PRIMECAB H1 PAT rises 73% as cash outflow reaches Rs 18.7 crore

PRIMECAB | Renufo reported H1 FY27 profit after tax of Rs 9.5 crore, up 73% year on year, but recorded an Rs 18.7 crore operating cash outflow after Rs 31.9 crore of working-capital changes. Revenue rose 117% to Rs 196.4 crore, while inventory, receivables and borrowings increased from FY26.

Why did PRIMECAB’s H1 FY27 PAT rise 73%?

PRIMECAB’s profit after tax, or PAT, rose to Rs 9.5 crore in H1 FY27 from Rs 5.5 crore in H1 FY26 because revenue from operations increased 117% to Rs 196.4 crore from Rs 90.7 crore. Profit before tax rose 85% to Rs 12.8 crore, while earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 68% to Rs 16.5 crore.

Costs also rose faster than sales in some categories during H1 FY27. Materials and services consumed, including finished goods and work-in-progress, increased 126% to Rs 171.5 crore, compared with the 117% revenue increase. Employee benefits expense rose 64% to Rs 2.1 crore, other expenses rose 74% to Rs 6.3 crore, and tax expense increased 129% to Rs 3.4 crore.

PRIMECAB’s EBITDA growth therefore trailed revenue growth by 49 percentage points in H1 FY27. Other income was Rs 0.2 crore, depreciation was Rs 0.8 crore and finance costs were Rs 3.0 crore, compared with Rs 0.1 crore, Rs 0.7 crore and Rs 2.2 crore respectively in H1 FY26.

What happened to PRIMECAB’s operating cash flow?

PRIMECAB used Rs 18.7 crore in operating activities in H1 FY27, as Rs 31.9 crore of working-capital changes outweighed reported profit and non-cash adjustments. The cash-flow statement records profit before tax of Rs 12.9 crore, non-cash and non-operating adjustments of Rs 3.3 crore, and direct taxes paid of Rs 3.0 crore.

The H1 FY27 operating cash outflow exceeded the Rs 13.1 crore outflow recorded for the full FY26, although the periods are not directly comparable. Operating cash flow had been positive at Rs 1.1 crore in FY24 and Rs 3.4 crore in FY25 before turning negative in FY26.

PRIMECAB also reported Rs 11.4 crore of investing cash outflow in H1 FY27, including Rs 11.2 crore spent on net fixed-asset purchases. Financing activities generated Rs 21.1 crore, consisting of Rs 23.9 crore of net borrowing proceeds less Rs 2.8 crore of interest and lease payments, leaving a Rs 9.1 crore decrease in cash for the half year.

Which balances contributed to PRIMECAB’s working-capital cash use?

PRIMECAB’s inventory and trade receivables together increased by Rs 28.1 crore from FY26 to H1 FY27, contributing to the Rs 31.9 crore working-capital cash charge. Inventory rose by Rs 23.8 crore to Rs 63.2 crore, while trade receivables increased by Rs 4.3 crore to Rs 74.8 crore.

Trade payables rose by Rs 4.2 crore to Rs 42.7 crore, partly offsetting the expansion in current assets. Other current assets increased by Rs 2.2 crore to Rs 4.6 crore, and short-term loans and advances rose by Rs 1.1 crore to Rs 1.5 crore, showing that the working-capital movement extended beyond inventory and receivables.

PRIMECAB’s FY26 operating indicators had already shown slower collections relative to FY25. Debtor days increased to 85 from 65, while inventory days declined to 62 from 68. The cash conversion cycle nevertheless rose to 81 days from 73 days because the reduction in inventory days did not offset the increase in debtor days.

How did PRIMECAB fund balance-sheet growth in H1 FY27?

PRIMECAB’s total borrowings increased by Rs 24.0 crore to Rs 75.5 crore at H1 FY27 from Rs 51.5 crore at FY26. Non-current borrowings rose from Rs 10.5 crore to Rs 18.6 crore, while current borrowings increased from Rs 41.0 crore to Rs 56.9 crore, alongside the Rs 23.9 crore of net borrowing proceeds reported in the cash-flow statement.

Total assets rose by Rs 33.4 crore to Rs 198.4 crore at H1 FY27. Current assets increased by Rs 22.8 crore to Rs 148.3 crore, and non-current assets rose by Rs 10.6 crore to Rs 50.1 crore, including capital work-in-progress of Rs 7.9 crore compared with Rs 1.0 crore at FY26.

Shareholders’ equity increased by Rs 9.5 crore to Rs 70.3 crore, comprising Rs 9.2 crore of equity capital and Rs 61.1 crore of reserves and surplus. Total liabilities increased by Rs 24.0 crore to Rs 128.2 crore, including Rs 42.7 crore of trade payables and Rs 7.1 crore of other current liabilities.

Did PRIMECAB’s margins keep pace with revenue growth?

PRIMECAB’s margins did not keep pace with revenue growth in H1 FY27, as EBITDA margin declined 240 basis points to 8.4% from 10.8% and PAT margin declined 122 basis points to 4.8% from 6.0%. A basis point is one-hundredth of a percentage point, and the margin decline coincided with materials and services costs rising 126%.

The H1 FY27 margin movement differs from the annual progression reported through FY26. EBITDA margin rose from 6.0% in FY24 to 10.4% in FY25 before easing to 10.0% in FY26, while PAT margin rose from 2.2% in FY24 to 5.2% in FY25 and remained 5.2% in FY26.

Finance costs increased 36% to Rs 3.0 crore in H1 FY27 from Rs 2.2 crore a year earlier, while total borrowings reached Rs 75.5 crore. The presentation provides no H1 FY27 target or guidance for margins, operating cash flow, collections, inventory or debt.

Conclusion

PRIMECAB’s H1 FY27 results combine rapid reported growth with higher cash absorption: revenue rose 117% to Rs 196.4 crore and PAT rose 73% to Rs 9.5 crore, while working-capital changes of Rs 31.9 crore resulted in an Rs 18.7 crore operating cash outflow. Margin compression to 8.4% at the EBITDA level and 4.8% at the PAT level accompanied the sales increase.

The disclosed unresolved item to watch is the difference between the H1 FY27 cash figure of Rs 4.2 crore in the balance-sheet table and Rs 0.8 crore of closing cash in the cash-flow statement. The presentation does not reconcile the Rs 3.4 crore difference, while inventory of Rs 63.2 crore, receivables of Rs 74.8 crore and borrowings of Rs 75.5 crore remain the principal reported balance-sheet movements.