Vishal Fabrics profit jumps 35% as cash flow all but vanishes

Vishal Fabrics reported a 35% jump in net profit to ₹32.2 crore, but the headline masks a stark deterioration in cash generation. Operating cash flow all but evaporated, falling from ₹107.6 crore to just ₹2.9 crore as trade receivables ballooned by ₹121.5 crore — essentially, every rupee of incremental revenue is being parked on the balance sheet rather than collected. The profit was also flattered by a ₹17.1 crore revaluation gain and a lower tax charge; without those, net profit would have been flat to slightly down. On the positive side, the company converted 5 crore equity warrants into shares, raising ₹114.75 crore and pushing equity to ₹638 crore, which provides a cushion. But the cash flow number is the one that matters: a business that generates almost no cash from operations cannot sustain itself without external funding. The open question is whether the receivable build-up is a genuine slowdown in collections or a temporary bulge that reverses in FY26.