Gujarat Energy Limited operating cash rises to Rs 2,452 crore

Gujarat Energy Limited generated Rs 2,452.11 crore of operating cash in the half year ended September 30, 2026, up from restated Rs 1,595.11 crore a year earlier, even as the cash-flow statement recorded Rs 1,719.41 crore absorbed by trade receivables and Rs 1,538.47 crore by inventories.

Why did Gujarat Energy’s operating cash flow rise?

Gujarat Energy’s net cash from operating activities rose by Rs 857.00 crore year on year to Rs 2,452.11 crore in the half year ended September 30, 2026. Cash generated from operations increased to Rs 2,519.14 crore from Rs 1,735.40 crore, while net income-tax payments declined to Rs 67.03 crore from Rs 140.29 crore. The prior-year figures were restated following the amalgamation and arrangement scheme.

Profit before tax was Rs 2,045.19 crore, compared with Rs 1,275.44 crore in the restated half year ended September 30, 2025. Adjustments included Rs 405.42 crore of depreciation, depletion and amortisation, Rs 129.30 crore of finance costs and Rs 272.57 crore of interest income, resulting in operating profit before working-capital changes of Rs 2,293.40 crore, against Rs 1,570.78 crore a year earlier.

How much working capital did Gujarat Energy absorb?

Gujarat Energy’s asset-related working-capital movements absorbed Rs 2,124.22 crore in the half year ended September 30, 2026, compared with Rs 392.28 crore in the restated prior-year half. The largest uses were a Rs 1,719.41 crore increase in trade receivables and a Rs 1,538.47 crore increase in inventories. In the comparable 2025 period, those two lines released Rs 566.73 crore and Rs 94.86 crore, respectively.

The higher asset requirement was partly offset by Rs 2,349.96 crore from liability movements, compared with Rs 556.90 crore a year earlier. Trade payables increased by Rs 1,990.19 crore, other current financial liabilities added Rs 293.13 crore and other current liabilities added Rs 51.01 crore. A Rs 1,141.49 crore movement in other current financial assets also supported cash flow, leaving a net Rs 225.74 crore contribution from total working-capital changes.

What changed in Gujarat Energy’s balance-sheet working capital?

Gujarat Energy reported inventories of Rs 2,660.06 crore at September 30, 2026, compared with Rs 1,121.58 crore at March 31, 2026. Current trade receivables were Rs 2,578.67 crore, up from Rs 1,752.37 crore over the same six-month balance-sheet comparison. Total current assets increased to Rs 14,575.45 crore from Rs 10,107.59 crore.

Trade payables to creditors other than micro and small enterprises rose to Rs 3,466.83 crore from Rs 1,558.28 crore at March 31, 2026. Other current financial liabilities increased to Rs 4,178.22 crore from Rs 3,098.09 crore, while current borrowings rose to Rs 389.45 crore from Rs 145.61 crore. These balance-sheet movements correspond with the cash-flow statement’s liability contribution, although the filing does not give a product-level explanation for the increase in inventory or receivables.

Gujarat Energy’s revenue from operations reached Rs 19,628.71 crore in the half year ended September 30, 2026, up from restated Rs 12,217.93 crore. Gas Trading segment revenue increased to Rs 14,746.44 crore from Rs 7,887.94 crore, while City Gas Distribution revenue rose to Rs 14,500.20 crore from Rs 8,044.33 crore before inter-segment eliminations. The higher closing receivables and inventory balances occurred alongside this increase in reported operating revenue.

How did Gujarat Energy’s cash and deposits change?

Gujarat Energy’s cash and cash equivalents ended September 30, 2026 at Rs 2,209.02 crore, up from Rs 978.36 crore at March 31, 2026 and Rs 1,055.00 crore at the end of the restated September 2025 half. The half-year net increase was Rs 1,230.66 crore. Fixed and liquid deposits made up Rs 1,968.48 crore of the September 2026 cash-equivalent balance, compared with Rs 798.25 crore at March 31, 2026.

Bank balances other than cash equivalents increased to Rs 1,057.77 crore at September 30, 2026 from Rs 335.89 crore at March 31, 2026. Investing activities used Rs 420.85 crore during the half year, including Rs 281.45 crore of net investment in fixed deposits with banks and financial institutions and Rs 332.74 crore of spending on property, plant, equipment and intangible assets. The investing outflow was lower than Rs 963.27 crore in the restated prior-year half.

Financing activities used Rs 800.60 crore in the September 2026 half, compared with Rs 348.69 crore a year earlier. Dividend payments of Rs 835.03 crore were the largest financing outflow, while short-term borrowings generated a net Rs 244.82 crore and long-term borrowings recorded a net repayment of Rs 47.63 crore. Operating cash generation exceeded the combined investing and financing outflows, producing the Rs 1,230.66 crore rise in cash and cash equivalents.

Conclusion

Gujarat Energy’s half-year figures show operating cash rising to Rs 2,452.11 crore despite Rs 3,257.88 crore of combined cash absorption from receivables and inventories. Higher trade payables and other liabilities offset the asset build, while profit before tax rose by Rs 769.75 crore and net tax paid declined by Rs 73.26 crore. Closing inventories, receivables and cash-equivalent deposits were all higher at September 30, 2026 than at March 31, 2026.

What to watch next is the unresolved Jubilant Offshore Drilling Pvt. Ltd. matter. Gujarat Energy has provided Rs 527.00 crore against cash calls receivable from that party, while the liquidator’s appeal before the National Company Law Appellate Tribunal and the assignment of the participating interest remain pending. The filing also states that Gujarat Energy may have to contribute to future defaulted cash calls under the joint operating agreement as the non-defaulting partner with a 10% participating interest in the block.