BF Utilities reports Rs 6.9507 crore first-half cash outflow

BF Utilities Limited reported a Rs 6.9507 crore operating cash outflow for the half year ended September 30, 2026, compared with Rs 3.283 crore used a year earlier, while shareholders’ funds declined by Rs 7.4713 crore from March 31, 2026. Investing inflows nevertheless lifted cash and cash equivalents by Rs 27.03 lakh.

Why did BF Utilities report a Rs 6.9507 crore operating cash outflow?

BF Utilities reported the Rs 6.9507 crore operating cash outflow because its Rs 7.5584 crore loss before tax outweighed working-capital cash inflows in the half year ended September 30, 2026. In the corresponding half of 2025, the company had reported a Rs 11.8652 crore profit before tax and an operating cash outflow of Rs 3.283 crore.

After adjustments including Rs 27.53 lakh of depreciation, Rs 1.39 crore of interest income, Rs 10,000 of dividend income and a Rs 55.32 lakh write-off of other receivables, BF Utilities recorded an operating loss before working-capital changes of Rs 8.1188 crore. The comparable operating loss before working-capital changes was Rs 35.61 lakh in the prior-year half.

Working-capital movements reduced the latest operating loss to Rs 6.8353 crore before direct taxes. Trade payables rose by Rs 97.78 lakh, other financial liabilities increased by Rs 45.94 lakh and other liabilities rose by Rs 44.52 lakh, partly offsetting a Rs 62.43 lakh increase in other financial assets and a Rs 17.63 lakh decline in provisions.

Direct taxes paid were Rs 11.54 lakh, taking net cash used in operating activities to Rs 6.9507 crore. Although direct tax payments were lower than the Rs 1.9599 crore paid in the prior-year half, the operating cash outflow increased by Rs 3.6677 crore because the pre-tax result changed from profit to loss.

How did BF Utilities increase cash despite operating cash use?

BF Utilities increased cash and cash equivalents by Rs 27.03 lakh because Rs 7.2409 crore generated from investing activities exceeded the operating outflow and Rs 1.99 lakh financing outflow. Cash and cash equivalents were Rs 49.98 lakh on September 30, 2026, compared with Rs 22.95 lakh at the beginning of the half year.

The prior-year half recorded a larger Rs 39.51 lakh increase in cash and cash equivalents, which ended at Rs 86.22 lakh on September 30, 2025. The latest closing cash balance should be distinguished from other bank balances, which fell by Rs 8.2202 crore to Rs 35.1258 crore from Rs 43.346 crore at March 31, 2026.

The biggest investing inflow was Rs 4.4377 crore from maturity proceeds of, or investments in, bank fixed deposits. BF Utilities also received Rs 2.8164 crore of interest on bank fixed deposits and Rs 10,000 of dividend income, while it spent Rs 1.42 lakh on property, plant and equipment.

Net cash generated from investing activities was Rs 7.2409 crore, compared with Rs 4.6782 crore in the half year ended September 30, 2025. In the earlier period, fixed-deposit movements used Rs 8.3211 crore, whereas the latest period showed a Rs 4.4377 crore inflow from that line item.

Why did BF Utilities shareholders’ funds decline?

BF Utilities shareholders’ funds declined to Rs 159.1059 crore on September 30, 2026 from Rs 166.5772 crore at March 31, 2026 because other equity fell by Rs 7.4713 crore. Equity share capital remained unchanged at Rs 18.8338 crore in both balance-sheet dates.

Other equity stood at Rs 140.2721 crore at the half-year end, down from Rs 147.7434 crore at March 31. The movement broadly reflected the Rs 7.5465 crore loss for the half year, partly offset by Rs 7.51 lakh of other comprehensive income, leaving total comprehensive loss of Rs 7.4714 crore.

The other comprehensive income included a Rs 7.27 lakh gain on fair valuation of financial instruments and a Rs 61,000 gain on remeasurement of the defined-benefit plan. Tax expense on those items was Rs 37,000, according to the half-year results.

Total assets fell by Rs 5.9038 crore to Rs 196.0618 crore at September 30 from Rs 201.9656 crore at March 31. Current assets declined by Rs 9.4342 crore to Rs 39.0106 crore, while non-current assets increased by Rs 3.5304 crore to Rs 157.0512 crore.

