Ruby Mills operating cash turns positive as cash falls Rs 7.30 crore

The Ruby Mills Limited generated Rs 27.70 crore of net operating cash in the half-year ended September 30, 2026, reversing a Rs 33.30 crore outflow a year earlier, but cash and cash equivalents fell Rs 7.30 crore to Rs 1.41 crore after investing activities used Rs 83.88 crore.

Why did Ruby Mills generate operating cash in the September half?

Ruby Mills generated Rs 27.70 crore of net cash from operating activities in the half-year ended September 30, 2026, compared with a Rs 33.30 crore net outflow in the corresponding 2025 period. Cash generated from operations was Rs 32.49 crore, and net taxes paid were Rs 4.80 crore, compared with Rs 31.39 crore of cash used in operations before tax in the prior-year half.

Profit before tax increased to Rs 85.96 crore from Rs 30.71 crore. The cash-flow reconciliation included Rs 25.74 crore of depreciation and amortisation expense, Rs 20.81 crore of finance costs and a Rs 78.30 crore gain on disposal of property, plant and equipment, resulting in operating profit before working-capital changes of Rs 39.23 crore, against Rs 28.26 crore a year earlier.

Working-capital changes included a Rs 2.18 crore release from inventories and a Rs 9.63 crore release from trade receivables. These inflows were partly offset by Rs 21.10 crore used by increased loans, Rs 4.93 crore used by other financial assets and Rs 8.10 crore outflow from lower trade payables; other current and non-current liabilities increased by Rs 26.24 crore.

The period's profit also included a disclosed property-sale item. Ruby Mills said other income included Rs 77.94 crore of profit on sale of property related to its real-estate business for the quarter and half-year ended September 30, 2026, while half-year profit after tax rose to Rs 62.67 crore from Rs 23.05 crore.

What caused Ruby Mills’ investing cash outflow?

Ruby Mills recorded an Rs 83.88 crore net investing outflow in the September 2026 half-year, compared with an Rs 21.52 crore outflow in the corresponding 2025 period. Purchases of current and non-current investments totalled Rs 257.64 crore, exceeding Rs 72.67 crore of proceeds from sales of investments and surpassing the Rs 217.55 crore spent on such purchases a year earlier.

The company received Rs 113.67 crore from disposal of property, plant and equipment or refund of capital advances, where the prior-year half had no comparable receipt. It also received Rs 0.54 crore of interest, but used Rs 7.77 crore for fixed deposits and Rs 5.35 crore for property, plant and equipment, including capital work-in-progress and capital advances.

The balance sheet reflected the increase in financial investments. Current investments rose to Rs 93.16 crore at September 30, 2026, from Rs 46.37 crore at March 31, while non-current investments increased to Rs 213.34 crore from Rs 68.80 crore. Loans also rose to Rs 34.85 crore from Rs 13.75 crore over the same six-month period.

Investment property fell to Rs 625.63 crore at September 30 from Rs 680.84 crore at March 31. The cash-flow statement's Rs 113.67 crore disposal or capital-advance-refund receipt and its Rs 78.30 crore disposal gain are separate measures, while the results note identifies Rs 77.94 crore of property-sale profit in other income.

How did borrowing affect Ruby Mills’ cash position?

Ruby Mills generated Rs 48.89 crore from financing activities in the half-year ended September 30, 2026, below Rs 60.93 crore a year earlier. Borrowing proceeds were Rs 110.65 crore and repayments were Rs 35.17 crore, while the company paid Rs 8.36 crore in dividends, Rs 17.62 crore in finance costs and Rs 0.61 crore for lease principal and interest.

The difference between borrowing proceeds and repayments was a Rs 75.48 crore net borrowing inflow, compared with Rs 67.54 crore in the corresponding 2025 half. The Rs 20.81 crore finance-cost figure in the operating cash-flow reconciliation is an accounting adjustment, whereas the financing section reports Rs 17.62 crore of finance-cost cash payments.

Non-current borrowings increased to Rs 386.98 crore at September 30, 2026, from Rs 332.79 crore at March 31. Current borrowings rose to Rs 61.21 crore from Rs 39.92 crore, taking total reported borrowings to Rs 448.19 crore from Rs 372.71 crore.

Cash and cash equivalents declined from Rs 8.71 crore at March 31 to Rs 1.41 crore at September 30, despite the operating and financing inflows. Bank balances other than cash equivalents increased to Rs 5.63 crore from Rs 5.12 crore, but Ruby Mills classifies those balances separately within current assets.

How did the two business segments change during the half-year?

Ruby Mills reported half-year textile revenue of Rs 128.25 crore for the period ended September 30, 2026, down from Rs 134.27 crore a year earlier. Real-estate and related revenue rose to Rs 68.19 crore from Rs 20.95 crore, lifting total revenue from operations to Rs 196.44 crore from Rs 155.22 crore.

Textile segment profit before tax and interest was Rs 2.63 crore, down from Rs 9.93 crore in the prior-year half. Ruby Mills attributed lower textile profitability to higher input costs and said the cost increase was passed on to customers with effect from September 10, 2026.

Real-estate and related segment profit before tax and interest was Rs 89.78 crore, compared with Rs 17.62 crore in the prior-year half. The segment result included the Rs 77.94 crore profit on sale of property disclosed in other income, linking the earnings increase with the property transaction reflected separately in the cash-flow statement.

Conclusion

Ruby Mills shifted from a Rs 33.30 crore operating cash outflow to a Rs 27.70 crore inflow in the half-year ended September 30, 2026, aided by changes in working capital and higher reported profit. Investment purchases of Rs 257.64 crore nevertheless drove an Rs 83.88 crore investing outflow, while increased borrowing helped fund cash requirements and cash equivalents declined to Rs 1.41 crore.

The next reported periods will show the effect of the textile price increase implemented from September 10, 2026, after the company cited higher input costs for lower textile segment profit. Investors can also monitor changes in the Rs 306.50 crore combined current and non-current investment balance, Rs 448.19 crore of borrowings and the Rs 1.41 crore cash-equivalent balance.