Eicher Motors first-half operating cash flow increases 38%

Eicher Motors Limited generated Rs 3,671.56 crore in net operating cash flow for the half year ended September 30, 2026, 38% above Rs 2,657.88 crore a year earlier, while paying Rs 2,251.08 crore in dividends and spending Rs 860.29 crore on property, plant, equipment and intangible assets.

How much operating cash did Eicher Motors generate?

Eicher Motors generated Rs 3,671.56 crore from operating activities after tax in the half year ended September 30, 2026, compared with Rs 2,657.88 crore in the corresponding 2025 period. The Rs 1,013.68 crore increase came as cash generated from operations rose to Rs 4,350.65 crore from Rs 3,234.18 crore, exceeding the increase in net income tax paid to Rs 679.09 crore from Rs 576.30 crore.

The cash-flow statement began with profit before tax and after the share of joint-venture profit of Rs 3,917.61 crore, up from Rs 3,372.00 crore. Reconciliation adjustments included Rs 540.35 crore of depreciation and amortisation, against Rs 397.62 crore, and a Rs 353.57 crore deduction for Eicher Motors' share of joint-venture profit, compared with Rs 292.02 crore a year earlier.

What working-capital movements affected Eicher Motors' cash generation?

Eicher Motors' largest listed working-capital movement was a Rs 984.06 crore increase in trade payables during the latest half year, versus a Rs 304.46 crore increase in the corresponding prior-year period. The increase was partly offset by cash uses from a Rs 84.54 crore rise in trade receivables and a Rs 154.66 crore increase in other current assets.

Inventory used Rs 4.97 crore of cash in the half year ended September 30, 2026, compared with Rs 270.96 crore a year earlier. Contract liabilities added Rs 103.01 crore, below Rs 251.87 crore in the prior-year half, while other current financial assets used Rs 14.01 crore after providing Rs 2.77 crore in the comparison period.

Other non-working-capital adjustments also differed substantially. Liabilities no longer required and written back were deducted by Rs 342.75 crore in the latest cash-flow reconciliation, compared with Rs 14.71 crore a year earlier, while net gains on financial instruments at fair value through profit or loss were deducted by Rs 383.13 crore, against Rs 440.61 crore. Finance costs recognised rose to Rs 43.93 crore from Rs 34.06 crore.

How did Eicher Motors use cash for investments?

Eicher Motors used Rs 1,380.50 crore in investing activities in the half year ended September 30, 2026, compared with Rs 771.95 crore in the corresponding 2025 period. Purchases and acquisitions of property, plant and equipment, intangible assets, capital work-in-progress, assets under development and related capital items totalled Rs 860.29 crore, up Rs 243.31 crore from Rs 616.98 crore.

Sales of debt mutual funds and bonds generated Rs 7,929.80 crore, while purchases totalled Rs 7,690.57 crore, resulting in a Rs 239.23 crore net inflow. This contrasted with a Rs 1,168.53 crore net outflow from those instruments in the year-earlier half. Fixed-deposit transactions produced a Rs 1,050.35 crore net outflow in the latest period, as Rs 2,002.85 crore was invested and Rs 952.50 crore matured; the prior period had a Rs 445.49 crore net inflow.

The September 30 balance sheet showed capital work-in-progress at Rs 384.30 crore, up from Rs 203.08 crore at March 31, 2026, and intangible assets under development at Rs 714.40 crore, up from Rs 533.22 crore. Property, plant and equipment stood at Rs 2,331.62 crore versus Rs 2,357.88 crore, while intangible assets were Rs 1,111.24 crore versus Rs 1,174.98 crore.

How did dividends and financing affect Eicher Motors' liquidity?

Eicher Motors paid Rs 2,251.08 crore in dividends in the half year ended September 30, 2026, Rs 331.13 crore more than the Rs 1,919.95 crore paid a year earlier. The payment was the main financing cash outflow, contributing to total net financing outflows of Rs 2,291.70 crore, compared with Rs 1,943.25 crore in the corresponding prior-year period.

Working-capital loan drawdowns were Rs 19.46 crore and repayments were Rs 52.00 crore, resulting in a Rs 32.54 crore net repayment. Eicher Motors also received Rs 24.11 crore from other borrowings, paid Rs 26.87 crore of interest and made Rs 41.21 crore of lease-related payments, comprising Rs 5.97 crore of interest and Rs 35.24 crore of principal. Employee equity-plan proceeds were Rs 20.88 crore.

Cash and cash equivalents, less bank overdraft, increased by Rs 13.84 crore to Rs 221.23 crore at September 30, 2026 from Rs 207.39 crore at the start of the period. The movement combined the Rs 3,671.56 crore operating inflow, Rs 1,380.50 crore investing outflow, Rs 2,291.70 crore financing outflow and a Rs 14.48 crore favourable foreign-currency translation effect.

What did Eicher Motors' balance sheet show at September 2026?

Eicher Motors reported total assets of Rs 34,410.45 crore at September 30, 2026, up from Rs 32,163.56 crore at March 31, 2026, while total equity rose to Rs 25,941.15 crore from Rs 25,100.15 crore. Current assets increased to Rs 13,306.05 crore from Rs 9,554.25 crore, including other current financial assets of Rs 5,946.26 crore and current investments of Rs 3,206.27 crore.

Total borrowings were Rs 350.12 crore at September 30, comprising Rs 209.35 crore of non-current borrowings and Rs 140.77 crore of current borrowings. The comparable total at March 31 was Rs 319.01 crore. Current liabilities rose to Rs 6,365.26 crore from Rs 5,023.98 crore, with trade payables other than those due to micro and small enterprises increasing to Rs 3,598.02 crore from Rs 2,638.10 crore.

The consolidated unaudited results and cash-flow statement for the half year were approved by Eicher Motors' board on November 13, 2026. The statutory auditors issued an unmodified conclusion on the results under the applicable Securities and Exchange Board of India listing regulations.

Conclusion

Eicher Motors' higher operating inflow of Rs 3,671.56 crore covered both Rs 860.29 crore of investment spending and Rs 2,251.08 crore of dividends, with cash and cash equivalents less bank overdraft rising by Rs 13.84 crore over the six months. The period also showed a Rs 1,116.47 crore increase in cash generated from operations before tax payments, supported by higher profit and changes in current liabilities and inventory.

The next disclosed uncertainty to watch is the cost of Extended Producer Responsibility obligations under the End-of-Life Vehicles Rules, 2025. Eicher Motors said the certificate-pricing mechanism has not been notified and the centralised portal is only partially operational, so the group cannot yet reliably estimate the obligation until a measurement framework is established.