IGPL H1 operating cash rises to Rs 174.2 crore from outflow

IG Petrochemicals Limited generated Rs 174.2 crore of net cash from operating activities in H1 FY27, reversing an Rs 38.9 crore outflow in H1 FY26, as profit before tax reached Rs 215.8 crore and the working-capital cash outflow narrowed to Rs 47.7 crore from Rs 89.5 crore.

How did IGPL generate operating cash in H1 FY27?

IGPL generated operating cash through a substantial increase in profit before working-capital movements. Operating profit before working-capital changes was Rs 255.5 crore in Sep-26, compared with Rs 54.6 crore in Sep-25. Profit before tax moved to Rs 215.8 crore from a Rs 8.8 crore loss, while adjustments for non-cash, investment and financial items declined to Rs 39.7 crore from Rs 63.4 crore.

IGPL reported Rs 207.8 crore of cash generated from operations in Sep-26, versus an Rs 34.9 crore outflow in Sep-25. Direct taxes paid, net of refunds, rose to Rs 33.6 crore from Rs 4 crore. After those tax payments, net cash from operating activities was Rs 174.2 crore, an improvement of Rs 213.1 crore from the prior-year outflow.

What changed in IGPL's H1 FY27 profitability?

IGPL's profitability increased as H1 FY27 revenue rose 46.4% year on year to Rs 1,394.7 crore and earnings before interest, tax, depreciation and amortisation, or EBITDA, increased to Rs 264.4 crore from Rs 40.4 crore. EBITDA margin rose to 19% from 4.2%. Management attributed revenue growth to improved realisations across all products.

IGPL recorded profit after tax of Rs 161.4 crore in H1 FY27, compared with a Rs 6.8 crore loss in H1 FY26. Raw-material expense increased to Rs 954.9 crore from Rs 736.2 crore and employee expense rose to Rs 58.2 crore from Rs 47.8 crore, while other expenses fell to Rs 117.3 crore from Rs 128.2 crore. The resulting profit turnaround fed into the higher operating cash before working-capital changes.

How did working capital affect IGPL's cash flow?

IGPL's working capital continued to consume cash, but the outflow reduced to Rs 47.7 crore in Sep-26 from Rs 89.5 crore in Sep-25. The Rs 41.8 crore reduction in cash absorption, alongside the increase in operating profit, allowed cash generated from operations to reach Rs 207.8 crore rather than the Rs 34.9 crore outflow recorded a year earlier.

IGPL's Sep-26 balance sheet provides context for that movement, although it does not reconcile individual accounts to the cash-flow line. Trade receivables rose to Rs 386.3 crore from Rs 350.3 crore at Mar-26, while inventories declined to Rs 184.9 crore from Rs 206.9 crore. Trade payables, a working-capital liability, declined to Rs 315.6 crore from Rs 387 crore over the same period.

Where did IGPL deploy cash during H1 FY27?

IGPL deployed Rs 89.7 crore in net investing cash outflows in Sep-26, compared with Rs 3.9 crore in Sep-25. The presentation does not give a project-by-project split for investing cash flow. It does show property, plant and equipment of Rs 1,114.2 crore at Sep-26, up from Rs 911.3 crore at Mar-26, while capital work-in-progress fell to Rs 34.7 crore from Rs 173.1 crore.

IGPL also reported an Rs 48.6 crore net financing cash outflow in Sep-26, compared with Rs 36.9 crore in Sep-25. Non-current borrowings fell to Rs 128.1 crore from Rs 147.2 crore, and current borrowings fell to Rs 95 crore from Rs 130.7 crore. Combined borrowings therefore declined by Rs 54.8 crore to Rs 223.1 crore between Mar-26 and Sep-26.

What do IGPL's cash and equity figures show?

IGPL's cash-flow statement labels Rs 35.9 crore as the net decrease in cash and cash equivalents in Sep-26, after the Rs 174.2 crore operating inflow, Rs 89.7 crore investing outflow and Rs 48.6 crore financing outflow. The statement reports opening cash and cash equivalents of negative Rs 50.2 crore and closing cash and cash equivalents of negative Rs 14.3 crore, compared with negative Rs 64.7 crore at Sep-25.

IGPL's balance sheet separately reports Rs 1.4 crore of cash and cash equivalents and Rs 167.7 crore of bank balances at Sep-26, compared with Rs 0.4 crore and Rs 159 crore at Mar-26. The supplied presentation does not reconcile these balance-sheet lines with the cash-flow statement's negative closing cash-and-cash-equivalents figure. Total equity increased to Rs 1,466.8 crore from Rs 1,320.5 crore, including other equity of Rs 1,436 crore.

Conclusion

IGPL's H1 FY27 cash-flow outcome reflects a shift from a Rs 38.9 crore operating cash outflow to a Rs 174.2 crore inflow, supported by profit before tax of Rs 215.8 crore and a smaller working-capital outflow. The company simultaneously reported Rs 89.7 crore of investing outflow, lower borrowings of Rs 223.1 crore and lower trade payables of Rs 315.6 crore at Sep-26.

What to watch next is the financial contribution of IGPL's plasticizer plant, which commenced production on 30 September 2026. IGPL disclosed Rs 117 crore of H1 FY27 revenue from its non-phthalic business, but did not disclose the plasticizer plant's capacity, capital cost, utilisation or earnings contribution. The board also declared an FY27 interim dividend of 100%, or Rs 10 per equity share, which may affect later financing cash flows.