Amol Minechem Annual Reports, Balance Sheet and Financials

Amol Minechem Limited Consolidated Balance Sheet (Rs in Crores)

Amol Minechem Limited Consolidated Profit & Loss Statement (Rs in Crores)

Amol Minechem Limited Consolidated Cash Flow Statement (Rs in Crores)

Summary of Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities

Cash flow from operating activities remained positive and improved slightly from ₹3.25 crore in FY2025 to ₹3.56 crore in FY2026, indicating that the company continued to generate cash from its core business operations. Profit before tax increased from ₹8.30 crore to ₹9.65 crore, reflecting better profitability. However, operating profit before working-capital changes increased only moderately from ₹4.94 crore to ₹5.26 crore, mainly because investment income of ₹5.74 crore was deducted from operating cash flow. Working-capital movements were mixed: inventories generated ₹0.28 crore of cash and other assets generated ₹0.05 crore, while trade receivables absorbed ₹1.07 crore, indicating higher funds tied up in receivables. After working-capital adjustments, cash generated from operations declined from ₹5.94 crore to ₹4.82 crore. The major improvement came from lower direct taxes paid, which fell from ₹2.69 crore to ₹1.26 crore. Consequently, net operating cash flow increased by ₹0.31 crore to ₹3.56 crore, which is a positive feature of the cash-flow position.

Cash Flow from Investing Activities

Investing activities resulted in a cash outflow of ₹1.29 crore in FY2026, compared with an outflow of ₹1.76 crore in FY2025. The largest investing activity was intercorporate lending: the company provided ₹18.04 crore of loans during FY2026 but received back ₹16.84 crore, resulting in a net outflow of approximately ₹1.20 crore. This was considerably lower than the corresponding net outflow of about ₹0.86 crore in FY2025. Investment in fixed assets also declined substantially; from ₹2.37 crore to ₹0.34 crore, suggesting lower capital expenditure during FY2026. The company received ₹0.30 crore back from loans to directors and ₹0.26 crore from interest, dividend and AIF income. Overall, the investing cash outflow reduced compared with the previous year, but a significant amount of cash continued to be deployed through intercorporate loans.

Cash Flow from Financing Activities

Financing activities generated a net cash outflow of ₹2.35 crore in FY2026, compared with ₹1.16 crore in FY2025. The principal reason was the higher repayment of borrowings, which increased from ₹0.46 crore to ₹1.63 crore. Interest paid also increased from ₹0.29 crore to ₹0.53 crore, adding further pressure on financing cash flows. Dividend payments declined from ₹0.41 crore to ₹0.20 crore, partly offsetting the higher debt-related cash outflows. The negative financing cash flow indicates that the company used cash during FY2026 to reduce borrowings and meet financing obligations rather than raising additional funds.

Net Increase/(Decrease) in Cash and Cash Equivalents

The company 's overall cash position declined marginally during FY2026. Net cash decreased by ₹0.08 crore, compared with an increase of ₹0.33 crore in FY2025. The positive operating cash flow of ₹3.56 crore was insufficient to cover the combined investing outflow of ₹1.29 crore and financing outflow of ₹2.35 crore. The cash flow structure therefore shows that operating activities were the primary source of cash, while investing and financing activities together consumed that cash. The decline is relatively small, but it indicates limited surplus cash generation after meeting investment and financing requirements.

Financial ratios of Amol Minechem Limited

Summary of Financial Ratios for the years 2026 and 2025:

Current Ratio

The Current Ratio increased from 1.63 in FY2025 to 1.71 in FY2026, indicating a modest improvement in the company 's short-term liquidity position. A higher current ratio generally means that the company has a greater cushion of current assets to meet its current liabilities. The movement suggests that Amol Minechem 's ability to meet short-term obligations has strengthened slightly during FY2026. However, the improvement is relatively small, so the company should continue to maintain adequate liquid assets and efficiently manage receivables and other current assets.

