Balmer Lawrie Annual Reports, Balance Sheet and Financials

 Balmer Lawrie-Van Leer Limited Standalone Balance Sheet (Rs in Crores)

Balmer Lawrie-Van Leer Limited Standalone Profit & Loss Statement (Rs in Crores)

Balmer Lawrie-Van Leer Limited Standalone Cash Flow Statement (Rs in Crores)

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

Operating Activities

The company generated ₹53.09 crore of net cash from operating activities in FY2025-26, marginally lower than ₹53.82 crore in FY2024-25. Operating profit before working-capital changes remained almost stable at ₹75.91 crore versus ₹75.99 crore. However, working-capital movements were less favorable, mainly due to a ₹6.98 crore decrease in provisions, trade payables and other liabilities and a ₹5.58 crore increase in trade receivables. This was partly offset by a decrease in loans and other assets and inventories. After paying ₹12.62 crore in direct taxes, operating cash flow remained strong, indicating that the company’s core business continues to generate healthy cash.

Investing Activities

Investing activities resulted in a net cash outflow of ₹18.83 crore, significantly higher than the ₹7.11 crore outflow in FY2024-25. The main reason was a substantial increase in capital expenditure, with ₹19.83 crore spent on property, plant and equipment, intangibles and CWIP, compared with only ₹8.00 crore in the previous year. The company received ₹0.33 crore from the sale of fixed assets and ₹0.67 crore as interest income, but these inflows were small compared with the investment expenditure. The higher capital spending suggests increased investment in the company’s asset base and potentially reflects capacity expansion, modernization or long-term growth initiatives.

Financing Activities

Financing activities recorded a net cash outflow of ₹33.87 crore, although this was an improvement over the ₹46.80 crore outflow in FY2024-25. The company continued to reduce its borrowings, repaying ₹16.95 crore of non-current borrowings and ₹6.61 crore of current borrowings. It also paid ₹7.25 crore in dividends and ₹5.81 crore in finance costs. These outflows were partly supported by a ₹5.20 crore increase in deposits with banks towards margin money. Overall, the financing cash flow indicates continued deleveraging and a reduction in dependence on borrowings, which is positive for financial stability, although it also places a significant cash requirement on the business.

Overall Cash Position

Despite strong operating cash generation of ₹53.09 crore, the company spent ₹18.83 crore on investing activities and ₹33.87 crore on financing activities, resulting in a small net increase in cash of ₹0.39 crore. Consequently, cash and cash equivalents increased from ₹0.05 crore to ₹0.44 crore during FY2025-26. The cash flow profile is broadly healthy because operating activities comfortably funded both capital expenditure and financing commitments. However, the very low closing cash balance means the company has limited immediate cash reserves, making continued strong operating cash generation important. Overall, the statement reflects healthy internal cash generation, higher capital investment, and continued debt reduction, with almost no accumulation of surplus cash.

Financial ratios of Balmer Lawrie-Van Leer Limited 

Summary of Financial Ratios for the year 2026 and 2025:

Current Ratio

The Current Ratio improved from 1.41 in FY2024-25 to 1.62 in FY2025-26, indicating a stronger short-term liquidity position. This means the company has a better ability to meet its current liabilities using its current assets. The improvement suggests more comfortable working-capital management and reduced short-term financial pressure.

Debt-Equity Ratio

The Debt-Equity Ratio declined significantly from 0.28 to 0.17, indicating a substantial reduction in financial leverage. The company is relying less on borrowed funds relative to shareholders’ funds. This is a positive sign for financial stability as lower debt reduces interest obligations and financial risk.

Debt Service Coverage Ratio

The Debt Service Coverage Ratio increased sharply from 5.39 to 26.94. This indicates a very strong improvement in the company’s ability to meet its interest and debt repayment obligations from its operating earnings. The sharp rise is also consistent with the company’s reduction in borrowings and finance costs, reflecting significantly lower debt-servicing pressure.

Return on Equity Ratio

The Return on Equity declined slightly from 0.14 to 0.13. This indicates that the return generated on shareholders’ funds weakened marginally during FY2025-26. Although the decline is small, it suggests that the improvement in financial strength and lower leverage has not translated into a proportionate improvement in returns generated for equity shareholders.

Inventory Turnover Ratio

The Inventory Turnover Ratio decreased from 4.94 to 4.69, indicating a slight slowdown in the movement or utilisation of inventory. This may suggest that inventory is taking somewhat longer to convert into sales compared with the previous year. The decline is moderate, but continued monitoring of inventory levels would help prevent excessive working-capital blockage.

Debtors Turnover Ratio

The Debtors Turnover Ratio fell from 5.28 to 4.68, indicating slower collection of trade receivables. This suggests that the company may be taking longer to recover money from customers, which can affect working-capital efficiency. The decline is particularly relevant as the cash-flow statement also showed an increase of ₹5.58 crore in trade receivables during FY2025-26.

Creditors Turnover Ratio

The Creditors Turnover Ratio increased from 5.33 to 5.85, indicating that the company is settling its trade creditors at a faster rate than in the previous year. While this may reflect improved payment discipline and stronger liquidity, it also means that less supplier credit is being used as a source of working capital. The increase should therefore be viewed alongside the company’s overall liquidity position.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio declined from 2.19 to 1.83, indicating that the efficiency with which the company uses its net working capital to generate revenue has weakened. This could be partly associated with higher working-capital requirements and slower debtor turnover. Although liquidity has improved, the lower ratio suggests that the additional working capital is generating relatively less sales than in the previous year.

Net Profit Margin

The Net Profit Margin improved from 6.5% to 7%, indicating that the company retained a higher proportion of its revenue as net profit. This is a positive development and suggests improved overall profitability. The improvement may also reflect better control over costs and lower finance-related expenses.

Return on Capital Employed

The Return on Capital Employed declined from 27% to 24%, indicating a lower return generated from the total capital employed in the business. Despite the improvement in net profit margin and significant reduction in debt, the decline suggests that the capital base or investment in assets has increased faster than operating returns. Overall, the ratio indicates that capital utilisation efficiency weakened slightly during FY2025-26.