Laser Power & Infra Limited reports Rs 102.8068 crore cash outflow

Laser Power & Infra Limited reported a Rs 102.8068 crore operating cash outflow for the half year ended 30 September 2026, compared with Rs 22.307 crore generated a year earlier, as a Rs 381.8889 crore inventory build outweighed Rs 143.5443 crore of operating profit before working-capital changes.

Why did Laser Power & Infra report an operating cash outflow?

Laser Power & Infra reported cash used in operating activities of Rs 102.8068 crore for the half year ended 30 September 2026, against cash generated from operating activities of Rs 22.307 crore in the half year ended 30 September 2025. This reversal occurred although profit before tax increased to Rs 69.5246 crore from Rs 67.0485 crore and operating profit before working-capital changes rose to Rs 143.5443 crore from Rs 137.1451 crore.

Working-capital movements converted the pre-working-capital operating profit into Rs 129.0301 crore of cash used in operations, compared with Rs 28.2692 crore of cash generated in the prior-year period. The cash-flow statement then recorded Rs 26.2233 crore under income tax paid or refund, resulting in the reported operating cash outflow of Rs 102.8068 crore.

The main cash demand was a Rs 381.8889 crore increase in inventories, compared with a Rs 120.4817 crore increase in the half year ended 30 September 2025. Increases in financial assets of Rs 78.1472 crore, non-financial assets of Rs 61.7153 crore and trade receivables of Rs 7.071 crore also used cash, partly offset by a Rs 140.697 crore increase in trade payables and a Rs 113.8336 crore increase in non-financial liabilities.

How much did inventory and working capital increase at Laser Power & Infra?

Laser Power & Infra's inventory balance rose to Rs 945.6851 crore at 30 September 2026 from Rs 563.7962 crore at 31 March 2026. The Rs 381.8889 crore increase matched the largest working-capital cash outflow in the half-year cash-flow statement and exceeded the comparable prior-year increase by Rs 261.4072 crore.

Trade receivables increased to Rs 1,383.1245 crore at 30 September 2026 from Rs 1,374.9572 crore at 31 March 2026, while other financial assets rose to Rs 155.9668 crore from Rs 54.6182 crore. Other current assets increased to Rs 119.4974 crore from Rs 55.6969 crore, and the cash-flow statement grouped movements in financial and non-financial assets at Rs 78.1472 crore and Rs 61.7153 crore respectively.

The working-capital increase came alongside higher revenue and profit. Revenue from operations for the half year ended 30 September 2026 increased to Rs 1,149.7673 crore from Rs 1,069.1348 crore, while profit after tax rose to Rs 51.7394 crore from Rs 48.2865 crore. Manufacturing segment revenue increased to Rs 906.3879 crore from Rs 796.6386 crore, whereas engineering, procurement and construction, or EPC, segment revenue declined to Rs 372.2346 crore from Rs 422.8608 crore before inter-segment eliminations.

How did Laser Power & Infra use its IPO proceeds?

Laser Power & Infra used Rs 490 crore of initial public offering, or IPO, proceeds for loan repayment by 30 September 2026, matching the amount allocated for that purpose in its prospectus. The company received Rs 542 crore from the fresh equity issue and stated that there was no deviation from the objects of the offer.

The IPO disclosure records Rs 21.15 crore utilised for general corporate purposes and Rs 26.74 crore used for issue expenses by 30 September 2026. Of the Rs 30.85 crore issue-expense allocation, Rs 4.11 crore remained unutilised and was held in the monitoring account at the reporting date.

The financing cash-flow statement records Rs 72.1145 crore of repayments of non-current borrowings and Rs 267.7932 crore of net repayments of short-term borrowings during the half year. It also records Rs 10.8419 crore of proceeds from non-current borrowings, Rs 542 crore of share-capital proceeds and Rs 26.7026 crore of share-issue expenses, leading to a Rs 115.0585 crore financing cash inflow.

Did Laser Power & Infra reduce borrowings and why did cash still decline?

Laser Power & Infra reduced non-current borrowings to Rs 51.0933 crore at 30 September 2026 from Rs 112.3659 crore at 31 March 2026, while current borrowings fell to Rs 448.0749 crore from Rs 715.8681 crore. Finance costs nevertheless increased to Rs 68.4279 crore in the half year from Rs 63.6834 crore in the corresponding period, with the filing not separately explaining the movement.

Cash and cash equivalents fell by Rs 25.8973 crore to Rs 0.8884 crore at 30 September 2026 from Rs 26.7859 crore at the beginning of the year. The Rs 115.0585 crore financing inflow did not offset the combined Rs 102.8068 crore operating outflow and Rs 38.149 crore investing outflow, after a Rs 0.0002 crore exchange-rate effect.

Investing activities used Rs 38.149 crore in the half year, compared with Rs 39.1245 crore in the prior-year period. The 2026 investing outflow included Rs 20.0868 crore of capital work-in-progress expenditure, Rs 12.7959 crore of net bank deposits and Rs 10.53 crore of loans to a subsidiary, partly offset by Rs 8.2603 crore of interest received.

Conclusion

Laser Power & Infra's half-year results combined revenue growth to Rs 1,149.7673 crore and profit after tax growth to Rs 51.7394 crore with a substantial working-capital cash requirement. The Rs 381.8889 crore inventory increase was the central factor behind the Rs 102.8068 crore operating cash outflow, even as IPO proceeds supported Rs 490 crore of loan repayment and lower reported borrowings.

The next financial results will show whether inventories, receivables and other current assets convert into operating cash after 30 September 2026. The company also disclosed that the financial impact of the Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, 2025 cannot yet be reliably estimated because the Central Pollution Control Board's registration portal and detailed implementation framework remain under development.