Nirlon operating cash flow rises to Rs 237.7362 crore

Nirlon Limited generated Rs 237.7362 crore of net cash from operating activities in the six months ended September 30, 2026, compared with Rs 199.9106 crore a year earlier. Nirlon paid Rs 135.1771 crore of final dividend, spent Rs 20.3326 crore on asset additions and made a net Rs 27.5468 crore investment in fixed deposits.

How much operating cash did Nirlon generate?

Nirlon generated Rs 237.7362 crore of net operating cash in the six months ended September 30, 2026, an increase of Rs 37.8256 crore from Rs 199.9106 crore in the corresponding 2025 period. Cash generated from operations before income taxes rose to Rs 283.1126 crore from Rs 244.3867 crore, while income taxes paid increased to Rs 45.3764 crore from Rs 44.4761 crore.

Profit before tax was Rs 189.4075 crore for the September 2026 half year, compared with Rs 183.1851 crore a year earlier. The operating cash-flow reconciliation included Rs 27.90 crore of depreciation and amortisation, Rs 52.764 crore of finance costs and Rs 11.9793 crore of marketing-fee amortisation. Interest income of Rs 9.4035 crore and rental income on discounting of security deposits of Rs 10.6602 crore reduced the reconciliation amount.

Working-capital movements differed by line item in the two periods. Trade receivables used Rs 7.73 lakh in the 2026 half year, compared with Rs 6.2076 crore in the previous corresponding period. Other current and non-current financial liabilities added Rs 10.3665 crore in 2026 after reducing cash by Rs 8.3743 crore a year earlier, while trade payables used Rs 8.158 crore compared with Rs 2.4891 crore.

What final dividend did Nirlon pay in September 2026?

Nirlon paid Rs 135.1771 crore in dividends during the six months ended September 30, 2026, compared with Rs 99.1298 crore in the corresponding prior-year period. The financing cash outflow for dividends was therefore Rs 36.0473 crore higher year on year.

The payment related to a final dividend of Rs 15 per share for financial year 2025-26. Shareholders approved the dividend on September 18, 2026, and Nirlon paid it on September 21, 2026. The company reported paid-up equity share capital of Rs 90.118 crore at September 30, 2026, with a face value of Rs 10 per share.

Operating cash flow of Rs 237.7362 crore exceeded the Rs 135.1771 crore dividend payment by Rs 102.5591 crore. This compares two reported cash-flow lines and does not represent a measure of distributable profit, but the dividend was below operating cash generated before investment outflows and interest and borrowing costs paid.

Where did Nirlon use cash besides the dividend?

Nirlon used Rs 39.7254 crore in investing activities in the six months ended September 30, 2026, compared with Rs 20.0017 crore in the prior-year half. The 2026 outflow included a net Rs 27.5468 crore investment in fixed deposits, against a net Rs 12.96 lakh investment in the corresponding 2025 period.

Purchases of property, plant and equipment, investment properties and capital work-in-progress totalled Rs 20.3326 crore, down from Rs 26.7727 crore a year earlier. Nirlon received Rs 7.9002 crore of interest and Rs 25.38 lakh from asset sales, compared with Rs 6.7396 crore and Rs 16.10 lakh respectively in the prior-year half.

Capital work-in-progress stood at Rs 23.2632 crore on September 30, 2026, compared with Rs 7.0228 crore on March 31, 2026. Investment properties declined to Rs 1,792.0404 crore from Rs 1,831.4284 crore over the same dates, while property, plant and equipment rose to Rs 54.16 lakh from Rs 39.94 lakh.

How did Nirlon's financing cash flows and liquidity change?

Nirlon recorded a financing cash outflow of Rs 177.0101 crore in the September 2026 half year, compared with Rs 144.0787 crore in the corresponding 2025 period. Alongside the Rs 135.1771 crore dividend payment, interest and other borrowing costs paid were Rs 41.833 crore, lower than Rs 44.9489 crore a year earlier.

Cash and cash equivalents increased by Rs 21.0007 crore during the six months to Rs 30.9541 crore at September 30, 2026, from Rs 9.9534 crore at April 1, 2026. In the prior-year period, cash and cash equivalents increased by Rs 35.8302 crore to Rs 199.7444 crore, with an opening balance of Rs 163.9142 crore.

Bank balances other than cash and cash equivalents were Rs 315.3733 crore at September 30, 2026, compared with Rs 287.8265 crore at March 31, 2026. Non-current borrowings fell to Rs 1,089.5933 crore from Rs 1,146.6663 crore, while current borrowings rose to Rs 57.5751 crore from Rs 23.13 lakh.

What do Nirlon's half-year results show about cash generation?

Nirlon's higher operating cash generation accompanied an increase in revenue from operations to Rs 337.387 crore in the six months ended September 30, 2026, from Rs 328.3045 crore a year earlier. Profit before tax rose by Rs 6.2224 crore to Rs 189.4075 crore, while net cash from operations rose by Rs 37.8256 crore to Rs 237.7362 crore.

Profit after tax was Rs 141.2685 crore, compared with Rs 206.0715 crore in the previous corresponding period. The earlier result included a Rs 69.5051 crore remeasurement of deferred tax linked to Nirlon's exercise of the new tax-regime option in financial year 2025-26. Total tax expense in the 2026 half year was Rs 48.139 crore, compared with a tax credit of Rs 22.8864 crore in the previous corresponding period.

Nirlon reported total income of Rs 346.7968 crore for the September 2026 half year, compared with Rs 335.9008 crore a year earlier, while total expenses increased to Rs 157.3893 crore from Rs 152.7157 crore. The Audit Committee reviewed the quarterly and half-year results, and the Board approved them on November 2, 2026.

Conclusion

Nirlon's September 2026 half-year cash flows show operating cash of Rs 237.7362 crore funding a Rs 135.1771 crore final dividend while also covering Rs 20.3326 crore of asset additions and a net Rs 27.5468 crore fixed-deposit investment. Revenue, profit before tax and operating cash all increased from the corresponding 2025 period, although profit after tax reflected the absence of the prior-period deferred-tax remeasurement benefit.

The disclosed balances to watch are capital work-in-progress, which rose to Rs 23.2632 crore at September 30, 2026 from Rs 7.0228 crore at March 31, and current borrowings, which increased to Rs 57.5751 crore from Rs 23.13 lakh. Nirlon did not disclose a further dividend plan or capital-expenditure target in this filing.