Ace Men reports Rs 3.09 crore operating cash in H1 2026

Ace Men Engg Works Limited reported Rs 3.09 crore of net operating cash flow for the half year ended September 30, 2026, while repaying Rs 2.80 crore of short-term borrowings. A Rs 3.97 crore release from trade receivables and Rs 73.89 lakh from short-term loans and advances offset a Rs 2.10 crore inventory build-up.

How did Ace Men generate Rs 3.09 crore of operating cash?

Ace Men generated Rs 3.09 crore of net cash from operating activities in the half year ended September 30, 2026, after paying Rs 11.56 lakh of net income tax. Cash generated from operations was Rs 3.21 crore, following operating profit before working-capital changes of Rs 72.82 lakh and the working-capital movements disclosed in the consolidated cash-flow statement.

Profit before tax was Rs 53.24 lakh for the period. Ace Men added back Rs 18.86 lakh of interest and financial expenses and Rs 72 lakh of depreciation and amortisation when calculating operating profit before working-capital changes. The reported cash-flow statement does not provide a consolidated comparison for the half year ended September 30, 2025, which is marked not applicable.

The largest working-capital cash release was Rs 3.97 crore from trade receivables. Short-term loans and advances contributed Rs 73.89 lakh, while other financial liabilities added Rs 27.66 lakh, provisions added Rs 84 lakh, and other current liabilities added Rs 87 lakh. These movements were partly offset by cash absorbed in inventory and other operating assets.

What changed in Ace Men's working capital in H1 2026?

Ace Men's current assets fell by Rs 2.27 crore between March 31, 2026 and September 30, 2026, despite a Rs 2.10 crore increase in inventories. Total current assets stood at Rs 24.17 crore at September 30, compared with Rs 26.44 crore at the March year-end, as lower receivables and loans and advances outweighed the inventory increase.

Inventories rose to Rs 6.18 crore at September 30 from Rs 4.08 crore at March 31, matching the Rs 2.10 crore cash outflow recorded under inventories. Current trade receivables fell to Rs 6.50 crore from Rs 10.47 crore, consistent with the Rs 3.97 crore cash-flow release. The filing does not explain the commercial reasons for the inventory build-up or receivable reduction.

Other current assets increased to Rs 45.38 lakh from Rs 20.85 lakh, producing a Rs 24.53 lakh operating cash outflow. Current loans and advances declined to Rs 10.89 crore from Rs 11.63 crore, corresponding with the Rs 73.89 lakh cash release in the cash-flow statement. Trade payables reduced by Rs 17.33 lakh in the operating cash-flow calculation.

How much short-term debt did Ace Men repay?

Ace Men repaid Rs 2.80 crore of short-term borrowings in the half year ended September 30, 2026, reducing current borrowings to Rs 9.84 crore. Current borrowings were Rs 12.64 crore on March 31, 2026, so the balance-sheet reduction matched the repayment reported in financing cash flows.

The financing section records Rs 2.99 crore of net cash outflow, comprising the Rs 2.80 crore repayment and Rs 18.86 lakh of finance cost. The statement shows no proceeds from other short-term borrowings during the period. The reported financing outflow was lower than the Rs 3.09 crore operating inflow by Rs 10.08 lakh before investment cash flows.

Ace Men spent Rs 2.01 lakh on property, plant and equipment, resulting in net investing cash outflow of Rs 2.01 lakh. Combined with the Rs 2.99 crore financing outflow, the cash movements produced a Rs 8.08 lakh increase in cash and cash equivalents from the opening balance of Rs 5.81 lakh.

What was Ace Men's cash balance at September 30, 2026?

Ace Men ended September 30, 2026 with Rs 13.89 lakh of cash and cash equivalents, compared with Rs 5.81 lakh at the start of the financial year. The Rs 8.08 lakh increase reconciles with operating cash inflow of Rs 3.09 crore, investing outflow of Rs 2.01 lakh and financing outflow of Rs 2.99 crore.

The closing cash balance included Rs 12.79 lakh of cash on hand and Rs 1.09 lakh held in current accounts. The cash-flow statement does not disclose any short-term bank deposits or margin-money balances at September 30, 2026. Cash and cash equivalents represented a small portion of consolidated current assets of Rs 24.17 crore.

What do Ace Men's H1 earnings show alongside cash flow?

Ace Men reported consolidated revenue from operations of Rs 9.87 crore and total income of Rs 9.93 crore for the half year ended September 30, 2026. Purchases of stock in trade were Rs 10.95 crore, while the Rs 2.10 crore increase in inventories was recorded as a negative expense in the statement of profit and loss.

Profit before tax was Rs 53.24 lakh and profit after tax was Rs 41.68 lakh, after current tax of Rs 11.56 lakh. Basic and diluted earnings per share were Rs 0.32 for the half year. Finance cost was Rs 18.86 lakh, compared with Rs 16.23 lakh for the year ended March 31, 2026.

The quarter ended September 30 generated Rs 5.88 crore of revenue from operations, up from Rs 3.99 crore in the quarter ended June 30. However, quarterly profit before tax declined to Rs 24.91 lakh from Rs 28.33 lakh, while purchases of stock in trade increased to Rs 6.75 crore from Rs 4.20 crore. Ace Men identified aviation as its single business segment and India as its single geographical segment for the quarter.

Conclusion

Ace Men's H1 cash generation was driven principally by the Rs 3.97 crore reduction in trade receivables and Rs 73.89 lakh release from short-term loans and advances. Those inflows exceeded the Rs 2.10 crore inventory build-up, enabling Rs 2.80 crore of short-term borrowing repayments while cash and cash equivalents rose to Rs 13.89 lakh at September 30, 2026.

The next disclosure should show whether the Rs 6.18 crore inventory balance converts into sales and cash, and whether current borrowings continue to decline from Rs 9.84 crore. Comparisons with the September 2025 consolidated period remain unavailable because Manibhadra Industries Private Limited became a wholly owned subsidiary only on November 25, 2025.