Vilas Transcore cash fell Rs 20 crore in H1FY27 despite inflow

Vilas Transcore Limited generated Rs 36.9 crore of operating cash in H1FY27, yet a Rs 45 crore net investing outflow and Rs 11.9 crore financing outflow reduced cash and cash equivalents by Rs 20 crore to Rs 74.3 crore at September 2026.

How did Vilas Transcore's cash flow change in H1FY27?

Vilas Transcore returned to an operating cash inflow of Rs 36.9 crore in H1FY27, compared with outflows of Rs 1.7 crore in FY26 and Rs 41.5 crore in FY25. The H1FY27 inflow remained below the Rs 49.2 crore generated in FY24, but it reversed the negative operating cash flows reported in the two preceding full years.

Cash and cash equivalents declined from Rs 94.4 crore at the start of H1FY27 to Rs 74.3 crore at September 2026. The Rs 20 crore reduction followed a Rs 17.9 crore cash decrease in FY26, whereas cash had increased by Rs 40 crore in FY25 to Rs 112.3 crore.

The cash-flow recovery came as revenue from operations rose 4.6% sequentially to Rs 242.5 crore from Rs 231.9 crore in H2FY26. Profit after tax rose to Rs 17.2 crore from Rs 15.2 crore in H2FY26, although it was below Rs 24.4 crore in H1FY26; the presentation does not provide a detailed bridge from profit and working-capital movements to operating cash flow.

Why did Vilas Transcore's cash decline despite positive operating cash flow?

Vilas Transcore's cash declined because the combined Rs 56.9 crore of investing and financing outflows exceeded the Rs 36.9 crore operating inflow by Rs 20 crore in H1FY27. The Rs 45 crore investing outflow was also higher than the Rs 42.3 crore recorded for the full FY26, although H1FY27 covers six months.

The presentation identifies this as net cash flow from investing activities and does not separate spending on property, plant and equipment, investments, acquisitions or proceeds from asset sales. It therefore supports an investment-related outflow of Rs 45 crore but does not establish the amount committed to any individual facility or project.

Balance-sheet figures show further additions to long-term assets during the half year. Property, plant, equipment and intangible assets increased by Rs 41.3 crore to Rs 122.7 crore at September 2026, while capital work in progress rose by Rs 70 lakh to Rs 24 crore; total non-current investment, as labelled by the presentation, rose by Rs 37.4 crore to Rs 156.4 crore.

What changed in Vilas Transcore's working capital and funding?

Vilas Transcore's inventories increased by Rs 43.1 crore to Rs 115.4 crore between March 2026 and September 2026, while trade receivables rose by Rs 5.3 crore to Rs 82.8 crore. Trade payables increased by Rs 38.9 crore to Rs 67 crore, partly offsetting the rise in current operating assets on the balance sheet.

Short-term borrowings declined by Rs 20.3 crore to Rs 18.7 crore at September 2026 from Rs 39 crore at March 2026. Total current liabilities nevertheless increased by Rs 24.8 crore to Rs 99.8 crore, reflecting the higher payables and a Rs 4.5 crore increase in current tax liabilities to Rs 6.9 crore.

Current assets increased by Rs 15.2 crore to Rs 302.7 crore despite the Rs 20 crore fall in cash. The inventory build was partly offset by a Rs 13.5 crore reduction in other current assets to Rs 17.9 crore, while current investments increased by Rs 40 lakh to Rs 12.3 crore.

How is Vilas Transcore expanding its operating base?

Vilas Transcore is ramping new product lines alongside expanded CRGO, or cold-rolled grain-oriented steel, lamination capacity of 36,000 metric tonnes per annum, three times its previous 12,000 metric tonnes per annum capacity. Management said its focus is on raising production volumes and capacity utilisation, which it expects to support operating efficiency and profitability.

The newer businesses generated disclosed H1FY27 revenue of Rs 6.77 crore from nanocrystalline cores, Rs 2.67 crore from transformer radiators and Rs 53 lakh from copper and aluminium conductors. Commercial conductor sales began in September 2026, while management said customer acceptance, production ramp-up and product approvals remained in progress for the newer product categories.

CRGO laminations remained the larger disclosed volume driver, with sales volume up 28.1% year on year to 11,697 metric tonnes in H1FY27. Revenue from operations grew 6.0% year on year to Rs 242.5 crore because lower CRGO steel prices affected realisations, according to management, while EBITDA margin improved sequentially to 10.2% from 8.8% in H2FY26.

Vilas Transcore also received POWERGRID approval for CRGO slitting and lamination cutting up to 220 kilovolts at Unit III. Management said the approval enables participation in relevant POWERGRID projects and higher-voltage applications, but the presentation provides no order value, revenue target or expected cash-flow contribution from the approval.

Conclusion

Vilas Transcore's H1FY27 figures show an operating cash recovery to Rs 36.9 crore after FY25 and FY26 outflows, but investment-related outflows of Rs 45 crore and a Rs 43.1 crore inventory increase coincided with a Rs 20 crore decline in cash. The balance sheet also recorded a Rs 41.3 crore increase in property, plant, equipment and intangible assets and a Rs 20.3 crore reduction in short-term borrowings.

What to watch next is whether utilisation of the 36,000-metric-tonne CRGO capacity and the ramp-up of conductors, radiators and nanocrystalline cores sustain operating cash generation. Management has disclosed plans to scale these businesses and pursue customers in domestic markets, Gulf countries, Europe and Canada, but has not disclosed a capital-spending budget, cash-flow target or timetable for the remaining ramp-up.