D P Wires posts Rs 18.70 crore half-year operating cash outflow

D P WIRES LIMITED recorded an Rs 18.70 crore net operating cash outflow for the half year ended September 30, 2026, despite Rs 12.47 crore of profit before tax. Net working-capital movements used Rs 22.45 crore, reversing Rs 7.11 crore of operating profit before working-capital changes and leaving cash used in operations of Rs 15.34 crore before taxes.

Why did D P Wires report an operating cash outflow?

D P Wires reported an operating cash outflow because Rs 22.45 crore of working-capital movements exceeded its Rs 7.11 crore operating profit before those movements. The company generated an operating profit before working-capital changes after beginning its indirect-method cash-flow calculation with Rs 12.47 crore of profit before tax and recording net adjustments of Rs 5.37 crore.

Cash used in operations was Rs 15.34 crore after the working-capital movements. Net direct taxes paid added a further Rs 3.36 crore cash use, resulting in the reported Rs 18.70 crore net cash used in operating activities for the period ended September 30, 2026.

The statement was prepared under the indirect method required by Indian Accounting Standard 7, or Ind AS 7. Under this approach, D P Wires reconciles accounting profit to cash flow through non-cash and other adjustments, then shows the impact of changes in inventories, receivables, liabilities and provisions separately.

The comparison shows a shift from Rs 28.09 crore generated from operating activities in the year ended March 31, 2026 to an Rs 18.70 crore outflow in the six months to September 30, 2026. These are different reporting periods, but the filing identifies working-capital changes as the immediate factor behind the movement.

Which working-capital items used D P Wires cash?

D P Wires reported Rs 19.83 crore of cash use related to inventories and Rs 19.33 crore related to trade receivables in the half year. Together, those two movements accounted for Rs 39.16 crore of cash absorption before offsets from other current assets, payables, liabilities and provisions.

The balance sheet reports inventories of Rs 30.54 crore at September 30, 2026, compared with Rs 10.70 crore at March 31, 2026. Trade receivables stood at Rs 71.24 crore at September 30, compared with Rs 61.92 crore at the preceding financial year-end, while the cash-flow statement records the related half-year movements under the indirect-method reconciliation.

Other disclosed movements partly offset the inventory and receivable cash use. Other current assets contributed Rs 6.15 crore, trade payables added Rs 0.48 crore, and other current liabilities added Rs 10.42 crore; short-term provisions used Rs 0.34 crore. Taken together with the inventory and receivable movements, these items resulted in the Rs 22.45 crore net working-capital outflow.

The cash-flow result also contrasts with reported earnings. D P Wires recorded Rs 12.47 crore of profit before tax in the half year ended September 30, 2026, compared with Rs 6.57 crore in the comparative period ended September 30, 2025. The filing therefore shows higher reported pre-tax profit alongside negative operating cash flow.

How did investing and financing flows affect D P Wires cash?

D P Wires used Rs 27.65 crore in investing activities and generated Rs 35.49 crore from financing activities during the half year. Financing inflows exceeded investing outflows by Rs 7.84 crore, but did not offset the combined Rs 46.35 crore cash used in operating and investing activities.

The investing cash outflow included Rs 2.43 crore spent on property, plant and equipment. The filing also reports movements in non-current financial assets, non-current assets, fixed deposits, loans and investments, with the aggregate investing outflow reaching Rs 27.65 crore for the half year.

Financing activity included Rs 1.47 crore from long-term borrowings and Rs 34.70 crore from short-term borrowings. Payments of lease liabilities including interest were Rs 0.12 crore, while other finance costs were Rs 0.66 crore, producing the Rs 35.49 crore net financing inflow stated in the cash-flow statement.

Current borrowings were Rs 36.65 crore at September 30, 2026, compared with Rs 1.95 crore at March 31, 2026. Non-current financial liabilities were Rs 1.70 crore at September 30, up from Rs 0.22 crore at March 31, while total equity increased to Rs 275.28 crore from Rs 266.02 crore.

What happened to D P Wires cash and cash equivalents?

D P Wires’ cash and cash equivalents fell by Rs 10.86 crore during the half year, closing at Rs 18.62 crore on September 30, 2026 from Rs 29.48 crore at the beginning of the year. The decline reflects Rs 18.70 crore used in operations and Rs 27.65 crore used in investing, partly offset by Rs 35.49 crore from financing.

Balances in current bank accounts made up Rs 18.52 crore of closing cash and cash equivalents, while cash on hand was Rs 9.38 lakh. At March 31, 2026, current-account balances were Rs 29.39 crore and cash on hand was Rs 8.92 lakh, together producing the opening Rs 29.48 crore cash-and-cash-equivalent balance.

D P Wires separately reported Rs 2.15 crore of bank balances other than cash and cash equivalents at September 30, 2026, compared with Rs 1.88 crore at March 31, 2026. That balance is excluded from the Rs 18.62 crore cash-and-cash-equivalent closing figure used in the cash-flow statement.

The company’s September 2026 financial results were unaudited and were approved by the board on November 5, 2026. The statutory auditor conducted a limited review of the quarter and year-to-date financial results and stated that nothing had come to its attention suggesting a material misstatement.

Conclusion

D P Wires’ half-year cash-flow statement shows that accounting profit did not convert into operating cash during the period. Inventory and receivable movements were the largest disclosed cash uses, while financing inflows supported both the operating shortfall and investing outflows, though cash and cash equivalents still declined to Rs 18.62 crore.

The next results will indicate whether the Rs 30.54 crore inventory balance and Rs 71.24 crore trade-receivable balance at September 30, 2026 translate into cash. They will also show whether the Rs 36.65 crore current-borrowing balance changes after the half-year financing inflow.