Rex Pipes reports Rs 6.63 crore operating cash outflow in H1

Rex Pipes and Cables Industries Limited reported a Rs 6.63 crore net operating cash outflow in the half year ended September 30, 2026, as working-capital movements outweighed its Rs 3.61 crore profit for the period; Rex Pipes recorded a Rs 7.22 crore financing inflow led by borrowings.

Why did Rex Pipes report an operating cash outflow despite profit?

Rex Pipes reported an operating cash outflow because working-capital movements more than offset its Rs 6.11 crore operating profit before working-capital changes in the half year ended September 30, 2026. Profit before tax was Rs 4.52 crore and profit for the period was Rs 3.61 crore, but cash generated from operations was negative Rs 5.61 crore before net income taxes paid of Rs 1.02 crore.

The cash-flow statement shows that receivables, advances, inventories and other current assets consumed cash during the period. These uses exceeded the operating-profit measure, despite cash support from a Rs 2.06 crore increase in trade payables. Declines in other liabilities and short-term provisions also reduced available operating cash.

The latest result contrasts with the year ended March 31, 2026, when Rex Pipes generated Rs 4.15 crore of net cash from operating activities. Cash generated from operations was Rs 6.03 crore in that full year, followed by Rs 1.89 crore of net income taxes paid. The periods are not directly equivalent because the latest figure covers six months and the comparator covers a full financial year.

Which working-capital balances absorbed Rex Pipes cash?

Rex Pipes’ largest disclosed working-capital cash use was the Rs 4.27 crore increase in trade receivables in the September 2026 half year. Trade receivables stood at Rs 38.42 crore on September 30, 2026, compared with Rs 34.14 crore on March 31, 2026, according to the consolidated balance sheet.

Short-term loans and advances increased by Rs 3.49 crore in the cash-flow statement, while inventories increased by Rs 2.17 crore and other current assets increased by Rs 1.10 crore. On the balance sheet, short-term loans and advances were Rs 6.50 crore at September 30, 2026, up from Rs 3.01 crore, while inventories rose to Rs 28.96 crore from Rs 26.79 crore.

Trade payables provided a partial offset, increasing by Rs 2.06 crore during the half year. However, other liabilities declined by Rs 2.56 crore and short-term provisions declined by Rs 0.19 crore. Together with the asset increases, these movements turned the Rs 6.11 crore pre-working-capital operating-profit figure into negative Rs 5.61 crore of cash generated from operations.

How did Rex Pipes finance its cash requirements?

Rex Pipes financed its operating and investing outflows with a Rs 7.22 crore net financing cash inflow in the half year ended September 30, 2026. Net proceeds from long-term borrowings were Rs 2.98 crore and net proceeds from short-term borrowings were Rs 5.37 crore, while interest paid was Rs 1.14 crore.

This differed from the year ended March 31, 2026, when financing activities used Rs 2.84 crore of cash. In that full year, the company recorded net repayment of Rs 0.31 crore of long-term borrowings, net proceeds of Rs 0.19 crore from short-term borrowings and Rs 2.72 crore of interest paid.

The balance sheet shows long-term borrowings of Rs 3.65 crore at September 30, 2026, compared with Rs 0.67 crore at March 31, 2026. The Rs 2.98 crore rise is consistent with the net long-term borrowing proceeds reported in the cash-flow statement, while the statement separately identifies Rs 5.37 crore of net short-term borrowing proceeds.

What happened to Rex Pipes investment spending and cash balance?

Rex Pipes used Rs 0.58 crore in investing activities in the half year ended September 30, 2026, compared with Rs 1.11 crore used in the year ended March 31, 2026. Fixed-asset purchases were Rs 1.41 crore and increased non-current investments used Rs 0.64 crore, partly offset by a Rs 1.32 crore decrease in non-current assets and Rs 0.15 crore of interest income received.

Property, plant and equipment were Rs 10.33 crore at September 30, 2026, against Rs 9.55 crore at March 31, 2026. Non-current investments increased to Rs 1.70 crore from Rs 1.06 crore. These balance-sheet movements provide context for the investing cash flows, although the cash-flow statement records the timing of cash movements rather than each closing balance change.

Cash and cash equivalents ended the half year at Rs 1.18 crore, versus Rs 1.17 crore at the start of the financial year. The reported net increase was Rs 0.78 lakh, as the Rs 7.22 crore financing inflow substantially offset the Rs 6.63 crore operating outflow and the Rs 0.58 crore investing outflow.

Did Rex Pipes improve profit in the September 2026 half year?

Rex Pipes reported higher profit despite a decline in revenue in the half year ended September 30, 2026. Revenue from operations was Rs 60.12 crore, down from Rs 60.69 crore in the corresponding prior half year, while profit before tax rose to Rs 4.52 crore from Rs 2.82 crore and profit for the period increased to Rs 3.61 crore from Rs 1.96 crore.

Total income was Rs 61.13 crore in both half-year periods, while total expenses declined to Rs 56.61 crore from Rs 58.31 crore. Basic and diluted earnings per share were Rs 3.82, compared with Rs 2.07 a year earlier. Rex Pipes states that half-year earnings per share are not annualised.

The figures are unaudited consolidated results that include Swastik Infracity Private Limited, which the filing identifies as a subsidiary. Rex Pipes also states that it operates in a single business segment for Accounting Standard 17 segment-reporting purposes. The auditors issued a limited-review conclusion dated November 13, 2026, rather than an audit opinion.

Conclusion

Rex Pipes’ September 2026 half-year accounts show that reported profit and operating cash flow moved in opposite directions. The Rs 3.61 crore profit was followed by a Rs 6.63 crore operating cash outflow as receivables, short-term loans and advances, inventories and other current assets increased. Additional long-term and short-term borrowings produced a Rs 7.22 crore financing inflow and left cash broadly unchanged.

The unresolved issue in the filing is whether the higher working-capital balances convert back into cash in subsequent reporting periods. The next results can be assessed against September 30, 2026 balances of Rs 38.42 crore in receivables, Rs 28.96 crore in inventories and Rs 6.50 crore in short-term loans and advances, alongside long-term borrowings of Rs 3.65 crore.