Effwa Infra reports Rs 23.73 crore operating cash outflow

Effwa Infra & Research Limited reported a Rs 23.73 crore net operating cash outflow for the half year ended September 30, 2026, despite Rs 20.13 crore in profit before tax, as its cash-flow statement recorded working-capital cash use and Rs 5.03 crore of income-tax payments.

Why did Effwa Infra report an operating cash outflow?

Effwa Infra reported an operating cash outflow because the statement showed Rs 20.75 crore of operating profit before working-capital changes but reported cash generated from operations of negative Rs 18.70 crore. The company then reported Rs 5.03 crore in income tax paid, producing the stated net cash outflow from operating activities of Rs 23.73 crore for the half year ended September 30, 2026.

The result reversed the prior-year position. For the half year ended September 2025, Effwa Infra reported Rs 23.50 crore of net cash inflow from operating activities, including Rs 26.91 crore of cash generated from operations and Rs 3.41 crore of income tax paid. The change from a Rs 23.50 crore inflow to a Rs 23.73 crore outflow was Rs 47.23 crore.

Effwa Infra’s profit before tax nevertheless increased to Rs 20.13 crore from Rs 13.56 crore a year earlier. The cash-flow statement thus showed a different outcome from the income statement: higher reported profit before tax did not result in positive operating cash generation during the September 2026 half.

Which working-capital movements used Effwa Infra’s cash?

Effwa Infra’s largest listed working-capital cash use was a Rs 10.57 crore decrease in trade payables in the half year ended September 2026. Its cash-flow statement also recorded a Rs 8.70 crore inventory increase, a Rs 4.64 crore increase in trade receivables, Rs 2.04 crore used in loans, advances and other current assets, and a Rs 5.49 crore decrease in other current liabilities and provisions.

Inventory cash use was higher than the Rs 4.25 crore reported in the September 2025 half. The balance sheet showed inventory of Rs 8.97 crore at September 30, 2026, compared with Rs 26.54 lakh at March 31, 2026, while trade receivables rose to Rs 133.35 crore from Rs 128.71 crore over the same six-month interval.

Trade receivables moved in the opposite direction from the comparable half year. Effwa Infra reported a Rs 22.12 crore reduction in receivables in the half year ended September 2025, whereas its September 2026 cash-flow statement reported a Rs 4.64 crore increase. Trade payables also differed from the prior period, when the statement recorded a Rs 36.05 lakh increase rather than the Rs 10.57 crore decrease reported for September 2026.

The listed September 2026 working-capital movements total Rs 31.45 crore of cash use. Against reported operating profit before working-capital changes of Rs 20.75 crore, those listed lines calculate to negative Rs 10.70 crore, while the cash-flow statement reports negative Rs 18.70 crore as cash generated from operations. The filing does not separately identify the Rs 8.00 crore difference between those figures.

How did Effwa Infra’s profit compare with revenue and expenses?

Effwa Infra reported revenue from operations of Rs 130.65 crore for the half year ended September 2026, up from Rs 90.21 crore in the corresponding period a year earlier. Total expenses increased to Rs 110.52 crore from Rs 76.65 crore, leaving reported profit before tax of Rs 20.13 crore compared with Rs 13.56 crore.

Cost of goods sold rose to Rs 95.85 crore from Rs 62.32 crore, while employee benefits expense increased to Rs 8.44 crore from Rs 7.13 crore. Finance cost in the income statement fell to Rs 88.52 lakh from Rs 1.76 crore, while depreciation and amortisation expense increased to Rs 1.40 crore from Rs 1.09 crore.

Effwa Infra reported profit after tax of Rs 15.10 crore for the September 2026 half, against Rs 10.14 crore in the prior-year half. Earnings per share were Rs 6.52, compared with Rs 4.38. The income statement lists current tax of Rs 5.03 crore, while the cash-flow statement also reports Rs 5.03 crore of income tax paid.

The company disclosed a single reportable business segment under Accounting Standard 17, Segment Reporting. It therefore gave no separate segment-level revenue, profit, assets or cash-flow figures for the Rs 130.65 crore of September 2026 half-year revenue.

How did the operating outflow affect Effwa Infra’s cash and funding?

Effwa Infra reported a Rs 20.42 crore net decrease in cash and cash equivalents in the half year ended September 2026, compared with a Rs 14.12 crore increase in the September 2025 half. The cash-flow statement reported opening cash and cash equivalents of Rs 20.59 crore and closing cash and cash equivalents of Rs 17.35 lakh.

Investing activities used Rs 3.84 crore in the September 2026 half, entirely shown as purchase of fixed assets, compared with Rs 1.67 crore in the comparable period. The balance sheet listed property, plant and equipment of Rs 24.05 crore at September 30, 2026, including Rs 23.06 crore of capital work in progress, compared with Rs 20.35 crore at March 31, 2026.

Financing activities provided Rs 7.15 crore, following a Rs 7.71 crore financing outflow in the prior-year half. The September 2026 financing section lists Rs 7.80 crore under loan taken or repayment on a net basis, Rs 1.37 crore of interest received and Rs 1.86 crore of interest paid.

Short-term borrowings stood at Rs 47.04 crore at September 30, 2026, compared with Rs 24.33 crore at March 31, 2026. Long-term borrowings were Rs 22.47 crore, up from Rs 13.67 crore, while the balance sheet separately reported cash and bank balances of Rs 46.75 crore at September 30, 2026. That balance-sheet amount differs from the Rs 17.35 lakh closing cash and cash equivalents presented in the cash-flow statement.

What review and accounting basis did Effwa Infra disclose?

Effwa Infra said its audit committee reviewed, and its board approved, the unaudited September 2026 half-year results on November 2, 2026. The independent auditor, Jignesh Savla and Associates, issued its limited review report on the same date under Regulation 33 of the Securities and Exchange Board of India listing regulations.

The auditor stated that nothing had come to its attention that caused it to believe the unaudited results failed to disclose required information or contained a material misstatement. The report said the review was conducted under Standard on Review Engagements 2410 and provided moderate assurance; it was not an audit.

Effwa Infra said it prepared the results under Accounting Standards prescribed under Section 133 of the Companies Act, 2013. The filing also stated that companies listed on the small and medium enterprises exchange are exempt from compulsory adoption of Indian Accounting Standards under the cited Ministry of Corporate Affairs notification dated February 16, 2015.

Conclusion

Effwa Infra’s September 2026 half-year filing shows a gap between reported earnings and cash generation. Revenue rose to Rs 130.65 crore and profit before tax reached Rs 20.13 crore, but the company reported a Rs 23.73 crore operating cash outflow after working-capital movements and Rs 5.03 crore in tax payments. Inventory, receivables, payables and other current-balance movements were all listed as cash uses.

The next reported period should show whether inventory of Rs 8.97 crore, receivables of Rs 133.35 crore and the reported Rs 10.57 crore fall in trade payables change direction. It should also clarify the Rs 8.00 crore arithmetic difference within the operating cash-flow bridge and the difference between the Rs 17.35 lakh closing cash-equivalents figure and Rs 46.75 crore of balance-sheet cash and bank balances.