UCAL cash falls Rs 4.65 crore despite operating inflow

UCAL LIMITED reported a Rs 4.65 crore fall in standalone cash and cash equivalents during the half year ended September 30, 2026, closing with Rs 3.55 crore. UCAL generated Rs 16.21 crore of operating cash, but investing outflows of Rs 12.59 crore and financing outflows of Rs 8.27 crore exceeded that inflow.

Why did UCAL’s cash balance decline in the half year?

UCAL’s cash balance declined because its operating cash inflow was smaller than its combined investing and financing cash outflows in the half year ended September 30, 2026. Net cash from operating activities was Rs 16.21 crore, compared with net cash used in investing activities of Rs 12.59 crore and financing activities of Rs 8.27 crore, leaving a Rs 4.65 crore net outflow.

Cash and cash equivalents fell from Rs 8.20 crore at March 31, 2026 to Rs 3.55 crore at September 30, 2026. This contrasts with the year ended March 31, 2026, when UCAL recorded a Rs 50.66 lakh increase in cash and cash equivalents, from Rs 7.69 crore to Rs 8.20 crore.

UCAL prepared the cash-flow statement using the indirect method, which adjusts profit before tax for non-cash and working-capital movements. The company defines cash and cash equivalents as cash in hand and balances with scheduled banks; bank balances outside that category were unchanged at Rs 30.16 crore at both September 30, 2026 and March 31, 2026.

How much cash did working capital absorb at UCAL?

Working-capital asset movements absorbed Rs 70.16 crore during the six months ended September 30, 2026, before cash provided by liability movements. Trade receivables accounted for the largest outflow at Rs 28.22 crore, followed by other current assets at Rs 23.07 crore, inventories at Rs 14.31 crore, other non-current assets at Rs 4.53 crore and loans and advances at Rs 2.14 lakh.

The standalone balance sheet reflects these movements. Trade receivables rose to Rs 127.58 crore at September 30 from Rs 99.36 crore at March 31, while inventory increased to Rs 77.88 crore from Rs 63.58 crore. Other current assets rose to Rs 35.24 crore from Rs 12.17 crore, a Rs 23.07 crore increase consistent with the cash-flow statement.

Liability movements partly offset the asset-related cash absorption. Trade payables provided Rs 34.58 crore, other financial liabilities provided Rs 8.30 crore and provisions provided Rs 1.27 crore, while other current liabilities added Rs 10 lakh. These adjustments reduced operating profit before working-capital changes of Rs 43.19 crore to cash generated from operations of Rs 17.19 crore.

What generated UCAL’s operating cash flow?

UCAL generated Rs 16.21 crore of net operating cash flow after paying direct taxes of Rs 98.33 lakh in the half year ended September 30, 2026. Operating profit before working-capital changes was Rs 43.19 crore, after adjustments including Rs 11.65 crore of depreciation and amortisation and Rs 13.24 crore of finance cost.

Standalone revenue from operations increased to Rs 430.32 crore for the half year ended September 30, 2026 from Rs 304.48 crore a year earlier. Profit before tax rose to Rs 19.26 crore from Rs 6.57 crore, and profit after tax increased to Rs 14.65 crore from Rs 2.85 crore, even as receivables, inventory and other current assets drew cash from operations.

The latest six-month operating cash flow was lower than Rs 67.61 crore reported for the full year ended March 31, 2026, although the periods are not comparable in length. For that full year, UCAL reported Rs 67.60 crore of cash generated from operations and direct taxes paid of Rs 1.26 lakh; the filing does not provide a prior-half-year standalone cash-flow statement.

Where did UCAL spend and raise cash outside operations?

UCAL used Rs 12.59 crore in investing activities during the latest half year, primarily spending Rs 13.39 crore on property, plant and equipment and Rs 16.28 lakh on intangible assets. Property, plant and equipment on the standalone balance sheet increased to Rs 342.41 crore at September 30, 2026 from Rs 337.71 crore at March 31, 2026.

Interest received of Rs 94.61 lakh, fixed-asset sale proceeds of Rs 17.90 lakh and dividends received of Rs 2,000 partly offset investment spending. The investing outflow was below the Rs 30.51 crore reported in the year ended March 31, 2026, when purchases of property, plant and equipment totalled Rs 33.98 crore.

Financing activities used Rs 8.27 crore in the half year. UCAL availed Rs 17.27 crore of term loans and recorded Rs 20.81 crore of net short-term borrowings, while repaying Rs 33.11 crore of term loans and paying Rs 13.24 crore of finance cost. Standalone borrowings increased to Rs 186.13 crore at September 30 from Rs 181.16 crore at March 31, comprising Rs 101.49 crore of non-current borrowings and Rs 84.64 crore of current borrowings.

What should readers monitor in UCAL’s cash-flow disclosures?

Readers should monitor whether the September 30 increases in receivables, inventory and other current assets are subsequently converted into cash. Those balances stood at Rs 127.58 crore, Rs 77.88 crore and Rs 35.24 crore respectively, compared with Rs 99.36 crore, Rs 63.58 crore and Rs 12.17 crore at March 31, 2026.

Capital expenditure and debt-related cash flows also remain relevant to the cash position. UCAL reported Rs 13.39 crore of property, plant and equipment purchases, Rs 33.11 crore of term-loan repayments and Rs 13.24 crore of finance-cost payments in the half year. The supplied statement does not disclose a capital-expenditure target, debt-repayment schedule or cash-balance target.

Conclusion

UCAL’s Rs 4.65 crore decline in standalone cash did not result from an absence of operating cash generation. Its Rs 16.21 crore operating inflow was reduced by increased receivables, inventories and other current assets, then exceeded by the combined Rs 20.86 crore investing and financing outflows.

The unresolved issue in the filing is whether the Rs 70.16 crore of asset-related working-capital outflows will reverse, particularly in receivables and other current assets. UCAL has not disclosed a future capital-expenditure target, debt-repayment plan or cash target, leaving later cash-flow disclosures to show the effect of further spending, borrowings and repayments.