GMM Pfaudler Limited cash drops Rs 208.83 crore as debt is repaid

GMM Pfaudler Limited reported a Rs 208.83 crore decrease in cash and cash equivalents in the half year ended September 30, 2026, closing at Rs 426.55 crore after financing activities used Rs 198.91 crore. GMM Pfaudler generated Rs 41.12 crore from operations, while investing activities used Rs 51.04 crore.

What caused GMM Pfaudler’s cash balance to fall?

GMM Pfaudler’s cash and cash equivalents declined from Rs 635.38 crore on March 31, 2026 to Rs 426.55 crore on September 30, 2026, a fall of Rs 208.83 crore. Negative financing cash flow of Rs 198.91 crore and investing cash outflow of Rs 51.04 crore together exceeded the Rs 41.12 crore generated from operations.

The cash movement differed from the half year ended September 30, 2025, when cash and cash equivalents fell by Rs 34.79 crore to Rs 410.02 crore. In that earlier period, a Rs 91.51 crore financing inflow partly offset Rs 191.06 crore used in investing activities, while the 2026 half year recorded a financing outflow.

The Rs 290.42 crore year-on-year change in financing cash flow was the largest movement among the three categories. Operating cash flow was lower by Rs 23.64 crore, while investing cash used was lower by Rs 140.02 crore because the 2025 period included Rs 97.12 crore paid for a business acquisition and Rs 66.80 crore of net bank deposits placed.

How much debt did GMM Pfaudler repay in the half year?

GMM Pfaudler repaid Rs 100.47 crore of long-term borrowings and Rs 121.12 crore of short-term borrowings in the half year ended September 30, 2026. It drew Rs 105.47 crore of short-term borrowings and reported no long-term borrowing proceeds, resulting in a net Rs 116.12 crore cash outflow from borrowing transactions.

At September 30, 2026, non-current borrowings stood at Rs 456.79 crore, down Rs 87.81 crore from Rs 544.60 crore on March 31, 2026. Current borrowings were Rs 275.34 crore, down Rs 15.12 crore from Rs 290.46 crore, taking total reported borrowings to Rs 732.13 crore from Rs 835.06 crore six months earlier.

Financing cash outflow also included Rs 47.99 crore of finance costs paid, Rs 29.99 crore of lease-liability payments and Rs 4.81 crore of dividends paid. These three cash uses totalled Rs 82.79 crore, alongside the net Rs 116.12 crore repayment of borrowings, and together account for the Rs 198.91 crore financing outflow.

Lease liabilities moved differently from borrowings on the balance sheet. Non-current lease liabilities rose to Rs 311.68 crore from Rs 161.20 crore, while current lease liabilities increased to Rs 48.29 crore from Rs 45.14 crore, despite Rs 29.99 crore of lease-liability payments recorded in the cash-flow statement.

Why did GMM Pfaudler generate less operating cash?

GMM Pfaudler generated Rs 41.12 crore of operating cash in the half year ended September 30, 2026, compared with Rs 64.76 crore a year earlier. Cash generated from operations before direct taxes was Rs 86.67 crore, down from Rs 95.19 crore, while direct taxes paid rose to Rs 45.55 crore from Rs 30.43 crore.

Net operating profit before working-capital changes declined to Rs 213.23 crore from Rs 264.87 crore. Profit before tax was Rs 90.48 crore versus Rs 93.30 crore, while depreciation and amortisation increased to Rs 84.11 crore from Rs 74.72 crore and unrealised foreign-exchange fluctuation loss declined to Rs 2.25 crore from Rs 56.31 crore.

Working-capital movements used Rs 126.56 crore in the 2026 half year. Inventories increased by Rs 39.67 crore and trade receivables, loans and other financial and non-financial assets increased by Rs 167.09 crore, partly offset by a Rs 80.20 crore increase in trade payables, provisions and other liabilities.

The prior-year working-capital movements used Rs 169.68 crore, but the components differed. The 2025 half year included a Rs 270.45 crore increase in receivables, loans and other assets, a Rs 115.21 crore inventory increase, and a Rs 215.98 crore increase in payables, provisions and other liabilities.

How much did GMM Pfaudler spend on capital assets?

GMM Pfaudler spent Rs 65.73 crore on property, plant and equipment, including intangible assets, right-of-use assets, capital advances and capital creditors, during the 2026 half year. This was Rs 35.03 crore higher than the Rs 30.70 crore spent under the same line in the half year ended September 30, 2025.

Proceeds from disposal of property, plant and equipment were Rs 10.41 crore, compared with Rs 3.60 crore in the prior-year period, while interest received was Rs 7.57 crore against Rs 3.42 crore. Net bank deposits placed were Rs 3.29 crore, below Rs 66.80 crore in the previous half year, contributing to the lower Rs 51.04 crore total investing outflow.

Balance-sheet movements also show higher fixed and lease-related assets at September 30, 2026. Property, plant and equipment rose to Rs 428.59 crore from Rs 410.72 crore, capital work-in-progress increased to Rs 23.33 crore from Rs 19.86 crore, and right-of-use assets increased to Rs 382.70 crore from Rs 233.99 crore.

How did GMM Pfaudler’s cash movement compare with business performance?

GMM Pfaudler reported revenue from operations of Rs 1,989.38 crore for the half year ended September 30, 2026, up from Rs 1,696.89 crore in the corresponding restated period. Overseas revenue rose to Rs 1,502.57 crore from Rs 1,226.31 crore, while India revenue increased to Rs 486.81 crore from Rs 470.58 crore.

Despite higher revenue, profit before tax declined by Rs 2.82 crore to Rs 90.48 crore, while profit for the period increased to Rs 57.23 crore from Rs 47.83 crore. Finance cost in the results was Rs 54.17 crore, below Rs 72.60 crore in the prior-year half, while finance cost paid in the cash-flow statement was Rs 47.99 crore.

Total current assets declined to Rs 2,361.23 crore at September 30, 2026 from Rs 2,425.66 crore at March 31, 2026, principally reflecting the Rs 208.83 crore reduction in cash and cash equivalents. Over the same six months, inventories increased to Rs 662.35 crore from Rs 636.89 crore and trade receivables increased to Rs 506.96 crore from Rs 465.33 crore.

Conclusion

GMM Pfaudler’s first-half cash reduction was principally a financing outcome rather than an absence of operating cash generation. The Rs 41.12 crore operating inflow did not cover Rs 51.04 crore used in investing and Rs 198.91 crore used in financing, while reported borrowings fell by Rs 102.93 crore from March 31, 2026 and capital-asset purchases rose to Rs 65.73 crore.

The filing does not disclose a future borrowing target, repayment schedule or capital-spending plan. The next results will show whether operating cash flow, which was Rs 23.64 crore lower year on year, changes alongside Rs 732.13 crore of reported borrowings and Rs 359.97 crore of lease liabilities at September 30, 2026.