Airfloa Rail revenue more than doubles, cash outflow widens

Airfloa Rail Technology Limited reported revenue from operations of Rs 220.34 crore for the half year ended September 30, 2026, up from Rs 90.54 crore a year earlier, while net cash used in operating activities was Rs 64.53 crore as receivables, inventory, loans and advances absorbed cash.

How much did Airfloa Rail's revenue and profit increase?

Airfloa Rail's standalone revenue from operations increased 143.4% year on year to Rs 220.34 crore in the half year ended September 30, 2026, from Rs 90.54 crore in the corresponding half of 2025. Total income rose to Rs 220.46 crore from Rs 90.98 crore, even as other income declined to Rs 11.45 lakh from Rs 44.27 lakh.

Profit before tax rose to Rs 34.77 crore from Rs 16.50 crore, while profit after tax increased to Rs 25.07 crore from Rs 12.09 crore. Basic and diluted earnings per share were Rs 10.46, compared with Rs 6.72 in the prior-year half, on equity shares with a face value of Rs 10 each. The company disclosed no exceptional or extraordinary items for the reporting period.

The latest half-year revenue was lower than Rs 229.06 crore recorded in the half year ended March 31, 2026, which was the second half of the financial year ended March 31, 2026. Profit after tax of Rs 25.07 crore was also below Rs 27.07 crore in that preceding half, despite being more than double the comparable September 2025 half-year figure.

What changed in Airfloa Rail's costs during the half year?

Airfloa Rail's total expenses rose to Rs 185.69 crore from Rs 74.48 crore, alongside the Rs 129.80 crore increase in revenue. Material consumption increased to Rs 134.31 crore from Rs 54.25 crore, while direct expenses rose to Rs 37.16 crore from Rs 3.97 crore. These were the two largest disclosed expense lines in the September 2026 half-year statement.

The income statement included a Rs 15.64 crore reduction in inventories of work-in-progress and finished goods, compared with a Rs 2.35 crore reduction a year earlier. This expense adjustment differs from the cash-flow statement, which recorded a Rs 10.99 crore increase in inventories. The two disclosures measure inventory movements for different accounting purposes.

Finance costs increased to Rs 9.18 crore from Rs 4.42 crore, and depreciation and amortisation rose to Rs 4.53 crore from Rs 1.54 crore. Employee-benefit expense was Rs 8.77 crore against Rs 6.69 crore, while other expenses reached Rs 7.38 crore from Rs 5.96 crore. Current tax increased to Rs 9.59 crore from Rs 4.19 crore.

Why did Airfloa Rail use cash in operating activities?

Airfloa Rail used Rs 64.53 crore in operating activities during the half year ended September 30, 2026, despite reporting Rs 34.77 crore of profit before tax. Operating profit before working-capital changes was Rs 47.22 crore, after adjustments including Rs 7.77 crore of interest cost and Rs 4.53 crore of depreciation and amortisation.

Working-capital movements moved cash generated from operations before extraordinary items to a negative Rs 64.53 crore. Trade receivables used Rs 48.98 crore of cash, loans and advances used Rs 23.13 crore, inventories used Rs 10.99 crore and other non-current assets used Rs 4.36 crore. Trade payables used a further Rs 29.38 crore, partly offset by Rs 5.09 crore from other current liabilities and provisions.

The cash-flow statement reported no income-tax payment or refund for the September 2026 half year. For the full year ended March 31, 2026, Airfloa Rail had reported Rs 57.45 crore of net cash used in operating activities after Rs 10.57 crore of income tax paid. The periods are not like-for-like, but both disclosures show operating cash absorption after working-capital changes.

How did Airfloa Rail fund its working-capital requirements?

Airfloa Rail generated Rs 75.58 crore from financing activities in the September 2026 half year, led by Rs 101.63 crore of proceeds from borrowings. It repaid Rs 18.28 crore of borrowings and paid Rs 7.77 crore of interest. The financing inflow exceeded the combined operating and investing cash outflows, producing a Rs 4.26 crore increase in cash and cash equivalents.

Investing activities used Rs 6.79 crore, including Rs 6.88 crore spent on property, plant, equipment and intangible assets. Interest income received was Rs 8.96 lakh. Cash and cash equivalents rose to Rs 17.33 crore on September 30, 2026, from Rs 13.08 crore on March 31, 2026, comprising Rs 13.12 crore of bank balances and Rs 4.21 crore of fixed deposits with original maturities of less than three months.

The balance sheet also shows a rise in funding and operating-asset balances. Short-term borrowings increased to Rs 139.56 crore at September 30 from Rs 64.19 crore at March 31, while long-term borrowings rose to Rs 12.09 crore from Rs 4.12 crore. Trade receivables increased to Rs 263.00 crore from Rs 214.02 crore and inventories rose to Rs 83.39 crore from Rs 72.40 crore.

What remains from Airfloa Rail's IPO proceeds?

Airfloa Rail disclosed that Rs 80.15 crore of its Rs 91.10 crore initial public offering allocation had been spent by September 30, 2026, leaving Rs 10.95 crore unspent. The company had fully spent the Rs 59.27 crore allocated for working capital, Rs 6.00 crore for loan repayment and Rs 9.90 crore for general corporate purposes.

The unspent balance included Rs 10.77 crore from the Rs 13.68 crore capital-expenditure allocation and Rs 17.92 lakh from the Rs 2.25 crore allocation for IPO expenses. Airfloa Rail listed on the BSE SME platform on September 18, 2025 after issuing 65.07 lakh equity shares at a premium of Rs 130 per share.

Conclusion

Airfloa Rail's September 2026 standalone half-year statement shows that revenue and profit expanded substantially from the prior-year period, with revenue rising by Rs 129.80 crore and profit after tax rising by Rs 12.98 crore. The same statement shows that operating assets and liabilities absorbed cash, leaving a Rs 64.53 crore operating outflow that was supported by Rs 75.58 crore of financing inflow.

The next disclosed matter to watch is deployment of the Rs 10.95 crore of IPO proceeds that remained unspent at September 30, 2026, chiefly the Rs 10.77 crore capital-expenditure balance. Airfloa Rail also said on November 14, 2026 that its board approved signing an asset sale and purchase agreement with Kin Railway Equipment Private Limited after due diligence and valuation of the proposed assets.