Shivalik Bimetal Controls inventory build curbs cash flow

Shivalik Bimetal Controls Limited reported Rs 11.90 crore of net operating cash flow for the six months ended 30 September 2026, as an Rs 81.54 crore inventory outflow offset a rise in profit before tax to Rs 90.79 crore. Operating cash flow was Rs 18.60 crore in the comparable 2025 period.

Why did Shivalik Bimetal Controls’ operating cash flow decline?

Shivalik Bimetal Controls’ operating cash flow declined because inventory absorbed Rs 81.54 crore during the six months ended 30 September 2026, compared with an Rs 13.70 crore absorption a year earlier. Profit before tax increased to Rs 90.79 crore from Rs 62.82 crore, while cash flow before working-capital changes rose to Rs 95.68 crore from Rs 65.27 crore. The larger inventory movement offset the improvement in the pre-working-capital cash measure.

Cash generated from operations, before income-tax payments, was Rs 29.52 crore in first-half 2026, against Rs 31.63 crore in first-half 2025. Income tax paid increased to Rs 17.61 crore from Rs 13.03 crore, leaving net operating cash flow of Rs 11.90 crore versus Rs 18.60 crore. Higher reported profit therefore did not translate into higher operating cash flow after working-capital and tax movements.

How much did inventories increase at Shivalik Bimetal Controls?

Shivalik Bimetal Controls’ consolidated inventories increased by Rs 81.54 crore between 31 March 2026 and 30 September 2026. Inventory on the consolidated balance sheet stood at Rs 234.56 crore on 30 September, compared with Rs 153.03 crore at the preceding financial year-end. The increase matches the negative inventory adjustment reported in the cash-flow statement.

The inventory build occurred alongside higher first-half activity. Revenue from operations reached Rs 379.98 crore for the six months ended September 2026, up from Rs 274.00 crore a year earlier, while cost of materials consumed increased to Rs 261.49 crore from Rs 151.43 crore. Changes in inventories of finished goods and work in progress were negative Rs 50.57 crore, versus negative Rs 3.03 crore in the prior-year period, in the profit-and-loss statement.

The filing does not state the product categories, customer orders, production schedule or procurement decisions behind the increase. It establishes the size and cash effect of the inventory movement, but does not identify whether the build was linked to finished goods, work in progress, raw materials or a particular operating segment.

Which other working-capital movements affected cash generation?

Shivalik Bimetal Controls also used Rs 9.23 crore of cash through trade receivables in first-half 2026, although this was lower than the Rs 12.76 crore use in first-half 2025. Trade receivables on the balance sheet were Rs 165.72 crore on 30 September 2026, compared with Rs 155.55 crore on 31 March 2026. This receivables movement added to the inventory-related cash use.

Trade payables provided Rs 22.89 crore of cash during the six-month period, compared with Rs 1.20 crore in the prior-year period. Other current financial liabilities provided Rs 1.93 crore, and provisions provided Rs 64.96 lakh. These inflows partly counterbalanced inventory and receivables outflows, but were insufficient to preserve the prior year’s Rs 18.60 crore operating-cash-flow level.

The balance sheet also shows current borrowings of Rs 63.96 crore at 30 September 2026, up from Rs 47.57 crore at 31 March 2026. The cash-flow statement records net proceeds from current borrowings of Rs 16.10 crore for the half year. That financing inflow was separate from operating cash flow and contributed to the group’s overall cash movement.

Did higher profit support Shivalik Bimetal Controls’ cash position?

Shivalik Bimetal Controls’ higher profit supported cash before working-capital movements, but not net operating cash flow after those movements. Net profit for the six months ended 30 September 2026 rose to Rs 67.87 crore from Rs 47.63 crore, while profit before tax increased by Rs 27.97 crore to Rs 90.79 crore. Depreciation and amortisation, a non-cash charge added back in the cash-flow statement, increased to Rs 9.36 crore from Rs 6.64 crore.

Cash and cash equivalents ended the period at Rs 8.90 crore, compared with Rs 6.98 crore at the start of the six months. Net cash from financing activities was Rs 52.79 lakh, down from Rs 10.49 crore in the previous year’s comparable period. The group also paid Rs 11.33 crore in dividends during first-half 2026, compared with Rs 59.46 lakh a year earlier.

Investing activities used Rs 10.51 crore in first-half 2026, lower than the Rs 47.07 crore outflow a year earlier. Purchases of property, plant and equipment, intangible assets, capital work-in-progress and related advances were Rs 28.70 crore, compared with Rs 19.76 crore in first-half 2025. A Rs 32.70 crore net movement in other bank deposits reduced the net investing outflow.

Conclusion

Shivalik Bimetal Controls recorded higher first-half revenue of Rs 379.98 crore and net profit of Rs 67.87 crore in 2026, but an Rs 81.54 crore inventory increase constrained cash generation. The result was operating cash flow of Rs 11.90 crore, Rs 6.70 crore below the comparable 2025 period, despite profit before tax increasing by Rs 27.97 crore.

The next results will show whether the Rs 234.56 crore inventory balance changes and whether that affects operating cash generation. After 30 September 2026, the board declared an interim dividend of 2 rupees per share with an Rs 11.52 crore payout on 4 November 2026, and proposed two bonus shares for every one share, subject to shareholder approval; the record date had not been announced.