What changed in BF Utilities’ assets and liabilities?

BF Utilities’ liabilities increased by Rs 1.5675 crore to Rs 36.9559 crore at September 30, 2026, while total assets fell by Rs 5.9038 crore. Current liabilities rose by Rs 1.58 crore to Rs 15.9048 crore and non-current liabilities decreased by Rs 1.25 lakh to Rs 21.0511 crore.

The company reported no current or non-current borrowings on either September 30, 2026 or March 31, 2026. Within current liabilities, trade payables due to parties other than micro and small enterprises increased by Rs 1.077 crore to Rs 4.1397 crore.

Other financial liabilities rose by Rs 45.95 lakh to Rs 59.13 lakh and net income-tax liabilities increased by Rs 44.53 lakh to Rs 54.36 lakh. Amounts payable to micro and small enterprises declined by Rs 9.91 lakh to Rs 1.76 lakh over the same six-month period.

Among assets, non-current other financial assets increased by Rs 3.783 crore to Rs 5.1206 crore. Non-current investments remained unchanged at Rs 110.9566 crore, while the Rs 37 crore advance to Nandi Economic Corridor Enterprises Ltd. for acquisition of land parcels was unchanged from March 31.

Which BF Utilities segment drove the half-year loss?

BF Utilities’ infrastructure segment drove the half-year loss, reporting a Rs 9.9957 crore loss before tax and interest for the half year ended September 30, 2026. The segment had reported a Rs 8.174 crore profit in the corresponding half of 2025, when it recorded Rs 10.4288 crore of revenue.

Infrastructure recorded no revenue in the latest half year, while Wind Mills generated Rs 13.7809 crore of segment revenue. Wind Mills revenue was lower than Rs 15.8699 crore in the prior-year half, and the company notes that power generation is subject to seasonal variation in wind conditions.

Wind Mills reported segment profit before tax and interest of Rs 2.9197 crore, down from Rs 3.9929 crore a year earlier. The segment’s positive result did not offset the infrastructure loss, producing a combined segment loss of Rs 7.076 crore before Rs 48 lakh of other unallocable expenditure and Rs 2.4 lakh of finance cost.

BF Utilities consequently reported a Rs 7.5584 crore loss before tax and a Rs 7.5465 crore loss after tax in the latest half year. In the prior-year half, total revenue was Rs 26.2999 crore, including Rs 12.5627 crore of other income, compared with Rs 13.7823 crore of total revenue in the latest period.

What unresolved matters did BF Utilities disclose?

BF Utilities disclosed ongoing arbitration before the Singapore International Arbitration Centre involving Nandi Economic Corridor Enterprises Ltd., a step-down subsidiary, in which BF Utilities is a respondent as a promoter. Claimants seek damages equal to a Rs 500 crore investment plus an internal rate of return of 18%, along with a separate Rs 70.90 crore claim related to shares acquired under another transaction.

BF Utilities and the other respondents filed their rejoinder on July 17, 2026 after the claimants submitted their reply to the statement of defence on May 13, 2026. Management said, based on legal advice and its review, that no provision was required in the books as at September 30, 2026.

The independent auditor identified the arbitration disclosure as the basis for its qualified conclusion on the unaudited standalone results. BF Utilities said it would continue reviewing litigation positions and would make accounting adjustments if required.

The company also said that Nandi Infrastructure Corridor Enterprise Ltd., Nandi Economic Corridor Enterprises Ltd. and Nandi Highway Developers Ltd. had not submitted specified unaudited results through the September 2026 half year. Nandi Highway Developers’ toll operations ended on September 7, 2024 after its concession term concluded, while BF Utilities said its investment in that subsidiary was considered good given its positive net worth.

Conclusion

BF Utilities’ half-year cash flow shows that investing inflows, led by fixed-deposit movements and interest receipts, covered a larger operating cash deficit and increased cash and cash equivalents by Rs 27.03 lakh. The balance sheet also reflects a Rs 7.4713 crore reduction in shareholders’ funds, following a half-year comprehensive loss, alongside higher current liabilities.

Next, readers should watch the arbitration’s progress and whether management’s assessment that no provision is needed changes. The filing also leaves specified financial results from three subsidiaries outstanding, while BF Utilities says Wind Mills generation is seasonal and quarterly results do not necessarily indicate the full-year trend.