RPP Infra borrowings rise Rs 78.48 crore as cash falls

R.P.P. Infra Projects Limited raised Rs 78.48 crore through borrowings in the half year ended 30 September 2026, while cash and cash equivalents fell Rs 14.06 crore to Rs 16.71 crore after Rs 32.60 crore of operating cash outflow and Rs 51.13 crore of investing outflow. Total borrowings reached Rs 179.48 crore at the reporting date.

Why did RPP Infra’s cash flow turn negative?

RPP Infra reported net cash used in operating activities of Rs 32.60 crore for the half year ended 30 September 2026, compared with net cash generated of Rs 7.33 crore in the corresponding half year of 2025. The reversal came as profit before tax declined to Rs 7.59 crore from Rs 33.27 crore, reducing the cash contribution before working-capital movements.

Cash generated before working-capital changes was Rs 16.28 crore, against Rs 43.43 crore a year earlier. RPP Infra paid Rs 11.78 crore in direct taxes in the latest half year, compared with Rs 11.57 crore in the prior-year period, while cash generated from or used in operations before tax was a negative Rs 20.83 crore.

Working-capital movements included a Rs 54.92 crore decrease in trade payables, broadly unchanged from a Rs 54.90 crore decrease in the earlier half year. Trade receivables decreased by Rs 42.31 crore during the latest period, compared with a Rs 70.70 crore decrease a year earlier, meaning receivable collections provided less cash support than in the comparative period.

Other financial assets increased by Rs 68.66 crore and non-current financial assets increased by Rs 11.53 crore in the cash-flow reconciliation. Inventories declined by Rs 3.38 crore, compared with a Rs 33.22 crore increase in the corresponding 2025 half year, while short-term loans and advances decreased by Rs 16.12 crore.

What did RPP Infra spend on investment and fixed assets?

RPP Infra used Rs 51.13 crore in investing activities in the half year ended 30 September 2026, compared with an outflow of Rs 38.33 crore in the year-earlier period. Payments to purchase property, plant and equipment were Rs 53.46 crore, up from Rs 42.64 crore, and were the largest disclosed investing cash use.

The group received Rs 0.56 crore from the sale of property, plant and equipment and Rs 1.76 crore of interest during the latest half year. In the comparative period, these inflows were Rs 1.63 crore and Rs 2.66 crore respectively, so both asset-sale proceeds and interest received were lower.

Capital work in progress stood at Rs 56.29 crore on 30 September 2026, up from Rs 11.82 crore at 31 March 2026. Property, plant and equipment increased to Rs 139.58 crore from Rs 132.15 crore, while total non-current assets rose to Rs 322.83 crore from Rs 267.41 crore.

The Rs 44.47 crore increase in capital work in progress was larger than the Rs 7.43 crore increase in property, plant and equipment. This indicates that much of the balance-sheet increase in these assets remained classified as work in progress at 30 September rather than completed property, plant and equipment.

How much did RPP Infra borrow in the September half year?

RPP Infra recorded Rs 78.48 crore of proceeds from borrowings in the six months ended 30 September 2026 and reported Rs 0.00 of borrowing repayments in the cash-flow statement. After paying Rs 8.81 crore of interest, financing activities produced net cash of Rs 69.67 crore, compared with Rs 48.39 crore in the corresponding 2025 period.

Non-current borrowings rose to Rs 56.47 crore at 30 September 2026 from Rs 2.57 crore at 31 March 2026. Current borrowings increased to Rs 123.01 crore from Rs 98.43 crore, taking combined borrowings to Rs 179.48 crore from Rs 101.00 crore over the six months.

The Rs 78.48 crore increase in combined borrowing balances matched the disclosed proceeds from borrowings in the period. RPP Infra’s finance cost was Rs 8.81 crore in the September 2026 half year, compared with Rs 8.42 crore a year earlier, alongside the increase in non-current and current borrowings.

Borrowing proceeds did not fully cover the combined Rs 83.73 crore operating and investing outflow. Net financing cash was Rs 69.67 crore after interest payments, leaving a Rs 14.06 crore reduction in cash and cash equivalents during the six months.

What changed in RPP Infra’s balance sheet and earnings?

RPP Infra’s cash and cash equivalents declined to Rs 16.71 crore at 30 September 2026 from Rs 30.78 crore at 31 March 2026. In the prior-year half year, cash increased by Rs 17.39 crore to Rs 39.77 crore, contrasting with the Rs 14.06 crore decline in the latest period.

Total current assets rose to Rs 781.52 crore from Rs 767.50 crore over the six months. Trade receivables declined to Rs 103.26 crore from Rs 145.57 crore and loans fell to Rs 46.14 crore from Rs 62.26 crore, while other financial assets increased to Rs 490.96 crore from Rs 422.30 crore.

Current liabilities increased to Rs 501.31 crore from Rs 492.29 crore. Trade payables to creditors other than micro and small enterprises declined to Rs 93.64 crore from Rs 146.90 crore, whereas other current financial liabilities increased to Rs 278.62 crore from Rs 235.47 crore.

Revenue from operations increased to Rs 685.92 crore in the half year ended 30 September 2026 from Rs 663.75 crore a year earlier. However, profit after tax declined to Rs 5.59 crore from Rs 24.67 crore, and earnings per share, not annualised, fell to Rs 1.13 from Rs 4.98.

Conclusion

RPP Infra’s September 2026 half-year statements show that Rs 78.48 crore of borrowing proceeds supported operating and investment cash requirements, but did not prevent cash from falling to Rs 16.71 crore. The group’s Rs 53.46 crore property, plant and equipment purchases coincided with a substantial rise in capital work in progress and a shift from operating cash generation in the earlier period to a Rs 32.60 crore outflow.

The next financial results will show whether the Rs 56.29 crore of capital work in progress is transferred into completed assets and whether operating cash flow changes from its September-half outflow. They will also update the split between Rs 56.47 crore of non-current borrowings and Rs 123.01 crore of current borrowings, as well as finance cost after the Rs 8.81 crore reported for the half year.