Yug Decor reports Rs 54.56 lakh cash outflow for the half-year

Yug Decor Limited reported net cash used in operating activities of Rs 54.56 lakh for the half year ended September 30, 2026, as increases in trade receivables and inventories absorbed Rs 3.73 crore, exceeding its Rs 45.31 lakh operating profit before working-capital changes. Cash and cash equivalents fell to Rs 72.25 lakh.

Why did Yug Decor report an operating cash outflow?

Yug Decor reported an operating cash outflow because Rs 99.87 lakh of adverse working-capital movements exceeded Rs 45.31 lakh of operating profit before working-capital changes in the half year ended September 30, 2026. The resulting cash generated from operations was negative Rs 54.56 lakh, and the company reported no direct taxes paid, net of refunds, in the period.

The starting profit measure reflected a Rs 36.80 lakh loss before tax and extraordinary items. Non-cash and financing-related adjustments included Rs 39.43 lakh of depreciation and amortisation and Rs 51.15 lakh of interest expense, partly offset by a Rs 8.47 lakh profit on sale of assets, resulting in the Rs 45.31 lakh operating profit before working-capital changes.

The latest operating outflow followed a Rs 1.22 crore operating cash outflow for the year ended March 31, 2026. The two periods are not directly comparable because the March 2026 disclosure covers a full year, but both cash-flow statements show that working-capital movements outweighed the pre-working-capital operating result.

How much cash did receivables and inventories absorb?

Trade receivables and inventories absorbed a combined Rs 3.73 crore of cash during the September 2026 half year. The cash-flow statement records a Rs 2.41 crore increase in trade receivables and a Rs 1.32 crore increase in inventories, the two largest adverse working-capital movements disclosed for the period.

Trade receivables on the balance sheet rose to Rs 17.31 crore at September 30, 2026, from Rs 14.90 crore at March 31, 2026. Inventories increased to Rs 11.62 crore from Rs 10.30 crore over the same dates, consistent in direction with the movements shown in the cash-flow statement.

Revenue from operations was Rs 21.38 crore in the half year ended September 30, 2026, compared with Rs 19.24 crore in the six months ended March 31, 2026 and Rs 19.50 crore in the half year ended September 30, 2025. The company therefore recorded higher revenue against both disclosed half-year comparisons while its receivables and inventory balances also increased from the March 2026 financial year-end.

What partly offset Yug Decor’s working-capital cash use?

An increase in trade payables provided a Rs 2.56 crore cash offset during the half year ended September 30, 2026. That inflow partly countered the Rs 3.73 crore absorbed by receivables and inventories, but it was insufficient to prevent total working-capital movements from being negative Rs 99.87 lakh.

Total trade payables increased to Rs 7.71 crore at September 30, 2026 from Rs 5.15 crore at March 31, 2026. Dues to creditors other than micro and small enterprises rose to Rs 6.64 crore from Rs 4.05 crore, while dues to micro and small enterprises declined to Rs 1.08 crore from Rs 1.10 crore.

Other current liabilities increased by Rs 26.34 lakh in the cash-flow statement, while other long-term liabilities increased by Rs 39.93 lakh and short-term provisions increased by Rs 72,000. These inflows were partly offset by a Rs 54.04 lakh increase in short-term loans and advances, while long-term loans and advances declined by Rs 3.56 lakh.

How did financing and investing activities affect cash?

Financing activities used Rs 1.59 crore in the September 2026 half year, contributing to a net Rs 2.06 crore decrease in cash and cash equivalents. The financing outflow comprised Rs 86.26 lakh of net long-term borrowing repayment, Rs 21.74 lakh of net short-term borrowing repayment and Rs 51.15 lakh of interest paid.

Investing activities provided Rs 7.93 lakh, reflecting net sale of fixed assets in the cash-flow statement. Combined with the Rs 54.56 lakh operating outflow and Rs 1.59 crore financing outflow, this reduced cash and cash equivalents from Rs 2.78 crore at the beginning of the half year to Rs 72.25 lakh at September 30, 2026.

Long-term borrowings stood at Rs 2.82 crore at September 30, 2026, down from Rs 3.68 crore at March 31, 2026. Short-term borrowings declined to Rs 9.44 crore from Rs 9.66 crore, while finance costs of Rs 51.15 lakh were below Rs 75.73 lakh in the six months ended March 31, 2026 and Rs 70.40 lakh in the half year ended September 30, 2025.

How did Yug Decor’s operating performance compare across segments?

Yug Decor generated Rs 13.15 crore of segment revenue from Speciality Chemicals-Adhesives and Rs 8.24 crore from Plywood Boards in the half year ended September 30, 2026. Speciality Chemicals-Adhesives revenue increased from Rs 11.24 crore in the six months ended March 31, 2026, while Plywood Boards revenue rose from Rs 8.01 crore.

Segment profit before tax and interest was Rs 10.63 lakh for Speciality Chemicals-Adhesives and Rs 40.83 lakh for Plywood Boards, for a total of Rs 51.46 lakh. That total was below Rs 1.33 crore in the six months ended March 31, 2026, as Speciality Chemicals-Adhesives segment profit declined from Rs 87.25 lakh despite higher segment revenue.

After interest of Rs 51.15 lakh and net unallocable expenditure of Rs 37.11 lakh, Yug Decor recorded a Rs 36.80 lakh loss before tax for the September 2026 half year. Net loss was Rs 27.54 lakh, compared with net profit of Rs 14.76 lakh in the six months ended March 31, 2026; basic and diluted earnings per share were each negative Rs 0.17 in the latest period.

Conclusion

Yug Decor’s September 2026 half-year results show that its Rs 27.54 lakh net loss was accompanied by a Rs 54.56 lakh operating cash outflow. The principal cash use was the Rs 3.73 crore combined increase in receivables and inventories, which was only partly offset by the Rs 2.56 crore increase in trade payables and other liability-related movements.

The filing does not disclose a receivables-collection target, inventory-reduction plan or future funding programme. Subsequent financial disclosures will show whether the Rs 17.31 crore receivables balance and Rs 11.62 crore inventory balance change after cash and cash equivalents declined to Rs 72.25 lakh at September 30, 2026.