IFGL Refractories operating cash flow rises to Rs 68.39 crore

IFGL Refractories Limited generated Rs 68.39 crore of net operating cash flow in the six months ended September 30, 2026, compared with Rs 7.87 crore a year earlier, as cash generated from operations reached Rs 83.84 crore despite Rs 64.76 crore absorbed by higher receivables and inventories.

How much operating cash did IFGL Refractories generate?

IFGL Refractories generated Rs 68.39 crore of net cash from operating activities for the six months ended September 30, 2026, versus Rs 7.87 crore in the corresponding 2025 period. Cash generated from operations rose to Rs 83.84 crore from Rs 22.98 crore, while income taxes paid, net of refunds, were Rs 15.45 crore compared with Rs 15.11 crore.

Profit before tax was Rs 57.17 crore in the 2026 half, up from Rs 31.87 crore a year earlier. After adjustments including Rs 27.53 crore of depreciation and amortisation, Rs 6.16 crore of finance cost and a Rs 2.36 crore net impairment loss on receivables, cash before working-capital changes was Rs 88.63 crore, compared with Rs 71.05 crore.

What did working capital do to IFGL Refractories' cash flow?

Working capital used Rs 4.79 crore of cash in the six months to September 30, 2026, compared with an outflow of Rs 48.07 crore in the corresponding prior-year period. The cash-flow statement records Rs 41.56 crore absorbed by higher trade and other receivables and Rs 23.20 crore absorbed by higher inventories, alongside a Rs 59.97 crore movement reported for trade and other payables and provisions.

The prior-year half included Rs 46.84 crore absorbed by higher trade and other receivables and Rs 73.60 crore by higher inventories. The statement reported a Rs 72.37 crore movement in trade, other payables and provisions in that period, leaving the overall working-capital outflow substantially larger than the Rs 4.79 crore recorded in 2026.

At September 30, 2026, trade receivables were Rs 463.85 crore, compared with Rs 425.07 crore at March 31, 2026, while inventories rose to Rs 438.63 crore from Rs 411.37 crore. Other current assets increased to Rs 34.00 crore from Rs 28.30 crore, and trade payables to creditors other than micro and small enterprises were Rs 274.96 crore versus Rs 221.50 crore.

Which operating results supported IFGL Refractories' cash generation?

IFGL Refractories reported revenue from operations of Rs 1,065.51 crore for the six months ended September 30, 2026, up from Rs 942.64 crore a year earlier, while profit before tax increased to Rs 57.17 crore from Rs 31.87 crore. Profit for the period was Rs 42.78 crore, compared with Rs 23.50 crore in the corresponding 2025 half.

India generated Rs 612.56 crore of segment revenue in the 2026 half, compared with Rs 557.60 crore a year earlier, and its segment result rose to Rs 50.28 crore from Rs 46.29 crore. America recorded revenue of Rs 210.94 crore against Rs 158.13 crore and a segment result of Rs 21.44 crore against Rs 11.62 crore, while Europe’s segment loss narrowed to Rs 6.20 crore from Rs 16.05 crore.

Depreciation and amortisation declined to Rs 27.53 crore from Rs 38.95 crore in the prior-year half. IFGL Refractories said merger-related goodwill, formerly amortised at Rs 6.67 crore per quarter through the year ended March 31, 2026, had a nil carrying value at that date, so no such amortisation was charged in either the June or September 2026 quarter.

Where did IFGL Refractories use cash outside operations?

IFGL Refractories used Rs 28.26 crore in investing activities in the six months ended September 30, 2026, compared with an inflow of Rs 15.03 crore in the prior-year period. The latest outflow included Rs 53.02 crore spent on investments, partly offset by Rs 31.17 crore of proceeds from investment sales and Rs 1.43 crore of interest received.

Purchases of property, plant and equipment, other intangible assets and capital work-in-progress totalled Rs 7.88 crore, down from Rs 28.08 crore in the 2025 half. Separately, other expenses for the 2026 half included a Rs 1.53 crore charge-off of capital work-in-progress at IFGL-Marvels Refractories Limited after the related joint-venture agreement was terminated by mutual consent on October 14, 2026.

Financing activities used Rs 22.26 crore, compared with Rs 34.96 crore a year earlier. IFGL Refractories paid Rs 15.50 crore in dividends, repaid Rs 7.93 crore of long-term borrowings and paid Rs 6.25 crore of interest, partly offset by Rs 7.81 crore of net proceeds from short-term borrowings.

What happened to IFGL Refractories' cash balance?

IFGL Refractories ended September 30, 2026 with cash and cash equivalents of Rs 71.89 crore, compared with Rs 52.98 crore at the end of September 2025. The group began the latest six-month period with Rs 52.74 crore, recorded a Rs 17.87 crore increase before currency translation, and had Rs 1.28 crore of favourable exchange differences.

The prior-year period began with Rs 60.52 crore of cash and cash equivalents and recorded a Rs 12.06 crore decrease before a Rs 4.52 crore translation gain. At September 30, 2026, current-account balances represented Rs 71.54 crore of the closing cash total, with cash on hand of Rs 35 lakh.

Conclusion

IFGL Refractories’ Rs 68.39 crore operating cash inflow reflected higher profit before tax and a Rs 43.28 crore improvement in the working-capital cash movement from the prior-year half. Receivables and inventories nevertheless rose during the period, while investing activity shifted to a Rs 28.26 crore outflow following Rs 53.02 crore of investment purchases.

The unresolved matter to watch is the company’s evaluation of further legal action after the November 4, 2026 order upheld the disallowance of a goodwill-depreciation deduction for assessment year 2020-21. IFGL Refractories has treated the related exposures as contingent liabilities and said it continues to believe the deductions are sustainable on merits, supported by legal opinion.