Eldeco Housing operating cash outflow reaches Rs 76.228 crore

Eldeco Housing and Industries Limited used Rs 76.228 crore in consolidated operating activities in the half year ended September 30, 2026, despite reporting profit before tax of Rs 30.5676 crore, as inventory increased by Rs 231.4425 crore. Cash and cash equivalents declined by Rs 109.1593 crore over the six-month period.

Why did Eldeco Housing report negative operating cash flow?

Eldeco Housing reported negative operating cash flow because working-capital movements outweighed cash generated from reported profit. Profit before working-capital changes was Rs 30.6262 crore for the half year ended September 30, 2026, compared with Rs 6.722 crore in the corresponding half year ended September 30, 2025. After those movements, cash generated from operations was a Rs 68.152 crore outflow, compared with a Rs 35.6463 crore inflow a year earlier.

After direct taxes of Rs 8.0759 crore, net cash used in operating activities was Rs 76.228 crore, against net cash generated of Rs 32.6906 crore in the prior-year half year. The change between the two periods was Rs 108.9186 crore. The cash-flow statement therefore shows that higher reported earnings did not translate into positive operating cash during the six months.

Consolidated profit before tax increased to Rs 30.5676 crore from Rs 8.7276 crore, while profit after tax rose to Rs 22.4907 crore from Rs 5.7659 crore. Consolidated total income increased to Rs 103.1865 crore from Rs 66.2285 crore, and total expenses rose to Rs 72.6189 crore from Rs 57.6008 crore. The difference between profit and operating cash arose from movements in assets and liabilities rather than a fall in reported profit.

How much did Eldeco Housing’s inventory increase?

Eldeco Housing’s consolidated inventories increased by Rs 231.4425 crore in the half year ended September 30, 2026, compared with an increase of Rs 44.2136 crore in the corresponding 2025 period. This was the largest single working-capital outflow shown in the consolidated cash-flow statement and was Rs 187.2289 crore greater than the prior-year inventory movement.

On the consolidated balance sheet, inventories stood at Rs 904.1031 crore at September 30, 2026, up from Rs 672.6607 crore at March 31, 2026. The balance-sheet increase corresponds with the Rs 231.4425 crore cash-flow movement. Eldeco Housing identifies real estate as its only reportable segment under Indian Accounting Standard 108, or Ind AS 108, and the filing does not provide a segment-level inventory split.

Other current assets increased by Rs 135.2339 crore during the six months, compared with an increase of Rs 36.4017 crore in the previous corresponding period. Those uses of cash were partly offset by a Rs 262.9327 crore increase in other current liabilities, compared with Rs 101.765 crore a year earlier. Trade payables rose by Rs 23.0437 crore, compared with an increase of Rs 22.4388 crore in the prior-year half year.

Consolidated current assets were Rs 1,205.602 crore at September 30, 2026, compared with Rs 1,034.2816 crore at March 31, 2026. Current liabilities increased to Rs 708.1903 crore from Rs 531.8951 crore over the same period. Both sides of the working-capital balance expanded, with inventories accounting for the largest stated operating cash outflow.

What happened to Eldeco Housing’s cash balance?

Eldeco Housing’s consolidated cash and cash equivalents fell to Rs 144.1609 crore at September 30, 2026 from Rs 253.3201 crore at the start of the financial year. The Rs 109.1593 crore decline compares with a Rs 24.2028 crore increase in the half year ended September 30, 2025, when closing cash and cash equivalents were Rs 144.1136 crore.

The fall reflected outflows from operating and financing activities that were only partly offset by investing cash inflow. Operating activities used Rs 76.228 crore, financing activities used Rs 34.574 crore, and investing activities generated Rs 1.6427 crore. In the corresponding 2025 half year, operating activities generated Rs 32.6906 crore, investing activities generated Rs 4.0316 crore, and financing activities used Rs 12.5194 crore.

Financing cash outflow included repayment of borrowings of Rs 33.0062 crore, compared with Rs 10.3432 crore repaid in the corresponding 2025 period. Interest and finance charges paid were Rs 1.2316 crore, lower than Rs 1.84 crore a year earlier. Investing cash flow included interest income of Rs 1.6071 crore and purchases of property, plant and equipment of Rs 5.43 lakh.

How did Eldeco Housing’s September-quarter earnings compare?

Eldeco Housing reported consolidated profit before tax of Rs 12.7589 crore for the quarter ended September 30, 2026, compared with Rs 4.3187 crore in the quarter ended September 30, 2025. Consolidated profit after tax was Rs 7.3844 crore, against Rs 2.6322 crore a year earlier, while revenue from operations increased to Rs 51.8432 crore from Rs 33.0476 crore.

The September 2026 quarter generated lower pre-tax profit than the immediately preceding June 2026 quarter, when Eldeco Housing reported Rs 17.8088 crore. Revenue from operations rose sequentially to Rs 51.8432 crore from Rs 49.0713 crore, but pre-tax profit declined by Rs 5.0499 crore. The filing does not provide a separate quarterly cash-flow statement.

For the half year, cost of materials consumed, construction and other related project costs was Rs 276.1128 crore, compared with Rs 81.5421 crore a year earlier. This was partly offset in the income statement by a Rs 231.955 crore change in inventories of finished goods and work in progress, compared with Rs 45.0203 crore in the corresponding period. Those income-statement entries are distinct from the Rs 231.4425 crore inventory increase recorded as a working-capital cash outflow.

Doogar & Associates reviewed the unaudited consolidated results. The auditor said it had not reviewed the financial results of 34 subsidiaries included in the consolidated figures; these subsidiaries had total assets of Rs 351.9199 crore and half-year revenue including other income of Rs 8.4208 crore. Their financial statements were certified by the management of the respective subsidiaries, and the auditor said its conclusion was not modified in respect of that matter.

Conclusion

Eldeco Housing’s half-year filing shows a divergence between accounting earnings and cash generation. Consolidated pre-tax profit rose to Rs 30.5676 crore and total income reached Rs 103.1865 crore, but inventory and other working-capital movements resulted in Rs 76.228 crore of operating cash use and a Rs 109.1593 crore reduction in cash and cash equivalents.

The next financial disclosure will show whether the Rs 904.1031 crore inventory balance at September 30, 2026 is followed by a change in operating cash generation. Readers can also monitor cash and cash equivalents after the reported Rs 144.1609 crore closing balance, as well as financing cash flows following Rs 33.0062 crore of borrowings repaid during the half year.