Ravita Engineering posts Rs 7.42 crore operating cash outflow

Ravita Engineering Services Limited reported a Rs 7.42 crore cash outflow from operating activities for the half year ended September 30, 2026, despite recording Rs 27.41 crore of profit before tax. A Rs 32.21 crore rise in trade receivables and a Rs 17.01 crore inventory increase absorbed more cash than operating profit generated.

What caused Ravita Engineering’s operating cash outflow?

Ravita Engineering’s operating cash outflow resulted primarily from higher working-capital assets, which exceeded cash generated before working-capital changes. Profit before tax of Rs 27.41 crore, after adjustments for Rs 72.65 lakh of finance expenses, Rs 89.05 lakh of depreciation and amortisation, Rs 19.68 lakh of interest income, and a Rs 5.26 lakh gratuity provision, produced operating profit before working-capital changes of Rs 28.89 crore.

That operating profit was not enough to fund the period’s asset build-up. Trade receivables increased by Rs 32.21 crore, inventories rose by Rs 17.01 crore, short-term loans and advances increased by Rs 1.84 crore, and other current assets increased by Rs 2.63 crore. These uses of cash totalled Rs 53.69 crore before considering movements in liabilities.

Higher liabilities partly offset that cash use. Trade payables rose by Rs 13.35 crore, other current liabilities increased by Rs 5.23 crore, and short-term provisions added Rs 5 lakh. After these offsets, Ravita Engineering reported Rs 6.17 crore of cash used in operations; Rs 1.25 crore of income taxes paid then took net operating cash outflow to Rs 7.42 crore.

How did working-capital movements compare with last year?

Ravita Engineering’s operating cash deficit narrowed to Rs 7.42 crore in the half year ended September 30, 2026, from Rs 41.39 crore in the half year ended September 30, 2025. The Rs 33.97 crore improvement was largely linked to a smaller cash use in short-term loans and advances, which consumed Rs 1.84 crore in the latest period versus Rs 30.70 crore a year earlier.

Receivables and inventory nevertheless consumed more cash than in the prior-year period. The Rs 32.21 crore receivables increase was Rs 9.19 crore larger than the Rs 23.02 crore increase reported in the half year ended September 30, 2025. Inventory absorbed Rs 17.01 crore, compared with Rs 13.51 crore a year earlier, an additional Rs 3.50 crore use of cash.

The balance sheet shows the scale of those period-end balances. Trade receivables stood at Rs 105.47 crore on September 30, 2026, up from Rs 73.26 crore on March 31, 2026. Inventories were Rs 54.44 crore, compared with Rs 37.43 crore six months earlier. Together, the two balances increased by Rs 49.22 crore to Rs 159.91 crore.

Liability movements gave more support than a year earlier. Trade payables increased by Rs 13.35 crore during the latest half-year, against a Rs 8.10 crore increase in the September 2025 half-year. Other current liabilities rose by Rs 5.23 crore, compared with an increase of Rs 4 lakh in the earlier period, while the cash-flow statement recorded a Rs 5 lakh rise in short-term provisions.

How did borrowings and liquidity change?

Ravita Engineering funded its cash requirements through net borrowing proceeds of Rs 11.27 crore during the half year ended September 30, 2026. Net short-term borrowing proceeds were Rs 9.56 crore and net long-term borrowing proceeds were Rs 1.71 crore, while Rs 72.65 lakh of interest and other finance expenses were paid. These movements produced Rs 10.54 crore of financing cash inflow.

The funding pattern differed from the half year ended September 30, 2025, when financing activities generated Rs 43.41 crore. That earlier inflow included Rs 56.39 crore from the issue of shares, whereas the September 2026 cash-flow statement records no proceeds from share issuance. In 2025, short-term borrowings fell by Rs 12.34 crore and long-term borrowings fell by Rs 26.68 lakh on a net basis.

Short-term borrowings on the September 30, 2026 balance sheet were Rs 28.61 crore, up from Rs 19.05 crore at March 31, 2026. Long-term borrowings were Rs 1.87 crore, compared with Rs 16.02 lakh at March 31, 2026. Finance costs in the latest half-year were Rs 72.65 lakh, up from Rs 37.46 lakh in the half year ended September 30, 2025.

Cash and bank balances increased to Rs 8.12 crore at September 30, 2026, from Rs 5.15 crore at March 31, 2026. The cash-flow statement records a Rs 2.97 crore net increase in cash after the Rs 7.42 crore operating outflow, Rs 14.62 lakh investing outflow and Rs 10.54 crore financing inflow. Purchases of fixed assets accounted for Rs 32.29 lakh of the investing cash use.

What did profit and revenue do in the period?

Ravita Engineering’s accounting profit increased even as operations used cash. Revenue from operations reached Rs 198.44 crore in the half year ended September 30, 2026, compared with Rs 115.32 crore in the corresponding half-year of 2025. The Rs 83.12 crore increase was accompanied by profit before tax of Rs 27.41 crore, up from Rs 18.80 crore.

Construction and other direct expense rose to Rs 158.46 crore from Rs 89.99 crore in the prior-year half-year. Other expenses rose to Rs 9.44 crore from Rs 3.87 crore, while employee benefit expense increased to Rs 1.83 crore from Rs 1.33 crore. Total expenses were Rs 171.34 crore, compared with Rs 96.56 crore a year earlier.

Profit after tax was Rs 20.51 crore for the September 2026 half-year, against Rs 14.07 crore in the September 2025 half-year. Current tax was Rs 6.96 crore and deferred tax was a Rs 6.07 lakh credit, resulting in total tax expense of Rs 6.90 crore. Basic and diluted earnings per share were Rs 7.51, compared with Rs 6.00 in the earlier half-year.

The results were approved by Ravita Engineering’s board on November 13, 2026 and are unaudited. The company operates in one business segment and one geographic segment, India, under Accounting Standard 17, so the filing does not provide segment-level revenue, profit or cash-flow detail. Its shares were listed on the NSE Emerge platform on October 22, 2026, after the September 30 reporting date.

Conclusion

Ravita Engineering generated Rs 27.41 crore of pre-tax profit in the September 2026 half-year, but receivables and inventories expanded by Rs 49.22 crore and drove a Rs 7.42 crore operating cash outflow. Higher trade payables and other current liabilities partly offset that use of cash, while net short- and long-term borrowing proceeds of Rs 11.27 crore supported the resulting funding need.

The next financial results will show whether trade receivables of Rs 105.47 crore and inventories of Rs 54.44 crore begin converting into operating cash, and whether short-term borrowings remain above the Rs 28.61 crore reported at September 30, 2026. The filing discloses no cash-conversion target or borrowing-repayment plan, leaving these balance-sheet movements as the key unresolved measures.