Effective Working Capital Management Strategies by Large Corporates in India | Key Insights

Discover essential highlights on effective working capital management adopted by large Indian corporates. Learn how liquidity optimization, faster receivables, lean inventory, and smart payables drive financial resilience and growth.

This article explores key strategies large corporates in India are using to optimize working capital management in 2026. From adopting liquidity as a strategic priority to accelerating receivables, streamlining inventory, and smartly managing payables, these insights highlight how companies improve cash flow, reduce financing costs, and strengthen operational resilience. Designed for finance leaders and business professionals, this comprehensive overview provides practical approaches to enhance financial agility and sustain growth in a competitive market.

Working Capital Management Strategies

2026 Focus

Liquidity as Strategy:

Working capital is treated as a strategic asset.

Boards track liquidity alongside profitability.

Cash buffers are proactively planned.

Funding stress is reduced through internal cash.

Receivables

Faster Cash Inflows:

Customer credit policies are tightened.

E-invoicing reduces billing disputes.

Automated reminders improve collections.

DSO reduction is a core KPI.

Inventory

Lean Stock Models:

Demand forecasting reduces excess stock.

SKU rationalization improves turnover.

Just-in-time procurement frees capital.

Warehouse automation cuts holding costs.

Payables

Smart Extensions:

Payment terms are renegotiated carefully.

Supplier segmentation enables flexibility.

Dynamic discounting balances liquidity.

Vendor health remains protected.

Cash Cycle

Operational Efficiency:

Cash conversion cycles are closely tracked.

Cross-functional ownership is increasing.

Monthly reviews drive improvements.

Shorter cycles free internal funding.

Treasury

Centralized Control:

Cash pooling reduces idle balances.

Central treasury improves visibility.

Funding decisions become faster.

Yield optimization improves returns.

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