Lumino Industries cash flow falls despite first-half profit rise

Lumino Industries Limited generated Rs 56.3996 crore of net operating cash in the six months ended 30 September 2026, down from Rs 63.8911 crore a year earlier, despite profit before tax rising to Rs 124.0875 crore from Rs 86.3188 crore. The decline followed a Rs 72.9225 crore net working-capital outflow.

Why did Lumino Industries’ operating cash flow decline?

Lumino Industries’ operating cash flow declined because working-capital movements used Rs 72.9225 crore in the six months ended 30 September 2026, compared with an outflow of Rs 14.9745 crore in the corresponding 2025 period. That larger outflow more than offset the rise in operating profit before working-capital changes to Rs 156.8677 crore from Rs 113.9918 crore.

The largest cash use was a Rs 101.2399 crore increase in other financial and non-financial assets, compared with a Rs 64.5853 crore outflow in the earlier first half. Other non-current assets absorbed Rs 10.6935 crore against Rs 2.933 crore, while other current assets used Rs 18.2767 crore against Rs 9.8098 crore.

Trade acceptances shifted from a Rs 88.5087 crore cash inflow in the six months ended 30 September 2025 to a Rs 74.4862 crore cash outflow in the latest period. This reversal was partly offset by Rs 96.3076 crore released from trade receivables, substantially more than the Rs 6.4086 crore release reported in the prior-year period.

How did Lumino Industries’ profit compare with operating cash flow?

Lumino Industries reported higher profit before tax but lower operating cash flow in the first half of 2026. Profit before tax increased by Rs 37.7687 crore year on year, while net cash generated from operating activities declined by Rs 7.4915 crore to Rs 56.3996 crore, showing that profit growth did not translate proportionately into cash after working-capital movements and tax payments.

Cash generated from operations before direct taxes was Rs 83.9452 crore, compared with Rs 99.0174 crore a year earlier. Direct taxes paid declined to Rs 27.5456 crore from Rs 35.1263 crore, which reduced the effect of the lower pre-tax operating cash generation but did not prevent the final operating cash-flow decline.

Depreciation and amortisation added back to profit was Rs 9.3638 crore, up from Rs 7.9013 crore in the prior-year first half. Finance costs added back were Rs 34.7402 crore, below Rs 37.9384 crore, while interest income deducted in the reconciliation increased to Rs 9.2752 crore from Rs 5.8371 crore.

Which working-capital items used or released cash?

Lumino Industries’ other financial and non-financial assets and trade acceptances together accounted for Rs 175.7261 crore of cash outflows in the latest first half. In the corresponding 2025 period, the same two lines produced a net Rs 23.9234 crore inflow because trade acceptances had then contributed Rs 88.5087 crore.

Trade payables and financial liabilities used Rs 40.5996 crore, although this was less than the Rs 93.1892 crore outflow in the six months ended 30 September 2025. Other current liabilities provided Rs 67.7988 crore, compared with Rs 8.6101 crore previously, and non-financial liabilities and provisions added Rs 66.61 lakh against Rs 72.40 lakh.

Inventories released Rs 7.5959 crore of cash, below the Rs 51.2015 crore release in the prior-year period. At 30 September 2026, inventories stood at Rs 356.3164 crore, down from Rs 364.0712 crore at 31 March 2026, while trade receivables decreased to Rs 797.7758 crore from Rs 894.8576 crore.

Current other financial assets increased to Rs 401.9372 crore at 30 September 2026 from Rs 318.1033 crore at 31 March 2026. Other current assets also rose to Rs 122.6223 crore from Rs 104.457 crore, consistent with the cash-flow statement’s asset-related outflows despite the reductions in inventories and receivables.

How did investing and financing activities change cash balances?

Lumino Industries used Rs 171.8629 crore in investing activities in the six months ended 30 September 2026, compared with Rs 77.2651 crore used a year earlier. Expenditure on property, plant and equipment, intangible assets and capital work in progress was Rs 90.2089 crore, up from Rs 22.2152 crore in the comparative period.

Investment in current and non-current investments absorbed Rs 55.7846 crore, while sale proceeds from investments were Rs 2.00 crore. Net fixed-deposit movements used Rs 36.935 crore and interest receipts were Rs 8.7764 crore; in the prior-year period, investment purchases were Rs 138.1785 crore and sale proceeds were Rs 81.5265 crore.

Financing activities provided Rs 208.6368 crore, compared with a Rs 9.6949 crore outflow in the prior-year first half. The main inflow was Rs 500 crore from the issue of shares, while Lumino Industries repaid Rs 223.4844 crore of short-term borrowings and Rs 32.2428 crore of long-term borrowings, and paid Rs 33.5392 crore of finance costs.

The fresh issue was part of Lumino Industries’ initial public offering completed in the quarter ended 30 September 2026. The company listed its shares on the National Stock Exchange of India and BSE Limited on 3 September 2026, and reported cash and cash equivalents of Rs 185.003 crore at 30 September 2026, compared with Rs 91.8295 crore at the start of the financial year.

What was the status of Lumino Industries’ IPO proceeds?

Lumino Industries received Rs 500 crore in gross proceeds from the fresh issue of equity shares in its initial public offering. After proportionate issue expenses of Rs 37.408 crore, the company stated that it had used proceeds in line with board approval dated 20 August 2026 and reported no deviation from the stated objects of the offer.

Of the Rs 500 crore total allocation, Rs 341.889 crore had been utilised by 30 September 2026 and Rs 158.111 crore remained unutilised. The unutilised amount comprised Rs 72.92 crore for loan repayment, Rs 50.171 crore for general corporate purposes, Rs 15.013 crore for capital expenditure and Rs 20.007 crore for issue expenses.

Conclusion

Lumino Industries’ first-half results show that higher reported profit did not produce a matching increase in operating cash. Profit before tax rose to Rs 124.0875 crore, but net cash from operating activities fell to Rs 56.3996 crore as other financial and non-financial assets, other asset categories and trade acceptances created a Rs 72.9225 crore working-capital outflow.

The next disclosed item to watch is deployment of the Rs 158.111 crore of unutilised net IPO proceeds at 30 September 2026, including the Rs 72.92 crore allocated to loan repayment and Rs 15.013 crore for capital expenditure. Lumino Industries’ 30 September 2026 consolidated unaudited results were approved by its board on 4 November 2026 and subjected to limited review by its joint statutory auditors.