Raminfo posts Rs 7.56 crore negative operating cash flow

RAMINFO LIMITED recorded a Rs 7.56 crore net cash outflow from operating activities for the half year ended September 30, 2026, despite consolidated net profit of Rs 2.28 crore. Higher trade receivables, loans and inventories absorbed cash, while Rs 5.87 crore of net investing inflows partly limited the overall decline in cash balances.

Why was Raminfo's operating cash flow negative despite profit?

Raminfo's operating cash flow was negative because working-capital and other balance-sheet movements exceeded the cash generated before those changes. The cash-flow statement reports Rs 7.56 crore of net cash used in operating activities for the half year ended September 30, 2026, while the consolidated profit-and-loss statement reports Rs 2.28 crore of net profit after tax.

The operating cash-flow reconciliation started with profit before tax after adjustments of Rs 2.34 crore and reached operating profit before working-capital and other changes of Rs 83.34 lakh. The reconciliation included Rs 1.15 crore of interest income, Rs 42.13 lakh of profit on sale of assets, Rs 20.83 lakh of interest expense and Rs 19.03 lakh of provision for gratuity and leave encashment.

The largest disclosed cash uses were Rs 8.88 crore from higher trade receivables, Rs 6.49 crore from increased loans and Rs 2.28 crore from inventories. These outflows were partly offset by a Rs 12.82 crore increase in trade payables, but the operating cash-flow statement still recorded a Rs 7.56 crore outflow after income-tax payments and other movements.

Which balance-sheet movements used Raminfo's cash?

Raminfo's receivables, loans and inventory all increased between March 31, 2026 and September 30, 2026. Trade receivables rose by Rs 9.33 crore to Rs 53.03 crore, loans and advances increased by Rs 6.49 crore to Rs 23.66 crore, and inventories climbed by Rs 2.28 crore to Rs 6.76 crore.

The balance-sheet movements broadly correspond with the cash-flow statement, which shows Rs 8.88 crore absorbed by receivables, Rs 6.49 crore by loans and Rs 2.28 crore by inventories. The receivables balance change and the cash-flow amount differ by Rs 45.25 lakh, as the filing presents a cash-flow adjustment rather than a direct restatement of the closing balance movement.

Other items also added to cash requirements. Other non-current assets stood at Rs 2.76 crore at September 30, 2026, compared with no comparative amount shown in that balance-sheet line at March 31, 2026, while other current assets increased to Rs 1.66 crore from Rs 94.49 lakh. The cash-flow statement separately records Rs 2.76 crore used by other non-current assets and Rs 71.71 lakh used by other assets.

Trade payables due to parties other than micro and small enterprises increased to Rs 42.01 crore at September 30, 2026 from Rs 29.25 crore at March 31, 2026. Total current liabilities rose to Rs 57.27 crore from Rs 46.73 crore, and the cash-flow statement records Rs 12.82 crore generated by the increase in trade payables, providing the principal disclosed offset to the working-capital outflows.

How did investing activities offset Raminfo's operating outflow?

Raminfo generated Rs 5.87 crore of net cash from investing activities in the September 2026 half year, compared with Rs 3.41 crore used in the comparative column of the cash-flow statement. The principal disclosed source was Rs 5.10 crore of proceeds from the sale of property, plant and equipment, supplemented by Rs 1.24 crore of interest income.

Investing uses included Rs 37.71 lakh related to fixed deposits and Rs 9.14 lakh spent on acquiring property, plant and equipment. The statement also shows a Rs 14,000 movement in advances for property investments. These uses were lower than the combined asset-sale proceeds and interest income, leaving a Rs 5.87 crore net investing inflow.

The Rs 5.10 crore of asset-sale proceeds should not be treated as operating cash generation. Raminfo adjusted Rs 42.13 lakh of profit on asset sales in reconciling profit before tax to operating cash flow, while the gross cash proceeds are classified under investing activities. Property, plant and equipment declined to Rs 20.73 crore at September 30, 2026 from Rs 25.72 crore at March 31, 2026.

Other intangible assets also fell to Rs 2.11 crore at September 30, 2026 from Rs 2.90 crore at March 31, 2026. The filing does not identify the assets sold for the Rs 5.10 crore proceeds or disclose a plan for additional asset disposals, so the reported investing inflow provides no stated target for future investing cash generation.

What happened to Raminfo's cash and earnings during the half year?

Raminfo's cash and cash equivalents decreased by Rs 2.02 crore during the half year ended September 30, 2026. The Rs 7.56 crore operating outflow was partly offset by Rs 5.87 crore from investing activities, while financing activities used Rs 32.90 lakh, producing the reported net decline.

The cash-flow statement reports Rs 19.44 crore of total cash and cash equivalents at September 30, 2026, comprising Rs 4.42 crore of bank balances, Rs 15.00 crore of fixed deposits and Rs 1.65 lakh of cash in hand. The balance sheet separately reports Rs 4.44 crore as cash and cash equivalents and Rs 15.00 crore as bank balances other than cash and cash equivalents.

Profit and revenue increased from the prior-year half year despite the operating cash deficit. Revenue from operations rose to Rs 43.67 crore for the half year ended September 30, 2026 from Rs 23.45 crore a year earlier, while total income increased to Rs 47.49 crore from Rs 24.61 crore.

Net profit after tax increased to Rs 2.28 crore from Rs 82.16 lakh, and basic earnings per share rose to Rs 2.14 from Rs 1.09. In the September 2026 quarter, net profit after tax was Rs 1.84 crore, compared with Rs 41.80 lakh in the June 2026 quarter, although quarterly revenue from operations declined to Rs 17.47 crore from Rs 26.20 crore.

Conclusion

Raminfo's September 2026 half-year figures show that higher reported earnings did not translate into operating cash generation. The Rs 7.56 crore operating outflow reflected cash absorbed by receivables, loans, inventories and other asset movements, while the Rs 5.87 crore investing inflow depended principally on Rs 5.10 crore of asset-sale proceeds.

The next disclosed financial statements will show whether trade receivables of Rs 53.03 crore, loans and advances of Rs 23.66 crore and inventories of Rs 6.76 crore decline or continue rising. The filing gives no management target for collections, working capital or future asset sales, leaving subsequent cash-flow disclosures as the stated measure of any change in cash conversion.