Prakash Industries lifts cash equivalents to Rs 152.06 crore

Prakash Industries Limited increased cash and cash equivalents to Rs 152.06 crore at September 30, 2026, from Rs 14.39 crore at March 31, 2026, after generating Rs 213.71 crore from operations in the first half. That operating inflow exceeded the Rs 125.90 crore net cash used in investing activities.

How did Prakash Industries’ cash position change?

Prakash Industries’ cash and cash equivalents rose by Rs 137.67 crore during the half year ended September 30, 2026, reaching Rs 152.06 crore from an opening balance of Rs 14.39 crore. The closing amount comprised Rs 151.88 crore in current accounts and Rs 18 lakh of cash on hand. In the corresponding half year ended September 30, 2025, cash and cash equivalents were Rs 22.26 crore after a Rs 31 lakh decline.

Prakash Industries also reported Rs 250.81 crore of bank balances other than cash equivalents at September 30, 2026, compared with Rs 181.07 crore at March 31, 2026. The combined total of the two separately reported balance-sheet lines was Rs 402.87 crore, up from Rs 195.46 crore six months earlier. The filing classifies the Rs 250.81 crore separately from cash and cash equivalents.

What generated Prakash Industries’ operating cash flow?

Prakash Industries generated Rs 213.71 crore of net operating cash flow in the half year ended September 30, 2026, compared with Rs 201.21 crore in the corresponding 2025 period. Profit before tax rose to Rs 176.35 crore from Rs 152.97 crore. Depreciation and amortisation of Rs 86.08 crore and finance costs of Rs 40.35 crore contributed to operating profit before working-capital changes of Rs 299.53 crore, versus Rs 250.81 crore a year earlier.

Working-capital movements used Rs 81.04 crore during the 2026 half year, based on the difference between operating profit before working-capital changes and cash generated from operations of Rs 218.49 crore. Trade receivables used Rs 13.22 crore, inventories used Rs 9.35 crore and other current assets used Rs 58.93 crore. Net direct taxes paid were Rs 4.78 crore, compared with Rs 5.23 crore in the prior-year half.

The operating cash inflow came alongside higher revenue in Prakash Industries’ single reportable Iron & Steel segment. Revenue from operations rose to Rs 1,928.12 crore in the half year ended September 30, 2026 from Rs 1,760.24 crore a year earlier. Profit after tax declined to Rs 136.64 crore from Rs 152.97 crore, with the company stating that its April 1, 2026 adoption of the new tax regime removed the Section 80-IA tax exemption.

How much did Prakash Industries spend on investment and capex?

Prakash Industries used Rs 125.90 crore in investing activities in the first half of 2026, compared with Rs 106.30 crore in the first half of 2025. Purchases of fixed assets, including capital work-in-progress and capital advances, were Rs 158.06 crore, up from Rs 133.59 crore. Sale proceeds from fixed assets increased to Rs 36.23 crore from Rs 1.24 crore, partly offsetting the larger purchase outlay.

Capital work-in-progress rose to Rs 348.92 crore at September 30, 2026 from Rs 196.87 crore at March 31, 2026, an increase of Rs 152.05 crore. Property, plant and equipment declined to Rs 2,856.89 crore from Rs 2,971.94 crore, while intangible assets declined to Rs 319.86 crore from Rs 324.98 crore. The half-year cash-flow statement recorded depreciation and amortisation of Rs 86.08 crore.

Changes in term deposits used Rs 8.61 crore of cash in the 2026 half year, whereas the comparable 2025 period recorded an Rs 21.08 crore inflow from that line. Interest and other income received was Rs 4.54 crore, compared with Rs 4.97 crore a year earlier. Net cash used in investing activities was therefore Rs 19.60 crore higher year on year.

How did Prakash Industries fund spending and change borrowings?

Prakash Industries generated Rs 49.86 crore from financing activities in the half year ended September 30, 2026, compared with an Rs 95.22 crore financing outflow in the previous-year half. Borrowing proceeds were Rs 142.80 crore, while repayments were Rs 58.89 crore and finance expenses paid were Rs 34.05 crore. In the 2025 half year, borrowing proceeds were Rs 22.23 crore and repayments were Rs 103.63 crore.

The balance-sheet change in borrowings was concentrated in current borrowings. Current borrowings rose to Rs 334.89 crore at September 30, 2026 from Rs 238.04 crore at March 31, 2026, an increase of Rs 96.85 crore. Non-current borrowings declined to Rs 262.68 crore from Rs 275.57 crore, taking total borrowings to Rs 597.57 crore from Rs 513.61 crore. Finance-cost expense rose to Rs 40.35 crore from Rs 21.01 crore.

Other current liabilities also increased during the period. Trade payables other than micro and small enterprise dues rose to Rs 130.89 crore from Rs 121.55 crore, while current tax liabilities increased to Rs 91.67 crore from Rs 54.49 crore. Total current liabilities reached Rs 876.62 crore, compared with Rs 689.64 crore at March 31, 2026, while total equity increased to Rs 3,686.77 crore from Rs 3,588.37 crore.

Conclusion

Prakash Industries’ September 2026 disclosures show that Rs 213.71 crore of operating cash flow was sufficient to cover the Rs 125.90 crore net investing outflow, while financing activity added Rs 49.86 crore. Cash and cash equivalents increased by Rs 137.67 crore, although total borrowings also rose by Rs 83.96 crore as current borrowings increased.

The next disclosed operational marker is management’s expectation of 1.2 million tonnes of coal extraction from the Bhaskarpara Coal Mine in FY2027, compared with 1.0 million tonnes in the previous financial year. Capital work-in-progress stood at Rs 348.92 crore at September 30, 2026, and its movement in subsequent disclosures will show the progression of the company’s investment spending.