Hi-Tech Gears generates Rs 58.775 crore operating cash in H1

The Hi-Tech Gears Limited generated Rs 58.775 crore of consolidated net operating cash in the half year ended September 30, 2026, up from Rs 22.218 crore a year earlier. Hi-Tech Gears used cash flows to support Rs 22.685 crore of capital expenditure and reduce consolidated borrowings to Rs 46.009 crore from Rs 60.762 crore at March 31, 2026.

How much operating cash did Hi-Tech Gears generate?

Hi-Tech Gears generated Rs 58.775 crore in consolidated net cash from operating activities in the half year ended September 30, 2026, compared with Rs 22.218 crore in the corresponding 2025 period. Consolidated profit before tax increased to Rs 21.52 crore from Rs 20.106 crore, while operating profit before working-capital changes rose to Rs 65.463 crore from Rs 46.563 crore.

Cash flow after working-capital changes reached Rs 71.342 crore, compared with Rs 30.66 crore in the prior-year half. After net income-tax payments of Rs 12.567 crore, against Rs 8.442 crore a year earlier, Hi-Tech Gears reported net operating cash flow of Rs 58.775 crore for the unaudited six-month period.

The improvement in cash generation accompanied higher income and earnings. Consolidated total income increased to Rs 526.789 crore from Rs 463.205 crore, and profit after tax rose to Rs 15.455 crore from Rs 12.012 crore. Depreciation and amortisation added back in the cash-flow statement was Rs 34.805 crore, compared with Rs 33.4 crore in the previous-year half.

What changed in Hi-Tech Gears working capital?

Working capital contributed Rs 5.879 crore to Hi-Tech Gears cash flow in the latest half year, compared with an outflow of Rs 15.903 crore in the half year ended September 30, 2025. The change was principally associated with a Rs 19.402 crore increase in trade and other payables, which offset cash absorbed in inventory and other current assets.

Inventories absorbed Rs 8.153 crore, compared with Rs 3.414 crore a year earlier, while other current assets absorbed Rs 7.105 crore after providing Rs 4.002 crore of cash in the prior-year period. Trade receivables used Rs 0.121 crore in the latest half, substantially below the Rs 16.024 crore outflow reported in the corresponding 2025 period.

The September 30 balance sheet records consolidated trade payables of Rs 110.202 crore to creditors other than micro and small enterprises, up from Rs 93.394 crore at March 31. Dues to micro and small enterprises rose to Rs 10.544 crore from Rs 7.753 crore, and other financial liabilities increased to Rs 26.608 crore from Rs 17.975 crore.

How did Hi-Tech Gears fund investment spending?

Hi-Tech Gears spent Rs 22.685 crore on property, plant and equipment and capital work-in-progress in the half year ended September 30, 2026, compared with Rs 12.255 crore a year earlier. This was the largest investing cash outflow and contributed to net cash used in investing activities of Rs 32.521 crore, versus Rs 8.957 crore in the prior-year half.

Payments for margin money and bank deposits accounted for a further Rs 10.243 crore outflow, whereas the corresponding 2025 period recorded Rs 2.078 crore of proceeds from those balances. Interest received declined to Rs 0.245 crore from Rs 1.171 crore, while proceeds from disposal of property, plant and equipment were Rs 0.015 crore.

Consolidated capital work-in-progress rose to Rs 11.275 crore at September 30, 2026 from Rs 6.68 crore at March 31, 2026. Consolidated property, plant and equipment declined to Rs 279.746 crore from Rs 298.485 crore over the same period, alongside Rs 34.805 crore of depreciation and amortisation charged during the half year.

Did Hi-Tech Gears reduce consolidated borrowings?

Hi-Tech Gears reduced consolidated borrowings by Rs 14.753 crore during the six months ended September 30, 2026. Current borrowings declined to Rs 38.867 crore from Rs 53.374 crore at March 31, while non-current borrowings decreased to Rs 7.142 crore from Rs 7.388 crore.

The cash-flow statement shows Rs 28.307 crore of borrowing proceeds and Rs 42.856 crore of borrowing repayments in the latest half year. These transactions produced net borrowing repayments of Rs 14.549 crore, compared with Rs 5.192 crore of repayments and no disclosed borrowing proceeds in the corresponding 2025 period.

Net cash used in financing activities was Rs 27.013 crore, compared with Rs 16.662 crore a year earlier. Finance costs paid were Rs 7.761 crore and lease-liability payments were Rs 4.709 crore; separately, total consolidated lease liabilities declined to Rs 116.461 crore at September 30 from Rs 121.77 crore at March 31.

Which Hi-Tech Gears segments supported the half-year result?

Hi-Tech Gears reported higher half-year revenue in India and Canada for the period ended September 30, 2026. India segment revenue increased to Rs 383.916 crore from Rs 339.396 crore, while Canada revenue rose to Rs 138.214 crore from Rs 120.142 crore; the Others segment reported Rs 13.66 crore, compared with Rs 12.224 crore.

India segment profit before tax and interest was Rs 27.226 crore, essentially unchanged from Rs 27.227 crore a year earlier. Canada segment profit before tax and interest increased to Rs 3.36 crore from Rs 1.169 crore, while the Others segment loss widened to Rs 1.408 crore from Rs 0.929 crore.

The segment results totalled Rs 29.178 crore before finance costs in the latest half, compared with Rs 27.467 crore in the prior-year period. Consolidated finance costs were Rs 7.658 crore, up from Rs 7.361 crore, resulting in consolidated profit before tax of Rs 21.52 crore, compared with Rs 20.106 crore.

Conclusion

Hi-Tech Gears converted higher operating profit and a positive working-capital contribution into Rs 58.775 crore of operating cash in the half year ended September 30, 2026. The cash generation was higher than the Rs 22.218 crore reported a year earlier and coincided with Rs 22.685 crore of capital expenditure and a Rs 14.753 crore reduction in reported consolidated borrowings.

The next disclosure to watch is the development of working-capital balances, particularly inventory, receivables and payables, after their material effect on first-half cash flow. The limited-review report also identifies two wholly owned subsidiaries with combined assets of Rs 0.993 crore at September 30, 2026 that were not reviewed or audited; management represented them as not material to the group.