Aditya Vision operating cash flow falls as PBT rises 41%

Aditya Vision reported net cash flow from operating activities of Rs 119 crore for the six months ended Sept-26, down from Rs 136 crore a year earlier, even as profit before tax (PBT) rose 41.1% to Rs 127 crore. Cash generated from operations declined to Rs 142 crore and direct taxes paid or adjusted increased to Rs 23 crore.

Why did Aditya Vision’s operating cash flow decline?

Aditya Vision’s operating cash flow declined because cash generated from operations fell and direct taxes paid or adjusted increased. Cash generated from operations was Rs 142 crore in Sept-26, compared with Rs 156 crore in Sept-25, while direct taxes paid or adjusted rose to Rs 23 crore from Rs 20 crore. Net cash flow from operating activities therefore declined by Rs 17 crore to Rs 119 crore.

The working-capital movement was an adjustment of Rs 28 crore in Sept-26, compared with a positive Rs 32 crore in Sept-25. The cash-flow statement does not split this movement among inventory, receivables, payables or other current accounts. Before the working-capital adjustment, the statement recorded PBT of Rs 127 crore, depreciation of Rs 26 crore and interest expenses of Rs 17 crore.

Cash declined after investing and financing flows in both reported periods. Investing cash outflow increased to Rs 36 crore in Sept-26 from Rs 23 crore in Sept-25, while financing cash outflow decreased to Rs 91 crore from Rs 119 crore. The cash-flow statement reported a net decrease in cash and cash equivalents of Rs 8 crore, following a Rs 7 crore decrease a year earlier.

How did Aditya Vision’s profit increase while operating cash fell?

Aditya Vision’s PBT increased because revenue and gross profit grew faster than the reported cost of goods sold. H1FY27 revenue from operations rose 27.3% to Rs 1,779 crore, while cost of goods sold increased 25.9% to Rs 1,491 crore. Gross profit consequently increased 34.9% to Rs 287 crore, and gross margin rose to 16.2% from 15.2% in H1FY26.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 36.8% to Rs 170 crore from Rs 124 crore. EBITDA margin rose to 9.6% from 8.9%, while other expenses increased 32.3% to Rs 117 crore. In the income statement, depreciation increased to Rs 26 crore from Rs 20 crore and interest increased to Rs 22 crore from Rs 19 crore.

PBT rose by Rs 37 crore to Rs 127 crore, while net profit rose by Rs 28 crore to Rs 96 crore. Net profit margin increased to 5.4% from 4.9%, and diluted earnings per share increased to Rs 7.41 from Rs 5.25. The presentation reports lower operating cash generation despite these profit measures, but does not provide a cash-conversion ratio or a detailed explanation of the working-capital movement.

What changed in Aditya Vision’s inventory and borrowings?

Aditya Vision’s inventory increased to Rs 865 crore at Sept-26 from Rs 840 crore at Mar-26, while current borrowings declined to Rs 293 crore from Rs 331 crore. Trade payables also fell to Rs 171 crore from Rs 196 crore, and other current assets declined to Rs 85 crore from Rs 109 crore. These balance-sheet changes provide context for the working-capital adjustment, although the presentation does not reconcile individual account movements to that cash-flow line.

Lease obligations increased over the same period. Non-current lease liabilities rose to Rs 240 crore at Sept-26 from Rs 214 crore at Mar-26, while current lease liabilities increased to Rs 42 crore from Rs 28 crore. Total equity rose to Rs 768 crore from Rs 688 crore, and total assets increased to Rs 1,533 crore from Rs 1,471 crore.

The supplied pages report different cash and cash-equivalent balances without a reconciliation. The balance sheet lists Rs 147 crore at Sept-26 and Rs 129 crore at Mar-26, while the cash-flow statement lists Rs 23 crore at Sept-26 and Rs 19 crore at Sept-25. The presentation does not state why the balance-sheet figures differ from the cash-flow statement figures.

How is Aditya Vision’s store expansion reflected in its financial position?

Aditya Vision expanded to 214 stores in H1FY27 from 188 in H1FY26, an increase of 26 stores. Retail footprint rose 18.3% to 9,51,000 square feet from 8,03,625 square feet. Right-of-use assets increased to Rs 230 crore at Sept-26 from Rs 195 crore at Mar-26, alongside the rise in lease liabilities.

Sales measures also increased during H1FY27. Same-store sales growth was 18%, compared with 2% in H1FY26, when the presentation says unseasonal rainfall affected growth. Bill cuts increased 16.8% to 724,000 from 620,000, while average selling price rose 6.8% to Rs 24,272 from Rs 22,724.

Digital gadgets represented 23% of H1FY27 sales, up from 21% a year earlier, while large appliances represented 60%, down from 61%. Small and other appliances accounted for 17%, compared with 18% in H1FY26. The presentation does not link these mix changes to inventory funding, but inventory was Rs 865 crore at Sept-26.

Aditya Vision listed 120 stores in Bihar, 33 in Jharkhand, 56 in Uttar Pradesh and five in Chhattisgarh. It also disclosed FY27 entry into Madhya Pradesh and West Bengal. The company said these six states collectively account for about 45% of India’s population and reported zero store closures since inception.

Conclusion

Aditya Vision’s H1FY27 results show a divergence between reported earnings and operating cash flow. Revenue rose 27.3%, PBT increased 41.1% and net profit rose 41.0%, but operating cash flow fell to Rs 119 crore from Rs 136 crore. The lower cash generated from operations, Rs 23 crore of direct taxes paid or adjusted and the disclosed working-capital movement explain the difference reported in the cash-flow statement.

The next disclosed development to watch is Aditya Vision’s FY27 entry into Madhya Pradesh and West Bengal after reaching 214 stores across four operating states. Its Sept-26 inventory was Rs 865 crore and total lease liabilities were Rs 282 crore, while the presentation did not reconcile the working-capital movement or the different cash balances reported in its balance sheet and cash-flow statement.