RCF operating cash reaches Rs 1,831.10 crore as payables surge

Rashtriya Chemicals and Fertilizers Limited generated Rs 1,831.10 crore of net operating cash in the half year ended 30 September 2026, up from Rs 1,293.39 crore a year earlier, as a Rs 4,817.83 crore inflow from trade payables and other liabilities exceeded cash absorbed by inventories and other operating assets.

What produced RCF’s Rs 1,831.10 crore operating cash flow?

RCF generated Rs 1,831.10 crore from operating activities after paying direct taxes, net of refunds, of Rs 66.50 crore in the half year ended 30 September 2026. Cash generated from operations before tax was Rs 1,897.60 crore, compared with Rs 1,340.84 crore in the corresponding half of 2025. The statement uses the indirect method under Indian Accounting Standard 7, or Ind AS 7.

The starting operating profit before working-capital changes was Rs 601.89 crore, up from Rs 445.09 crore a year earlier. It comprised profit before tax of Rs 279.78 crore and net adjustments of Rs 322.11 crore, including depreciation, amortisation and impairment of Rs 164.73 crore, interest and finance charges of Rs 136.12 crore, and unrealised foreign-exchange loss of Rs 34.73 crore.

How did working capital change at RCF?

RCF recorded a net Rs 1,295.71 crore working-capital inflow during the September 2026 half year, compared with Rs 895.75 crore in the previous-year period. The improvement was driven by a Rs 4,817.83 crore inflow from trade payables and other liabilities, which exceeded Rs 2,147.43 crore absorbed by inventories and Rs 1,374.69 crore absorbed by trade receivables and other assets.

The inventory outflow increased by Rs 1,296.99 crore from Rs 850.44 crore a year earlier, while the outflow for trade receivables and other assets increased by Rs 1,224.88 crore from Rs 149.81 crore. In contrast, the inflow from trade payables and other liabilities increased by Rs 2,921.83 crore from Rs 1,896.00 crore. The resulting net working-capital inflow was Rs 399.96 crore higher year on year.

The cash-flow statement groups receivables with other assets and payables with other liabilities. It therefore does not identify how much of the Rs 4,817.83 crore inflow arose from each individual balance-sheet category, although the statement separately records the inventory, asset and liability cash-flow movements.

Which balance-sheet lines moved most at RCF?

RCF reported inventories of Rs 3,744.96 crore at 30 September 2026, against Rs 1,597.37 crore at 31 March 2026 and Rs 2,437.77 crore at 30 September 2025. The Rs 2,147.59 crore rise over the six months was broadly consistent with the Rs 2,147.43 crore inventory outflow reported in the cash-flow statement.

Trade payables to creditors other than micro and small enterprises reached Rs 4,470.55 crore at 30 September 2026, compared with Rs 1,478.69 crore at 31 March 2026. Payables to micro and small enterprises were Rs 66.94 crore, against Rs 76.35 crore six months earlier, taking the two disclosed trade-payable categories to Rs 4,537.49 crore.

Current borrowings were Rs 1,864.78 crore at 30 September 2026, lower than Rs 2,371.18 crore at 31 March 2026. Cash and cash equivalents increased to Rs 969.92 crore from Rs 123.89 crore at the start of the financial year, while total assets rose to Rs 21,207.86 crore from Rs 16,709.22 crore.

How did RCF’s operating cash compare with profit and revenue?

RCF’s net operating cash increased by Rs 537.71 crore year on year, while profit before tax increased by Rs 64.02 crore to Rs 279.78 crore. The difference reflects the Rs 322.11 crore of non-cash and other adjustments before working-capital movements, followed by the positive net movement in operating liabilities after inventory and asset cash outflows.

Revenue from operations was Rs 8,648.90 crore in the half year ended 30 September 2026, marginally below Rs 8,663.16 crore in the corresponding 2025 period. Segment revenue from fertilizers increased to Rs 6,513.02 crore from Rs 5,090.82 crore, while trading revenue fell to Rs 914.51 crore from Rs 2,854.86 crore and industrial chemicals revenue rose to Rs 1,214.09 crore from Rs 709.55 crore.

The current ratio was 1.16 at 30 September 2026, compared with 1.19 at 31 March 2026 and 1.27 a year earlier. Debtors turnover was 1.84 for the half year, versus 3.00 in the corresponding period, and inventory turnover was 3.22, compared with 7.87. RCF states that quarterly and half-year ratios are not annualised.

What happened to RCF’s investing and financing cash flows?

RCF ended 30 September 2026 with Rs 969.92 crore of cash and cash equivalents, up Rs 846.03 crore from the Rs 123.89 crore opening balance at 1 April 2026. The increase followed the Rs 1,831.10 crore operating inflow, partly offset by Rs 345.99 crore used in investing activities and Rs 639.08 crore used in financing activities.

Investing cash used fell to Rs 345.99 crore from Rs 1,067.05 crore in the prior-year half. Additions to property, plant, equipment and intangible assets were Rs 314.36 crore, compared with Rs 645.84 crore a year earlier, while margin-money deposits placed with banks were Rs 60.85 crore.

Financing activities used Rs 639.08 crore, compared with an outflow of Rs 140.89 crore in the comparable 2025 half year. Interest paid increased to Rs 177.08 crore from Rs 139.76 crore, while the cash-flow statement recorded Rs 437.42 crore of proceeds from term loans and non-convertible debentures and Rs 788.36 crore of net repayment of working-capital facilities.

Conclusion

RCF’s Rs 1,831.10 crore first-half operating cash inflow was Rs 537.71 crore above the prior-year level and exceeded its Rs 279.78 crore profit before tax. The cash outcome was shaped principally by the Rs 4,817.83 crore trade-payables and other-liabilities inflow, which covered the Rs 2,147.43 crore inventory outflow and the Rs 1,374.69 crore outflow for trade receivables and other assets.

The next disclosures will show whether inventories of Rs 3,744.96 crore and disclosed trade payables of Rs 4,537.49 crore persist or change. RCF has also sought reconsideration from the Department of Fertilizers after its 23 October 2026 communication on the gas-pooling matter, while the revised energy-consumption norm for the Thal unit remains applicable through 31 March 2028.