EPACK Prefab Technologies Limited reports Rs 106.92 crore cash outflow

EPACK Prefab Technologies Limited used Rs 106.92 crore in operating activities in the half year ended September 30, 2026, reversing Rs 92.63 crore generated a year earlier, as trade receivables rose by Rs 144.12 crore and inventories by Rs 96.59 crore despite profit before tax of Rs 62.92 crore.

Why did EPACK Prefab’s operating cash flow turn negative?

EPACK Prefab’s operating cash flow turned negative because working-capital movements outweighed its operating profit and pre-tax earnings. Profit before tax rose to Rs 62.92 crore for the half year ended September 30, 2026 from Rs 60.37 crore a year earlier, while operating profit before working-capital changes increased to Rs 87.53 crore from Rs 81.87 crore.

The reversal occurred after a net working-capital outflow of Rs 99.85 crore, compared with an inflow of Rs 97.86 crore in the half year ended September 30, 2025. After direct taxes paid, net of refunds, of Rs 7.08 crore, compared with Rs 5.24 crore a year earlier, operating cash flow was an outflow of Rs 106.92 crore rather than an inflow of Rs 92.63 crore.

How much did receivables and inventory absorb at EPACK Prefab?

Trade receivables and inventories absorbed Rs 240.70 crore of cash combined in the half year ended September 30, 2026. The cash-flow statement records a Rs 144.12 crore increase in trade receivables, more than double the Rs 59.37 crore increase in the corresponding 2025 period, and a Rs 96.59 crore inventory increase against Rs 32.61 crore a year earlier.

Trade and other payables partly offset those outflows, but the offset was smaller than in the previous year. Payables increased by Rs 65.72 crore in the 2026 half year, versus a Rs 113.90 crore increase in the 2025 half year, a change of Rs 48.18 crore in the cash contribution from this line. Other current liabilities fell by Rs 15.29 crore, following a Rs 6.10 crore decline a year earlier.

Other working-capital lines also moved against cash or provided limited offsets. Other financial assets increased by Rs 1.60 crore and other current assets by Rs 0.78 crore, while short-term provisions fell by Rs 0.58 crore. Long-term provisions increased by Rs 1.89 crore, and other financial liabilities increased by Rs 3.89 crore, but these movements did not offset the receivables and inventory build.

What does EPACK Prefab’s September balance sheet show?

EPACK Prefab’s September 30, 2026 balance sheet shows that the cash-flow movements were reflected in higher current operating assets. Trade receivables stood at Rs 452.87 crore, up from Rs 308.75 crore at March 31, 2026, while inventories rose to Rs 362.34 crore from Rs 265.75 crore. Those balance-sheet increases match the Rs 144.12 crore and Rs 96.59 crore cash-flow uses reported for the half year.

Total current assets increased to Rs 1,080.15 crore at September 30 from Rs 987.27 crore at March 31, despite a reduction in cash balances. Cash and cash equivalents declined to Rs 27.04 crore from Rs 66.74 crore, and bank balances other than cash equivalents fell to Rs 123.60 crore from Rs 218.75 crore. Current investments also decreased to Rs 12.30 crore from Rs 23.29 crore.

Current liabilities rose to Rs 694.87 crore from Rs 616.71 crore over the same period. Current borrowings increased to Rs 97.77 crore from Rs 75.67 crore, trade payables to creditors other than micro and small enterprises increased to Rs 411.55 crore from Rs 367.59 crore, and micro and small enterprise dues rose to Rs 51.99 crore from Rs 30.22 crore.

Did EPACK Prefab’s revenue and segments grow despite the cash outflow?

EPACK Prefab’s revenue and pre-tax profit increased in the half year even as cash conversion deteriorated. Revenue from operations rose to Rs 866.96 crore for the half year ended September 30, 2026 from Rs 729.28 crore a year earlier, while profit before tax rose by Rs 2.55 crore to Rs 62.92 crore.

The contracts of prefabricated buildings and building material segment accounted for Rs 774.46 crore of revenue, up from Rs 651.64 crore in the previous corresponding period. Its segment result was Rs 58.13 crore, compared with Rs 53.92 crore. EPS Beads revenue rose to Rs 92.51 crore from Rs 77.64 crore, although its segment result decreased to Rs 4.52 crore from Rs 6.39 crore.

The difference between earnings and cash flow is concentrated in the balance-sheet items used to support the higher activity level. The contracts segment had Rs 1,417.66 crore of segment assets at September 30, 2026, compared with Rs 1,300.81 crore at March 31, while EPS Beads segment assets rose to Rs 143.82 crore from Rs 124.09 crore.

What cash movements and disclosed plans should investors watch?

EPACK Prefab reported a Rs 39.71 crore net decrease in cash and bank balances for the half year, compared with a Rs 388.37 crore increase in the corresponding 2025 period. Net cash generated from financing activities was Rs 12.00 crore, substantially lower than Rs 281.73 crore a year earlier, while the company reported property, plant and equipment and intangible-asset purchases of Rs 45.78 crore and other advances for property, plant and equipment of Rs 16.15 crore.

Management disclosed that part commercial production at the Mambattu expansion plant began on April 29, 2026 and that it expects the Ghiloth, Rajasthan plant to start during financial year 2027 (FY27). As of September 30, Rs 91.49 crore of initial public offering (IPO) proceeds were invested in fixed deposits with scheduled commercial banks. EPACK Prefab also disclosed Audit Committee and Board approval to use general corporate purpose IPO money for working capital, taxes, general expenses and IPO expenses above the earlier estimate.

Conclusion

EPACK Prefab reported higher half-year revenue of Rs 866.96 crore and profit before tax of Rs 62.92 crore, but operating cash flow moved to a Rs 106.92 crore outflow. The central reason was a Rs 240.70 crore combined cash absorption in trade receivables and inventories, only partly offset by a Rs 65.72 crore increase in trade and other payables.

The next disclosures should show whether receivables of Rs 452.87 crore and inventories of Rs 362.34 crore convert into cash, and whether financing and bank balances support the working-capital requirement. Investors can also watch management’s disclosed FY27 expectation for the Ghiloth plant start and the deployment of Rs 91.49 crore of IPO proceeds held in fixed deposits at September 30, 2026.