Nelcast operating cash flow reaches Rs 38.66 crore in H1

Nelcast Limited generated Rs 38.66 crore of net cash from operating activities in the half-year ended 30 September 2026, up from Rs 20.71 crore a year earlier. The iron-castings company reported Rs 44.51 crore of cash generated from operations before Rs 5.85 crore of tax payments, while standalone total borrowings declined by Rs 21.71 crore from 31 March 2026.

How did Nelcast generate operating cash in the half-year?

Nelcast generated Rs 38.66 crore of net operating cash in the half-year ended 30 September 2026, an increase of Rs 17.94 crore from Rs 20.71 crore in the half-year ended 30 September 2025. Cash generated from operations rose to Rs 44.51 crore from Rs 23.18 crore, although taxes paid increased to Rs 5.85 crore from Rs 2.46 crore.

The starting point was profit before tax of Rs 28.67 crore, compared with Rs 22.96 crore a year earlier. Nelcast added back Rs 13.81 crore of depreciation and amortisation and Rs 14.01 crore of interest paid. It deducted Rs 2.87 crore of interest income and Rs 0.55 crore of profit on sale of property, plant and equipment, resulting in operating profit before working-capital changes of Rs 52.81 crore, compared with Rs 50.30 crore.

The increase in operating cash exceeded the Rs 5.71 crore rise in profit before tax because the working-capital effect was smaller than in the previous year. Working-capital movements reduced operating profit by Rs 8.29 crore in the 2026 half-year, compared with a Rs 27.12 crore reduction in the corresponding 2025 period.

What changed in Nelcast's working capital?

Nelcast's inventory and trade receivables released cash during the half-year ended 30 September 2026. Inventories released Rs 6.46 crore, compared with Rs 5.63 crore a year earlier, while trade receivables released Rs 0.97 crore after consuming Rs 4.73 crore in the prior-year half.

The standalone balance sheet recorded inventories of Rs 184.43 crore at 30 September 2026, down from Rs 190.90 crore at 31 March 2026. Trade receivables declined to Rs 346.22 crore from Rs 356.13 crore over the same six-month period, consistent with the cash-flow statement's reported release from receivables.

Trade payables were the largest working-capital outflow, declining by Rs 10.27 crore in the cash-flow statement, following a Rs 34.87 crore decrease in the prior-year half. Other current assets consumed Rs 17.01 crore, compared with Rs 2.23 crore a year earlier, while other financial assets consumed Rs 2.08 crore.

Other financial liabilities added Rs 2.28 crore of cash, and other current liabilities added Rs 3.11 crore. Provisions added Rs 0.60 crore, compared with a Rs 0.62 crore cash outflow in the half-year ended 30 September 2025. These movements together left cash generated from operations at Rs 44.51 crore.

How did Nelcast allocate its operating cash?

Nelcast reported Rs 8.38 crore of net cash used in investing activities in the half-year ended 30 September 2026, compared with Rs 6.18 crore used in the corresponding 2025 half-year. The statement recorded Rs 8.00 crore of purchases of property, plant and equipment, Rs 6.74 crore of movement in capital work-in-progress and Rs 1.06 crore of purchases of non-current investments.

Interest income of Rs 2.87 crore and Rs 0.55 crore of proceeds from sale of property, plant and equipment were also recorded within investing cash flows. In the prior-year half, Nelcast had reported Rs 6.20 crore of property, plant and equipment purchases, Rs 0.61 crore of capital work-in-progress movement and Rs 2.72 crore of interest income.

Standalone property, plant and equipment stood at Rs 455.18 crore at 30 September 2026, compared with Rs 462.92 crore at 31 March 2026. Capital work-in-progress was Rs 5.76 crore, up from Rs 0.02 crore, while investments increased to Rs 63.44 crore from Rs 62.38 crore.

Nelcast reported net cash used in financing activities of Rs 27.16 crore, narrower than the Rs 41.47 crore outflow in the prior-year half. The financing section included Rs 10.00 crore of long-term borrowing proceeds, interest paid of Rs 14.01 crore and dividends paid of Rs 6.09 crore; interest paid was lower than Rs 17.75 crore a year earlier, while dividend payments increased from Rs 4.35 crore.

What happened to Nelcast borrowings, payables and cash?

Nelcast's standalone non-current borrowings fell to Rs 31.85 crore at 30 September 2026 from Rs 36.92 crore at 31 March 2026. Current borrowings declined to Rs 203.64 crore from Rs 220.28 crore, taking the two reported borrowing categories to Rs 235.49 crore from Rs 257.20 crore.

Trade payables to parties other than micro and small enterprises declined to Rs 208.10 crore from Rs 249.32 crore. Payables to micro and small enterprises increased to Rs 20.82 crore from Rs 16.77 crore, leaving total trade payables at Rs 228.92 crore, down from Rs 266.09 crore at the preceding financial year-end.

Standalone cash and cash equivalents on the balance sheet were Rs 72.23 crore at 30 September 2026, compared with Rs 84.75 crore at 31 March 2026. The cash-flow statement also showed the cash-credit balance declining to Rs 173.91 crore from Rs 188.55 crore, and reported a Rs 2.11 crore net increase in cash and cash equivalents during the half-year.

After including the cash-credit balance, cash and cash equivalents were negative Rs 101.69 crore at 30 September 2026, compared with negative Rs 103.80 crore at the start of the period. Nelcast's consolidated figures were close to the standalone figures because its subsidiary, NC Energy Limited, had not commenced commercial operations.

Conclusion

Nelcast converted Rs 28.67 crore of pre-tax profit into Rs 38.66 crore of operating cash in the half-year ended 30 September 2026, compared with Rs 20.71 crore a year earlier. A smaller working-capital cash reduction contributed to the increase, while the company reported investing outflows of Rs 8.38 crore, financing outflows of Rs 27.16 crore, and lower standalone borrowings and total trade payables than at 31 March 2026.

The disclosed unresolved operating matter is NC Energy Limited's lack of commercial operations as of the filing date. Nelcast reported that its sole primary segment is iron castings, so subsequent filings can show whether the subsidiary begins operations and whether the Rs 5.76 crore of capital work-in-progress changes further.