Pajson Agro Reports Mixed H1 FY27 Results

Revenue grew to Rs 143.39 crore from Rs 118.37 crore in the previous half-year.
Net profit after tax declined to Rs 12.56 crore from Rs 14.21 crore.

Reader Takeaway: Revenue expansion is ongoing, but rising debt and negative operating cash flow signal mounting working capital pressure.

What just happened

Pajson Agro India Limited released its standalone unaudited financial results for the half-year ended September 30, 2026. The results were reviewed by statutory auditor S S Kothari Mehta & Co. LLP, which issued an unmodified report. While the company successfully grew its top-line revenue, profitability faced downward pressure during the period.

Why this matters

The divergence between revenue growth and shrinking profits suggests rising operational costs or margin compression in the cashew processing business. Furthermore, the balance sheet shows a significant build-up in inventories—rising from Rs 37.59 crore in March 2026 to Rs 95.69 crore—and a corresponding increase in short-term borrowings, which grew from Rs 34.06 crore to Rs 59.25 crore.

IPO Fund Utilization

The company provided an update on its Rs 74.45 crore IPO proceeds. As of September 30, 2026, Rs 35.64 crore has been utilized. The largest portion, aimed at setting up a new manufacturing unit and machinery, shows Rs 38.73 crore still unutilized, suggesting ongoing capital expenditure projects.

Risks to watch

The company reported a negative net cash flow from operating activities of Rs 22.75 crore, a significant increase from the previous year's negative Rs 7.12 crore. This trend, combined with increasing short-term debt, highlights potential liquidity constraints that investors should monitor closely in upcoming quarters.

Context metrics

Basic and diluted earnings per share (EPS) fell to Rs 5.27, compared to Rs 8.12 in the corresponding period of the previous year.