IG Petrochemicals generates Rs 174 crore operating cash in H1

I G Petrochemicals Limited generated Rs 174.1927 crore of net operating cash in the half year ended September 30, 2026, compared with a Rs 38.8741 crore outflow a year earlier. IG Petrochemicals used Rs 84.662 crore for capital-asset purchases and ended the period with borrowings of Rs 223.0857 crore.

How did IG Petrochemicals generate operating cash in H1?

IG Petrochemicals generated Rs 174.1927 crore of operating cash in the half year ended September 30, 2026, after producing Rs 207.7831 crore of cash from operations and paying Rs 33.5904 crore of direct taxes. In the half year ended September 30, 2025, operating cash flow was a Rs 38.8741 crore outflow, with cash generated from operations negative at Rs 34.8674 crore and taxes paid at Rs 4.0067 crore.

Profit before tax and extraordinary items was Rs 215.8051 crore in the latest half year, against a Rs 8.8047 crore loss before tax in the comparable period. The cash-flow reconciliation added back Rs 30.9636 crore of depreciation and amortisation and Rs 17.6403 crore of finance cost, while deducting Rs 11.5106 crore of interest income and Rs 0.6386 crore of dividend income.

Working-capital movements used Rs 47.7393 crore of cash, compared with a Rs 89.4826 crore use in the earlier half year. Inventory declined by Rs 21.9941 crore, but trade receivables rose by Rs 36.0197 crore and trade payables, other liabilities and provisions declined by Rs 47.6999 crore. Other current and non-current assets, including financial assets, supplied Rs 13.9862 crore of cash.

How much did IG Petrochemicals spend on capital assets?

IG Petrochemicals spent Rs 84.662 crore on purchases of property, plant and equipment, including intangible assets and capital work-in-progress, during the half year ended September 30, 2026. This was Rs 15.636 crore more than the Rs 69.026 crore spent in the half year ended September 30, 2025, and it was the largest component of the Rs 89.716 crore net investing cash outflow.

Property, plant and equipment stood at Rs 1,114.2337 crore at September 30, 2026, up from Rs 911.2797 crore at March 31, 2026. Capital work-in-progress, or CWIP, was Rs 34.7367 crore, down from Rs 173.0932 crore. The balance-sheet movements show an increase in recorded property, plant and equipment alongside a reduction in CWIP, although the filing does not identify individual projects or asset transfers.

Other investing flows included Rs 8.1607 crore of net purchases of investments and Rs 6.943 crore invested in bank deposits other than cash equivalents. These outflows were partly offset by Rs 9.3809 crore of interest received, Rs 0.6386 crore of dividends received and Rs 0.0302 crore of proceeds from asset sales.

Did IG Petrochemicals reduce borrowings and improve cash equivalents?

IG Petrochemicals reduced reported borrowings to Rs 223.0857 crore at September 30, 2026 from Rs 277.9533 crore at March 31, 2026. Non-current borrowings fell to Rs 128.1318 crore from Rs 147.2262 crore, while current borrowings fell to Rs 94.9539 crore from Rs 130.7271 crore.

The cash-flow statement records Rs 52.1401 crore of non-current borrowing repayments and Rs 32.8438 crore of fresh non-current borrowing proceeds during the half year. Net repayments of current borrowings were Rs 0.8459 crore, compared with net current-borrowing proceeds of Rs 53.0979 crore in the half year ended September 30, 2025. Financing cash outflow also included Rs 13.056 crore of interest paid and Rs 15.3968 crore of dividends paid.

Cash and cash equivalents on the standalone balance sheet were Rs 1.3659 crore at September 30, 2026. After subtracting bank overdrafts of Rs 15.6408 crore, the cash-flow statement reported negative cash and cash equivalents of Rs 14.2749 crore. This was an improvement from negative Rs 50.1577 crore at the beginning of the financial year and negative Rs 64.6565 crore at September 30, 2025.

What do IG Petrochemicals' H1 results show about cash funding?

IG Petrochemicals' Rs 174.1927 crore of operating cash exceeded its Rs 84.662 crore capital-asset purchases by Rs 89.5307 crore before other investing and financing movements. However, combined net investing and financing outflows were Rs 138.311 crore, resulting in a Rs 35.8817 crore increase in cash and cash equivalents before a Rs 0.0011 crore exchange-rate effect.

The cash-flow improvement accompanied higher earnings and revenue in the standalone accounts. Revenue from operations rose to Rs 1,376.763 crore for the half year ended September 30, 2026 from Rs 935.3888 crore a year earlier, while profit after tax was Rs 161.3651 crore against a Rs 6.7941 crore loss. The company has one reportable segment, the manufacture and sale of organic chemicals, so the filing gives no product-level cash-flow or capital-expenditure breakdown.

The standalone results were approved by the board on November 5, 2026 and were subject to limited review by the statutory auditors, which issued an unqualified review report. The board also declared an interim dividend of Rs 10 per equity share of face value Rs 10 for the financial year 2026-27.

Conclusion

IG Petrochemicals moved from an operating cash outflow in the prior-year half to Rs 174.1927 crore of operating cash in the half year ended September 30, 2026. The change reflected Rs 215.8051 crore of profit before tax and a smaller working-capital cash use, and it funded Rs 84.662 crore of capital-asset purchases while reported borrowings fell by Rs 54.8676 crore from March 2026.

The next disclosed event is the interim dividend record date of November 13, 2026. Subsequent results will show whether CWIP, which declined by Rs 138.3565 crore in the half year, continues to move into property, plant and equipment and whether the negative Rs 14.2749 crore cash-equivalent balance narrows further.