ADC India Communications operating cash flow rises to Rs 15.48 crore

ADC India Communications Limited generated Rs 15.48 crore of net operating cash in the half year ended September 30, 2026, compared with Rs 8.58 crore a year earlier, and closed with Rs 66.43 crore in cash and cash equivalents after paying Rs 11.50 crore in equity dividends.

How did ADC India Communications' operating cash flow change?

ADC India Communications increased net cash generated from operating activities by Rs 6.90 crore year on year to Rs 15.48 crore in the half year ended September 30, 2026. Cash generated from operations, before the direct-tax line, rose to Rs 15.47 crore from Rs 12.31 crore, while profit before tax increased to Rs 23.68 crore from Rs 12.08 crore.

Operating profit before working-capital changes was Rs 21.59 crore, compared with Rs 10.10 crore in the prior-year half. Depreciation and amortisation rose to Rs 22.78 lakh from Rs 10.47 lakh, while the net unrealised foreign-exchange gain was Rs 40.44 lakh against Rs 23.74 lakh in the corresponding period.

The larger operating inflow did not result in a larger overall increase in cash because financing outflows rose. ADC India Communications recorded a Rs 5.39 crore increase in cash equivalents, below the Rs 7.59 crore increase a year earlier, while cash generated from investing activities was Rs 1.42 crore compared with Rs 1.32 crore.

What drove ADC India Communications' operating cash generation?

ADC India Communications recorded a Rs 13.65 crore decrease in trade receivables in the half year ended September 30, 2026, compared with a Rs 4.52 crore decrease in the prior-year period. Trade receivables stood at Rs 31.46 crore on September 30, 2026, down from Rs 44.78 crore on March 31, 2026.

The receivables movement was partly offset by a Rs 14.33 crore decrease in trade payables, compared with a Rs 5.13 crore decrease a year earlier. Inventories increased by Rs 3.78 crore after declining by Rs 3.19 crore in the preceding half year, and the period-end inventory balance rose to Rs 21.51 crore from Rs 17.32 crore.

Financial and other assets increased by Rs 1.77 crore during the latest half year, compared with a Rs 49.07 lakh increase in the comparable period. The cash-flow reconciliation also included a Rs 41.28 lakh reversal of provision for slow-moving or obsolete inventory, versus Rs 24.36 lakh a year earlier.

How did the Rs 11.50 crore dividend affect ADC India Communications' cash?

ADC India Communications paid Rs 11.50 crore in dividends on equity shares during the six months ended September 30, 2026, compared with Rs 2.30 crore in the corresponding 2025 period. Together with Rs 0.61 lakh of finance cost paid, financing activities used Rs 11.51 crore of cash, versus Rs 2.30 crore a year earlier.

Cash and cash equivalents nevertheless rose from Rs 61.04 crore at the start of the financial year to Rs 66.43 crore at September 30, 2026. Other bank balances were Rs 38.80 lakh at the period end, compared with Rs 29.62 lakh on March 31, 2026.

Total equity increased to Rs 92.83 crore at September 30, 2026 from Rs 86.69 crore at March 31, 2026. Equity share capital remained Rs 4.60 crore, while other equity rose to Rs 88.23 crore from Rs 82.09 crore; profit after tax for the half year was Rs 17.85 crore against Rs 9.29 crore a year earlier.

What changed in ADC India Communications' balance sheet?

ADC India Communications' total assets declined to Rs 128.33 crore at September 30, 2026 from Rs 134.60 crore at March 31, 2026. Current assets were Rs 123.48 crore versus Rs 125.33 crore, as the Rs 13.32 crore reduction in closing trade receivables outweighed the Rs 5.39 crore rise in cash equivalents and the Rs 4.20 crore increase in inventory.

Current liabilities fell to Rs 35.50 crore from Rs 47.92 crore over the same period. Trade payables to creditors other than micro and small enterprises declined to Rs 28.53 crore from Rs 42.48 crore, consistent with the cash-flow statement's Rs 14.33 crore decrease in trade payables.

Outside working capital, current tax assets declined to Rs 90.21 lakh from Rs 5.29 crore, while deferred-tax assets rose to Rs 42.02 lakh from Rs 37.22 lakh. Property, plant and equipment was Rs 2.64 crore at September 30, 2026, compared with Rs 2.62 crore at the preceding financial year-end.

Which segments reported higher profit for ADC India Communications?

ADC India Communications reported higher half-year revenue in both disclosed operating segments, although its cash-flow statement does not allocate operating cash by segment. Telecommunications revenue was Rs 24.02 crore for the six months ended September 30, 2026, against Rs 6.60 crore a year earlier, while IT-networking revenue increased to Rs 110.71 crore from Rs 84.26 crore.

IT-networking remained the larger segment, reporting a segment result of Rs 18.11 crore compared with Rs 8.98 crore in the previous-year half. Telecommunications reported a segment result of Rs 6.36 crore, up from Rs 1.51 crore, taking total segment results to Rs 24.27 crore from Rs 10.49 crore.

ADC India Communications identifies telecommunications and IT-networking as operating segments under Indian Accounting Standard 108, which covers operating segments. Its board approved the unaudited half-year results on November 12, 2026, and the statutory auditors issued a limited review report rather than an audit opinion.

Conclusion

ADC India Communications generated more operating cash in the September 2026 half year as profit before tax rose to Rs 23.68 crore and trade receivables decreased by Rs 13.65 crore. The Rs 15.48 crore operating inflow supported the Rs 11.50 crore dividend payment and left cash and cash equivalents Rs 5.39 crore higher at Rs 66.43 crore, despite higher inventories and lower trade payables.

The next reported results will show whether trade receivables remain below the September 30, 2026 balance of Rs 31.46 crore and whether inventory, at Rs 21.51 crore, changes further. The filing discloses the dividend already paid but does not set out a further dividend target or payment schedule.