Oswal Pumps reports Rs 275.42 crore operating cash outflow

Oswal Pumps Limited recorded a Rs 275.42 crore net operating cash outflow for the half year ended September 30, 2026, versus a Rs 92.49 crore outflow a year earlier. Oswal Pumps reported that receivables absorbed Rs 227.97 crore and inventories absorbed Rs 130.69 crore, while cash and cash equivalents ended the period at Rs 4.94 crore.

What drove Oswal Pumps' operating cash outflow?

Oswal Pumps' operating cash outflow resulted from working-capital movements that exceeded its Rs 139.17 crore operating profit before working-capital changes in the half year ended September 30, 2026. Inventories, trade and other receivables, and trade and other payables together used Rs 379.30 crore, producing negative cash generated from operations of Rs 237.06 crore before tax payments.

Income taxes paid were Rs 38.36 crore, taking the net cash outflow from operating activities to Rs 275.42 crore. The cash-flow statement also included non-cash adjustments before the working-capital calculation, including Rs 9.86 crore of depreciation and amortisation, Rs 6.24 crore of expected-credit-loss and doubtful-advance provisions, and Rs 3.07 crore of obsolete-inventory provision.

The operating cash deficit widened from Rs 92.49 crore in the half year ended September 30, 2025. Operating profit before working-capital changes fell from Rs 281.11 crore, while the working-capital movement remained negative at Rs 379.30 crore in 2026, compared with a Rs 301.28 crore cash use in the prior-year period.

How did receivables and inventories change at Oswal Pumps?

Oswal Pumps reported a Rs 227.97 crore cash outflow from the increase in trade and other receivables during the September 2026 half year. On the consolidated balance sheet, trade receivables stood at Rs 1,319.48 crore on September 30, 2026, up from Rs 1,128.01 crore on March 31, 2026, a rise of Rs 191.47 crore.

Inventories used Rs 130.69 crore of cash during the six months, and the inventory balance rose to Rs 376.08 crore from Rs 221.08 crore at March 31, 2026. The difference between the cash-flow movement and the balance-sheet change reflects the presentation of the consolidated cash-flow statement and balance sheet, including the June 2026 addition of Walso Solar Solution Private Limited as a subsidiary.

Trade and other payables also used Rs 20.65 crore of cash in the period, compared with a Rs 46.47 crore inflow in the previous year's half. Oswal Pumps' cash-flow statement therefore shows a combined Rs 358.66 crore cash use from receivables and inventories, despite first-half revenue of Rs 979.86 crore.

Oswal Pumps disclosed that Walso became a subsidiary on June 8, 2026, when the company obtained a 51.00% holding, after Walso had been an associate until June 7, 2026. The company said the current quarter and half-year consolidated figures are not comparable with corresponding periods because Walso was consolidated from that date; Walso had total assets of Rs 94.83 crore at September 30, 2026.

How did Oswal Pumps fund the cash deficit?

Oswal Pumps reported a Rs 242.35 crore net cash inflow from financing activities in the September 2026 half year. Net proceeds from current borrowings were Rs 254.45 crore, partly offset by Rs 20.41 crore of finance costs paid, Rs 70.80 lakh of non-current-borrowing repayments and Rs 8.30 lakh of lease-liability payments.

Current borrowings increased to Rs 507.12 crore at September 30, 2026 from Rs 214.29 crore at March 31, 2026. Non-current borrowings increased to Rs 28.79 crore from Rs 11.05 crore, while total current liabilities increased to Rs 693.52 crore from Rs 408.53 crore over the same dates.

Investing activities used Rs 52.76 crore in the half year. Oswal Pumps spent Rs 64.74 crore on property, plant and equipment, other intangible assets and capital work-in-progress, while a Rs 58.21 crore net decrease in fixed deposits, Rs 6.67 crore of interest received and Rs 4.88 crore of asset-sale proceeds partly offset the outflow.

The investing cash flow also included Rs 1 crore for investment in Walso shares or acquisition of the subsidiary, net of cash acquired. The financing inflow was lower than the combined Rs 328.18 crore operating and investing cash outflows, causing a Rs 85.83 crore decrease in cash and cash equivalents before the Rs 6.30 lakh balance acquired through Walso's consolidation.

What changed in Oswal Pumps' liquidity and working-capital balances?

Oswal Pumps' cash and cash equivalents fell to Rs 4.94 crore at September 30, 2026 from Rs 90.70 crore at the start of the half year. Other bank balances were Rs 287.85 crore at September 30, compared with Rs 300.13 crore on March 31, 2026, and are presented separately from cash and cash equivalents on the balance sheet.

Total current assets rose to Rs 2,187.76 crore from Rs 1,859.34 crore during the six months. Alongside higher receivables and inventories, other financial assets rose to Rs 60.20 crore from Rs 5.51 crore, while other current assets increased to Rs 121.37 crore from Rs 105.90 crore.

Oswal Pumps had Rs 210.56 crore of net initial public offering, or IPO, proceeds unutilised at September 30, 2026. The company said Rs 202.79 crore of that amount, including Rs 163.17 crore held by Oswal Solar Energy Private Limited, was temporarily deployed in fixed deposits with scheduled commercial banks and a monitoring-agency account; Rs 9.90 lakh was in the subsidiary's cash-credit account and Rs 76.71 lakh in the public-issue bank account.

Conclusion

Oswal Pumps' Rs 275.42 crore first-half operating cash outflow reflected Rs 379.30 crore of working-capital use against Rs 139.17 crore of operating profit before working-capital changes. Receivables and inventories accounted for Rs 358.66 crore of that use, while net financing inflows of Rs 242.35 crore accompanied an increase in current borrowings to Rs 507.12 crore.

The next reporting periods will show how Oswal Pumps deploys the Rs 210.56 crore of unutilised IPO proceeds. At September 30, 2026, Rs 44.41 crore remained for the company's capital expenditure, Rs 163.27 crore remained for investment in Oswal Solar Energy Private Limited to set up new manufacturing units, and Rs 2.88 crore remained for general corporate purposes.