Ingersoll-Rand India cash inflow falls 44% in half-year

Ingersoll-Rand (India) Limited reported a 44% year-on-year decline in net operating cash inflow to Rs 67 crore for the half year ended September 30, 2026, from Rs 120.24 crore, chiefly because trade receivables absorbed Rs 93.80 crore of cash, compared with Rs 1.58 crore a year earlier.

Why did Ingersoll-Rand India’s operating cash inflow decline?

Ingersoll-Rand India’s operating cash inflow declined because working-capital movements outweighed higher reported profit. Net cash inflow from operating activities was Rs 67 crore in the half year ended September 30, 2026, down Rs 53.24 crore from Rs 120.24 crore in the corresponding half year ended September 30, 2025. Cash generated from operations, before net income-tax payments, fell to Rs 108.74 crore from Rs 164.62 crore.

The largest movement was in trade receivables, which represented a Rs 93.80 crore cash outflow in the latest half year, against a Rs 1.58 crore outflow in the prior-year period. Inventories used another Rs 12.54 crore, compared with Rs 15.52 crore previously. These uses were partly offset by a Rs 18.77 crore cash inflow from trade payables and a Rs 9.10 crore inflow from other current liabilities.

Income taxes paid, net of refunds, were Rs 41.74 crore, lower than Rs 44.38 crore a year earlier. The reduction in tax cash payments did not offset the Rs 55.88 crore fall in cash generated from operations before tax payments.

How much did trade receivables increase at Ingersoll-Rand India?

Ingersoll-Rand India’s trade receivables increased by Rs 92.10 crore from March 31, 2026 to September 30, 2026. Receivables stood at Rs 390.75 crore at September 30, 2026, compared with Rs 298.65 crore at March 31, 2026. The cash-flow statement records a Rs 93.80 crore outflow from changes in trade receivables during the six-month period.

The receivables increase came alongside higher sales. Revenue from operations rose 22% to Rs 776.96 crore in the half year ended September 30, 2026, from Rs 637.26 crore in the corresponding prior-year half year. The filing does not provide a customer, invoice or collection-timing explanation for the receivables movement.

Ingersoll-Rand India also reported Rs 3.57 crore of allowance for expected credit loss and Rs 12 lakh of bad debts written off in the latest half year. In the corresponding 2025 period, the allowance for expected credit loss was a Rs 10 lakh write-back and no bad debts written off were reported.

Did Ingersoll-Rand India’s profit rise despite the cash-flow decline?

Ingersoll-Rand India’s profit rose despite the lower operating cash inflow. Profit for the half year ended September 30, 2026 increased 14% to Rs 136.32 crore from Rs 119.33 crore in the corresponding half year of 2025. Profit before tax increased to Rs 183.03 crore from Rs 160.41 crore, while total income increased to Rs 795.80 crore from Rs 655.79 crore.

Revenue from operations increased by Rs 139.70 crore, but total expenses increased by Rs 117.39 crore to Rs 612.77 crore. Cost of materials consumed rose to Rs 432.49 crore from Rs 343.60 crore, employee-benefit expense rose to Rs 72.66 crore from Rs 64.73 crore, and other expenses rose to Rs 77.65 crore from Rs 67.31 crore.

Reported earnings and operating cash flow therefore moved in different directions in the six months. Profit increased by Rs 16.99 crore, while operating cash inflow declined by Rs 53.24 crore, alongside the larger receivables outflow recorded in the cash-flow statement.

What happened to Ingersoll-Rand India’s cash, investment and financing flows?

Ingersoll-Rand India ended September 30, 2026 with cash and cash equivalents of Rs 128.19 crore, down from Rs 157.52 crore at March 31, 2026. The six-month net decrease was Rs 29.26 crore, after a Rs 10.65 crore increase in the corresponding half year of 2025. Exchange differences reduced bank balances by Rs 7 lakh in the latest period.

Investing activities used Rs 31.96 crore, compared with an outflow of Rs 29.42 crore a year earlier. Payments for property, plant and equipment, including capital work-in-progress and capital advances, were Rs 34.78 crore, while interest received was Rs 2.82 crore. Capital work-in-progress rose to Rs 58.75 crore at September 30, 2026 from Rs 29.54 crore at March 31, 2026.

Financing activities used Rs 64.30 crore, lower than the Rs 80.17 crore outflow in the prior-year period. Dividends paid accounted for Rs 63.04 crore, while lease-liability repayments were Rs 81 lakh and interest paid was Rs 45 lakh. Ingersoll-Rand India reported total lease liabilities of Rs 8.23 crore at September 30, 2026.

What balance-sheet changes accompanied Ingersoll-Rand India’s cash-flow movement?

Ingersoll-Rand India’s total assets increased to Rs 1,093.07 crore at September 30, 2026 from Rs 998.93 crore at March 31, 2026. Current assets rose to Rs 768.06 crore from Rs 691.59 crore, led by the Rs 92.10 crore rise in trade receivables. Inventories increased by Rs 12.54 crore to Rs 227.86 crore, while cash and cash equivalents declined by Rs 29.33 crore.

Total equity increased to Rs 691.28 crore from Rs 615.72 crore, including other equity of Rs 659.71 crore at September 30, 2026. Total liabilities rose to Rs 401.79 crore from Rs 383.21 crore. Current liabilities increased to Rs 390.64 crore from Rs 370.70 crore, with trade payables to creditors other than micro enterprises and small enterprises rising to Rs 235.86 crore from Rs 227.12 crore.

Ingersoll-Rand India operates in one reported segment, Air Solutions, and the filing therefore provides no separate product or geographic disclosure for the receivables increase. The unaudited results for the quarter and six months ended September 30, 2026 were approved on November 6, 2026 and received an unmodified limited-review conclusion from Deloitte Haskins & Sells.

Conclusion

Ingersoll-Rand India reported higher half-year revenue and profit, but operating cash inflow fell 44% as receivables absorbed Rs 93.80 crore of cash. The balance sheet recorded a Rs 92.10 crore increase in receivables over six months, while inventories also increased and cash and cash equivalents declined to Rs 128.19 crore.

The next scheduled event disclosed is an interim dividend of Rs 20 per equity share, with November 19, 2026 as the record date and December 2, 2026 as the payment date. Subsequent disclosures will be relevant for whether the filing’s unresolved receivables movement translates into collections.