R M Drip returns to Rs 4.69 crore H1 operating cash flow

R M Drip and Sprinklers Systems Limited generated Rs 4.69 crore of net operating cash in the half year ended September 30, 2026, reversing a Rs 5.96 crore outflow a year earlier. The change came as cash generated before tax reached Rs 10.94 crore, despite profit before tax falling to Rs 9.78 crore from Rs 15.42 crore.

Why did R M Drip return to positive operating cash flow?

R M Drip returned to positive operating cash flow because working-capital movements consumed substantially less cash in the half year ended September 30, 2026 than a year earlier. Cash generated from operating activities before tax was Rs 10.94 crore, compared with a Rs 3.33 crore outflow in the corresponding 2025 period. Income-tax payments rose to Rs 6.26 crore from Rs 2.63 crore, leaving net operating cash of Rs 4.69 crore.

The improvement occurred while operating profit before working-capital changes declined to Rs 13.92 crore from Rs 19.97 crore. Profit before tax was Rs 9.78 crore, down from Rs 15.42 crore, and the cash-flow reconciliation included finance costs of Rs 2.31 crore, compared with Rs 1.81 crore in the prior comparable half year.

How did working capital change R M Drip’s cash generation?

R M Drip’s smaller receivables movement was the largest disclosed year-on-year change in operating working capital. Trade receivables absorbed Rs 1.16 crore in the latest half year, against Rs 22.36 crore in the period ended September 30, 2025. As an increase in receivables uses cash, the difference reduced the cash drag by Rs 21.20 crore.

Inventories provided Rs 12.21 lakh of cash in the latest period after consuming Rs 4.55 crore a year earlier. The September 30, 2026 balance sheet showed inventory at Rs 33.84 crore, compared with Rs 33.97 crore at March 31, 2026, consistent with the reported reduction during the half year.

Other financial assets generated Rs 2.14 crore of cash, versus Rs 39.28 lakh in the prior-year period. These inflows were partly offset by a Rs 2.94 crore increase in other current assets, a Rs 3.79 crore decrease in trade payables and a Rs 2.67 crore increase in other financial liabilities. In the earlier period, trade payables had provided Rs 4.96 crore of cash.

What were R M Drip’s investing and financing cash flows?

R M Drip used Rs 1.42 crore in investing activities during the half year ended September 30, 2026, compared with Rs 1.06 crore used a year earlier. Purchases of property, plant and equipment, capital work-in-progress and capital advances totalled Rs 1.41 crore; interest received was Rs 13.23 lakh, while fixed deposits created used Rs 14.44 lakh.

Capital work-in-progress was Rs 3.53 crore at September 30, 2026, up from Rs 2.87 crore at March 31, 2026. Property, plant and equipment declined to Rs 21.27 crore from Rs 22.35 crore, while intangible assets increased to Rs 10.32 lakh from Rs 1.94 lakh over the same six-month period.

Financing activities used Rs 3.58 crore, reversing an inflow of Rs 6.93 crore in the comparable 2025 half year. R M Drip repaid Rs 16.00 crore of long-term borrowings and raised Rs 13.35 crore of long-term borrowings, while finance costs paid were Rs 2.31 crore. It reported no dividend payment in the latest period, compared with Rs 1.25 crore paid a year earlier.

How did R M Drip’s borrowings and cash balance change?

R M Drip’s total reported borrowings declined to Rs 52.34 crore at September 30, 2026 from Rs 53.61 crore at March 31, 2026. Non-current borrowings fell to Rs 33.43 crore from Rs 36.08 crore, while current borrowings increased to Rs 18.90 crore from Rs 17.53 crore.

Cash and cash equivalents, including bank deposits with maturities below three months, were Rs 63.91 lakh at September 30, 2026, compared with Rs 72.26 lakh at March 31, 2026. The cash-flow statement recorded a Rs 31.39 lakh net decrease during the half year, after a Rs 7.99 lakh decrease in the corresponding 2025 period.

The reported closing balance comprised Rs 40.87 lakh of cash and cash equivalents and Rs 23.04 lakh of bank deposits maturing within three months. The cash-flow statement was prepared by the indirect method under Indian Accounting Standard 7, Statement of Cash Flows.

How did R M Drip’s H1 earnings compare with the prior year?

R M Drip’s revenue from operations increased to Rs 69.33 crore for the half year ended September 30, 2026 from Rs 61.66 crore in the comparable period. Total income rose to Rs 69.68 crore from Rs 63.45 crore, but total expenses increased to Rs 59.89 crore from Rs 48.03 crore, resulting in lower profit before tax.

Material consumption rose to Rs 47.82 crore from Rs 38.09 crore and employee-benefit expense increased to Rs 3.97 crore from Rs 3.28 crore. Other expenses declined to Rs 6.45 crore from Rs 8.41 crore, while finance costs rose to Rs 2.31 crore from Rs 1.81 crore.

Profit for the period was Rs 7.18 crore, compared with Rs 11.04 crore in the prior comparable half year. Basic and diluted earnings per equity share were Rs 0.17 each, versus Rs 0.26 each. The audit committee reviewed the unaudited results and the board approved them on November 9, 2026.

Conclusion

R M Drip’s H1 cash-flow reversal reflected lower absorption from receivables and inventories rather than higher pre-tax profit. Revenue increased by Rs 7.67 crore year on year, but profit before tax decreased by Rs 5.64 crore, while operating cash moved by Rs 10.65 crore from an outflow to an inflow.

The next results will show whether trade receivables, which stood at Rs 137.44 crore at September 30, 2026, continue to have a lower cash impact. Borrowing movements also remain relevant after Rs 16.00 crore of long-term repayments, Rs 13.35 crore of new long-term borrowing and a Rs 3.53 crore capital work-in-progress balance.