RELICAB CABLE MANUFACTURING LIMITED reports operating cash outflow

RELICAB CABLE MANUFACTURING LIMITED reported Rs 91.39 lakh of net cash used in operating activities for the half year ended September 30, 2026, despite Rs 78.97 lakh of profit after tax, as a Rs 2.9974 crore rise in trade and other receivables contributed to a Rs 3.7783 crore working-capital outflow. Net loans borrowed were Rs 4.0098 crore.

Why did Relicab Cable report an operating cash outflow?

Relicab Cable reported net operating cash outflow of Rs 91.39 lakh in the half year ended September 30, 2026, against net operating cash inflow of Rs 1.0646 crore in the corresponding half year ended September 30, 2025. The reversal occurred after working-capital movements used Rs 3.7783 crore in the latest period, exceeding operating profit before working-capital changes of Rs 2.9885 crore.

Profit before tax and extraordinary items rose to Rs 1.203 crore for the September 2026 half year from Rs 1.0762 crore a year earlier. The indirect-method cash-flow statement included Rs 37.22 lakh of depreciation, Rs 1.5072 crore of interest paid and Rs 10.20 lakh of interest received in arriving at operating profit before working-capital changes.

Cash generated from operations was negative Rs 78.98 lakh, compared with positive Rs 1.0494 crore in the prior-year half year. Direct taxes paid of Rs 12.40 lakh then took net cash used in operating activities to Rs 91.39 lakh; the corresponding 2025 cash-flow statement instead showed Rs 1.53 lakh of direct-tax inflow.

How did receivables and working capital affect Relicab Cable?

Trade and other receivables were Relicab Cable’s largest disclosed working-capital use of cash, absorbing Rs 2.9974 crore during the six months to September 30, 2026. That was lower than the Rs 5.1278 crore receivables outflow reported in the September 2025 half year, but it was larger than the current period’s Rs 2.9885 crore operating profit before working-capital changes.

Trade receivables on the balance sheet increased to Rs 20.4029 crore at September 30, 2026, from Rs 17.4055 crore at March 31, 2026. The Rs 2.9974 crore movement matches the receivables adjustment in the cash-flow statement, linking the half-year cash use to a higher reported receivables balance at period end.

Inventories released Rs 7.34 lakh of cash in the September 2026 half year, compared with cash use of Rs 90.19 lakh a year earlier. Inventory stood at Rs 19.1898 crore at September 30, compared with Rs 19.2632 crore at March 31, while the cash-flow statement recorded a Rs 91.01 lakh increase in trade payables.

Other current liabilities consumed Rs 2.5426 crore of cash, compared with a Rs 31.28 lakh cash inflow from that line in the corresponding 2025 period. Short-term advances used Rs 12.14 lakh, other current assets used Rs 3.20 lakh and other non-current assets released Rs 66.05 lakh, together contributing to the Rs 3.7783 crore net working-capital outflow.

How did Relicab Cable fund operating and investing outflows?

Relicab Cable generated Rs 2.5026 crore of net cash from financing activities in the half year ended September 30, 2026, versus net financing cash use of Rs 96.41 lakh in the corresponding prior-year period. Loans borrowed, net of repayment, supplied Rs 4.0098 crore, while interest paid used Rs 1.5072 crore.

Long-term borrowings increased to Rs 18.7822 crore at September 30, 2026, from Rs 14.6256 crore at March 31, 2026, a rise of Rs 4.1566 crore. Current borrowings, meanwhile, declined from Rs 14.67 lakh at March 31 to nil at September 30, movements that are consistent with the reported net borrowing inflow after repayments.

Investing activities used Rs 1.809 crore in the September 2026 half year, compared with Rs 43.60 lakh used a year earlier. The company spent Rs 1.911 crore on the purchase of fixed assets and received Rs 10.20 lakh of interest; property, plant and equipment rose to Rs 4.8163 crore from Rs 3.2775 crore at March 31.

The Rs 2.5026 crore financing inflow did not fully cover the combined Rs 2.7229 crore operating and investing cash outflows. Cash and bank balances therefore decreased by Rs 22.02 lakh over the half year, from Rs 3.5578 crore at the beginning of the financial year to Rs 3.3376 crore at September 30.

What do Relicab Cable’s profit and balance-sheet figures show?

Relicab Cable reported profit after tax of Rs 78.97 lakh for the half year ended September 30, 2026, down from Rs 84.08 lakh in the corresponding 2025 half year, although revenue from operations rose to Rs 43.3514 crore from Rs 24.99 crore. The latest result included a Rs 42.28 lakh exceptional loss after the company identified theft of inventory during the September 2026 quarter and half year.

Relicab Cable said it wrote down the carrying value of the affected inventory and recognised the loss under exceptional items. It also said it had filed a First Information Report with police authorities and lodged an insurance claim; the auditor’s November 13, 2026 limited-review report said the police complaint and insurance claim were pending settlement, while its conclusion was not modified on that matter.

Cash and cash equivalents were Rs 3.38 lakh at September 30, 2026, compared with Rs 37.37 lakh at March 31. Other bank balances were Rs 3.3038 crore at September 30, making total cash and bank balances of Rs 3.3376 crore in the cash-flow statement.

Total equity rose to Rs 16.2336 crore at September 30 from Rs 15.4438 crore at March 31, while total assets increased to Rs 54.9505 crore from Rs 51.2165 crore. Total non-current liabilities increased to Rs 19.2705 crore from Rs 14.8212 crore over the same period, principally alongside the higher long-term borrowings.

Conclusion

The September 2026 half-year figures show that Relicab Cable’s Rs 78.97 lakh reported profit did not convert into positive operating cash flow. A Rs 2.9974 crore receivables movement and other working-capital changes produced a Rs 91.39 lakh operating outflow, while Rs 1.809 crore of investment cash use increased funding needs and net loans borrowed supplied Rs 4.0098 crore.

The disclosed matters to watch next are the resolution of the Rs 42.28 lakh inventory-theft insurance claim and related recovery action, which remained pending as of November 13, 2026. Subsequent results will also show whether trade receivables of Rs 20.4029 crore at September 30 convert to cash and whether borrowing levels change after long-term borrowings reached Rs 18.7822 crore.