India Carbon Annual Reports, Balance Sheet and Financials

 India Carbon Limited Standalone Balance Sheet (Rs in Crores)

India Carbon Limited Standalone Profit & Loss Statement (Rs in Crores)

India Carbon Limited Standalone Cash Flow Statement (Rs in Crores)

Summary of Cash Flow Statement:

Cash Flow from Operating Activities

India Carbon Limited reported a net cash outflow from operating activities of ₹13.90 crore in FY 2025–26, compared with a net inflow of ₹8.78 crore in FY 2024–25, reflecting a significant decline in cash generation from its core operations. The company incurred a loss before tax of ₹20.82 crore, and although non-cash expenses such as depreciation (₹2.35 crore) and finance costs (₹4.91 crore) were added back, these were offset by non-operating incomes including dividend income, interest income, gains on sale of investments, and fair value gains on investments, resulting in an operating loss before working capital changes of ₹16.97 crore. Working capital movements had a mixed effect, with a reduction in inventories (₹11.13 crore) improving liquidity, while an increase in trade receivables and other current assets (₹7.95 crore) and a decrease in trade payables and other liabilities (₹0.56 crore) led to additional cash outflows. Consequently, cash generated from operations remained negative at ₹14.33 crore, and after tax payments, the company recorded a net operating cash outflow of ₹13.90 crore, indicating that its core business operations were unable to generate adequate cash during the year.

Cash Flow from Investing Activities

The company recorded a net cash outflow of ₹7.23 crore from investing activities during FY 2025-26, representing a significant improvement over the outflow of ₹79.76 crore in the previous year. Capital expenditure remained relatively modest at ₹1.39 crore, suggesting limited investment in fixed assets and expansion projects. The major investing activity involved mutual fund transactions, where the company invested ₹39.90 crore while redeeming investments worth ₹31.90 crore, resulting in a net investment outflow. The company also generated cash through interest income (₹0.25 crore), dividend income (₹1.20 crore), sale of fixed assets (₹0.04 crore), and maturity of bank deposits (₹0.67 crore).

Compared with FY 2024-25, the lower cash outflow indicates a more conservative investment strategy and reduced deployment of surplus funds into financial investments. Although investing activities continued to consume cash, the scale of investment was considerably lower than in the previous year, thereby reducing pressure on overall liquidity.

Cash Flow from Financing Activities

Financing activities generated a net cash inflow of ₹17.09 crore during FY 2025-26, compared with ₹49.70 crore in FY 2024-25. The primary source of financing was an increase in short-term borrowings of ₹22.00 crore, reflecting the company 's reliance on external debt to meet liquidity requirements arising from negative operating cash flows. Finance costs increased significantly to ₹4.91 crore from ₹1.77 crore in the previous year, indicating a higher borrowing burden and increased cost of debt. Unlike the previous year, no dividend was paid during FY 2025-26, enabling the company to conserve cash.

Overall, financing activities provided the cash necessary to support operations and investments. However, the increasing dependence on borrowings, coupled with rising finance costs, suggests that the company 's financial risk has increased and future profitability will need to improve to sustain debt servicing.

Net Change in Cash and Cash Equivalents

Overall, the company experienced a net decrease in cash and cash equivalents of ₹4.04 crore during FY 2025-26, compared with a decline of ₹21.28 crore in the previous year. The cash balance declined from ₹7.92 crore at the beginning of the year to ₹3.89 crore at year-end. Although the reduction in cash was substantially lower than the previous year due to reduced investment outflows and financing support, the decline still reflects continued pressure on liquidity. Negative operating cash flows remained the primary reason for the fall in cash balances, while additional borrowings only partially offset the cash deficit.

Financial ratios of India Carbon Limited for the year 2026 and 2025:

Summary of Financial Ratios:

Current Ratio

The current ratio declined from 1.97 in FY 2024–25 to 1.77 in FY 2025–26, indicating a slight weakening in short-term liquidity. However, the ratio remained above 1, suggesting that the company still possessed sufficient current assets to meet its current liabilities.

Debt–Equity Ratio

The debt–equity ratio increased from 0.10 to 0.16, reflecting a higher reliance on debt financing during FY 2025–26. Despite the increase, the ratio remained low, indicating that the company continued to maintain a conservative capital structure with limited financial leverage.

Return on Equity (ROE)

The Return on Equity declined from –4.81% to –7.65%, indicating that shareholders experienced a higher negative return during FY 2025–26. The deterioration reflects increased losses, reducing the company 's ability to generate returns from shareholders ' funds.

Inventory Turnover Ratio

The inventory turnover ratio decreased from 2.44 to 2.18 times, indicating slower inventory movement compared to the previous year. This suggests relatively lower efficiency in inventory management and slower conversion of inventory into sales.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio improved from 11.36 to 12.13 times, indicating more efficient collection of receivables during FY 2025–26. The higher ratio reflects improved credit management and faster conversion of receivables into cash.

Trade Payables Turnover Ratio

The trade payables turnover ratio declined from 11.39 to 8.70 times, suggesting that the company took a longer time to settle its trade payables. This may indicate extended payment periods or efforts to conserve cash amid liquidity pressures.

Net Capital Turnover Ratio

The net capital turnover ratio increased from 1.78 to 2.77 times, indicating improved utilization of working capital to generate revenue. The higher ratio reflects better efficiency in employing net working capital for business operations.

Net Profit Ratio

The net profit ratio deteriorated from –7% to –12%, indicating a decline in overall profitability. The company incurred higher losses relative to its revenue, reflecting weaker operational performance during FY 2025–26.

Return on Capital Employed (ROCE)

The Return on Capital Employed declined from –2% to –3%, indicating reduced efficiency in generating returns from the capital invested in the business. The negative ratio reflects continued operating losses and poor utilization of capital resources.

Interest Coverage Ratio

The interest coverage ratio improved from –5.26 to –3.24, although it remained negative. This indicates that the company 's earnings were still insufficient to cover interest obligations, but the improvement suggests a relatively lower inability to service interest expenses compared to the previous year.