Jainam Ferro Alloys H1 profit rises 6%, cash turns positive

Jainam Ferro Alloys (I) Limited reported consolidated profit of Rs. 5.70 crore for the half year ended September 30, 2026, up from Rs. 5.38 crore a year earlier, while net operating cash flow turned to an inflow of Rs. 29.82 crore from an outflow of Rs. 10.38 crore.

How did Jainam Ferro Alloys' H1 FY27 earnings change?

Jainam Ferro Alloys' consolidated revenue from operations rose 7.4% year on year to Rs. 116.39 crore in the half year ended September 30, 2026, from Rs. 108.42 crore in the corresponding 2025 half year. Including other income, total income was Rs. 118.04 crore, compared with Rs. 111.15 crore a year earlier.

Profit before tax increased to Rs. 7.67 crore from Rs. 7.32 crore, and profit for the period rose to Rs. 5.70 crore from Rs. 5.38 crore. Total expenses were Rs. 110.37 crore, against Rs. 103.82 crore in the previous corresponding period, while other income declined to Rs. 1.65 crore from Rs. 2.72 crore.

Jainam Ferro Alloys reported finance costs of Rs. 78.61 lakh, compared with Rs. 76.60 lakh, and depreciation and amortisation of Rs. 5.43 crore, compared with Rs. 1.87 crore. The filing identifies one reportable segment under Indian Accounting Standard 108, or Ind AS 108, covering operating segments.

The consolidated results include subsidiary JW Diagnostic and Research Center Private Limited, whose figures Jainam Ferro Alloys said were not material. The Audit Committee reviewed, and the board approved, the September 2026 half-year results at meetings held on November 12, 2026.

Why did Jainam Ferro Alloys' operating cash flow improve?

Jainam Ferro Alloys generated net cash from operating activities of Rs. 29.82 crore in H1 FY27, compared with net cash used in operations of Rs. 10.38 crore in H1 FY26. Cash generated from operations before direct taxes was Rs. 30.24 crore, compared with an Rs. 8.82 crore outflow in the prior-year half.

Receivables generated a Rs. 10.56 crore cash inflow in H1 FY27, reversing a Rs. 9.54 crore use of cash in H1 FY26. Payables added Rs. 9.43 crore of cash, against a Rs. 20.39 crore cash outflow a year earlier, while inventories used Rs. 2.07 crore after generating Rs. 13.82 crore in the preceding period.

Direct taxes paid were Rs. 42.42 lakh in both half years. The cash-flow statement, prepared under the indirect method prescribed by Ind AS 7, recorded operating profit before working-capital changes of Rs. 12.31 crore, compared with Rs. 7.29 crore in H1 FY26.

The starting profit before tax was Rs. 7.67 crore for H1 FY27, followed by adjustments including Rs. 5.43 crore of depreciation and a deduction of Rs. 1.58 crore of investment income. These adjustments preceded the reported receivables, inventory and payables movements in the operating cash-flow calculation.

How much did Jainam Ferro Alloys spend on fixed assets?

Jainam Ferro Alloys purchased fixed assets worth Rs. 21.73 crore in H1 FY27, compared with Rs. 3.01 crore in H1 FY26. Net cash used in investing activities consequently widened to Rs. 22.11 crore from Rs. 2.25 crore.

Property, plant and equipment stood at Rs. 99.09 crore on September 30, 2026, compared with Rs. 82.79 crore on March 31, 2026. The filing does not identify individual projects, a capacity target or a timetable associated with the H1 fixed-asset purchases.

Investment purchases were Rs. 6.96 crore and investment sales were Rs. 4.85 crore in H1 FY27, compared with Rs. 10.73 crore and Rs. 8.57 crore, respectively, in H1 FY26. Investment income was Rs. 1.58 crore in both periods, while there were no proceeds from fixed-asset sales in H1 FY27, against Rs. 44.45 lakh a year earlier.

Loans and advances given resulted in a Rs. 15.01 lakh inflow in the latest half year, compared with a Rs. 1.70 lakh outflow in H1 FY26. Non-current investments were Rs. 35.83 crore at September 30, 2026, up from Rs. 25.91 crore at March 31, 2026.

What changed in Jainam Ferro Alloys' balance sheet and funding?

Jainam Ferro Alloys' total assets rose to Rs. 220.65 crore at September 30, 2026 from Rs. 202.08 crore at March 31, 2026. Total equity increased to Rs. 158.26 crore from Rs. 146.41 crore, while total liabilities increased to Rs. 62.40 crore from Rs. 55.67 crore.

Current assets declined to Rs. 71.47 crore from Rs. 77.25 crore despite inventories rising to Rs. 29.67 crore from Rs. 27.60 crore. Trade receivables fell to Rs. 8.31 crore from Rs. 9.83 crore, and cash and cash equivalents increased to Rs. 1.05 crore from Rs. 18.94 lakh.

Non-current borrowings decreased to Rs. 15.42 crore from Rs. 16.32 crore, while current borrowings declined to Rs. 21.46 lakh from Rs. 5.38 crore. The cash-flow statement shows net bank borrowings falling by Rs. 5.17 crore and net unsecured loans falling by Rs. 90.07 lakh during H1 FY27.

Financing activities used Rs. 6.85 crore in H1 FY27, compared with an inflow of Rs. 12.66 crore in H1 FY26. The earlier period included Rs. 12.71 crore of proceeds from a preference allotment, whereas the latest half year recorded no such proceeds.

Conclusion

Jainam Ferro Alloys combined a 6% rise in H1 FY27 consolidated profit to Rs. 5.70 crore with a Rs. 40.20 crore year-on-year swing in operating cash flow, from a Rs. 10.38 crore outflow to a Rs. 29.82 crore inflow. Fixed-asset purchases also rose to Rs. 21.73 crore, and property, plant and equipment reached Rs. 99.09 crore at September 30, 2026.

The filing does not disclose a project timetable, capacity target or financial guidance for the Rs. 21.73 crore of H1 FY27 fixed-asset purchases. The next results will show whether the working-capital movements, including the Rs. 10.56 crore receivables inflow and Rs. 2.07 crore inventory cash use, persist after September 30, 2026.