HD Fire Protect operating cash flow rises to Rs 71.06 crore

HD Fire Protect Limited generated Rs 71.06 crore of net cash from operating activities in the six months ended September 30, 2026, compared with Rs 22.57 crore in the corresponding 2025 period. Cash generated before tax payments reached Rs 91.50 crore, while tax paid totalled Rs 20.43 crore during the reported half year.

Why did HD Fire Protect's operating cash flow rise?

HD Fire Protect's operating cash flow rose to Rs 71.06 crore in the six months ended September 30, 2026 because cash generated before tax increased to Rs 91.50 crore from Rs 40.73 crore a year earlier. The resulting operating cash inflow was Rs 48.49 crore higher than the Rs 22.57 crore reported for the six months ended September 30, 2025.

Profit before tax was Rs 70.83 crore for the September 2026 half year, compared with Rs 64.07 crore in the corresponding prior-year period. After the cash-flow statement's depreciation, investment, interest, finance-cost, dividend-income and employee stock option plan adjustments, the reported operating figure before working-capital movements was Rs 70.51 crore, against Rs 59.31 crore a year earlier.

Tax payments reduced the cash generated before tax of Rs 91.50 crore to net operating cash of Rs 71.06 crore in the six months ended September 30, 2026. Tax paid was Rs 20.43 crore, compared with Rs 18.16 crore in the corresponding 2025 half year, an increase of Rs 2.27 crore.

How did HD Fire Protect's total cash flows compare year on year?

HD Fire Protect reported a Rs 0.58 crore increase in cash and cash equivalents in the six months ended September 30, 2026, compared with a Rs 5.36 crore decrease in the corresponding 2025 period. The higher operating inflow was accompanied by investing outflows and dividend payments, although the financing outflow was lower than a year earlier.

Net cash used in investing activities was Rs 17.92 crore in the September 2026 half year, compared with Rs 12.25 crore in the previous-year half. The statement separately records Rs 3.50 crore from investment or redemption in other bank deposits, Rs 1.54 crore of interest received and Rs 0.04 crore of dividend received during the current period.

Net cash used in financing activities was Rs 52.57 crore in the six months ended September 30, 2026, versus Rs 140.18 crore in the corresponding 2025 period. The cash-flow statement identifies dividend paid of Rs 52.56 crore in the current half year and reports financing cash used at substantially the same level.

How did working capital and dividends affect HD Fire Protect's cash?

HD Fire Protect's reported cash position moved only modestly because the Rs 71.06 crore operating inflow was offset by Rs 17.92 crore of investing cash use and Rs 52.57 crore of financing cash use. Cash and cash equivalents increased from Rs 74.87 crore at the beginning of the six-month period to Rs 75.45 crore at September 30, 2026.

Inventory was Rs 112.39 crore at September 30, 2026, compared with Rs 87.36 crore at the preceding balance-sheet date. The Rs 25.03 crore rise shows that a larger amount was recorded in stock at the reporting date, alongside the company's reported working-capital movements in the cash-flow statement.

Trade receivables were Rs 52.33 crore at September 30, 2026, down from Rs 93.71 crore at the preceding balance-sheet date. Bank balances other than cash and cash equivalents were Rs 13.27 crore, compared with Rs 4.57 crore at the preceding balance-sheet date, and these balances are separately presented from cash and cash equivalents.

Dividend payments remained the principal disclosed financing cash outflow in the September 2026 half year at Rs 52.56 crore. That payment was Rs 87.62 crore lower than the Rs 140.18 crore paid in the six months ended September 30, 2025, when the company reported a Rs 5.36 crore fall in cash and cash equivalents.

What should readers note about HD Fire Protect's reported comparison?

HD Fire Protect's September 2026 standalone cash-flow statement covers a single reporting segment under Indian Accounting Standard 108, or Ind AS 108. The notes therefore do not provide product-line or geographical segment cash flows that would isolate the source of the Rs 71.06 crore operating cash inflow.

The comparative standalone figures for the quarter and six months ended September 30, 2025 were management-certified and were not subjected to limited review or audit, according to the auditor's other-matter statement dated November 12, 2026. The current unaudited standalone results for the six months ended September 30, 2026 were reviewed by the statutory auditor, whose conclusion was not modified.

HD Fire Protect incorporated HD Fire Protect Co. in Saudi Arabia on July 14, 2026, with a 70% equity holding, to trade and manufacture fire-fighting equipment. The consolidated review report states that the subsidiary had total assets of Rs 5.03 crore at September 30, 2026, no revenue for the April-to-September period, a Rs 1.25 lakh net loss and nil net cash flows.

The company completed its initial public offering after the September 30, 2026 reporting date, and its equity shares were listed on the National Stock Exchange and Bombay Stock Exchange on October 21, 2026. The offer for sale comprised 2,62,84,500 equity shares at an issue price of Rs 271 each, aggregating to Rs 712.13 crore, so the filing describes a sale by promoter selling shareholders rather than a fresh issue of shares by HD Fire Protect.

Conclusion

HD Fire Protect reported a materially higher operating cash inflow of Rs 71.06 crore for the six months ended September 30, 2026, versus Rs 22.57 crore a year earlier. Cash generated before tax rose to Rs 91.50 crore, but Rs 20.43 crore of tax payments, Rs 17.92 crore of investing outflows and Rs 52.57 crore of financing outflows limited the reported increase in cash and cash equivalents to Rs 0.58 crore.

The next results will show whether inventory, which stood at Rs 112.39 crore at September 30, 2026, changes alongside operating cash generation. Readers can also watch for revenue and cash-flow contributions from HD Fire Protect Co., which had nil revenue and nil net cash flows in the April-to-September 2026 period after its July 14, 2026 incorporation.