Manaksia Steels operating cash rises to Rs 57.50 crore

Manaksia Steels Limited generated consolidated net operating cash of Rs 57.50 crore in the half year ended September 30, 2026, up from Rs 29.28 crore a year earlier. Manaksia Steels used part of that inflow for Rs 32.91 crore of investing outflows and reduced current borrowings by Rs 16.17 crore from March 31, 2026.

How much operating cash did Manaksia Steels generate?

Manaksia Steels generated Rs 57.50 crore of consolidated net cash from operating activities in the half year ended September 30, 2026, compared with Rs 29.28 crore in the corresponding 2025 period. The increase of Rs 28.22 crore followed cash generated from operations of Rs 68.99 crore, against Rs 30.31 crore a year earlier.

Direct taxes paid rose to Rs 11.49 crore from Rs 1.03 crore. After this tax payment, operating cash flow was still about 96% above the previous-year half year. The company released the unaudited consolidated half-year results on November 14, 2026.

What drove Manaksia Steels' higher operating cash flow?

Manaksia Steels' higher operating cash flow coincided with consolidated profit before tax of Rs 63.13 crore, compared with Rs 15.11 crore in the half year ended September 30, 2025. Revenue from operations increased to Rs 747.02 crore from Rs 480.16 crore, while earnings before interest, tax, depreciation and amortisation, or EBITDA, rose to Rs 75.42 crore from Rs 26.65 crore.

Working-capital and other balance-sheet movements were mixed. Changes in non-current and current financial and other assets generated Rs 49.47 crore of cash, compared with Rs 10.99 crore in the earlier period. This was partly offset by a Rs 45.15 crore outflow from financial and other liabilities and provisions, versus a Rs 15.46 crore inflow a year earlier, and a Rs 6.79 crore inventory outflow.

Consolidated inventory was Rs 162.06 crore at September 30, 2026, up from Rs 155.27 crore at March 31, 2026. Trade receivables declined to Rs 60.21 crore from Rs 64.49 crore over the same six months. These changes provide balance-sheet context for the inventory outflow and asset-related cash movements in the cash-flow statement.

How far did Manaksia Steels reduce borrowings?

Manaksia Steels reduced consolidated current borrowings to Rs 133.01 crore at September 30, 2026 from Rs 149.18 crore at March 31, 2026, a decline of Rs 16.17 crore. The consolidated balance sheet does not present a separate non-current borrowings line, so the reported borrowing comparison is limited to current borrowings.

The cash-flow statement recorded Rs 16.17 crore of net cash used for repayment of short-term borrowings during the six months, compared with Rs 3.12 crore in the half year ended September 30, 2025. This financing outflow corresponds with the reduction in current borrowings between the two balance-sheet dates.

Where did Manaksia Steels deploy its cash during the half year?

Manaksia Steels used Rs 32.91 crore in consolidated investing activities in the half year ended September 30, 2026, compared with Rs 24.42 crore in the corresponding period a year earlier. The cash-flow statement records Rs 24.05 crore used for current investments and Rs 10.74 crore used for purchases of property, plant and equipment and changes in capital work-in-progress.

Net cash used in financing activities was Rs 22.68 crore, compared with Rs 8.32 crore a year earlier. Besides the Rs 16.17 crore net short-term borrowing repayment, financing outflows included Rs 6.20 crore of interest paid, Rs 19.48 lakh of lease-principal repayment and Rs 10.75 lakh of lease-interest repayment. Interest paid increased from Rs 4.92 crore even as finance cost in the income statement fell to Rs 5.87 crore from Rs 6.69 crore.

Cash and cash equivalents increased by Rs 1.92 crore before a Rs 13.51 lakh foreign-currency translation effect. Closing cash and cash equivalents were Rs 6.56 crore at September 30, 2026, compared with Rs 4.51 crore at March 31, 2026. The operating inflow of Rs 57.50 crore exceeded the combined investing and financing outflows of Rs 55.59 crore.

What changed in Manaksia Steels' balance sheet?

Manaksia Steels reported consolidated total assets of Rs 589.48 crore at September 30, 2026, compared with Rs 592.68 crore at March 31, 2026. Total equity increased by Rs 53.29 crore to Rs 379.27 crore, while total current liabilities fell to Rs 196.30 crore from Rs 254.89 crore.

Capital work-in-progress increased to Rs 37.28 crore from Rs 32.71 crore, while non-current investments rose to Rs 24.20 crore from Rs 17.24 crore. Current investments increased to Rs 96.01 crore from Rs 68.65 crore. These balance-sheet movements accompany the reported investment spending and purchases of current investments during the six months.

The consolidated results comprise Manaksia Steels and wholly owned subsidiaries Federated Steel Mills Limited, Far East Steel Industries Limited and Sumo Agrochem Limited. The auditor said interim information for three subsidiaries had not been reviewed or audited by their auditors, but noted management considered them not material to the group; the auditor's conclusion was not modified.

Conclusion

The half-year figures show that Manaksia Steels generated Rs 57.50 crore of operating cash, nearly twice the Rs 29.28 crore reported a year earlier. The inflow covered Rs 32.91 crore of investment outflows and Rs 22.68 crore of financing outflows, while current borrowings fell Rs 16.17 crore and closing cash increased to Rs 6.56 crore.

The next reported results will show whether operating cash continues to cover investment and financing requirements as capital work-in-progress stood at Rs 37.28 crore and current investments at Rs 96.01 crore on September 30, 2026. A further matter to watch is any updated financial information for the three subsidiaries whose interim results were not reviewed or audited by their auditors.