Keto Motors reports Rs 18.98 crore operating cash inflow

Keto Motors Limited generated Rs 18.98 crore of net operating cash in the six months ended September 30, 2026 and recorded Rs 16.20 crore of borrowing repayments, while non-current borrowings fell to Rs 21.70 crore from Rs 37.90 crore at March 31, 2026. The operating inflow included a Rs 16.81 crore build-up in trade receivables.

How did Keto Motors generate positive operating cash flow?

Keto Motors generated Rs 18.98 crore in net cash from operating activities in the six months ended September 30, 2026, compared with net operating cash used of Rs 36.05 crore in the year ended March 31, 2026. Before working-capital movements, operating profit was Rs 96.31 lakh, comprising Rs 50.86 lakh of profit before tax, Rs 37.61 lakh of depreciation and amortisation, and Rs 0.89 lakh of finance costs, partly offset by Rs 2.04 lakh of interest income.

The main reason operating cash became positive was a Rs 18.02 crore working-capital inflow during the half year, versus a Rs 36.64 crore working-capital outflow in the preceding financial year. Cash released from inventories was Rs 9.71 crore and the reduction in other current assets and current tax assets added Rs 5.44 crore. An increase in other current and other financial liabilities contributed a further Rs 26.06 crore.

The operating result was not solely a result of collections, because trade receivables consumed Rs 16.81 crore of cash during the period. Trade payables also decreased by Rs 6.76 crore, while provisions fell by Rs 9.80 lakh. These outflows were more than offset by the inventory, other-assets and other-liabilities movements recorded in the cash-flow statement.

How much borrowing did Keto Motors repay?

Keto Motors reported Rs 16.20 crore of net repayment of borrowings in financing cash flow for the six months ended September 30, 2026. Its non-current borrowings declined to Rs 21.70 crore at September 30 from Rs 37.90 crore at March 31, while current borrowings were broadly unchanged at Rs 7.35 lakh versus Rs 7.20 lakh.

The balance-sheet movement shows that lower long-term borrowings accounted for most of the reduction in reported borrowings. Total non-current liabilities fell to Rs 21.87 crore from Rs 38.12 crore over the same period, with provisions also declining to Rs 16.96 lakh from Rs 22.05 lakh. Deferred tax liabilities of Rs 72,000 were recorded at September 30, compared with none at March 31.

Financing cash flow also included Rs 89,000 of interest paid in the six-month period. Keto Motors had reported Rs 35.43 crore of net financing cash inflow in the year ended March 31, 2026, primarily including Rs 35.45 crore of proceeds arising out of the corporate insolvency resolution process, or CIRP, and resolution plan. The half-year financing movement therefore differs from the prior year, when resolution-plan proceeds were recognised rather than debt repayments.

What does the receivables increase mean for Keto Motors cash flow?

Keto Motors' trade receivables rose to Rs 21.95 crore at September 30, 2026 from Rs 5.14 crore at March 31, an increase of Rs 16.81 crore that matched the cash-flow statement's working-capital outflow. This was the largest individual cash use within operating working capital during the six months, despite total operating cash remaining positive at Rs 18.98 crore.

Inventories moved in the opposite direction, falling to Rs 1.04 crore from Rs 10.74 crore and releasing Rs 9.71 crore of cash. Other current assets decreased to Rs 32.76 crore from Rs 38.15 crore, while other current liabilities increased to Rs 26.16 crore from Rs 15.39 lakh. The higher liabilities were a material offset to the receivables increase in the operating cash calculation.

Cash and cash equivalents ended the period at Rs 56.63 lakh, up from Rs 43.26 lakh at the beginning of the half year, a net increase of Rs 13.36 lakh. Separately, bank balances other than cash equivalents were Rs 2.81 crore at September 30, after the cash-flow statement recorded Rs 2.91 crore of investment in bank deposits and other bank balances. Investing activities also included Rs 80.11 lakh of payments for property, plant, equipment and intangible assets.

How should Keto Motors' half-year figures be compared with earlier results?

Keto Motors says its current-period results are not comparable with corresponding earlier periods because the reporting entity was restructured after an approved merger. The National Company Law Tribunal approved the resolution plan on June 12, 2025, and Keto Motors completed consequential procedures, including share transfers and allotments, during the quarter ended March 31, 2026.

For the six months ended September 30, 2026, Keto Motors reported revenue from operations of Rs 13.01 crore and profit after tax of Rs 59.14 lakh. The year ended March 31, 2026 showed revenue of Rs 2.13 crore and a loss after tax of Rs 17.69 lakh, but Keto Motors specifically states that comparative information represents the pre-restructuring and pre-merger entity. Those figures therefore do not provide a like-for-like operating comparison.

The September balance sheet showed total assets of Rs 110.84 crore, compared with Rs 107.24 crore at March 31, while total liabilities increased to Rs 51.44 crore from Rs 48.42 crore. Total equity rose to Rs 59.40 crore from Rs 58.81 crore, as other equity improved to negative Rs 11.03 crore from negative Rs 11.62 crore; equity share capital remained Rs 70.43 crore. The board approved the unaudited results on November 13, 2026.

Conclusion

Keto Motors produced Rs 18.98 crore of operating cash in the first half and applied Rs 16.20 crore to borrowings, reducing non-current borrowings from Rs 37.90 crore to Rs 21.70 crore. The cash outcome was supported by a Rs 18.02 crore overall working-capital inflow, even as Keto Motors extended Rs 16.81 crore more in trade receivables.

The next financial disclosures will show whether the Rs 21.95 crore receivables balance converts into cash and whether the Rs 26.16 crore increase in other current liabilities persists. Comparisons with earlier reported revenue and profit should remain qualified because Keto Motors says the prior figures relate to the pre-restructuring and pre-merger entity.