Maan Aluminium reports Rs 36.28 crore operating cash outflow

Maan Aluminium Limited reported a Rs 36.28 crore net cash outflow from operating activities for the six months ended September 30, 2026, versus a Rs 14.17 crore inflow a year earlier, as Rs 22.59 crore absorbed by higher trade receivables and Rs 17.70 crore in other current assets outweighed its Rs 3.99 crore net profit.

Why did Maan Aluminium’s operating cash flow turn negative?

Maan Aluminium’s operating cash flow turned negative because working-capital movements converted a Rs 8.60 crore operating profit before working-capital changes into Rs 34.53 crore of cash used in operations during the six months ended September 30, 2026. After Rs 1.75 crore of taxes paid, Maan Aluminium recorded the Rs 36.28 crore operating outflow, compared with cash generated from operations of Rs 16.13 crore and an operating cash inflow of Rs 14.17 crore in the six months ended September 30, 2025.

The pre-working-capital operating profit was lower by Rs 6.84 crore from Rs 15.44 crore a year earlier. Profit before tax fell to Rs 5.57 crore from Rs 11.43 crore, while depreciation and amortisation rose to Rs 3.93 crore from Rs 3.67 crore. Finance costs declined to Rs 1.97 crore from Rs 3.14 crore, and interest income was Rs 2.83 crore against Rs 2.91 crore, but these adjustments did not offset the subsequent working-capital cash requirements.

The reported income statement still showed positive earnings for the period. Maan Aluminium’s revenue from operations increased to Rs 511.34 crore in the six months ended September 30, 2026 from Rs 402.27 crore in the corresponding prior-year period, while net profit declined to Rs 3.99 crore from Rs 8.50 crore. The contrast between the Rs 3.99 crore accounting profit and the Rs 36.28 crore operating cash outflow reflects the timing of asset and liability movements listed in the cash-flow statement.

Which working-capital items absorbed Maan Aluminium’s cash?

Trade receivables were the largest identified cash absorption, increasing by Rs 22.59 crore during the September 2026 half year, compared with a Rs 1.41 crore cash release in the September 2025 half year. The balance sheet shows trade receivables at Rs 113.06 crore on September 30, 2026, up Rs 22.33 crore from Rs 90.73 crore on March 31, 2026. The small difference between the balance-sheet movement and cash-flow figure is not separately explained in the filing.

Other current assets absorbed a further Rs 17.70 crore of cash, against Rs 3.11 crore in the prior-year six months. Their closing balance rose to Rs 29.03 crore at September 30 from Rs 11.34 crore at March 31, a Rs 17.69 crore increase. Other current financial assets also used Rs 56 lakh, whereas they had released Rs 7.37 crore in the comparable 2025 period.

Trade payables used Rs 4.93 crore of cash in the 2026 half year, compared with Rs 69 lakh in the prior-year period. Within the September balance sheet, dues to creditors other than micro and small enterprises fell to Rs 15.25 crore from Rs 20.90 crore, while dues to micro and small enterprises rose to Rs 1.66 crore from Rs 92 lakh. Inventories, in contrast, released Rs 1.38 crore of cash and stood at Rs 65.45 crore at September 30, below Rs 66.83 crore at March 31.

Other movements provided more limited offsets. Other non-current assets released Rs 90 lakh, provisions added Rs 72 lakh, and other current liabilities added Rs 24 lakh. Those inflows were outweighed by the combined Rs 40.29 crore use of cash attributed to receivables and other current assets, before considering movements in payables and other financial assets.

How was Maan Aluminium’s cash deficit financed?

Maan Aluminium financed much of the operating and investing cash requirement through Rs 38.10 crore of proceeds from short-term borrowings in the six months ended September 30, 2026. This contrasted with a Rs 5.76 crore repayment of short-term borrowings in the six months ended September 30, 2025. After Rs 1.58 crore of long-term borrowing repayments, Rs 8 lakh of lease repayments and Rs 1.97 crore of finance costs, financing activities generated Rs 34.47 crore of cash, compared with a Rs 10.77 crore financing outflow a year earlier.

Current borrowings on the balance sheet rose to Rs 82.77 crore at September 30, 2026 from Rs 44.67 crore at March 31, 2026, an increase of Rs 38.10 crore matching the cash-flow statement’s short-term borrowing proceeds. Non-current borrowings moved in the opposite direction, declining to Rs 7.69 crore from Rs 9.27 crore. The statement therefore records a shift toward higher current borrowings over the six-month period.

Investing activities used Rs 1.88 crore, compared with Rs 3.40 crore used in the prior-year half year. Maan Aluminium spent Rs 8.78 crore on property, plant and equipment, including work in progress and net of subsidy received, versus Rs 4.47 crore a year earlier. That expenditure was partly offset by Rs 7.82 crore released from bank balances other than cash and cash equivalents and Rs 2.83 crore of interest received.

What changed in Maan Aluminium’s balance sheet by September?

Maan Aluminium’s total assets increased to Rs 399.54 crore at September 30, 2026 from Rs 363.13 crore at March 31, 2026. Current assets rose to Rs 254.46 crore from Rs 222.19 crore, led by trade receivables and other current assets, while non-current assets increased to Rs 145.08 crore from Rs 140.94 crore. Property, plant and equipment increased to Rs 108.52 crore from Rs 105.87 crore, and capital work in progress rose to Rs 17.85 crore from Rs 15.55 crore.

Total current liabilities increased to Rs 106.85 crore from Rs 73.24 crore, largely alongside the Rs 38.10 crore rise in current borrowings. Trade payables overall declined to Rs 16.91 crore from Rs 21.82 crore, and other current financial liabilities declined to Rs 2 crore from Rs 2.60 crore. Current provisions rose to Rs 1.70 crore from Rs 96 lakh, while other current liabilities increased to Rs 3.34 crore from Rs 3.10 crore.

Total equity increased to Rs 278.67 crore at September 30 from Rs 274.75 crore at March 31. Equity share capital was unchanged at Rs 29.99 crore, while other equity increased to Rs 248.68 crore from Rs 244.76 crore. Cash and cash equivalents ended the half year at Rs 16 lakh, compared with Rs 9 lakh at the beginning of the financial year, after the Rs 7 lakh net increase recorded across operating, investing and financing flows.

Conclusion

Maan Aluminium’s September 2026 half-year filing shows that revenue of Rs 511.34 crore and net profit of Rs 3.99 crore did not translate into operating cash generation. Higher trade receivables, other current assets and lower trade payables absorbed cash, while the Rs 36.28 crore operating outflow was substantially counterbalanced by Rs 38.10 crore of short-term borrowing proceeds.

The unresolved issue disclosed by the September statements is whether trade receivables of Rs 113.06 crore and other current assets of Rs 29.03 crore are reduced or continue to require funding. Maan Aluminium’s next financial statement will also show how current borrowings, which reached Rs 82.77 crore at September 30, change after Rs 8.78 crore of half-year investment in property, plant and equipment including work in progress.