Paradeep Parivahan H1 profit rises as operating cash turns negative

For the half year ended 30 September 2026, Paradeep Parivahan Limited reported consolidated profit after tax of Rs 18.46 crore, up 8.0% year on year, while net cash flow from operations was negative Rs 12.55 crore despite a 17.6% increase in revenue from operations to Rs 216.64 crore.

How did Paradeep Parivahan's H1 revenue and profit change?

Paradeep Parivahan's revenue from operations rose 17.6% to Rs 216.64 crore in the half year ended 30 September 2026 from Rs 184.16 crore a year earlier. Other income increased to Rs 1.17 crore from Rs 20.33 lakh, taking total income to Rs 217.80 crore from Rs 184.34 crore.

Profit before tax increased to Rs 24.85 crore from Rs 20.79 crore, while profit after tax rose to Rs 18.46 crore from Rs 17.11 crore. Total expenses increased to Rs 193.96 crore from Rs 163.57 crore, and tax expense rose to Rs 6.39 crore from Rs 3.68 crore, limiting post-tax profit growth relative to the increase in profit before tax.

Basic earnings per share rose to Rs 11.60 from Rs 10.75, while diluted earnings per share was Rs 11.16 against Rs 10.75. Employee-benefit expense increased to Rs 39.27 crore from Rs 31.61 crore, finance costs rose to Rs 4.00 crore from Rs 2.85 crore, and depreciation and amortisation increased to Rs 5.56 crore from Rs 3.31 crore.

Which Paradeep Parivahan segments changed most in H1?

Paradeep Parivahan's transportation business remained its largest reported segment, generating Rs 83.38 crore of revenue in H1 2026, although this was below Rs 85.32 crore in H1 2025. Loading, unloading and rake handling, vessel handling and cargo management generated Rs 62.78 crore, down from Rs 64.80 crore.

Hiring of earth-moving equipment rose to Rs 45.30 crore from Rs 31.86 crore, while construction revenue increased to Rs 15.73 crore from Rs 1.82 crore. Trading contributed Rs 23.29 crore in H1 2026; the prior-year comparative for that segment was not reported in the filing.

Aggregate segment revenue was Rs 230.61 crore, from which Rs 13.98 crore of inter-segment revenue was eliminated to arrive at revenue from operations of Rs 216.64 crore. Transportation's segment result before unallocated interest and tax declined to Rs 10.39 crore from Rs 10.95 crore, while earth-moving equipment hiring increased to Rs 6.70 crore from Rs 4.09 crore.

India contributed Rs 216.45 crore of H1 2026 geographical revenue and outside India contributed Rs 18.69 lakh. Paradeep Parivahan identifies logistics and transportation services as its primary business, encompassing cement trading, equipment hiring, cargo handling, construction and transportation.

Why was Paradeep Parivahan's operating cash flow negative?

Paradeep Parivahan recorded net cash used in operations of Rs 12.55 crore in H1 2026 because working-capital movements exceeded operating profit before those changes. Profit before tax was Rs 24.85 crore and operating profit before working-capital changes was Rs 33.48 crore, but cash generated from operations was negative Rs 7.94 crore before Rs 4.62 crore of income taxes paid.

The cash-flow statement shows a Rs 21.37 crore increase in loans and advances, a Rs 14.67 crore increase in trade receivables and a Rs 3.16 crore increase in inventories. Trade payables declined by Rs 9.36 crore, partly offset by a Rs 7.56 crore increase in other current liabilities.

The H1 operating outflow contrasts with net cash generated from operations of Rs 1.81 crore for the year ended 31 March 2026. The comparison is between a six-month unaudited period and a full audited year, but it shows that the reported H1 profit did not convert into operating cash during the period.

Cash used in investing activities was Rs 44.20 crore, mainly comprising Rs 43.21 crore spent on or advanced for property, plant and equipment and Rs 1.56 crore in long-term loans and advances. Financing activities generated Rs 49.43 crore, including Rs 39.34 crore of long-term borrowing proceeds and Rs 14.09 crore of short-term borrowing proceeds, offset in part by Rs 4.00 crore of finance costs.

How did Paradeep Parivahan's borrowings and assets change?

Paradeep Parivahan's total assets increased to Rs 339.45 crore at 30 September 2026 from Rs 275.15 crore at 31 March 2026. Property, plant and equipment rose to Rs 77.96 crore from Rs 40.31 crore, alongside the Rs 43.21 crore H1 cash outflow for purchases of or advances for property, plant and equipment.

Long-term borrowings rose to Rs 60.11 crore from Rs 20.77 crore, while short-term borrowings increased to Rs 63.07 crore from Rs 48.98 crore. Combined borrowings therefore reached Rs 123.17 crore at 30 September 2026, compared with Rs 69.75 crore at the preceding financial year-end.

Reserves and surplus increased to Rs 162.90 crore from Rs 144.43 crore, while equity share capital was unchanged at Rs 15.92 crore. Trade receivables rose to Rs 107.29 crore from Rs 92.62 crore and inventories increased to Rs 18.01 crore from Rs 14.85 crore, matching the working-capital movements recorded in the cash-flow statement.

Cash and cash equivalents declined to Rs 23.40 crore from Rs 30.71 crore, reflecting a net H1 decrease of Rs 7.32 crore. The closing balance included Rs 16.33 crore in bank current accounts, Rs 6.94 crore in fixed deposits and Rs 12.29 lakh in cash in hand.

Conclusion

Paradeep Parivahan increased revenue and profit in the half year ended 30 September 2026, with equipment hiring and construction offsetting lower transportation and handling revenue. However, the period also combined Rs 18.46 crore of profit after tax with a Rs 12.55 crore operating cash outflow, Rs 44.20 crore of investing cash use and higher borrowings.

The filing does not provide a forward target or capital-spending plan. The next results will show whether the H1 increases in receivables, inventories and loans and advances reverse, and whether cash conversion changes after the company noted that prior-period figures had been reclassified or regrouped where necessary.