Epigral operating cash flow falls as working capital absorbs cash

Epigral Limited reported Rs 140.84 crore of net cash generated from operating activities for the half year ended September 30, 2026, down from Rs 267.31 crore a year earlier. Epigral’s operating profit before working-capital changes increased to Rs 321.37 crore, but a Rs 137.18 crore working-capital outflow and Rs 43.35 crore of tax payments reduced operating cash.

Why did Epigral’s operating cash flow decline?

Epigral’s operating cash flow declined because working capital changed from an Rs 8.66 crore source of cash in the half year ended September 30, 2025 to an Rs 137.18 crore use of cash in the corresponding 2026 period. Cash generated from operations before taxes consequently fell to Rs 184.19 crore from Rs 308.40 crore, despite operating profit before working-capital changes rising by Rs 21.63 crore.

Net cash from operating activities was Rs 140.84 crore after direct taxes paid, net of refunds, of Rs 43.35 crore. In the previous-year half, Epigral paid Rs 41.09 crore in direct taxes and reported Rs 267.31 crore of operating cash. The Rs 2.26 crore increase in tax payments was smaller than the reversal in working-capital movements.

Which working-capital movements used Epigral’s cash?

Epigral’s largest working-capital outflow was an Rs 62.71 crore increase in other assets for the half year ended September 30, 2026, compared with an Rs 26.58 crore increase a year earlier. This was followed by an Rs 52.04 crore decrease in trade payables, an Rs 24.23 crore increase in other financial assets and an Rs 16.39 crore increase in inventories.

Inventory movements reversed between the two periods. Inventories absorbed Rs 16.39 crore of cash in the 2026 half year, whereas they released Rs 43.82 crore in the 2025 half. Trade receivables released Rs 20.36 crore in 2026, compared with Rs 5.83 crore a year earlier, but that inflow did not offset the other uses of cash.

Other financial liabilities decreased by Rs 8.71 crore, while other liabilities increased by Rs 5.06 crore and provisions increased by Rs 1.46 crore. In the previous-year half, other financial liabilities decreased by Rs 13.52 crore, other liabilities decreased by Rs 10.60 crore and provisions increased by Rs 1.35 crore. These movements contributed to the Rs 137.18 crore working-capital outflow.

How did Epigral’s balance sheet change by September 2026?

Epigral’s total assets were Rs 3,584.14 crore at September 30, 2026, up from Rs 3,505.34 crore at March 31, 2026. Total equity increased to Rs 2,363.51 crore from Rs 2,221.47 crore, while total liabilities decreased to Rs 1,220.63 crore from Rs 1,283.87 crore over the six months.

Current assets rose to Rs 964.55 crore from Rs 826.69 crore. Other financial assets increased to Rs 86.84 crore from Rs 7.78 crore and other current assets rose to Rs 108.95 crore from Rs 47.94 crore. Inventories increased to Rs 365.02 crore from Rs 348.63 crore, while trade receivables declined to Rs 396.37 crore from Rs 416.53 crore.

Non-current assets declined to Rs 2,619.59 crore from Rs 2,678.65 crore. Property, plant and equipment decreased to Rs 2,046.89 crore from Rs 2,101.69 crore, while capital work in progress increased to Rs 498.25 crore from Rs 450.83 crore. Investing cash flow recorded Rs 87.97 crore of purchases of property, plant and equipment, including capital work in progress.

How did Epigral fund investment and debt repayments?

Epigral used Rs 97.24 crore in investing activities in the half year ended September 30, 2026, compared with Rs 173.18 crore in the prior-year half. Purchases of property, plant and equipment, including capital work in progress, were Rs 87.97 crore, lower than Rs 235.68 crore a year earlier. Mutual-fund investments were Rs 77 crore and proceeds from mutual-fund sales were Rs 77.21 crore.

The company invested Rs 5.31 crore in equity shares and non-cumulative optionally convertible debentures and Rs 7.90 crore in bank deposits. It received Rs 2.10 crore from bank-deposit redemptions and Rs 1.64 crore of interest. Epigral’s notes disclose an agreement involving a 19.80 megawatt wind-solar hybrid power plant in Gujarat, under which it will purchase at least 51% of power generated for 25 years.

Financing activities used Rs 47.77 crore, compared with Rs 98.08 crore used in the previous-year half. Epigral repaid Rs 57.65 crore of long-term borrowings, versus Rs 28.47 crore in the prior-year period, while short-term borrowings provided Rs 59.58 crore on a net basis after using Rs 24.50 crore a year earlier. Finance charges paid were Rs 24.16 crore and equity-share dividends paid were Rs 21.56 crore.

What happened to Epigral’s debt and cash balances?

Epigral’s non-current borrowings decreased to Rs 276.05 crore at September 30, 2026 from Rs 333.69 crore at March 31, 2026. Current borrowings, however, increased to Rs 288.87 crore from Rs 229.30 crore. The cash-flow statement recorded Rs 57.65 crore of long-term debt repayment and Rs 59.58 crore of net short-term borrowing proceeds.

Cash and cash equivalents ended the half year at Rs 85 lakh, down from Rs 5.02 crore at March 31, 2026, following an Rs 4.17 crore net decrease during the period. The closing balance comprised Rs 1 lakh of cash on hand and Rs 84 lakh in scheduled-bank current accounts. Bank balances other than cash equivalents were Rs 6.19 crore, compared with Rs 44 lakh at the March year-end.

The reduction in cash followed Rs 140.84 crore of operating cash generation, offset by an Rs 97.24 crore investing outflow and an Rs 47.77 crore financing outflow. These three categories resulted in the reported Rs 4.17 crore reduction in cash and cash equivalents, compared with a Rs 3.95 crore decrease in the half year ended September 30, 2025.

Conclusion

Epigral generated less operating cash in the half year ended September 30, 2026 even as operating profit before working-capital changes increased to Rs 321.37 crore from Rs 299.74 crore. The key change was the Rs 137.18 crore working-capital outflow, led by increases in other assets, other financial assets and inventories, alongside lower trade payables, compared with an Rs 8.66 crore working-capital inflow a year earlier.

The next cash-flow trend will depend on movements in balances including other current assets of Rs 108.95 crore and other financial assets of Rs 86.84 crore at September 30, 2026. Epigral also disclosed its 25-year Energy Supply Agreement for the 19.80 megawatt Gujarat wind-solar hybrid plant, under which it will purchase a minimum 51% of the power generated.