Texmaco Rail reports Rs 66 crore H1 operating cash outflow

Texmaco Rail & Engineering Limited reported consolidated net cash used in operating activities of Rs 66.16 crore for the half year ended 30 September 2026, against Rs 212.32 crore generated a year earlier. A Rs 242.83 crore outflow in trade and other receivables, alongside further working-capital use, outweighed operating profit and a Rs 76.01 crore exceptional gain.

Why did Texmaco Rail report negative operating cash flow in H1?

Texmaco Rail reported negative H1 operating cash flow because working-capital movements used Rs 286.80 crore in the six months ended 30 September 2026, compared with a Rs 35.50 crore cash source in the corresponding prior-year period. Trade and other receivables accounted for Rs 242.83 crore of the outflow, reversing a Rs 100.35 crore inflow in H1 FY2025.

Operating profit before working-capital changes and exceptional items fell to Rs 150.41 crore from Rs 217.21 crore. The H1 FY2026 calculation included additions of Rs 25.33 crore for depreciation and amortisation and Rs 49.95 crore for interest paid, while Rs 6.33 crore of interest received reduced the measure.

Cash generated from operations consequently moved to an outflow of Rs 136.39 crore from an inflow of Rs 252.71 crore. After direct taxes paid of Rs 5.78 crore, cash flow before exceptional items was negative Rs 142.17 crore, compared with positive Rs 212.32 crore a year earlier.

How did receivables and other working capital affect Texmaco Rail cash flow?

Texmaco Rail recorded a Rs 242.83 crore cash outflow in trade and other receivables during H1 FY2026, compared with a Rs 100.35 crore inflow in H1 FY2025. The cash-flow category is broader than balance-sheet trade receivables, so the filing does not identify the individual receivable and other receivable items behind the full movement.

Consolidated trade receivables were Rs 1,252.90 crore at 30 September 2026, up Rs 4.97 crore from Rs 1,247.93 crore at 31 March 2026. Other current assets increased by Rs 175.11 crore to Rs 1,253.91 crore, while current loans rose by Rs 60.29 crore to Rs 64.47 crore over the same six-month period.

Inventories used Rs 22.25 crore of cash in H1 FY2026, lower than the Rs 96.98 crore outflow in H1 FY2025. Consolidated inventories stood at Rs 890.05 crore on 30 September 2026, compared with Rs 867.81 crore at 31 March 2026.

Trade payables and other liabilities used Rs 21.73 crore of cash, against a Rs 32.13 crore contribution in the previous H1. Dues to creditors other than micro and small enterprises declined by Rs 93.10 crore to Rs 506.44 crore, while other current liabilities increased by Rs 55.34 crore to Rs 350.63 crore.

What did the joint-venture gain contribute to Texmaco Rail cash flow and profit?

Texmaco Rail’s Rs 76.01 crore exceptional gain reduced the reported operating cash deficit to Rs 66.16 crore from the pre-exceptional deficit of Rs 142.17 crore. The gain arose after Texmaco Touax Railcar Leasing Private Limited issued equity shares to a new investor during the September 2026 quarter, reducing the group’s fully diluted holding from 50% to 34%.

Texmaco Rail classified the amount as a gain on deemed disposal of its joint-venture interest under Indian Accounting Standard 28, Investments in Associates and Joint Ventures. The cash-flow statement records the same Rs 76.01 crore exceptional-items amount after cash flow before exceptional items, while the profit and loss statement presents it as exceptional income.

Consolidated profit before tax rose to Rs 168.58 crore in H1 FY2026 from Rs 141.81 crore in H1 FY2025. Before exceptional items, however, profit before tax was Rs 92.57 crore, down from Rs 141.81 crore, while net profit after tax increased to Rs 161.12 crore from Rs 93.26 crore.

The comparison shows that reported profit included the Rs 76.01 crore gain, whereas cash generation was affected by the Rs 286.80 crore aggregate working-capital outflow. The filing does not assign the cash-flow movement in receivables to the Freight Car Division, Infra - Rail & Green Energy, or Infra - Electrical segments.

How did the H1 cash deficit change cash, investments and borrowings?

Texmaco Rail’s consolidated cash and cash equivalents declined by Rs 18.76 crore to Rs 71.11 crore at 30 September 2026. In H1 FY2025, cash and cash equivalents increased by Rs 5.27 crore to Rs 62.29 crore, when operating activities generated Rs 212.32 crore instead of recording a deficit.

Investing activities generated Rs 82.20 crore in H1 FY2026, compared with an outflow of Rs 76.27 crore a year earlier. Net sale of investments provided Rs 124.11 crore, while purchases of property, plant and equipment used Rs 56.05 crore and interest received in investing activities added Rs 12.27 crore.

Financing activities used Rs 35.15 crore, lower than the Rs 131.97 crore outflow in H1 FY2025. Short-term borrowings added Rs 37.18 crore, but interest paid used Rs 49.72 crore and dividends paid used Rs 30.43 crore.

Consolidated current borrowings were Rs 592.45 crore at 30 September 2026, up from Rs 555.27 crore at 31 March 2026. Non-current borrowings increased by Rs 3.96 crore to Rs 321.67 crore, while current investments declined by Rs 183.37 crore to Rs 13.72 crore.

Which Texmaco Rail segments changed in H1 FY2026?

Texmaco Rail’s consolidated revenue from operations declined to Rs 1,624.43 crore in H1 FY2026 from Rs 2,168.70 crore in H1 FY2025. Freight Car Division revenue fell by Rs 124.89 crore to Rs 1,064.59 crore, while Infra - Electrical revenue rose by Rs 113.83 crore to Rs 415.12 crore.

Infra - Rail & Green Energy revenue declined by Rs 54.04 crore to Rs 144.71 crore. The segment reported profit before interest and tax of Rs 3.74 crore, compared with a loss of Rs 4.80 crore in H1 FY2025.

Freight Car Division profit before interest and tax declined to Rs 66.58 crore from Rs 135.14 crore. Infra - Electrical profit before interest and tax increased to Rs 37.30 crore from Rs 34.35 crore, while the consolidated operating profit before working-capital changes fell by Rs 66.80 crore to Rs 150.41 crore.

Conclusion

Texmaco Rail’s H1 FY2026 results show a difference between reported profit and operating cash conversion. Consolidated net profit rose to Rs 161.12 crore, including the Rs 76.01 crore exceptional gain, but operating cash flow turned to an outflow of Rs 66.16 crore after receivables, inventories and liabilities together used Rs 286.80 crore.

The unresolved issue in subsequent results is whether the Rs 242.83 crore receivables and other receivables outflow reverses. Texmaco Rail ended 30 September 2026 with Rs 71.11 crore of cash and cash equivalents and Rs 592.45 crore of current borrowings, following a Rs 37.18 crore increase in short-term borrowings during the half year.