Indowind Energy reports Rs 14.75 crore operating cash outflow

Indowind Energy Limited reported net cash used in operating activities of Rs 14.75 crore for the six months ended September 30, 2026, despite recording Rs 5.13 crore profit, because other financial assets absorbed Rs 23.69 crore and loans and advances absorbed Rs 3.14 crore.

Why did Indowind Energy report negative operating cash flow?

Indowind Energy reported negative operating cash flow because movements in operating assets outweighed Rs 12.53 crore of operating profit before working-capital changes in the six months ended September 30, 2026. Other financial assets accounted for the largest outflow at Rs 23.69 crore, followed by loans and advances at Rs 3.14 crore and other assets at Rs 66.89 lakh.

Cash generated from operations consequently moved to an outflow of Rs 14.11 crore, compared with an inflow of Rs 4.45 crore in the year ended March 31, 2026. After net income-tax payments of Rs 64.39 lakh, net cash used in operating activities was Rs 14.75 crore, versus net cash generated of Rs 2.77 crore in the preceding full year.

How did profit differ from operating cash flow?

Indowind Energy posted Rs 5.13 crore profit for the period but a Rs 14.75 crore operating cash outflow over the same six months. In calculating operating profit before working-capital changes, the cash-flow statement added back Rs 6.17 crore of depreciation and amortisation, Rs 85.07 lakh of finance cost and Rs 64.39 lakh of income-tax provision.

The group’s half-year profit declined from Rs 7.15 crore in the corresponding period a year earlier, while revenue from operations fell to Rs 23.68 crore from Rs 29.09 crore. Total expenses fell to Rs 18.20 crore from Rs 22.24 crore, and profit before tax declined to Rs 5.78 crore from Rs 7.05 crore.

Trade receivables generated Rs 41.80 lakh of cash in the latest six months, inventories generated Rs 13.29 lakh and trade payables generated Rs 22.90 lakh. Those favourable movements did not offset the Rs 23.69 crore deployment in other financial assets and Rs 3.14 crore in loans and advances.

What changed in other financial assets and loans?

Indowind Energy’s other financial assets increased by a combined Rs 23.69 crore between March 31 and September 30, 2026, matching the operating cash-flow movement reported under that heading. Current other financial assets rose by Rs 21.91 crore to Rs 33.32 crore, while non-current other financial assets increased by Rs 1.78 crore to Rs 37.50 crore.

Loans under non-current financial assets increased to Rs 12.41 crore at September 30, 2026, from Rs 9.27 crore at March 31, an increase of Rs 3.14 crore. The cash-flow statement records the same Rs 3.14 crore outflow for loans and advances, but the filing does not itemise the underlying loans or financial-asset balances.

Total current assets rose to Rs 46.32 crore from Rs 42.48 crore over the six months. Trade receivables fell to Rs 3.40 crore from Rs 3.82 crore and inventories declined to Rs 1.65 crore from Rs 1.78 crore, indicating that the increase in current assets was concentrated in other current financial assets rather than these two lines.

What happened to cash, investing and financing flows?

Indowind Energy reported a Rs 7.90 crore net decrease in cash and cash equivalents during the six months ended September 30, 2026, from opening cash and cash equivalents of Rs 8.73 crore. The cash-flow statement reported closing cash and cash equivalents of Rs 83.72 lakh after the operating outflow was partly offset by Rs 2.73 crore from investing activities and Rs 4.12 crore from financing activities.

Investing activities included Rs 8.60 crore spent on property, plant and equipment, Rs 11.07 crore from bank deposits placed and Rs 25.78 lakh of interest received. Capital work in progress increased to Rs 20.73 crore at September 30 from Rs 12.31 crore at March 31, while property, plant and equipment declined to Rs 157.92 crore from Rs 163.87 crore.

The financing section lists Rs 4.66 crore under repayment of short-term borrowings, Rs 45.10 lakh in proceeds from long-term borrowings, Rs 14.13 lakh in lease-liability repayments and Rs 85.07 lakh of finance-cost payments. Separately, short-term borrowings on the balance sheet increased to Rs 4.66 crore from Rs 3.50 lakh, and the filing does not provide a reconciliation between these cash-flow and balance-sheet presentations.

The filing also reports two different closing cash and cash-equivalent figures at September 30, 2026. The cash-flow statement reports Rs 83.72 lakh, whereas the balance sheet reports Rs 1.62 crore, comprising Rs 24.80 lakh of cash on hand and Rs 1.37 crore of bank balances; no explanation is provided for the difference.

What disclosed matters could affect future cash generation?

Indowind Energy said Suzlon Energy Limited, the operations and maintenance operator for its 18 megawatt project, did not ensure machine availability during the period. Management said it was pursuing compensation through discussions and legal recourse, and estimated that normal operations would have increased revenue and profit by close to Rs 5 crore.

Management also said a 4 megawatt solar project under completion is expected to enhance future profit. Other expenses included an Rs 80 lakh fee for an increase in authorised capital that management described as non-recurring, while the group reported only one operating segment.

The statutory auditor issued a qualified review conclusion, citing a Rs 90.83 crore arbitration claim against the Suzlon Group, a Rs 14.94 crore advance paid to Suzlon Energy Limited and an Rs 8.46 crore compensation receivable. The auditor said that, if the advance were expensed and the receivable appropriately amortised, reserves and surplus would be lower by Rs 16.68 crore and Rs 8.46 crore, respectively.

Conclusion

Indowind Energy’s first-half cash flow did not follow its reported Rs 5.13 crore profit because Rs 23.69 crore invested in other financial assets and Rs 3.14 crore in loans and advances drove a Rs 14.75 crore operating cash outflow. The corresponding full year to March 31, 2026 had produced Rs 2.77 crore of operating cash generation.

The next disclosures should show whether availability at the 18 megawatt project normalises and whether the 4 megawatt solar project under completion begins contributing income. Investors can also watch for clarification of the Rs 83.72 lakh and Rs 1.62 crore closing-cash figures and progress on the Suzlon-related audit matters.