IGL Spirits turns operating cash flow to Rs 185.85 crore

IGL Spirits Limited generated Rs 185.85 crore of net cash from operating activities in the half year ended September 30, 2026, reversing a Rs 61.89 crore operating cash outflow in the comparable prior-year period. The change occurred despite a Rs 74.41 crore inventory cash outflow and Rs 54.00 crore spent on property, plant and equipment.

How did IGL Spirits reverse its operating cash flow?

IGL Spirits reversed its operating cash position through Rs 185.85 crore of cash generated from operations in the half year ended September 30, 2026, compared with Rs 43.79 crore of cash used in operations in the half year ended September 30, 2025. As the current-period cash-flow statement records no net income-tax payment, cash generated from operations was also the reported net operating cash inflow.

Profit before tax was Rs 162.66 crore in the latest half year, compared with Rs 149.89 crore a year earlier. After adjustments including depreciation and amortisation, operating profit before working-capital changes reached Rs 244.78 crore, up from Rs 238.44 crore. The Rs 6.34 crore increase in this measure was substantially smaller than the Rs 247.74 crore year-on-year change in net operating cash flow.

The figures indicate that the reported working-capital movement accounted for much of the cash-flow reversal. IGL Spirits moved from a Rs 282.23 crore combined outflow from receivables, inventories and payables in the half year ended September 30, 2025 to a Rs 58.93 crore combined outflow in the latest half year.

The cash-flow statement was prepared using the indirect method under Indian Accounting Standard 7, Statement of Cash Flows. This approach starts with the Rs 162.66 crore pre-tax profit, adjusts for non-cash or non-operating items, and then reflects movements in operating assets and liabilities. IGL Spirits' board approved the unaudited results for the quarter and half year on November 12, 2026.

Which working-capital changes affected IGL Spirits cash generation?

IGL Spirits reported a Rs 10.61 crore cash inflow from trade and other receivables, a Rs 74.41 crore cash outflow from inventories, and a Rs 4.87 crore cash inflow from trade and other payables in the half year ended September 30, 2026. These three movements together produced the Rs 58.93 crore working-capital outflow from the Rs 244.78 crore operating profit before working-capital changes.

The change in payables was the largest difference from the prior-year half. Trade and other payables shifted from a Rs 202.99 crore cash outflow in the half year ended September 30, 2025 to a Rs 4.87 crore inflow in the latest period, while receivables moved from a Rs 68.61 crore outflow to a Rs 10.61 crore inflow. The inventory cash outflow increased from Rs 10.63 crore to Rs 74.41 crore.

The September 30, 2026 balance sheet listed inventories at Rs 279.04 crore, compared with Rs 204.63 crore at March 31, 2026. Trade receivables were Rs 247.03 crore at September 30, 2026, up from Rs 229.08 crore at March 31, 2026. The cash-flow presentation of receivables is therefore not directly comparable with the change between those two reported balance-sheet closing amounts.

Other current assets declined to Rs 35.50 crore at September 30, 2026 from Rs 67.37 crore at March 31, 2026, while trade payables rose to Rs 637.11 crore from Rs 599.63 crore. The filing does not provide a separate explanation for the period-end balances or reconcile them line by line to the cash-flow working-capital movements.

How much did IGL Spirits spend on investing activities?

IGL Spirits used Rs 53.93 crore in investing activities during the half year ended September 30, 2026, compared with Rs 20.72 crore used in the corresponding 2025 period. Purchases of property, plant and equipment accounted for Rs 54.00 crore in the latest half, more than double the Rs 22.97 crore recorded a year earlier.

Proceeds of Rs 0.05 crore from the sale of property, plant and equipment and Rs 0.02 crore of interest received partly offset the current-period investment. In the prior-year half, IGL Spirits reported Rs 2.23 crore of proceeds from property, plant and equipment sales and no interest receipt, contributing to the lower Rs 20.72 crore net investing outflow despite lower capital spending.

Capital work-in-progress rose to Rs 64.82 crore at September 30, 2026 from Rs 25.18 crore at March 31, 2026. Property, plant and equipment declined to Rs 2,586.10 crore from Rs 2,609.40 crore over the same dates, while right-to-use assets decreased to Rs 90.05 crore from Rs 106.08 crore. The filing does not identify projects associated with the Rs 54.00 crore expenditure or the increase in capital work-in-progress.

What happened to IGL Spirits financing cash flows and cash balance?

IGL Spirits used Rs 132.08 crore in financing activities in the half year ended September 30, 2026, compared with an Rs 82.77 crore financing cash inflow in the prior-year half. Net borrowings produced an Rs 88.38 crore cash outflow in the latest period, against Rs 136.65 crore of net borrowing inflow a year earlier.

Finance-cost payments were Rs 23.77 crore in the latest half year, down from Rs 43.98 crore in the comparative period, while lease-liability payments increased to Rs 19.93 crore from Rs 9.90 crore. Total borrowings on the September 30, 2026 balance sheet were Rs 714.13 crore, comprising Rs 436.71 crore of non-current borrowings and Rs 277.42 crore of current borrowings.

The Rs 185.85 crore operating inflow was nearly offset by the Rs 53.93 crore investing outflow and Rs 132.08 crore financing outflow. Cash and cash equivalents consequently decreased by Rs 0.16 crore during the half year, compared with an Rs 0.14 crore increase a year earlier. Closing cash and cash equivalents were Rs 4.32 crore on September 30, 2026, compared with Rs 4.48 crore at the beginning of the half year.

Conclusion

IGL Spirits converted operations into Rs 185.85 crore of cash in the half year ended September 30, 2026 despite higher inventory funding and increased property, plant and equipment purchases. Compared with the Rs 61.89 crore operating cash outflow a year earlier, the improvement coincided with more favourable reported movements in receivables and payables, alongside profit before tax increasing to Rs 162.66 crore.

The next results will show whether the working-capital pattern continues while inventories stand at Rs 279.04 crore and capital work-in-progress is Rs 64.82 crore. IGL Spirits also disclosed that it is obtaining licences and permissions in its own name and maintaining accounting records for the transferred business, while operations and transactions remain in the demerged company's name during the interim process.