Promax Power Limited reports Rs 2.0522 crore operating outflow

Promax Power Limited reported a Rs 2.0522 crore net operating cash outflow for the six months ended September 30, 2026, despite profit after tax of Rs 19.44 lakh. The cash deficit followed working-capital movements, while total long-term and short-term borrowings increased to Rs 33.6066 crore from Rs 29.899 crore at March 31, 2026.

Why did Promax Power report an operating cash outflow despite profit?

Promax Power reported the Rs 2.0522 crore operating cash outflow because working-capital cash uses exceeded its Rs 1.4957 crore operating profit before working-capital changes. The company recorded profit before tax and exceptional items of Rs 26.33 lakh, then adjusted this for Rs 1.98 lakh of depreciation, Rs 1.3813 crore of interest expense and Rs 16.87 lakh of interest income.

Inventory increased by Rs 1.1821 crore, while loans, advances and other current assets increased by Rs 2.7104 crore during the six months ended September 30, 2026. Lower trade payables, other current liabilities and provisions used a further Rs 84.92 lakh of cash. These uses were partly offset by a Rs 1.2596 crore decline in trade receivables.

Cash generated from operations was negative Rs 1.9863 crore before taxes, and direct taxes paid net of refunds were Rs 6.58 lakh. The filing does not identify a separate cause for the cash deficit beyond the listed profit adjustments and working-capital movements.

How did Promax Power fund its operating cash requirement?

Promax Power’s Rs 2.3263 crore net financing cash inflow exceeded its Rs 2.0522 crore operating cash outflow in the September 2026 half year. Financing cash inflows comprised Rs 2.7084 crore of long-term borrowing proceeds and Rs 99.92 lakh of short-term borrowing proceeds, offset by Rs 1.3813 crore of interest expense.

Investing activities added Rs 16.26 lakh of cash, as Rs 16.87 lakh of interest received exceeded Rs 61,000 spent on property, plant and equipment or intangibles. The company therefore reported a Rs 43.68 lakh net increase in cash and cash equivalents for the period.

Cash and cash equivalents stood at Rs 6.2387 crore on September 30, 2026, compared with Rs 5.8019 crore at March 31, 2026. The reported cash increase occurred even though operations consumed cash because financing inflows and the investing inflow together were greater than the operating outflow.

How much did Promax Power’s borrowings increase?

Promax Power’s combined long-term and short-term borrowings increased by Rs 3.7076 crore to Rs 33.6066 crore at September 30, 2026. Long-term borrowings rose to Rs 6.7781 crore from Rs 4.0697 crore, while short-term borrowings rose to Rs 26.8285 crore from Rs 25.8293 crore.

The balance-sheet movements match the cash-flow statement’s reported borrowing proceeds of Rs 2.7084 crore for long-term debt and Rs 99.92 lakh for short-term debt. The filing does not disclose borrowing maturities, lender-level balances or interest rates.

Finance costs were Rs 1.3813 crore in the six months ended September 30, 2026, compared with Rs 1.4286 crore in the preceding six months ended March 31, 2026. The lower period finance cost was reported alongside the increase in both borrowing categories on the balance sheet.

Which working-capital balances changed at Promax Power?

Promax Power’s inventory increased by Rs 1.1821 crore to Rs 27.6021 crore at September 30, 2026, from Rs 26.42 crore at March 31, 2026. The cash-flow statement records the same inventory increase as a cash use in operating activities.

Short-term loans and advances rose by Rs 2.7104 crore to Rs 10.8846 crore, from Rs 8.1742 crore at the March year-end. This balance movement corresponds to the Rs 2.7104 crore increase in loans, advances and other current assets reported in the cash-flow statement.

Trade receivables declined by Rs 1.2596 crore to Rs 19.4887 crore from Rs 20.7483 crore, providing cash during the period. Trade payables due to creditors other than micro and small enterprises fell to Rs 2.3955 crore from Rs 3.1619 crore, while other current liabilities declined to Rs 2.0157 crore from Rs 2.0985 crore.

How did Promax Power’s first-half earnings compare with earlier periods?

Promax Power returned to a Rs 19.44 lakh profit after tax in the six months ended September 30, 2026, from a Rs 50.17 lakh loss in the preceding six months. Profit remained below the Rs 1.3585 crore reported in the corresponding six months ended September 30, 2025.

Revenue from operations was Rs 31.8154 crore in the September 2026 half year, down from Rs 34.4042 crore in the preceding six months and Rs 36.327 crore in the corresponding prior-year half. Profit before tax was Rs 26.33 lakh, compared with a Rs 70.30 lakh loss in the preceding half and a Rs 1.8003 crore profit a year earlier.

The company disclosed one reportable segment under its applicable financial reporting framework, so it did not provide revenue, cash flow or working-capital balances by business line. Its audit committee reviewed the unaudited results and its board approved them on November 14, 2026.

Conclusion

Promax Power’s September 2026 half-year results show that Rs 19.44 lakh of accounting profit did not translate into positive operating cash flow. Inventory and loans and advances increased, while payable-related balances declined, producing a Rs 2.0522 crore operating cash outflow even as financing activity generated Rs 2.3263 crore and cash increased by Rs 43.68 lakh.

The next disclosure to watch is whether the Rs 27.6021 crore inventory balance and Rs 10.8846 crore short-term loans and advances decline or increase in later financial statements. The filing provides no maturity schedule or borrowing plan for the Rs 33.6066 crore debt balance, making subsequent cash-flow and liability disclosures the relevant update.