Debt-Equity Ratio

The Debt-Equity Ratio declined from 0.09 to 0.07, indicating a further reduction in the company 's dependence on debt financing relative to shareholders ' funds. This reflects a low financial leverage position and suggests that the company has relatively limited debt obligations. The lower ratio also reduces financial risk and interest burden. The movement is particularly consistent with the cash-flow statement, which showed repayment of borrowings during FY2026.

Debt Service Coverage Ratio

The Debt Service Coverage Ratio (DSCR) decreased significantly from 10.16 in FY2025 to 3.68 in FY2026. Although the ratio remains above 1, indicating that cash earnings are still sufficient to service debt obligations, the substantial decline deserves attention. The reduction indicates that the company 's debt-servicing cushion became considerably lower during FY2026. The decline may be associated with higher interest payments and repayment of borrowings during the year. Thus, while debt-servicing capacity remains adequate, the trend should be monitored.

Return on Equity Ratio

The Return on Equity (ROE) declined from 9.35% to 8.79%. This means that the return generated on shareholders ' funds weakened slightly during FY2026. Despite the increase in profit before tax, the lower ROE suggests that shareholders ' capital increased at a faster rate than the returns generated, or that the growth in earnings was not sufficient to improve the return proportionately. The decline is modest but indicates some reduction in the efficiency with which shareholders ' funds were employed.

Inventory Turnover Ratio

The Inventory Turnover Ratio improved from 10.96 times to 12.36 times, indicating better inventory management during FY2026. The higher ratio means that inventory was converted into sales or consumed more frequently during the year. This generally reflects improved inventory utilisation and lower funds being tied up in stock. The improvement is positive because efficient inventory management can reduce holding costs and support better working-capital management.

Trade Receivables Turnover Ratio

The Trade Receivables Turnover Ratio increased from 4.12 times to 4.62 times, indicating an improvement in the collection and utilisation of trade receivables. A higher ratio generally means that receivables are being converted into cash more efficiently. However, the cash-flow statement showed a ₹1.07 crore cash outflow due to an increase in trade receivables during FY2026. Therefore, despite the improvement in the ratio, the company should continue monitoring customer collections and credit terms to prevent excessive funds from being locked up in receivables.

Trade Payables Turnover Ratio

The Trade Payables Turnover Ratio increased from 11.42 times to 12.85 times, indicating that the company is settling its trade payables at a faster rate relative to the previous year. This may indicate improved payment efficiency and stronger liquidity management. However, a significantly higher turnover can also mean that the company is utilising less supplier credit. Therefore, the company needs to balance timely payments with efficient utilisation of available credit terms.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio increased from 592.01% to 721.84%, indicating a substantial improvement in the utilisation of net working capital for generating business activity. The increase suggests that the company generated a higher level of revenue relative to the net capital employed in operations. This reflects more efficient utilisation of working capital. However, the ratio is quite high, so it is also important to ensure that the company is not operating with insufficient working-capital resources.

Net Profit Ratio

The Net Profit Ratio declined from 11.29% in FY2025 to 10.23% in FY2026. This indicates that the proportion of net profit earned from each rupee of revenue decreased during FY2026. Thus, despite the improvement in certain operating-efficiency ratios, the company experienced some pressure on its overall profit margin. This could indicate higher costs or changes in the composition of income and expenses. The decline should therefore be monitored because sustained margin compression could affect future profitability.

Return on Capital Employed

The Return on Capital Employed (ROCE) improved from 11.99% to 13.28%, indicating better returns generated from the capital employed in the business. This is a positive development and suggests that the company became more efficient in deploying its long-term capital during FY2026. The improvement in ROCE, despite the decline in ROE, indicates that the overall utilisation of capital in the business strengthened during the year.

Return on Investment

The Return on Investment (ROI) increased from 3.33% to 4.33%, showing an improvement in the returns generated from investments. This is particularly relevant because the company has significant investment and inter corporate-loan activities, as reflected in its cash-flow statement. The improvement indicates that the returns earned from these investments increased during FY2026. However, the absolute return remains relatively modest, so the company should continue evaluating the efficiency and risk associated with its investment deployment.