GTI Gabion Technologies India Ltd. posts Rs 5.686 crore H1 cash outflow

GTI Gabion Technologies India Ltd. recorded a Rs 5.686 crore net operating cash outflow in H1 FY27, compared with a Rs 1.974 crore outflow in H1 FY26, after working-capital changes used Rs 13.948 crore. This occurred even as profit before tax rose to Rs 7.305 crore from Rs 2.421 crore in the prior-year period.

What caused Gabion Technologies' H1 FY27 operating cash outflow?

Gabion Technologies' operating cash outflow resulted from Rs 13.948 crore of cash used in working-capital changes during the half year ended September 2026. Operating profit before working-capital changes rose to Rs 10.349 crore from Rs 5.642 crore in the September 2025 period, but the working-capital movement exceeded that operating profit.

Cash generated or used from operations consequently changed from an inflow of Rs 54.4 lakh in H1 FY26 to an outflow of Rs 3.599 crore in H1 FY27. Interest and income taxes paid were Rs 2.087 crore in H1 FY27, resulting in net cash used in operating activities of Rs 5.686 crore.

In H1 FY26, Gabion Technologies paid Rs 2.518 crore in interest and taxes against Rs 54.4 lakh of cash generated from operations, producing a Rs 1.974 crore operating cash outflow. The operating outflow therefore widened by Rs 3.712 crore year on year, while profit before tax increased by Rs 4.884 crore.

How did Gabion Technologies' profit growth differ from cash generation?

Gabion Technologies' reported profit rose even as its operating cash outflow widened. Profit after tax increased 123.6% year on year to Rs 5.424 crore in H1 FY27 from Rs 2.421 crore, while net cash from operating activities was a Rs 5.686 crore outflow rather than a Rs 1.974 crore outflow a year earlier.

Revenue from operations rose 76.2% to Rs 71.528 crore in H1 FY27 from Rs 40.588 crore in H1 FY26. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 78.5% to Rs 10.277 crore, while the EBITDA margin increased 20 basis points to 14.4%; one basis point is one-hundredth of a percentage point.

Profit after tax margin rose 160 basis points to 7.6% from 6.0%, but these income-statement movements did not offset the cash-flow statement's working-capital use. The cash-flow statement separates the Rs 13.948 crore working-capital movement from the Rs 10.349 crore operating profit before such changes.

H1 FY27 earnings were also below the immediately preceding H2 FY26 period. Revenue of Rs 71.528 crore was 4.1% below Rs 74.608 crore in H2 FY26, EBITDA of Rs 10.277 crore was 11.9% below Rs 11.647 crore, and profit after tax of Rs 5.424 crore was 4.9% below Rs 5.691 crore; profit after tax margin was 7.6% in both periods.

Which balance-sheet items increased during H1 FY27?

Gabion Technologies' inventory increased by Rs 11.26 crore to Rs 46.76 crore at September 2026 from Rs 35.50 crore at March 2026. Trade receivables rose by Rs 1.09 crore to Rs 43.908 crore, while short-term loans and advances increased by Rs 1.693 crore to Rs 8.997 crore.

These balance-sheet movements occurred in the same half year as the Rs 13.948 crore working-capital cash use. The presentation does not provide a line-by-line reconciliation of inventory, receivables, loans and advances, payables, or other current accounts to the working-capital cash-flow figure.

Total current assets increased by Rs 13.690 crore to Rs 102.618 crore, while total current liabilities rose by Rs 9.241 crore to Rs 55.636 crore. Other current assets declined by Rs 30 lakh to Rs 2.913 crore, and cash and cash equivalents on the balance sheet fell to Rs 4.2 lakh from Rs 9.3 lakh.

The cash-flow statement reports a Rs 5.2 lakh net decrease in cash and cash equivalents in H1 FY27, compared with a Rs 1.4 lakh increase in H1 FY26. Total non-current assets increased by Rs 4.867 crore to Rs 38.450 crore, including a Rs 1.761 crore rise in property, plant and equipment to Rs 31.787 crore.

Capital work-in-progress increased by Rs 25.1 lakh to Rs 34.5 lakh, and other non-current assets rose by Rs 2.790 crore to Rs 6.231 crore. Gabion Technologies reported Rs 4.857 crore of cash used in investing activities in H1 FY27, compared with Rs 1.471 crore in H1 FY26.

How did Gabion Technologies finance its H1 FY27 cash requirement?

Gabion Technologies reported a Rs 10.491 crore financing cash inflow in H1 FY27, compared with Rs 3.459 crore in H1 FY26. This financing inflow exceeded the Rs 5.686 crore operating outflow and Rs 4.857 crore investing outflow, leaving a Rs 5.2 lakh net decrease in cash and cash equivalents.

The cash-flow statement does not break financing activities into debt, equity, or other individual funding components. The balance sheet, however, shows long-term borrowings of Rs 21.075 crore at September 2026, up from Rs 17.495 crore at March 2026.

Short-term borrowings increased to Rs 32.994 crore from Rs 26.083 crore over the same period. Combined reported borrowings therefore increased by Rs 10.491 crore to Rs 54.069 crore, while total equity increased by Rs 5.676 crore to Rs 62.685 crore, including Rs 48.837 crore of reserves and surplus.

Finance cost was Rs 2.087 crore in H1 FY27, down from Rs 2.518 crore in H1 FY26 despite the higher September 2026 borrowings. The presentation lists a debt-to-equity ratio of 0.77 for FY26, but does not provide an H1 FY27 ratio, debt repayment schedule, borrowing rates, or the specific application of financing inflows.

Conclusion

Gabion Technologies' H1 FY27 disclosures show a divergence between earnings and cash generation. Revenue, EBITDA and profit after tax increased year on year, but operating activities used Rs 5.686 crore of cash because working-capital changes consumed Rs 13.948 crore. Higher inventory, receivables and short-term loans and advances coincided with that cash use, while investing activities used a further Rs 4.857 crore.

The presentation leaves the components of the Rs 10.491 crore financing inflow unresolved and provides no working-capital or cash-flow target. The next disclosures can clarify whether inventory of Rs 46.76 crore, receivables of Rs 43.908 crore and short-term loans and advances of Rs 8.997 crore convert into operating cash, and how the Rs 54.069 crore of reported borrowings changes.