore at September 30, 2026, from Rs 13.97 crore at March 31, 2026, in line with the net Rs 245.05 lakh current-borrowing movement in the cash-flow statement. Non-current borrowings fell to Rs 1.11 crore from Rs 1.23 crore. Trade payables to parties other than micro, small and medium enterprises rose to Rs 18.89 crore from Rs 16.30 crore.

Total assets stood at Rs 105.27 crore at September 30, compared with Rs 96.72 crore at March 31. Total equity rose to Rs 64.50 crore from Rs 61.22 crore, including Rs 43.83 crore attributable to equity holders and Rs 20.68 crore of non-controlling interest. Investments increased to Rs 14.83 crore from Rs 12.88 crore over the same period.

What were Yash Chemex's investing cash flows and operating results?

Yash Chemex recorded Rs 70.72 lakh of net cash from investing activities in the half year, compared with Rs 89.80 lakh of net cash used in investing activities in the year ended March 31, 2026. The half-year statement includes Rs 67.20 lakh from the net property, plant and equipment line, including capital work-in-progress and capital advances, alongside Rs 7.59 lakh of interest received and Rs 9,000 of dividend received.

The investing section also records Rs 4.16 lakh used for net investment in fixed deposits with banks. At the operating level, total income was Rs 59.30 crore for the half year, down from Rs 69.30 crore a year earlier, while total expenses fell to Rs 56.58 crore from Rs 67.07 crore. Profit from operations before tax was Rs 2.72 crore, compared with Rs 2.23 crore in the previous corresponding half year.

Manufacturing revenue increased by Rs 7.10 crore year on year in the half year, whereas trading revenue declined by Rs 21.47 crore. The reported segment result, defined as profit before finance costs and tax, was Rs 3.19 crore versus Rs 2.93 crore a year earlier. Finance costs decreased to Rs 68.78 lakh from Rs 70.82 lakh, while Yash Chemex reported no exceptional items in either half-year period.

Conclusion

Yash Chemex combined higher first-half profit before tax of Rs 271.61 lakh with a Rs 235.90 lakh operating cash outflow because inventory and receivables movements used a combined Rs 658.05 lakh. Higher trade payables and net current borrowings partly funded those cash requirements, while cash and cash equivalents declined by Rs 1.21 lakh over the half year.

The filing does not disclose a cash-flow target or a scheduled next reporting date. The unresolved items evident in the September 30, 2026 accounts are trade receivables of Rs 53.59 crore, inventories of Rs 27.57 crore and current borrowings of Rs 16.42 crore, whose subsequent movements would affect operating cash generation.