Precision Wires India Limited reports Rs 64.25 crore operating cash

Precision Wires India Limited reported Rs 64.25 crore of net cash from operating activities for the half year ended 30 September 2026, as a Rs 289.43 crore inventory outflow and Rs 24 crore of net direct taxes reduced Rs 181.34 crore of operating profit before working-capital changes.

Why was Precision Wires’ operating cash Rs 64.25 crore?

Precision Wires generated Rs 64.25 crore of net operating cash in the half year ended 30 September 2026 because working-capital movements used Rs 93.09 crore and direct taxes paid, net of refunds, used Rs 24 crore. Cash generated from operations before tax was Rs 88.25 crore, compared with operating profit before working-capital changes of Rs 181.34 crore.

The cash-flow statement begins with profit before tax and extraordinary items of Rs 121.45 crore for the six-month period. It adds Rs 47.66 crore of financial charges and Rs 17.66 crore of depreciation, while deducting a Rs 4.82 crore net gain on sale of investments and Rs 1.13 crore of amortised income under Indian Accounting Standard 20, or Ind AS 20.

Other adjustments included an expected credit loss of Rs 1.86 lakh and a gratuity payment or provision of Rs 50 lakh. These adjustments totalled Rs 59.89 crore and took operating profit before working-capital changes to Rs 181.34 crore, before the company recorded inventory, receivable, payable and other asset movements.

The Rs 64.25 crore figure should not be treated as a direct year-on-year operating-cash comparison with Rs 272.96 crore reported for the year ended 31 March 2026. The September 2026 number covers six months, while the March 2026 figure covers a full financial year, although the two periods show different working-capital outcomes.

How did working capital affect Precision Wires’ cash flow?

Working capital reduced Precision Wires’ cash by Rs 93.09 crore in the half year ended 30 September 2026, led by a Rs 289.43 crore outflow for inventories. Trade and other receivables used Rs 11.02 crore, and other current and non-current assets used Rs 18.52 crore, partly offset by a Rs 225.88 crore inflow from trade and other payables.

Inventory was the largest individual cash movement and exceeded the total working-capital outflow because the increase in payables funded part of the inventory build. The statement uses the indirect method under Ind AS 7, Statement of Cash Flows, which records the cash effect of balance-sheet movements rather than listing each inventory purchase.

The balance sheet shows inventories at Rs 735.42 crore on 30 September 2026, compared with Rs 445.99 crore on 31 March 2026. Trade payables rose to Rs 1,283.82 crore from Rs 1,081.13 crore over the same dates, supporting the cash-flow statement’s positive payable movement.

Trade receivables were Rs 936.40 crore at 30 September 2026, up from Rs 925.41 crore at 31 March 2026. Other current financial assets increased to Rs 96.97 crore from Rs 78.56 crore, while the cash-flow statement reported a Rs 18.52 crore outflow in other current and non-current assets.

How did the September half-year compare with the prior full year?

Precision Wires recorded a Rs 93.09 crore working-capital outflow in the half year ended 30 September 2026, compared with a Rs 20.22 crore working-capital inflow in the year ended 31 March 2026. The period lengths differ, but the change shows that cash tied up in working capital outweighed the funding provided by higher payables in the latest half year.

For the year ended 31 March 2026, trade and other payables added Rs 568.08 crore of cash, more than offsetting Rs 368.78 crore used by receivables, Rs 141.44 crore used by inventories and Rs 37.64 crore used by other assets. In the latest half year, the Rs 225.88 crore payable inflow did not offset the Rs 289.43 crore inventory outflow and other uses.

Reported earnings increased in the corresponding six-month comparison. Profit before tax rose to Rs 121.45 crore for the half year ended 30 September 2026 from Rs 84.61 crore a year earlier, while profit for the period increased to Rs 89.84 crore from Rs 62.70 crore.

Revenue from operations rose to Rs 3,720.50 crore in the half year ended 30 September 2026 from Rs 2,329.79 crore in the corresponding prior-year half year. Precision Wires identifies manufacturing of winding wires as its sole reportable primary business segment under Ind AS 108, so the filing does not provide cash-flow data by product or customer category.

What financing and investment flows accompanied the working-capital build?

Precision Wires generated Rs 166.94 crore from financing activities in the half year ended 30 September 2026, including Rs 150 crore from 12% compulsorily convertible debentures, or CCDs. Net term-borrowing proceeds added Rs 74.35 crore, while financial charges paid of Rs 47.36 crore and dividends paid of Rs 10.05 crore reduced financing cash flow.

The company allotted 37.50 lakh CCDs of face value Rs 400 each on 25 September 2026, aggregating Rs 150 crore. The instruments are convertible into equity shares in a 1:1 ratio at the investor’s option after 12 months but before 18 months from allotment; conversion becomes compulsory at the end of 18 months if the option is not exercised.

Investing activities generated Rs 78.34 crore in the half year, as Rs 404.19 crore of mutual-fund sales exceeded Rs 222 crore of mutual-fund purchases. Precision Wires also spent Rs 123.26 crore on fixed assets, including capital work in progress, and reported Rs 20.51 crore of savings from the Export Promotion Capital Goods, or EPCG, benefit.

Cash and cash equivalents increased by Rs 309.53 crore during the six months to Rs 423.85 crore on 30 September 2026, from Rs 114.32 crore at 1 April 2026. On 6 November 2026, the board approved additional secured working-capital facilities of Rs 135 crore from HDFC Bank Limited and Rs 75 crore from Kotak Mahindra Bank Limited, with secured lenders ranking pari passu.

Conclusion

Precision Wires’ September 2026 half-year figures show that higher reported profit and revenue did not translate fully into operating cash. The Rs 289.43 crore inventory movement, alongside receivable and other-asset outflows, left net operating cash at Rs 64.25 crore despite Rs 181.34 crore of operating profit before working-capital changes.

The next disclosures will show whether the Rs 735.42 crore inventory balance converts into cash and whether the approved Rs 210 crore of additional working-capital facilities is used. Investors can also monitor the CCD conversion timetable, which allows investor-led conversion after 12 months from the 25 September 2026 allotment and requires conversion after 18 months if no earlier option is exercised.