Investment & Precision Castings H1 operating cash flow is Rs 3.485 crore

Investment & Precision Castings Limited generated standalone operating cash flow of Rs 3.485 crore in the half year ended 30 September 2026, despite Rs 10.7922 crore of profit after tax, as working-capital movements absorbed Rs 16.2379 crore. Inventory accounted for Rs 11.4575 crore of that cash use, the largest identified component.

Why was IPCL’s H1 operating cash flow Rs 3.485 crore?

IPCL generated Rs 3.485 crore of standalone operating cash flow after working-capital movements used Rs 16.2379 crore and income-tax payments used a further Rs 3.5002 crore in the half year ended 30 September 2026. Operating profit before working-capital changes was Rs 23.2232 crore, compared with Rs 14.5267 crore in the half year ended 30 September 2025.

The cash-flow statement began with Rs 10.7922 crore of standalone profit after tax. It included additions and adjustments for Rs 4.942 crore of depreciation, Rs 4.637 crore of income-tax expense and Rs 12.431 crore of finance cost. Interest income of Rs 13.63 lakh and a Rs 5.50 lakh gain on disposal of property, plant and equipment reduced the adjustments, while Rs 13.65 lakh of sundry balances written off increased them.

Operating cash flow increased from Rs 58.03 lakh in the corresponding 2025 half year, even though the working-capital outflow rose from Rs 12.0643 crore. The improvement reflected the Rs 8.6965 crore increase in operating profit before working-capital changes, which more than offset the additional Rs 4.1736 crore absorbed by working capital and the higher Rs 1.6181 crore of tax paid.

Which working-capital items consumed IPCL’s cash?

IPCL’s inventories consumed Rs 11.4575 crore of cash during the six months to 30 September 2026, making them the largest working-capital use. Trade and other receivables absorbed Rs 7.024 crore, while other assets used Rs 6.5151 crore and provisions used Rs 6.04 lakh.

Trade and other payables provided Rs 8.8191 crore of cash, partly offsetting the outflows from inventory, receivables and other assets. In the comparable 2025 half year, payables provided Rs 3.276 crore, inventories used Rs 1.9341 crore, receivables used Rs 1.02 crore and other assets used Rs 12.2819 crore. The main change was the larger inventory cash absorption in 2026, while the draw from other assets declined.

The standalone balance sheet also recorded inventories of Rs 63.1593 crore at 30 September 2026, up from Rs 51.7018 crore at 31 March 2026. Trade receivables increased to Rs 3.9435 crore from Rs 2.1957 crore, and other current assets rose to Rs 9.2984 crore from Rs 5.8611 crore. The cash-flow categories are not a direct line-by-line restatement of these balance-sheet movements because the filing groups several items within receivables and other assets.

How did IPCL fund its cash requirements in H1?

IPCL reported a Rs 10.0879 crore net inflow from borrowings in financing activities during the half year ended 30 September 2026. That was lower than the Rs 11.1672 crore net borrowing inflow in the prior-year half, but exceeded the Rs 3.485 crore generated from operating activities and helped fund Rs 7.9213 crore of investing cash outflow.

The financing section also recorded Rs 2.8434 crore of interest paid, Rs 99.28 lakh of dividends paid and Rs 6.77 lakh of lease-liability repayments. These items left net financing cash flow at an inflow of Rs 6.184 crore, compared with Rs 8.2338 crore in the half year ended 30 September 2025.

At 30 September 2026, standalone current borrowings were Rs 60.4404 crore, compared with Rs 53.1105 crore at 31 March 2026. Non-current borrowings increased to Rs 19.7462 crore from Rs 16.9882 crore. Separately, IPCL disclosed loans and revolving facilities outstanding of Rs 80.18 crore and total financial indebtedness of Rs 80.18 crore at 30 September 2026; no amount was shown in the default field.

What did IPCL invest in and how did cash change?

IPCL used Rs 7.9213 crore of net cash in investing activities in the half year ended 30 September 2026, compared with Rs 3.9745 crore in the corresponding 2025 period. Payments for property, plant and equipment were Rs 7.6826 crore, up from Rs 4.0045 crore, and represented the principal investing outflow.

Loans given net of repayments used Rs 26.53 lakh, while the investment in or redemption of fixed deposits used Rs 17.18 lakh. Sale of property, plant and equipment generated Rs 6.21 lakh and interest received was Rs 13.63 lakh. These smaller inflows did not materially offset the higher property and equipment spending.

Standalone property, plant and equipment stood at Rs 99.0829 crore at 30 September 2026, versus Rs 98.6635 crore at 31 March 2026. Capital work-in-progress increased to Rs 3.8389 crore from Rs 1.4246 crore. After operating, investing and financing flows, cash and cash equivalents increased by Rs 1.7478 crore to Rs 3.9435 crore at 30 September 2026 from Rs 2.1957 crore at the beginning of the year.

Conclusion

IPCL converted its first-half standalone profit of Rs 10.7922 crore into Rs 3.485 crore of operating cash after a Rs 16.2379 crore working-capital outflow. Inventory, receivables and other assets required cash, while a Rs 10.0879 crore net borrowing inflow and Rs 6.184 crore net financing inflow supported investment spending and the period-end cash increase.

The next filing will show whether the 30 September 2026 balances of Rs 63.1593 crore in inventories, Rs 3.9435 crore in trade receivables and Rs 9.2984 crore in other current assets continue to absorb cash. It will also provide an update on investment represented by Rs 3.8389 crore of capital work-in-progress, for which the filing gives no individual project or capacity target.