CMR Green Technologies funds cash outflow with short debt

CMR Green Technologies Limited funded a Rs 258.33 crore operating cash outflow in the half year ended September 30, 2026 with Rs 491.76 crore of net short-term borrowing proceeds, as Rs 503.98 crore of inventory growth and Rs 399.26 crore of higher trade receivables absorbed cash.

Why did CMR Green Technologies report an operating cash outflow?

CMR Green Technologies reported the outflow because working-capital movements of Rs 658.91 crore and direct taxes paid of Rs 43.60 crore exceeded its Rs 444.18 crore operating profit before working-capital changes in the half year ended September 30, 2026. The two largest cash uses within working capital were a Rs 503.98 crore increase in inventories and a Rs 399.26 crore increase in trade receivables.

The operating cash outflow was Rs 258.33 crore, compared with an outflow of Rs 268.91 crore in the half year ended September 30, 2025. Trade payables provided Rs 241.00 crore of cash in the latest half year, against Rs 7.78 crore a year earlier, but this did not offset the inventory and receivables movements.

How did CMR Green Technologies fund working-capital movements?

CMR Green Technologies generated Rs 379.23 crore of net cash from financing activities, led by Rs 491.76 crore of net proceeds from short-term borrowings in the half year ended September 30, 2026. That financing inflow followed Rs 258.33 crore of cash used in operations and Rs 113.92 crore used in investing activities.

Net proceeds from short-term borrowings were Rs 328.92 crore in the half year ended September 30, 2025, making the latest reported amount Rs 162.84 crore higher. Financing cash flow also included Rs 43.98 crore of long-term borrowing repayments, Rs 63.77 crore of interest paid, Rs 3.61 crore of lease payments and Rs 1.17 crore paid as the interest portion of lease liabilities.

The balance sheet shows current borrowings of Rs 1,724.99 crore at September 30, 2026, compared with Rs 1,260.39 crore at March 31, 2026. Non-current borrowings moved in the opposite direction, declining to Rs 119.57 crore from Rs 136.38 crore over the same dates; the cash-flow statement does not provide a full reconciliation between the period-end balance movement and reported net short-term borrowing proceeds.

Was CMR Green Technologies profitable despite the cash outflow?

CMR Green Technologies was profitable, reporting profit after tax of Rs 140.83 crore for the half year ended September 30, 2026, compared with Rs 113.87 crore for the half year ended September 30, 2025. Profit before tax was Rs 183.98 crore, up from Rs 149.59 crore, even as operating cash flow remained negative.

The difference reflects the treatment of working capital in the cash-flow statement. The latest half-year results recorded Rs 67.85 crore of finance costs and Rs 39.79 crore of depreciation and amortisation expense, while the cash-flow statement included Rs 67.11 crore of interest expense in its operating-profit reconciliation.

Revenue from operations was Rs 6,594.58 crore in the half year ended September 30, 2026, compared with Rs 4,074.01 crore in the corresponding prior-year period. CMR Green Technologies reports one operating segment, recycling non-ferrous metals including aluminium alloys, billets, zinc-alloy ingots and segregation of stainless steel, copper, brass, zinc, lead and magnesium.

What other cash demands did CMR Green Technologies have?

CMR Green Technologies used Rs 113.92 crore in investing activities during the half year ended September 30, 2026, compared with Rs 67.63 crore in the prior-year half year. Purchases of property, plant, equipment, right-of-use assets, intangible assets and capital work in progress were Rs 118.61 crore, while proceeds from asset sales were Rs 5.38 crore.

Capital work in progress was Rs 122.27 crore at September 30, 2026, up from Rs 67.60 crore at March 31, 2026. Property, plant and equipment was Rs 712.98 crore, marginally above Rs 709.96 crore at the previous year-end, while right-of-use assets declined to Rs 58.41 crore from Rs 62.62 crore.

After operating, investing and financing movements, cash and cash equivalents rose by Rs 6.98 crore to Rs 12.57 crore at September 30, 2026. The closing total comprised Rs 0.96 crore of cash on hand, Rs 10.18 crore in current accounts and Rs 1.43 crore in cash credit accounts.

What does CMR Green Technologies' balance sheet show about working capital?

CMR Green Technologies reported inventories of Rs 1,708.05 crore and trade receivables of Rs 1,341.75 crore at September 30, 2026, compared with Rs 1,316.85 crore and Rs 941.65 crore respectively at March 31, 2026. Those balance-sheet increases were accompanied by other current assets rising to Rs 375.53 crore from Rs 296.38 crore.

Current liabilities increased to Rs 2,444.42 crore from Rs 1,901.73 crore across the six months. Trade payables to creditors other than micro and small enterprises increased to Rs 531.09 crore from Rs 283.91 crore, while other financial liabilities declined to Rs 74.22 crore from Rs 231.57 crore.

Total equity was Rs 2,047.40 crore at September 30, 2026, compared with Rs 1,724.66 crore at March 31, 2026, and total liabilities were Rs 2,708.01 crore compared with Rs 2,147.95 crore. The September 2026 consolidated results were unaudited and subject to limited review, while the comparative half-year figures for September 2025 were extracted from special-purpose audited consolidated interim financial statements prepared for an initial public offering purpose.

Conclusion

The half-year filing shows that CMR Green Technologies increased revenue to Rs 6,594.58 crore and profit after tax to Rs 140.83 crore while cash was absorbed by a Rs 658.91 crore working-capital movement. Financing activity, rather than operating cash generation, supplied the net liquidity needed during the period, and current borrowings ended at Rs 1,724.99 crore.

The disclosed unresolved matter is the exclusion of two joint ventures from consolidation for the period ended September 30, 2026, after their operations ceased and a dispute between joint-venture partners continued. CMR Green Technologies said the entities' financial statements for years from March 31, 2022 through March 31, 2026, and for the six months ended September 30, 2026, were not prepared on a going-concern basis.