KIC Metaliks reports Rs 24.35 crore operating cash outflow

K I C Metaliks Limited reported a Rs 24.35 crore net operating cash outflow for the half year ended September 30, 2026, reversing a Rs 10.49 crore inflow a year earlier. KIC Metaliks ended the period with Rs 0.87 lakh in cash and cash equivalents, down from Rs 10.07 crore at March 31, 2026.

Why did KIC Metaliks report an operating cash outflow?

KIC Metaliks reported an operating cash outflow because working-capital movements exceeded its Rs 11.75 crore operating profit before working-capital changes in the half year ended September 30, 2026. The largest reported use was a Rs 40.40 crore increase in other current financial assets, followed by Rs 22.15 crore lower trade payables and Rs 17.55 crore lower other current liabilities.

The cash-flow result changed from a Rs 10.49 crore operating inflow in the half year ended September 30, 2025. In the latest period, cash was released by a Rs 44.06 crore reduction in inventories and a Rs 1.09 crore reduction in trade receivables, but these movements did not offset the reported uses from financial assets, payables and other liabilities.

KIC Metaliks paid Rs 54.51 lakh in income tax in the six-month period after recording Rs 3.26 crore of profit before tax. Depreciation and amortisation of Rs 7.46 crore and finance costs of Rs 1.55 crore were added in the indirect-method reconciliation, while a Rs 51.39 lakh gain on disposal of property, plant and equipment reduced the reconciliation amount.

How did KIC Metaliks fund its cash requirement?

KIC Metaliks generated Rs 14.82 crore from financing activities in the half year ended September 30, 2026, mainly through Rs 16.47 crore of net proceeds from short-term borrowings. That financing inflow partly covered the Rs 24.35 crore operating outflow and Rs 53.48 lakh used in investing activities.

The financing result differed from the Rs 7.22 crore financing outflow in the corresponding 2025 half year. That prior period included Rs 89.01 lakh of net repayment of short-term borrowings, Rs 1.36 crore of net long-term borrowing repayment and Rs 4.97 crore of finance costs paid, compared with Rs 1.55 crore of finance costs paid in the latest half year.

KIC Metaliks used Rs 53.48 lakh in investing activities during the latest half year, compared with Rs 4.28 crore in the prior-year period. Capital expenditure on property, plant and equipment, capital work-in-progress and capital advances was Rs 91.31 lakh, partly offset by Rs 62.35 lakh proceeds from sale of property, plant and equipment.

What happened to KIC Metaliks cash and bank balances?

KIC Metaliks ended September 30, 2026 with Rs 0.87 lakh of cash and cash equivalents after a Rs 10.07 crore net decrease during the half year. The opening cash-equivalent balance was Rs 10.07 crore on April 1, 2026, while the comparable closing figure at September 30, 2025 was Rs 4.07 crore.

The September 30 balance sheet separately reported Rs 42.98 crore of bank balances other than cash and cash equivalents, compared with Rs 8.34 lakh at March 31, 2026. The filing classifies that balance separately from cash equivalents, meaning the Rs 0.87 lakh closing cash-equivalent figure is not the company’s total reported bank-related balance.

KIC Metaliks reported Rs 46.79 lakh of other financial assets within current assets at September 30, 2026, compared with Rs 2.97 crore at March 31, 2026. The cash-flow statement nevertheless records a Rs 40.40 crore increase in other current financial assets during the half year, identifying that movement as a material working-capital cash use.

How did KIC Metaliks balance sheet change during the half year?

KIC Metaliks’ total assets fell to Rs 366.14 crore at September 30, 2026 from Rs 386.30 crore at March 31, 2026. Current assets declined to Rs 196.67 crore from Rs 210.43 crore, with inventories falling to Rs 141.62 crore from Rs 185.69 crore over the same period.

Total equity rose to Rs 176.59 crore from Rs 175.22 crore as other equity increased to Rs 169.49 crore from Rs 168.12 crore. Non-current liabilities increased to Rs 34.55 crore from Rs 33.39 crore, including deferred tax liabilities of Rs 26.82 crore against Rs 25.47 crore at the March year-end.

Current liabilities decreased to Rs 155.00 crore at September 30, 2026 from Rs 177.68 crore at March 31, 2026, despite current borrowings rising to Rs 113.47 crore from Rs 97.00 crore. Trade payables to creditors other than micro and small enterprises declined to Rs 30.77 crore from Rs 53.74 crore, while other current liabilities fell to Rs 8.51 crore from Rs 26.06 crore.

What did KIC Metaliks report on operations and profitability?

KIC Metaliks reported Rs 381.61 crore of revenue from operations for the half year ended September 30, 2026, up from Rs 334.42 crore in the corresponding 2025 half year. Profit after tax was Rs 1.37 crore, compared with a Rs 1.07 crore loss a year earlier, and total comprehensive income was Rs 1.37 crore versus a Rs 1.07 crore loss.

The Mini Blast Furnace at KIC Metaliks’ Durgapur plant was shut from September 9, 2026 to October 14, 2026 for rectification work on the furnace and its accessories. The company said the furnace resumed operations on October 15, 2026; revenue from operations was Rs 153.38 crore in the September quarter, compared with Rs 228.23 crore in the June quarter.

KIC Metaliks has one reportable segment, Iron & Steel and allied products, under Indian Accounting Standard 108. Its half-year finance costs fell to Rs 1.55 crore from Rs 4.97 crore a year earlier, while depreciation and amortisation was Rs 7.46 crore, compared with Rs 7.46 crore in the corresponding half year.

Conclusion

KIC Metaliks combined a Rs 47.18 crore increase in half-year revenue with a return to Rs 1.37 crore of profit after tax, but operating cash flow moved from a Rs 10.49 crore inflow to a Rs 24.35 crore outflow. Working-capital movements, particularly other current financial assets, trade payables and other current liabilities, drove that reversal, while net short-term borrowing proceeds were Rs 16.47 crore.

The disclosed event to watch next is the performance following the Durgapur Mini Blast Furnace restart on October 15, 2026 after the September 9 to October 14 shutdown. Subsequent results will show changes in operating cash generation, the Rs 0.87 lakh cash-equivalent balance and current borrowings of Rs 113.47 crore.