What’s new

• M&B Engineering shifted ₹120.81 cr of bank deposits from operating to investing activities.
• Reported net operating cash flow moved from negative ₹30.88 cr to positive ₹89.93 cr.
• The adjustment changes neither reported revenue nor profit.

Why it matters

Cash flow from operations measures core health. For a firm with a market cap of ₹1,713 crore, a shift of this size forces a fresh look at its liquidity.

What we’re watching

• The next set of quarterly cash flow disclosures.
• Any further clarification on remaining IPO object funds.
• Whether the audit committee offers a comment on the restatement.

The full read

M&B Engineering revised its FY26 cash flow statement today. It reclassified ₹120.81 crore of bank fixed deposits from operating to investing activities because the original accounts incorrectly counted IPO-related funds as operating cash flow.

Oops.

This single adjustment turned a reported ₹30.88 crore loss in operating cash flow into a positive ₹89.93 crore surplus for the full year. Revenue and profit remain untouched, but the math changes everything for investors tracking liquidity. For a business with a ₹1,713 crore market cap, the previous reporting obscured its real cash-generating capacity. Now, the picture is finally clear, reflecting the true nature of its capital allocation strategy after the error was spotted.

Primary source: BSE · NSE