Rapicut Carbides Limited posts ₹11.72 crore cash outflow

Rapicut Carbides Limited reported a Rs 11.72 crore operating cash outflow for the half year ended September 30, 2026, despite Rs 13.25 crore of profit before tax, as a Rs 35.48 crore inventory increase and a Rs 24.41 crore reduction in other liabilities outweighed its operating profit and higher trade payables.

Why did Rapicut Carbides report negative operating cash flow?

Rapicut Carbides reported negative operating cash flow because working-capital movements converted Rs 14.25 crore of operating profit before working-capital changes into a Rs 9.69 crore cash outflow from operations. After net direct taxes paid of Rs 2.04 crore, net cash used in operating activities reached Rs 11.72 crore in the half year ended September 30, 2026.

The cash-flow statement began with pre-tax profit of Rs 13.25 crore and added Rs 31.85 lakh of depreciation and amortisation, Rs 50.68 lakh of interest paid, and Rs 28.30 lakh of allowance for bad and doubtful debts. Interest income of Rs 3.33 lakh and sundry balances written back of Rs 7.43 lakh reduced these adjustments, producing the Rs 14.25 crore operating-profit figure before working-capital movements.

Inventories were the largest cash use, absorbing Rs 35.48 crore in the September 2026 half year, compared with Rs 3.62 crore in the half year ended September 30, 2025. Trade receivables used Rs 39.32 lakh, other financial assets used Rs 2.91 lakh and other assets used Rs 32.06 lakh during the latest half year.

Trade payables provided Rs 36.76 crore of cash, compared with Rs 3.53 crore in the prior-year half, but this was offset by a Rs 24.41 crore reduction in other liabilities. Provisions used Rs 10.11 lakh, while other financial liabilities added Rs 3.37 lakh of cash in the half year ended September 30, 2026.

How did Rapicut Carbides’ working capital change?

Rapicut Carbides’ inventory balance rose to Rs 74.19 crore at September 30, 2026 from Rs 38.71 crore at March 31, 2026, matching the Rs 35.48 crore inventory cash outflow in the cash-flow statement. The financial results do not give a product-level explanation or an operational reason for the increase.

Trade receivables increased to Rs 6.36 crore at September 30, 2026 from Rs 6.25 crore at March 31, 2026. Other current assets rose to Rs 11.24 crore from Rs 10.91 crore over the same six-month period, while the cash-flow statement records Rs 32.06 lakh of cash used under other assets.

Trade payables due to micro and small enterprises increased to Rs 46.25 crore from Rs 9.54 crore between March 31 and September 30, 2026. In contrast, other current liabilities declined to Rs 7.34 crore from Rs 31.75 crore, consistent with the Rs 24.41 crore cash outflow reported under other liabilities.

The balance sheet also showed current tax assets of Rs 2.05 crore at September 30, 2026, compared with Rs 3.60 lakh at March 31, 2026. Current liabilities totalled Rs 67.23 crore, up from Rs 42.85 crore, while total current assets increased to Rs 93.88 crore from Rs 59.01 crore.

How did Rapicut Carbides’ earnings compare with cash flow?

Rapicut Carbides generated Rs 13.25 crore of profit before tax and Rs 10.38 crore of profit after tax in the half year ended September 30, 2026, while recording a Rs 11.72 crore operating cash outflow. In the half year ended September 30, 2025, it reported a pre-tax loss of Rs 4.11 lakh, a post-tax loss of Rs 15.75 lakh and an operating cash inflow of Rs 86.25 lakh.

Revenue from operations rose to Rs 113.42 crore in the September 2026 half year from Rs 26.20 crore a year earlier. Total expenses increased to Rs 100.32 crore from Rs 26.34 crore, resulting in the shift from the prior-year pre-tax loss to the current-period pre-tax profit.

The June 2026 quarter accounted for more of the half-year profit, with pre-tax profit of Rs 10.43 crore, compared with Rs 2.82 crore in the September 2026 quarter. Revenue from operations was Rs 82.04 crore in the June quarter and Rs 31.38 crore in the September quarter; the latter was above Rs 15.82 crore in the September 2025 quarter.

Finance costs for the half year were Rs 50.68 lakh, up from Rs 38.94 lakh in the half year ended September 30, 2025. Rapicut Carbides also recorded Rs 28.30 lakh of allowance for bad and doubtful debts in the latest half year, while no such amount was shown in the comparable prior-year cash-flow statement.

How did Rapicut Carbides finance its cash movements?

Rapicut Carbides recorded Rs 10.38 crore of net financing cash inflow in the half year ended September 30, 2026, led by Rs 10.89 crore of additions to borrowings and reduced by Rs 50.68 lakh of finance cost. That financing inflow partly covered the Rs 11.72 crore operating outflow and Rs 1.65 crore investing outflow.

The September 30 balance sheet showed current borrowings of Rs 9.23 crore and non-current borrowings of Rs 1.66 crore, together equalling Rs 10.89 crore. No amount was presented under either current or non-current borrowings in the March 31, 2026 balance sheet, while the cash-flow statement reported the Rs 10.89 crore net addition of borrowings.

Investing activities used Rs 1.65 crore, including Rs 1.68 crore spent on property, plant and equipment including capital work-in-progress, partly offset by Rs 2.86 lakh of interest income. Property, plant and equipment increased to Rs 6.69 crore at September 30, 2026 from Rs 4.72 crore at March 31, while capital work-in-progress fell to Rs 54.07 lakh from Rs 1.12 crore.

Cash and cash equivalents declined by Rs 3.00 crore, from Rs 3.00 crore at the beginning of the year to Rs 60,000 at September 30, 2026. The closing balance comprised Rs 33,000 of cash on hand and Rs 27,000 in current accounts under the indirect-method cash-flow statement prepared in accordance with Indian Accounting Standard 7.

Conclusion

Rapicut Carbides’ September 2026 half-year results show that Rs 13.25 crore of pre-tax profit did not translate into operating cash. The Rs 35.48 crore inventory increase and Rs 24.41 crore reduction in other liabilities exceeded the Rs 36.76 crore cash contribution from trade payables, resulting in a Rs 11.72 crore operating cash outflow.

With no cash-flow target or working-capital plan disclosed, the unresolved items to watch in later financial results are whether inventory of Rs 74.19 crore converts into sales and cash, and how trade payables of Rs 46.25 crore and borrowings of Rs 10.89 crore change after September 30, 2026.