Mahendra Realtors reports Rs 7.36 crore H1 operating outflow

Mahendra Realtors & Infrastructure Limited reported net cash used in operating activities of Rs 7.36 crore for the half year ended September 30, 2026, while profit after tax was Rs 2.98 crore. Cash and cash equivalents fell by Rs 11.26 crore to Rs 45.28 lakh, from Rs 11.72 crore at March 31, 2026.

Why did Mahendra Realtors report negative operating cash flow?

Mahendra Realtors reported negative operating cash flow because the Rs 2.62 crore operating profit before working-capital changes did not convert into cash generated from operations during the half year ended September 30, 2026. The cash-flow statement reports Rs 13.47 crore under an increase in current assets and negative Rs 22.21 crore under an increase in current liabilities, followed by negative Rs 6.11 crore of cash generated from operations.

Income-tax payments of Rs 1.24 crore took net cash used in operating activities to Rs 7.36 crore for the September 2026 half year. This differed from the year ended March 31, 2026, when Mahendra Realtors reported Rs 9.36 crore of net cash from operating activities, although the annual period is not directly comparable with a six-month period.

The cash outcome was different from the accrual-based profit result. Mahendra Realtors reported profit before tax of Rs 4.06 crore and profit after tax of Rs 2.98 crore for the September 2026 half year, compared with Rs 3.40 crore and Rs 2.52 crore respectively for the half year ended September 30, 2025. The operating-profit reconciliation included Rs 72.52 lakh of finance cost, Rs 24.77 lakh of depreciation and amortisation, Rs 78.97 lakh of sundry balance write-back and Rs 3.39 crore of interest income.

How far did Mahendra Realtors' cash balance fall?

Mahendra Realtors' cash and cash equivalents declined by Rs 11.26 crore during the half year, closing at Rs 45.28 lakh on September 30, 2026, compared with Rs 11.72 crore at March 31, 2026. The statement records a net decrease in cash and cash equivalents of Rs 11.26 crore after operating, investing and financing cash movements.

Net cash used in investing activities was Rs 7.99 crore, while financing activities provided Rs 4.08 crore in the September 2026 half year. The investing outflow included Rs 10.69 crore invested in fixed deposits, Rs 33.33 lakh invested in property, plant and equipment, Rs 36 lakh under investment or sale of units and shares, and Rs 5,000 spent on purchases of investments. Interest income of Rs 3.39 crore was included in investing cash flows.

Bank balances other than cash and cash equivalents also fell, to Rs 15.96 crore at September 30 from Rs 42.08 crore at March 31. These balances are reported separately in the balance sheet and are not included in the Rs 45.28 lakh closing cash-and-cash-equivalents figure. Current investments rose to Rs 2.58 crore from Rs 2.22 crore over the same dates.

What balance-sheet changes were reported by Mahendra Realtors?

Mahendra Realtors reported trade receivables of Rs 25 crore at September 30, 2026, down from Rs 42.10 crore at March 31, while inventories rose to Rs 18.23 crore from Rs 12.96 crore. The receivables reduction and inventory increase show that individual current-asset categories moved in different directions, while the cash-flow statement gives aggregate working-capital adjustments rather than a line-by-line reconciliation to the balance sheet.

Other non-current assets rose to Rs 88.61 crore at September 30 from Rs 51.80 crore at March 31. Separately, Mahendra Realtors' consolidated-results notes state that it made a proposed investment or contribution in the first half of FY 2026-27 under its August 23, 2024 joint-venture agreement with Ravi Enterprises for the Thane Municipal Corporation's Renovation and Improvement of Rangayatan project. The company said it consolidated the investment in the associate using the equity method.

Short-term borrowings increased to Rs 16.63 crore at September 30 from Rs 13.71 crore at March 31. In contrast, trade payables to creditors other than micro and small enterprises fell to Rs 5.70 crore from Rs 16.86 crore, while other current liabilities declined to Rs 7.36 crore from Rs 18.33 crore. Total current liabilities consequently reduced to Rs 30.06 crore from Rs 49.32 crore.

Did Mahendra Realtors' revenue and profit increase year on year?

Mahendra Realtors' revenue from operations increased to Rs 47.74 crore in the half year ended September 30, 2026, from Rs 40.22 crore in the corresponding 2025 half year. Other income rose to Rs 4.21 crore from Rs 2.56 crore, taking total income to Rs 51.95 crore from Rs 42.78 crore.

Total expenses increased to Rs 47.88 crore from Rs 39.38 crore. Contracting and material expenses rose to Rs 35.79 crore from Rs 26.96 crore, while employee-benefit expense decreased to Rs 8.66 crore from Rs 9.16 crore. Finance cost rose to Rs 72.52 lakh from Rs 51.36 lakh, alongside the increase in short-term borrowings at September 30.

Profit after tax increased by Rs 45.90 lakh year on year to Rs 2.98 crore. Basic and diluted earnings per share were Rs 1.35, compared with Rs 1.14 in the prior-year half. Mahendra Realtors operates in a single reportable segment, Civil Engineering and Construction Services, and its board approved the results on November 5, 2026.

Conclusion

Mahendra Realtors' September 2026 half-year results show that increased revenue and profit did not result in operating cash generation during the period. The Rs 7.36 crore operating outflow and Rs 7.99 crore investing outflow exceeded the Rs 4.08 crore financing inflow, reducing cash and cash equivalents to Rs 45.28 lakh, while separately reported bank balances also declined to Rs 15.96 crore.

The next disclosed items to watch are the financial effect of Mahendra Realtors' first-half FY 2026-27 contribution to the Ravi Enterprises project associate and the employee stock options granted on August 18, 2026. The company granted 1,12,800 options at a fair value of Rs 52 per option, with vesting scheduled for February 16, 2028, and recognised Rs 4.38043 lakh of employee compensation expense in the September 2026 half year.