Deccan Gold operating cash outflow widens to Rs 90.13 crore

Deccan Gold Mines Limited reported consolidated net cash used in operating activities of Rs 90.13 crore for the half year ended 30 September 2026, up from Rs 64.05 crore a year earlier, as an Rs 88.613 crore trade-receivables movement outweighed a narrower Rs 30.123 crore pre-tax loss.

Why did Deccan Gold’s operating cash outflow widen?

Deccan Gold’s operating cash outflow widened because trade receivables used Rs 88.613 crore in the half year ended 30 September 2026, compared with Rs 5.075 crore in the corresponding 2025 half. This working-capital movement was more than four times the group’s Rs 20.971 crore operating loss before working-capital changes, although that loss narrowed from Rs 22.583 crore a year earlier.

Cash generated from operations was negative Rs 90.142 crore, compared with negative Rs 64.035 crore in the previous-year half. Direct taxes provided Rs 13 lakh in the 2026 period, against a Rs 16 lakh outflow in the comparable period, leaving net operating cash outflow at Rs 90.13 crore versus Rs 64.05 crore.

Did Deccan Gold’s reported loss narrow despite the cash outflow?

Yes. Deccan Gold’s consolidated loss before tax narrowed to Rs 30.123 crore in the half year ended 30 September 2026 from Rs 48.376 crore in the corresponding 2025 half. The cash-flow figures therefore show that the smaller accounting loss did not lead to lower operating cash use because movements in receivables and other current assets absorbed cash.

Depreciation was Rs 6.242 crore, marginally below Rs 6.437 crore a year earlier, while employee stock-option expense fell to Rs 3.396 crore from Rs 12.899 crore. Interest and finance charges declined to Rs 3.152 crore from Rs 8.522 crore, and interest received rose to Rs 3.88 crore from Rs 1.18 crore.

Trade and other payables supplied Rs 25.441 crore of cash, compared with Rs 4.940 crore in the previous-year half, while other financial assets supplied Rs 12.558 crore. These inflows did not offset Rs 23.270 crore used by other current assets, up from Rs 20.538 crore, and Rs 1.38 crore used by inventories, compared with Rs 20.645 crore in the 2025 half.

How did Deccan Gold fund its cash movements?

Deccan Gold recorded net cash from investing activities of Rs 166.473 crore in the 2026 half year, compared with Rs 32.777 crore in the prior-year half. The main contributor was Rs 192.819 crore recorded as loan repaid, substantially above the Rs 45.093 crore reported in the corresponding 2025 period.

That loan-related inflow was partly used for Rs 22.236 crore of purchases of fixed assets and advances, compared with Rs 9.771 crore a year earlier. Deccan Gold also spent Rs 3.155 crore on intangible assets under development and Rs 1.474 crore on investments in associates or subsidiaries, while receiving Rs 62 lakh from fixed deposits and Rs 3.88 crore of interest.

What changed in Deccan Gold’s financing cash flow?

Deccan Gold moved to financing cash outflow of Rs 84.208 crore in the 2026 half year from financing cash inflow of Rs 18.458 crore in the preceding-year period. The statement records an Rs 87.230 crore outflow under convertible debentures and equity warrants, compared with an Rs 8.050 crore outflow in the 2025 half.

Share capital increased by Rs 39 lakh and share premium increased by Rs 5.831 crore, against Rs 7 lakh and Rs 7.981 crore respectively a year earlier. Finance charges and other financing costs used Rs 3.153 crore, down from Rs 8.522 crore, while share application money decreased by Rs 45 lakh in the 2026 half.

The combination of Rs 90.13 crore used in operations, Rs 166.473 crore received through investing activities and Rs 84.208 crore used in financing activities resulted in a Rs 7.864 crore cash decline. That decline was below the prior-year Rs 12.815 crore reduction because investing inflow increased by Rs 133.696 crore despite higher operating and financing cash outflows.

What was Deccan Gold’s closing cash position?

Deccan Gold closed 30 September 2026 with consolidated cash and cash equivalents of Rs 2.656 crore, down from Rs 10.52 crore at the start of the half year. The closing balance was also below Rs 3.853 crore at 30 September 2025, a year-on-year reduction of Rs 1.197 crore.

The cash-flow statement measures the Rs 2.656 crore closing balance after operating, investing and financing movements. The consolidated balance sheet separately reports trade receivables of Rs 120.132 crore at 30 September 2026, alongside the Rs 88.613 crore receivables cash movement recorded for the half year.

Conclusion

Deccan Gold’s narrower Rs 30.123 crore consolidated pre-tax loss did not translate into reduced operating cash use in the half year ended 30 September 2026. The Rs 88.613 crore trade-receivables movement and Rs 23.270 crore use of cash by other current assets contributed to Rs 90.13 crore of operating cash outflow, while financing activities moved from a Rs 18.458 crore inflow to an Rs 84.208 crore outflow.

The next disclosed matter to watch is management’s expectation that repayment of Deccan Gold’s unsecured loans to Avelum Partner LLC, Kyrgyzstan, will commence after commercial production begins at the Altyn Tor Gold Project. The standalone review report identifies loans of Rs 276.1054 crore and accrued interest of Rs 41.1194 crore at 15% a year, with management expecting recovery based on its assessment and future business projections.