KPIL reports Rs 1,179.77 crore H1 operating cash inflow

Kalpataru Projects International Limited (KPIL) generated Rs 1,179.77 crore of net cash from operating activities in the half year ended September 30, 2026, reversing a Rs 411.71 crore outflow a year earlier, as receivables released Rs 363.30 crore and combined borrowings declined to Rs 2,690.25 crore.

How did KPIL's operating cash flow change?

KPIL reported Rs 1,179.77 crore of net cash generated from operating activities in the half year ended September 30, 2026, compared with Rs 411.71 crore of net cash used in operations in the corresponding 2025 half. The year-on-year swing was Rs 1,591.48 crore after income-tax payments.

Cash generated from operations before tax payments was Rs 1,297.13 crore, compared with a Rs 176.28 crore use of cash a year earlier. Income tax paid declined to Rs 117.36 crore from Rs 235.43 crore, while operating profit before working-capital changes increased to Rs 1,197.65 crore from Rs 1,127.99 crore.

The cash-flow statement began with profit for the period of Rs 603.48 crore, against Rs 450.98 crore in the prior-year half. Its adjustments included Rs 273.32 crore of depreciation and amortisation, Rs 214.75 crore of tax expense and Rs 172.52 crore of finance cost.

What working-capital movements supported KPIL's cash generation?

KPIL's working-capital movements supplied a net Rs 99.48 crore of cash in the latest half year, compared with a net Rs 1,304.27 crore use of cash in the prior-year period. Trade and other receivables generated Rs 363.30 crore in the half year ended September 30, 2026, whereas they used Rs 1,109.06 crore a year earlier.

Inventory used Rs 101.96 crore of cash, lower than the Rs 376.20 crore use in the corresponding 2025 half. Trade, other payables and provisions used Rs 161.86 crore in the latest period, compared with a Rs 180.99 crore cash source a year earlier, meaning the receivables release outweighed the latest cash absorption in these two categories.

Current trade receivables stood at Rs 6,976.49 crore on September 30, 2026, down from Rs 8,404.66 crore on March 31, 2026. Inventories increased to Rs 1,878.23 crore from Rs 1,776.27 crore over the same six months, while annualised debtors turnover improved to 107 days from 109 days in the prior-year half.

How much did KPIL reduce borrowings and leverage?

KPIL's current and non-current borrowings combined fell to Rs 2,690.25 crore on September 30, 2026 from Rs 3,306.96 crore on March 31, 2026. Non-current borrowings declined to Rs 244.43 crore from Rs 611.31 crore, and current borrowings decreased to Rs 2,445.82 crore from Rs 2,695.65 crore.

Financing cash flows included Rs 300 crore of non-convertible debenture redemptions and Rs 350.64 crore of repayments of current and non-current borrowings. The filing also recorded a Rs 31.61 crore net increase in short-term borrowings during the half year, alongside these repayments.

KPIL's debt-equity ratio was 0.32 times at September 30, 2026, compared with 0.43 times at March 31, 2026 and 0.67 times a year earlier. Net worth, defined under the Companies Act as share capital plus reserves excluding revaluation reserve, was Rs 8,490.46 crore, up from Rs 7,776.55 crore at the March 2026 year-end.

Long-term debt to working capital was 0.15 times at September 30, 2026, versus 0.27 times at March 31, 2026 and 0.32 times a year earlier. Total debts to total assets were 0.10 times, compared with 0.12 times at March 31, while total assets were Rs 27,869.33 crore at September 30.

Did KPIL's debt-service and interest coverage improve?

KPIL's interest service coverage ratio was 5.88 times for the half year ended September 30, 2026, up from 3.72 times in the corresponding 2025 half. Finance cost in the consolidated segment disclosure fell to Rs 172.52 crore from Rs 258.98 crore over the same periods.

KPIL defines interest service coverage as profit after tax plus interest, depreciation and gain or loss on sale of property, plant and equipment, divided by interest expense. Its debt service coverage ratio was 1.66 times in the latest half, compared with 1.63 times a year earlier and 1.60 times for the year ended March 31, 2026.

The debt service coverage ratio was 4.34 times in the quarter ended September 30, 2026, compared with 1.02 times in the June 2026 quarter. KPIL defines this measure as profit after tax plus interest, depreciation and gain or loss on sale of property, plant and equipment, divided by interest, lease payments and principal repayment of long-term debt.

Cash and cash equivalents increased by Rs 67.14 crore during the half year to Rs 1,578.92 crore at September 30, 2026. The increase followed Rs 635.52 crore used in investing activities and Rs 480.55 crore used in financing activities, which included Rs 189.50 crore of dividend payments including tax.

What operating performance accompanied the cash-flow shift?

KPIL's net segment revenue increased to Rs 13,412.24 crore in the half year ended September 30, 2026 from Rs 12,699.74 crore a year earlier. Engineering, Procurement and Construction (EPC) revenue rose to Rs 13,292.38 crore from Rs 12,358.75 crore, accounting for the increase in net segment revenue.

Development Projects revenue declined to Rs 20.68 crore from Rs 241.43 crore, while revenue from other businesses increased to Rs 141.89 crore from Rs 131.64 crore. EPC segment result rose to Rs 898.58 crore from Rs 679.90 crore, whereas Development Projects recorded a Rs 3.01 crore segment loss after a Rs 173.87 crore profit a year earlier.

Consolidated profit before tax increased to Rs 818.23 crore from Rs 611.81 crore. Net profit margin was 4.5%, compared with 3.6% in the prior-year half, while operating margin was 8.5%, marginally below 8.6%; the filing does not allocate operating cash flow by segment.

Conclusion

KPIL combined a Rs 1,591.48 crore year-on-year reversal in net operating cash flow with lower borrowings at September 30, 2026. Receivables shifted from a Rs 1,109.06 crore cash use to a Rs 363.30 crore source, while the debt-equity ratio reduced to 0.32 times and interest service coverage increased to 5.88 times.

The next disclosed matters to watch are the Special Leave Petition filed by Kurukshetra Expressway Private Limited against the September 28, 2026 judgment on its National Highways Authority of India arbitration, and the post-quarter-end overallotment in Linjemontage i Grästorp AB. KPIL said its subsidiary Kalpataru Power Transmission Sweden AB is expected to retain a 66.45% holding and control of Linjemontage i Grästorp AB after that issuance.