NBCC operating cash outflow reaches Rs 955.21 crore in H1

NBCC (India) Limited recorded a Rs 955.2078 crore net operating cash outflow in the six months ended September 30, 2026, although profit before tax in its cash-flow statement rose to Rs 494.8001 crore from Rs 386.0715 crore a year earlier, as working-capital movements turned pre-tax earnings into cash use.

Why did NBCC report an operating cash outflow despite higher profit?

NBCC reported an operating cash outflow because working-capital movements outweighed operating profit during the six months ended September 30, 2026. Profit before tax was Rs 494.8001 crore, up from Rs 386.0715 crore a year earlier, but operating profit before working-capital changes was Rs 308.553 crore. After those balance-sheet movements, cash generated from operations was negative Rs 883.9785 crore, and direct taxes paid added a Rs 72.4939 crore outflow.

The net operating cash outflow narrowed from Rs 1,097.6269 crore in the six months ended September 30, 2025 to Rs 955.2078 crore in the 2026 period. This was a year-on-year improvement of Rs 142.4191 crore, but the first-half result remained negative. NBCC prepared the cash-flow statement using the indirect method under Indian Accounting Standard 7, or Ind AS 7.

The reconciliation from profit to operating profit included several non-cash and non-operating items. NBCC deducted Rs 119.0149 crore of interest income and Rs 104.2463 crore of unadjusted credit balances written back, while adding Rs 13.0213 crore of write-offs and Rs 14.3245 crore of employee-benefit provisions. These adjustments reduced the starting profit figure to the Rs 308.553 crore operating-profit measure before working-capital changes.

Which working-capital movements used NBCC's cash?

NBCC's largest cash uses came from declines in trade payables and other current liabilities during the six months ended September 30, 2026. Trade payables fell by Rs 550.0257 crore and other current liabilities fell by Rs 566.4784 crore, together absorbing Rs 1,116.5041 crore. Under the indirect method, a reduction in liability balances represents cash paid or settled in excess of new accruals.

Trade receivables and retention balances increased by Rs 187.4949 crore, while other assets increased by Rs 140.4456 crore. Current tax assets and liabilities absorbed Rs 28.9286 crore and other non-current financial assets used Rs 0.7098 crore. These movements were partly offset by a Rs 163.5328 crore increase in other non-current liabilities and a Rs 65.0213 crore reduction in other financial assets.

Receivables required substantially less cash than in the prior-year first half, when the movement used Rs 959.0512 crore. However, trade-payable outflows increased from Rs 26.3895 crore in the six months ended September 30, 2025, while the decline in other current liabilities widened from Rs 105.217 crore. Inventory released Rs 19.0393 crore of cash in the 2026 half, compared with Rs 9.5704 crore a year earlier.

Figures in brackets are cash outflows, following NBCC's cash-flow presentation. The comparison shows that lower receivables absorption did not offset the larger cash effect of settlements in trade payables and other current liabilities.

How did NBCC's cash balance change in the first half?

NBCC's cash and cash equivalents fell by Rs 1,411.5109 crore in the six months ended September 30, 2026, closing at Rs 2,075.8855 crore from Rs 3,487.3964 crore at March 31, 2026. The decrease comprised the Rs 955.2078 crore operating outflow, a Rs 278.3872 crore investing outflow and a Rs 177.9159 crore financing outflow.

Investing activities changed from a Rs 223.8155 crore inflow in the corresponding 2025 period to a Rs 278.3872 crore outflow in 2026. NBCC made a Rs 122.6129 crore capital advance for property purchase and placed a net Rs 227.9289 crore in bank deposits with original maturities of more than three months and up to 12 months. Interest received, net of tax deducted at source, was Rs 74.2412 crore.

Financing activities used Rs 177.9159 crore, compared with Rs 109.9538 crore a year earlier. NBCC transferred Rs 124.8458 crore to a separate dividend account and paid Rs 52.9213 crore of equity dividends. It also made lease-liability principal and interest payments of Rs 0.1259 crore and Rs 0.0219 crore, respectively.

The closing cash-equivalent balance included Rs 1,908.9438 crore held in separate bank accounts on behalf of ministries and clients, compared with Rs 2,639.5454 crore at March 31, 2026. NBCC identifies these funds as restricted cash and cash equivalents. The reported closing balance therefore includes money maintained for specified ministry and client accounts.

Which segments drove NBCC's first-half profit growth?

NBCC's Project Management Consultancy, or PMC, segment drove the increase in first-half segment profit before tax and interest. PMC revenue rose to Rs 5,451.4561 crore in the six months ended September 30, 2026 from Rs 5,105.4698 crore a year earlier, while its segment profit before tax and interest increased to Rs 464.1865 crore from Rs 329.5349 crore. NBCC identifies PMC, real estate and engineering, procurement and construction, or EPC, as its operating segments under Ind AS 108.

Real-estate revenue increased to Rs 75.6794 crore from Rs 30.7764 crore, with segment profit before tax and interest rising to Rs 41.9651 crore from Rs 9.2815 crore. EPC revenue declined to Rs 105.3988 crore from Rs 165.7003 crore, and the segment posted a Rs 1.0797 crore loss before tax and interest against a Rs 9.5148 crore profit in the prior-year half.

Total segment revenue rose to Rs 5,655.3043 crore from Rs 5,306.4224 crore, led by PMC and real estate. The segment disclosure does not allocate collections or payments by business line. The consolidated cash-flow statement is therefore the direct measure of the Rs 955.2078 crore first-half operating cash outflow.

Conclusion

NBCC's six-month results to September 30, 2026 show a divergence between reported profit and cash generation. Profit before tax increased to Rs 494.8001 crore, but operating activities used Rs 955.2078 crore, mainly reflecting Rs 550.0257 crore lower trade payables, Rs 566.4784 crore lower other current liabilities and a Rs 187.4949 crore increase in trade receivables and retention balances.

The next results will show whether receivable collections and liability movements reverse or continue to consume cash. NBCC also disclosed a proposed merger of wholly owned subsidiary HSCC (India) Limited; the Ministry of Corporate Affairs issued a first-motion order on October 9, 2025 after a September 23, 2026 hearing, and the proposal remains subject to approvals from the competent authority and applicable governmental, statutory and regulatory bodies.