Nirlon operating cash flow reaches Rs 237.7362 crore in H1

Nirlon Limited generated Rs 237.7362 crore of net operating cash in the six months ended September 30, 2026, up from Rs 199.9106 crore a year earlier. The inflow funded a Rs 135.1771 crore final dividend, Rs 39.7254 crore of net investing outflow and Rs 41.833 crore of interest and other borrowing costs, lifting cash equivalents to Rs 30.9541 crore.

How much operating cash did Nirlon generate in six months?

Nirlon 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 in the six months ended September 30, 2025. Net cash generated from operations before tax payments increased to Rs 283.1126 crore from Rs 244.3867 crore, while income taxes paid rose to Rs 45.3764 crore from Rs 44.4761 crore.

Profit before tax was Rs 189.4075 crore for the latest six-month period, versus Rs 183.1851 crore in the previous corresponding period. The operating-cash reconciliation included Rs 52.764 crore of finance costs and Rs 27.90 crore of depreciation and amortisation, compared with Rs 53.999 crore and Rs 27.57 crore respectively a year earlier. Amortisation of marketing fees fell to Rs 11.9793 crore from Rs 12.9622 crore.

What changed in Nirlon's working-capital cash flows?

Nirlon's working-capital movements used Rs 5.4652 crore of cash in the six months ended September 30, 2026, compared with an outflow of Rs 14.685 crore in the prior-year period. The smaller aggregate outflow was part of the increase in cash generated from operations before tax to Rs 283.1126 crore from Rs 244.3867 crore.

Trade payables declined by Rs 8.158 crore in the latest period, compared with a Rs 2.4891 crore decline a year earlier. Other current and non-current financial liabilities increased by Rs 10.3665 crore, whereas they had decreased by Rs 8.3743 crore in the six months ended September 30, 2025. Other current and non-current liabilities contributed Rs 1.8682 crore of cash, after contributing Rs 4.6834 crore in the prior period.

Trade receivables used Rs 7.73 lakh of cash in the latest six months, materially below the Rs 6.2076 crore cash use in the previous corresponding period. Other current and non-current financial assets provided Rs 2.1432 crore, compared with Rs 61.09 lakh a year earlier, while other current and non-current assets used Rs 57.94 lakh, against Rs 2.9464 crore. Provisions declined by Rs 9.84 lakh, following a Rs 3.60 lakh increase in the prior-year half.

How did Nirlon use cash for investments?

Nirlon recorded a net investing cash outflow of Rs 39.7254 crore in the six months ended September 30, 2026, compared with Rs 20.0017 crore in the corresponding 2025 period. Net investment in fixed deposits was Rs 27.5468 crore, versus Rs 12.96 lakh a year earlier, accounting for most of the increase in the investing outflow.

Purchases of property, plant and equipment and investment properties, including capital work in progress, were Rs 20.3326 crore, down from Rs 26.7727 crore in the prior-year period. Interest received rose to Rs 7.9002 crore from Rs 6.7396 crore, while proceeds from sale of property, plant and equipment and investment properties were Rs 25.38 lakh, compared with Rs 16.10 lakh.

Capital work in progress stood at Rs 23.2632 crore on September 30, 2026, up from 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. Nirlon identifies licensing of investment properties as its only reportable segment under Indian Accounting Standard 108, or Ind AS 108.

How much dividend did Nirlon pay and when?

Nirlon paid a Rs 135.1771 crore final dividend on September 21, 2026, after shareholders approved the payment on September 18, 2026. The dividend was Rs 15 per share for financial year 2025-26 and exceeded the Rs 99.1298 crore dividend paid in the six months ended September 30, 2025.

The dividend was the largest financing cash outflow in the latest six-month period. Interest and other borrowing costs paid were Rs 41.833 crore, down from Rs 44.9489 crore in the previous corresponding period. Together, the dividend and borrowing costs produced a net financing cash outflow of Rs 177.0101 crore, compared with Rs 144.0787 crore a year earlier.

Nirlon's cash-flow statement does not show separate proceeds from borrowings or repayments of borrowings within financing activities for either six-month period presented. The reported sequence was an operating inflow of Rs 237.7362 crore, followed by an investing outflow of Rs 39.7254 crore and a financing outflow of Rs 177.0101 crore.

What was Nirlon's cash position at September 2026?

Nirlon's cash and cash equivalents were Rs 30.9541 crore at September 30, 2026, up from Rs 9.9534 crore at April 1, 2026. The company reported a net increase in cash and cash equivalents of Rs 21.0007 crore, compared with an increase of Rs 35.8302 crore in the six months ended September 30, 2025, when closing cash equivalents were Rs 199.7444 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. Trade receivables were Rs 3.393 crore at September 30, compared with Rs 3.3276 crore six months earlier. These balance-sheet movements align with the Rs 7.73 lakh receivables cash outflow reported in the cash-flow statement.

Non-current borrowings declined to Rs 1,089.5933 crore at September 30, 2026, from Rs 1,146.6663 crore on March 31, 2026. Current borrowings increased to Rs 57.5751 crore from Rs 23.13 lakh over the same period. Finance costs in the income statement decreased to Rs 52.764 crore in the six months ended September 30, 2026, from Rs 53.999 crore a year earlier.

Conclusion

Nirlon's six-month cash flows show that the Rs 37.8256 crore year-on-year increase in operating cash was sufficient to cover the Rs 135.1771 crore dividend, Rs 39.7254 crore of investing outflow and Rs 41.833 crore of interest and other borrowing costs. Cash and cash equivalents consequently increased by Rs 21.0007 crore to Rs 30.9541 crore at September 30, 2026.

The disclosed unresolved balance to watch is capital work in progress, which increased by Rs 16.2404 crore to Rs 23.2632 crore between March 31 and September 30, 2026. Future results can show whether this balance moves into completed assets, while also updating the split between Rs 1,089.5933 crore of non-current borrowings and Rs 57.5751 crore of current borrowings.