Highway Infrastructure cash rises on Rs 14.60 crore financing

Highway Infrastructure Limited increased cash and cash equivalents by Rs 6.14 crore in the period ended September 30, 2026, as Rs 14.60 crore of financing inflows exceeded a Rs 3.83 crore operating outflow and Rs 46.37 lakh investing outflow. Closing cash and cash equivalents reached Rs 11.79 crore from Rs 5.65 crore at March 31, 2026.

Why did Highway Infrastructure report an operating cash outflow?

Highway Infrastructure reported net cash used in operating activities of Rs 3.83 crore for the period ended September 30, 2026, because Rs 8.77 crore of net direct taxes paid exceeded Rs 4.94 crore of cash generated from operations. For the year ended March 31, 2026, operating activities used Rs 63.07 crore, although that comparison is between a six-month period and a full year.

Profit before tax was Rs 12.58 crore in the September 2026 period, while operating profit before working-capital changes was Rs 11.77 crore. The reconciliation included Rs 5.09 crore of finance costs and Rs 1.50 crore of depreciation and amortisation, partly offset by Rs 2.24 crore of interest income and a Rs 5.20 crore gain on remeasurement of investment property upon conversion into inventory.

Working-capital changes reduced operating cash generation despite releases from some asset categories. Inventories absorbed Rs 25.60 crore and other current assets absorbed Rs 5.37 crore, while other financial assets released Rs 17.93 crore and trade receivables released Rs 2.48 crore; other financial liabilities contributed Rs 4.01 crore.

The balance sheet reflects those movements at September 30, 2026. Inventories rose to Rs 93.15 crore from Rs 67.55 crore at March 31, 2026, while trade receivables fell to Rs 60.69 crore from Rs 63.17 crore, aligning with the respective cash-flow movements of Rs 25.60 crore and Rs 2.48 crore.

How did Highway Infrastructure fund its cash increase?

Highway Infrastructure funded the cash increase through Rs 14.60 crore of net financing cash inflow during the period ended September 30, 2026. Proceeds from long-term borrowings were Rs 15.32 crore and short-term borrowing proceeds were Rs 4.47 crore, more than the Rs 5.09 crore finance-cost payment and Rs 9.5 lakh lease-liability payment.

The company reported no proceeds from new equity shares or securities premium in the September 2026 period. In contrast, the year ended March 31, 2026 included Rs 6.97 crore from new equity shares and Rs 76.35 crore of securities premium, helping produce financing cash inflow of Rs 107.48 crore for that full year.

Financing was the only positive cash-flow category in both periods shown in the statement. The September 2026 inflow was lower than the preceding full-year amount and was based on borrowing proceeds, whereas the March 2026 year also included equity-share and securities-premium receipts.

What happened to Highway Infrastructure borrowings?

Highway Infrastructure’s financing-liabilities schedule recorded total liabilities from financing activities of Rs 98.56 crore at September 30, 2026, compared with Rs 78.54 crore at April 1, 2026. The schedule attributes the increase to Rs 19.70 crore of cash-flow movements and Rs 32.3 lakh of other movements.

Non-current borrowings in that schedule increased to Rs 19.02 crore from Rs 3.70 crore, reflecting Rs 15.32 crore of cash flows. Current borrowings increased to Rs 78.80 crore from Rs 74.34 crore after Rs 4.47 crore of cash-flow movements, while current lease liabilities rose to Rs 15.9 lakh from Rs 6.9 lakh.

The standalone balance sheet separately reported non-current borrowings of Rs 19.02 crore and current borrowings of Rs 92.50 crore at September 30, 2026, against Rs 3.70 crore and Rs 88.03 crore at March 31, 2026. The filing does not explain why the current-borrowing figures in the financing-liabilities schedule, Rs 78.80 crore and Rs 74.34 crore, differ from the balance-sheet amounts.

The cash-flow statement also records a Rs 30.5 lakh non-cash acquisition of right-of-use assets in the September 2026 period. As it is identified as non-cash financing activity, that acquisition did not itself add to or reduce the reported Rs 6.14 crore change in cash and cash equivalents.

Where did Highway Infrastructure’s closing cash come from?

Highway Infrastructure ended September 30, 2026 with Rs 11.79 crore of cash and cash equivalents, up from Rs 5.65 crore at the beginning of the financial year. The Rs 6.14 crore increase equals the combined effect of the Rs 3.83 crore operating outflow, Rs 46.37 lakh investing outflow and Rs 14.60 crore financing inflow.

The closing balance comprised Rs 10.57 crore in bank current accounts, Rs 30.3 lakh of cash on hand and Rs 91.8 lakh of fixed-deposit receipts held against bank guarantees with maturities below three months. At March 31, 2026, these components were Rs 1.37 crore, Rs 47.4 lakh and Rs 3.81 crore, respectively.

Cash and cash equivalents were separate from Rs 9.42 crore of bank balances other than cash and cash equivalents on the September 30 balance sheet. Total current assets rose to Rs 277.25 crore from Rs 252.34 crore at March 31, 2026, alongside higher inventory and lower receivables.

Which business activities are covered by Highway Infrastructure’s cash flows?

Highway Infrastructure identifies Tollway Collection, EPC Infra and Real Estate as reportable segments under Indian Accounting Standard 108, or Ind AS 108. Its standalone cash-flow statement does not allocate the Rs 3.83 crore operating outflow, Rs 46.37 lakh investing outflow or Rs 14.60 crore financing inflow among those three segments.

Investing activities included Rs 1.87 crore used for purchase or sale of immovable properties, Rs 44.2 lakh for property, plant, equipment and intangible assets, Rs 37.3 lakh for capital work-in-progress and Rs 2.73 crore for other non-current financial assets. These uses were partly offset by Rs 2.24 crore of interest income and Rs 7.1 lakh of proceeds from sale of property, plant and equipment.

Investment property stood at Rs 73.95 crore at September 30, 2026, compared with Rs 66.87 crore at March 31, 2026. Capital work-in-progress increased to Rs 1.04 crore from Rs 66.6 lakh, while property, plant and equipment declined to Rs 14.27 crore from Rs 15.43 crore; these balance-sheet changes provide context but do not identify segment-level cash flows.

Conclusion

Highway Infrastructure’s Rs 6.14 crore increase in cash for the period ended September 30, 2026 came from financing inflows rather than operating or investing cash generation. Borrowing-related proceeds supported liquidity while operations used Rs 3.83 crore after Rs 8.77 crore of net tax payments, and inventory absorbed Rs 25.60 crore of working capital.

The next financial results will indicate whether operating cash generation improves after taxes and working-capital movements. Items to watch are inventory relative to the Rs 93.15 crore September balance, the unresolved difference between current borrowings in the financing-liabilities schedule and balance sheet, and future borrowing cash flows.