Ramky Infrastructure revenue rises as operating cash turns negative

Ramky Infrastructure Limited reported consolidated revenue from operations of Rs 1,075.766 crore for the half year ended September 30, 2026, up from Rs 850.883 crore a year earlier, while net cash used in operating activities was Rs 73.515 crore against cash generated of Rs 162.138 crore in the previous corresponding period.

How did Ramky Infrastructure perform in the first half?

Ramky Infrastructure grew first-half revenue but reported lower profit before tax and net profit. Revenue from operations increased by Rs 224.883 crore to Rs 1,075.766 crore in the half year ended September 30, 2026, while profit before tax declined to Rs 179.203 crore from Rs 208.371 crore and net profit after tax fell to Rs 141.605 crore from Rs 152.664 crore.

Total income rose to Rs 1,218.993 crore from Rs 969.173 crore, as other income increased to Rs 143.227 crore from Rs 118.290 crore. Finance costs and amortisation were Rs 81.803 crore for the six months, compared with Rs 39.804 crore a year earlier, while depreciation expense decreased to Rs 18.919 crore from Rs 28.654 crore.

The September 2026 quarter contributed Rs 604.538 crore of revenue from operations, compared with Rs 471.228 crore in the June 2026 quarter and Rs 471.642 crore in the September 2025 quarter. Quarterly profit before tax was Rs 124.023 crore, above Rs 55.180 crore in the preceding quarter and Rs 107.548 crore a year earlier.

Which businesses drove Ramky Infrastructure’s revenue and segment result?

Ramky Infrastructure’s construction business generated the larger revenue increase, while the developer business improved its segment result despite lower half-year revenue. Construction segment revenue rose to Rs 990.433 crore from Rs 798.870 crore, whereas developer segment revenue decreased to Rs 279.015 crore from Rs 285.941 crore in the corresponding 2025 half year.

Construction profit before tax and interest declined to Rs 78.854 crore from Rs 110.970 crore. The developer business reported profit before tax and interest of Rs 38.053 crore, compared with Rs 18.935 crore a year earlier, and shifted from a Rs 2.560 crore loss in the June 2026 quarter to a Rs 40.913 crore profit in the September 2026 quarter.

Gross segment revenue before inter-segment eliminations was Rs 1,269.448 crore, compared with Rs 1,084.811 crore a year earlier. Inter-segment revenue declined to Rs 193.682 crore from Rs 233.928 crore, producing the reported consolidated revenue from operations of Rs 1,075.766 crore.

Why did Ramky Infrastructure’s operating cash flow turn negative?

Ramky Infrastructure used Rs 73.515 crore in operating activities during the half year ended September 30, 2026, compared with generating Rs 162.138 crore in the prior-year period. Cash generated from operations turned to an outflow of Rs 34.308 crore from an inflow of Rs 208.491 crore, while net income tax paid was Rs 39.207 crore against Rs 46.353 crore.

Working-capital movements were an outflow of Rs 208.857 crore, compared with an outflow of Rs 4.039 crore a year earlier. Other financial assets consumed Rs 161.244 crore, other non-financial assets used Rs 43.648 crore, inventories increased by Rs 18.625 crore and trade payables decreased by Rs 12.470 crore; a Rs 57.696 crore decrease in trade receivables partly offset these movements.

Investing activities used Rs 605.607 crore, principally because loans and advances made and repayments received produced a net outflow of Rs 639.740 crore. Financing activities generated Rs 642.596 crore, including Rs 646.397 crore of net long-term borrowing proceeds and Rs 80.390 crore of net short-term borrowing proceeds, while finance costs paid were Rs 76.971 crore.

The combined cash movements reduced cash and cash equivalents to Rs 112.666 crore at September 30, 2026, from Rs 148.893 crore at the beginning of the financial year. The group paid a final dividend of Rs 1 per equity share, aggregating Rs 6.920 crore, during the September 2026 quarter for financial year 2025-26.

How did Ramky Infrastructure’s balance sheet and funding change?

Ramky Infrastructure’s total assets increased to Rs 4,929.481 crore at September 30, 2026, from Rs 4,123.934 crore at March 31, 2026, while total liabilities rose to Rs 2,636.170 crore from Rs 1,965.684 crore. Total equity increased to Rs 2,293.313 crore from Rs 2,156.250 crore over the same period.

The largest asset movement was in non-current loans, which rose to Rs 789.690 crore from Rs 149.950 crore. Other non-current financial assets increased to Rs 1,650.067 crore from Rs 1,495.513 crore, while current trade receivables fell to Rs 709.249 crore from Rs 766.945 crore and inventories increased to Rs 115.418 crore from Rs 96.793 crore.

Non-current borrowings increased to Rs 994.646 crore at September 30 from Rs 348.250 crore at March 31, and current borrowings rose to Rs 323.323 crore from Rs 242.933 crore. Developer segment liabilities were Rs 1,104.724 crore at September 30, compared with Rs 305.188 crore at March 31, while construction segment liabilities declined to Rs 1,521.696 crore from Rs 1,651.277 crore.

The consolidated results were approved by Ramky Infrastructure’s board on November 6, 2026, and received an unqualified limited-review conclusion. The reporting framework is Indian Accounting Standards, or Ind AS, prescribed under Section 133 of the Companies Act, 2013.

What project matters remain unresolved for Ramky Infrastructure?

Ramky Infrastructure disclosed that Srinagar Banihal Expressway Limited, a subsidiary, is pursuing arbitration over Rs 250.946 crore deducted by the National Highways Authority of India, or NHAI, from annuities in previous years. The deductions related to substandard steel, high-embankment deviation and other matters, and an independent engineer recommended release of Rs 187.275 crore in financial year 2023-24.

The subsidiary is confident that the full amount is recoverable, but no accounting adjustment has been made because the eventual outcome is unascertainable. The auditors highlighted this as an emphasis-of-matter item but did not modify their conclusion on Ramky Infrastructure’s consolidated financial results.

Hospet Chitradurga Tollways Limited, another subsidiary, ceased to be a going concern after the project was terminated by mutual consent with NHAI in financial year 2014-15. The disclosed consequential financial impact was provided in an earlier financial year, and the matter was also highlighted in the earlier audit report.

Conclusion

Ramky Infrastructure’s first-half figures show that higher construction revenue and improved developer-segment profitability lifted revenue to Rs 1,075.766 crore, but profit before tax declined and operating cash flow moved to a Rs 73.515 crore outflow. The cash-flow pattern included Rs 605.607 crore used in investing activities and Rs 642.596 crore generated through financing activities.

The next disclosure should show whether the Rs 639.740 crore net outflow for loans and advances, the Rs 161.244 crore use of cash in other financial assets and the increase in borrowings change further. Ramky Infrastructure has also disclosed no timetable for the Srinagar Banihal subsidiary’s arbitration over Rs 250.946 crore of NHAI deductions, leaving that outcome unresolved.