NGL Fine-Chem H1 capex reaches Rs 44.2486 crore as inventory rises

NGL Fine-Chem Limited spent Rs 44.2486 crore on property, plant, equipment, capital work-in-progress and intangible assets in the half year ended September 30, 2026, up from Rs 25.0157 crore, while a Rs 48.1048 crore inventory increase absorbed cash and consolidated operating cash flow was Rs 35.7952 crore.

How much did NGL Fine-Chem spend on capital assets?

NGL Fine-Chem spent Rs 44.2486 crore on acquisitions of property, plant and equipment, including capital work-in-progress, and other intangible assets during the half year ended September 30, 2026. This was Rs 19.2329 crore more than the Rs 25.0157 crore spent in the half year ended September 30, 2025, according to the consolidated cash-flow statement.

The capital-asset outlay exceeded the Rs 35.7952 crore of net cash generated from operating activities during the six months. After Rs 0.7853 crore of proceeds from asset sales, together with other disclosed investment movements, NGL Fine-Chem recorded net cash used in investing activities of Rs 44.0529 crore, compared with Rs 26.6617 crore a year earlier.

The balance sheet shows that consolidated property, plant and equipment rose to Rs 285.5047 crore at September 30, 2026 from Rs 163.8044 crore at March 31, 2026. Capital work-in-progress was nil at September 30 after being Rs 94.5672 crore at March 31, while right-of-use assets rose to Rs 4.6825 crore from Rs 0.0739 crore. The filing does not identify individual projects behind the expenditure or explain the movement from capital work-in-progress into fixed assets.

How did inventory affect NGL Fine-Chem's operating cash flow?

NGL Fine-Chem's inventory build-up used Rs 48.1048 crore of consolidated operating cash in the half year ended September 30, 2026, compared with Rs 15.7944 crore in the corresponding period a year earlier. It was the largest individual working-capital outflow disclosed and was greater than the Rs 35.7952 crore of net cash produced by operating activities.

Consolidated inventories rose to Rs 118.3843 crore at September 30, 2026 from Rs 70.2796 crore at March 31, 2026, consistent with the cash-flow movement. Trade receivables rose by Rs 5.8832 crore in the six months, against an increase of Rs 33.2447 crore in the prior-year period, showing that inventory, rather than receivables, accounted for the larger year-on-year working-capital cash requirement.

Higher liabilities partly offset the cash absorbed by inventories and receivables. Trade payables increased by Rs 22.7532 crore, other current liabilities increased by Rs 4.9530 crore, and other non-current financial liabilities increased by Rs 3.4539 crore. Taken together with other listed movements, working-capital changes resulted in a Rs 10.4463 crore cash outflow, compared with a Rs 11.8046 crore outflow in the prior-year half.

Operating profit before working-capital changes was Rs 57.6703 crore, up from Rs 34.5116 crore in the half year ended September 30, 2025. Cash generated from operations reached Rs 47.2240 crore, and net income tax paid was Rs 11.4288 crore, leaving Rs 35.7952 crore of net operating cash flow. The prior-year figures were Rs 22.7070 crore before tax payments and Rs 16.7721 crore after Rs 5.9349 crore of tax payments.

What funded NGL Fine-Chem's investment and working-capital needs?

NGL Fine-Chem generated Rs 10.4998 crore of net cash from financing activities in the half year ended September 30, 2026, compared with Rs 11.2079 crore in the year-earlier period. Proceeds from current borrowings were Rs 19.4029 crore, while non-current borrowings were repaid by Rs 5.7199 crore and finance costs paid were Rs 2.1021 crore.

Consolidated current borrowings rose to Rs 71.4254 crore at September 30, 2026 from Rs 52.0225 crore at March 31, 2026. In contrast, non-current borrowings declined to Rs 50.6835 crore from Rs 56.4033 crore over the same period. The filing reports the balance-sheet and cash-flow movements, but does not state the lenders, maturity profile, pricing or purposes of the borrowings.

NGL Fine-Chem paid Rs 1.0812 crore in dividends during each of the two half-year periods. Operating cash inflow of Rs 35.7952 crore, investment outflow of Rs 44.0529 crore and financing inflow of Rs 10.4998 crore produced a Rs 2.2420 crore rise in consolidated cash and cash equivalents, which closed at Rs 5.0501 crore compared with Rs 2.8081 crore at March 31, 2026.

How did NGL Fine-Chem's earnings compare with cash generation?

NGL Fine-Chem reported consolidated profit before tax of Rs 46.0733 crore for the half year ended September 30, 2026, compared with Rs 24.8010 crore in the corresponding prior-year period. Profit after tax increased to Rs 34.6446 crore from Rs 18.8661 crore, while revenue from operations rose to Rs 297.8701 crore from Rs 224.4437 crore.

Net operating cash flow of Rs 35.7952 crore was Rs 1.1506 crore above reported profit after tax and Rs 10.2781 crore below profit before tax. The cash-flow statement separately records Rs 11.8050 crore of depreciation and amortisation, Rs 2.1021 crore of finance costs, Rs 10.4463 crore of net working-capital cash outflow and Rs 11.4288 crore of income tax paid, all of which help reconcile earnings measures with cash generation.

NGL Fine-Chem describes its operations as a single pharmaceuticals business segment under Indian Accounting Standard 108, or Ind AS 108. The consolidated figures include its wholly owned subsidiary, Macrotech Polychem Private Limited, meaning the reported cash flow, capital expenditure and balance-sheet amounts cover the group rather than the parent company alone.

Conclusion

NGL Fine-Chem's first-half results show that profit growth came alongside substantially higher demands on cash. Capital-asset acquisitions increased by Rs 19.2329 crore year on year to Rs 44.2486 crore, while inventory absorbed Rs 48.1048 crore. Operating activities supplied Rs 35.7952 crore, and the company reported higher current borrowings and trade payables at September 30, 2026 than at March 31, 2026.

The next disclosures can show whether inventory of Rs 118.3843 crore and current borrowings of Rs 71.4254 crore change as the financial year progresses. Separately, NGL Fine-Chem has disclosed plans to incorporate solar and wind special-purpose vehicles for captive power, with power-purchase agreements to be executed after incorporation, making their progress a disclosed event to watch.