Rachana Infrastructure reports Rs 13.91 crore operating cash outflow

Rachana Infrastructure Limited used Rs 13.91 crore in operating activities in the half year ended 30 September 2026 despite reporting Rs 0.96 crore profit after tax, as other current assets increased by Rs 14.62 crore. Cash and cash equivalents consequently fell to Rs 39.81 lakh from Rs 8.12 crore at 31 March 2026.

What drove Rachana Infrastructure’s negative operating cash flow?

Rachana Infrastructure’s negative operating cash flow was driven primarily by a Rs 14.62 crore increase in other current assets during the half year ended 30 September 2026. The cash-flow statement reported operating profit before working-capital changes of Rs 3.46 crore, but working-capital movements and Rs 3.45 crore of income tax paid resulted in a Rs 13.91 crore net utilisation of funds in operating activities.

Other current assets rose to Rs 62.25 crore at 30 September 2026 from Rs 47.63 crore at 31 March 2026. The filing does not provide a further breakdown of this balance, so it does not identify the individual assets behind the increase or their expected conversion date into cash.

Other disclosed movements also consumed cash. Other current liabilities fell by Rs 3.29 crore, short-term loans and advances rose by Rs 79.84 lakh, and income tax paid was Rs 3.45 crore. These outflows were partly offset by a Rs 3.16 crore decline in trade receivables, a Rs 65.04 lakh increase in trade payables and a Rs 9.10 lakh decline in inventories.

How did Rachana Infrastructure’s profit differ from its cash generation?

Rachana Infrastructure reported Rs 0.96 crore profit after tax but used Rs 13.91 crore in operating cash in the half year ended 30 September 2026. Profit before tax was also Rs 0.96 crore because the profit and loss statement shows no current or deferred tax charge for the period, while the cash-flow statement records Rs 3.45 crore of tax paid.

The cash-flow statement starts with Rs 0.96 crore profit before tax and adds Rs 65.77 lakh depreciation, Rs 79.12 lakh remeasurement of gratuity liability and Rs 1.26 crore finance cost. After deducting Rs 20.11 lakh interest received and including other adjustments, this produced Rs 3.46 crore operating profit before working-capital changes.

Profit after tax increased from Rs 66.75 lakh in the corresponding half year ended 30 September 2025, while revenue from operations declined to Rs 40.16 crore from Rs 47.62 crore. Total expenses decreased to Rs 40.48 crore from Rs 47.69 crore, resulting in profit before tax of Rs 0.96 crore compared with Rs 86.75 lakh a year earlier.

Rachana Infrastructure reported Infrastructure Projects and related quarry mining as its operating segment, with trading recording nil revenue and nil segment profit. Infrastructure and Mining recorded Rs 40.16 crore segment revenue and Rs 0.96 crore segment profit for the half year ended 30 September 2026.

What happened to Rachana Infrastructure’s cash and borrowings?

Rachana Infrastructure’s cash and cash equivalents fell by Rs 7.72 crore during the half year to Rs 39.81 lakh at 30 September 2026. The operating cash outflow of Rs 13.91 crore was partly offset by Rs 6.04 crore generated from financing activities and Rs 14.82 lakh generated from investing activities.

Financing cash flow included a Rs 7.73 crore increase in short-term borrowings, partly offset by Rs 1.26 crore finance cost and a Rs 43.65 lakh reduction in long-term borrowings. The balance sheet shows short-term borrowings of Rs 14.83 crore at 30 September 2026, compared with Rs 7.10 crore at 31 March 2026.

Long-term borrowings declined to Rs 1.54 crore at 30 September 2026 from Rs 1.98 crore at 31 March 2026. Investing activities generated Rs 14.82 lakh, comprising Rs 20.11 lakh interest received less Rs 8.94 lakh spent on property, plant and equipment.

How does the latest cash flow compare with the previous financial year?

Rachana Infrastructure moved from Rs 9.79 crore of operating cash generation in the year ended 31 March 2026 to a Rs 13.91 crore operating cash outflow in the half year ended 30 September 2026. The periods are not directly comparable because the earlier figure covers a full financial year, but the reported direction changed as the latest half-year working-capital movements absorbed cash.

For the year ended 31 March 2026, operating profit before working-capital changes was Rs 20.30 crore and net operating cash generation was Rs 9.79 crore. That period included a Rs 5.57 crore decrease in other non-current assets and a Rs 71.12 lakh increase in other current assets, compared with a Rs 92.81 lakh decrease in other non-current assets and a Rs 14.62 crore increase in other current assets in the latest half year.

The funding pattern also changed. Rachana Infrastructure reported a Rs 7.82 crore net financing cash outflow in the year ended 31 March 2026, including a Rs 4.18 crore reduction in long-term borrowings, whereas financing activities generated Rs 6.04 crore in the latest half year because short-term borrowings increased.

What financial-statement balances remain subject to reconciliation?

Rachana Infrastructure says balances under trade payables, trade receivables, loans and advances, and other current liabilities are subject to confirmation and reconciliation. The company states that any consequential adjustment will be accounted for in the year when confirmation or reconciliation occurs.

The half-year results were approved by the board on 5 November 2026 and reviewed by the statutory auditors under Regulation 33 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015. The auditor’s report dated 5 November 2026 states that nothing came to its attention indicating that the statements contained a material misstatement, while noting that a limited review provides less assurance than an audit.

Conclusion

Rachana Infrastructure’s half-year figures show a divergence between reported earnings and cash movement: Rs 0.96 crore of profit coincided with a Rs 13.91 crore operating cash outflow. The principal disclosed factor was the Rs 14.62 crore rise in other current assets, while the increase in short-term borrowings helped partly fund the resulting cash shortfall.

The next reported development to watch is the confirmation and reconciliation of trade payables, trade receivables, loans and advances, and other current liabilities. Rachana Infrastructure has said that any resulting adjustment will be recorded in the year of confirmation or reconciliation.