Hira Ferro Alloys Annual Reports, Balance Sheet and Financials

Hira Ferro Alloys  Limited Standalone Balance Sheet (Rs in Crores)

Hira Ferro Alloys Limited Standalone Profit & Loss Statement (Rs in Crores)

Hira Ferro Alloys Limited Standalone Cash Flow Statement (Rs in Crores)

Summary of the Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities

Cash flow from operating activities improved significantly, with net cash generated increasing from ₹55.37 crore in FY2025 to ₹100.12 crore in FY2026. The increase was mainly supported by stronger working-capital movements, particularly a ₹17.15 crore reduction in trade receivables and a ₹40.25 crore reduction in inventories, compared with substantial cash outflows from both items in the previous year. Liabilities and provisions also contributed ₹23.60 crore. Although loans and advances and other assets resulted in a large cash outflow of ₹49.92 crore, the overall operating cash generation remained strong. This indicates a substantial improvement in the company’s ability to generate cash from its core operations.

Cash Flow from Investing Activities

Investing activities resulted in a net cash outflow of ₹29.28 crore in FY2026, compared with ₹19.10 crore in FY2025. The major outflow was ₹33.78 crore towards PPE and capital work-in-progress, indicating continued investment in fixed assets and capacity. This was partly offset by ₹6.98 crore of interest received, ₹2.38 crore of dividends received, and other investment-related inflows. The higher investing outflow suggests that the company continued to deploy funds toward long-term assets, which may support future operating capacity and growth.

Cash Flow from Financing Activities

Financing activities recorded a net cash outflow of ₹59.35 crore in FY2026, compared with ₹36.25 crore in FY2025. The major factor was ₹31.31 crore repayment of short-term borrowings, along with ₹27.61 crore of finance costs. Repayment of long-term borrowings was relatively small at ₹0.44 crore. The higher financing outflow indicates that the company used internally generated cash to reduce its short-term debt burden, although finance costs continued to represent a significant cash outflow.

Net Change in Cash and Cash Equivalents

Despite substantial cash outflows from investing and financing activities, strong operating cash generation resulted in a net increase in cash and cash equivalents of ₹11.49 crore in FY2026, compared with only ₹0.01 crore in FY2025. Cash and cash equivalents increased from ₹0.04 crore at the beginning of FY2026 to ₹11.52 crore at year-end. Overall, the cash flow position shows a marked improvement, with operating activities generating sufficient cash to fund capital expenditure and debt repayments while still producing a positive closing cash balance.

Financial ratios of Hira Ferro Alloys Limited

Summary of Financial Ratios for the year 2026 and 2025:

Current Ratio: The current ratio improved from 2.04 in 2024–25 to 2.26 in 2025–26, indicating better short-term liquidity. The company strengthened its ability to meet current liabilities using its current assets.

Debt-Equity Ratio: The debt-equity ratio declined from 0.19 to 0.11, showing a significant reduction in dependence on borrowed funds. This indicates a stronger capital structure and lower financial leverage during 2025–26.

Debt Service Coverage Ratio: The DSCR decreased slightly from 3.42 to 3.27. Although there was a marginal decline, the ratio remains comfortably above 1, suggesting that the company continues to have adequate earnings to service its debt obligations.

Return on Equity Ratio: ROE declined from 4.18% to 2.89%, indicating that the company generated lower returns for its shareholders in 2025–26. This reflects a reduction in the efficiency with which shareholders’ funds were utilized.

Inventory Turnover Ratio: The inventory turnover ratio increased substantially from 28.16 to 41.81, indicating faster movement of inventory and improved inventory management. This suggests that the company was more efficient in converting its inventory into sales during 2025–26.

Trade Receivables Turnover Ratio: The ratio decreased from 16.75 to 13.06, indicating that the speed of collection from customers weakened. This may suggest a relatively longer collection period and requires attention to receivables management.

Trade Payables Turnover Ratio: The trade payables turnover ratio fell from 6.39 to 4.19, indicating that the company took longer to settle its obligations to suppliers. While this may support short-term cash management, it could also reflect slower payment of trade creditors.

Net Capital Turnover Ratio: The ratio declined from 3.83 to 2.98, showing that the efficiency of utilizing net working capital to generate revenue decreased during 2025–26. The company generated comparatively lower sales for each unit of net capital employed.

Net Profit Ratio: The net profit ratio decreased from 5.16% to 4.68%, indicating a decline in the proportion of profit earned from sales. This suggests some pressure on the company 's overall profitability during 2025–26.

Return on Capital Employed: ROCE declined from 6.20% to 4.91%, indicating that the company generated lower returns from the total capital employed. This points to a reduction in the efficiency and profitability of capital utilization.

Return on Investment: ROI increased sharply from 18.74% to 50.97%, representing a significant improvement in returns generated on investments. This was the most notable positive movement among the ratios and indicates substantially better investment performance in 2025–26.