AEIM H1 profit Rs 18.05 crore, operating cash outflow Rs 157.55 crore

Artificial Electronics Intelligent Material Limited reported consolidated net profit of Rs 18.05 crore for the half year ended September 30, 2026, while operating activities used Rs 157.55 crore of cash. The outflow followed a Rs 138.90 crore increase in short-term loans and advances, even as revenue from operations reached Rs 118.32 crore.

What did AEIM report for H1 2026?

AEIM reported revenue from operations of Rs 118.32 crore and net profit of Rs 18.05 crore for H1 2026. Total revenue was Rs 118.65 crore, including Rs 32.82 lakh of other income, while total expenses were Rs 92.69 crore and profit before tax was Rs 25.96 crore.

Current tax was Rs 6.54 crore, and profit from ordinary activities was Rs 19.42 crore before a Rs 1.36 crore non-controlling-interest adjustment. Basic earnings per share, or EPS, were Rs 6.52 for H1 2026 and diluted EPS were Rs 6.28. AEIM reported paid-up equity share capital of Rs 27.67 crore and said it had one reportable segment, software products.

How did AEIM's September quarter compare with June quarter?

AEIM's revenue from operations rose to Rs 65.04 crore in the quarter ended September 30, 2026, from Rs 50.28 crore in the June 2026 quarter. Net profit, however, fell to Rs 5.53 crore from Rs 12.53 crore, while profit before tax declined to Rs 9.14 crore from Rs 16.82 crore.

The change coincided with higher costs in the September quarter. Cost of materials consumed increased to Rs 59.23 crore from Rs 21.88 crore, other expenses rose to Rs 5.04 crore from Rs 36.06 lakh, and total expenses rose to Rs 58.81 crore from Rs 33.88 crore. Changes in inventories were negative Rs 6.06 crore in the September quarter, compared with positive Rs 64.68 lakh in the June quarter.

AEIM also disclosed H1 2025 revenue from operations of Rs 39.80 crore and net profit of Rs 10.36 crore. The company said those corresponding figures were standalone because its subsidiary was incorporated on October 27, 2025, whereas H1 2026 numbers are consolidated. The two half-year periods are therefore not a like-for-like group comparison.

Why did AEIM use Rs 157.55 crore in operating cash?

AEIM used Rs 157.55 crore in operating activities because working-capital movements outweighed Rs 26.84 crore of operating profit before working-capital changes. The largest disclosed cash use was a Rs 138.90 crore increase in short-term loans and advances.

Inventory increased by Rs 5.41 crore and trade payables declined by Rs 18.19 crore, adding to the operating cash outflow. These were partly offset by a Rs 11.62 crore decrease in trade receivables, a Rs 19.76 crore decrease in other non-current assets and a Rs 103.51 crore decrease in other current assets. Net cash used in operations was Rs 157.58 crore before the income-tax line and Rs 157.55 crore after it.

How did AEIM's cash and balance-sheet items change?

AEIM ended September 30, 2026 with cash and cash equivalents of Rs 13.85 crore, compared with Rs 8.27 crore at the beginning of the half year. The cash-flow statement showed a net increase of Rs 5.58 crore, no investing cash flow and Rs 32.15 lakh of net cash generated from financing activities.

Short-term loans and advances stood at Rs 138.90 crore at September 30, 2026, compared with Rs 12 at March 31, 2026. Trade receivables fell to Rs 94.00 crore from Rs 112.62 crore, while inventories increased to Rs 18.46 crore from Rs 13.05 crore. Long-term borrowings were Rs 104.50 crore, compared with Rs 104.51 crore at the prior year-end.

Other equity increased to Rs 112.40 crore from Rs 94.34 crore, and non-controlling interest was Rs 1.42 crore at September 30, 2026. The filing does not provide the counterparties, terms or expected recovery timeline for the Rs 138.90 crore of short-term loans and advances.

What did AEIM disclose about preferential-issue proceeds?

AEIM reported no deviation or variation in the use of proceeds from its preferential issues for the quarter and half year ended September 30, 2026. For the preferential issue dated October 19, 2024, the company reported Rs 28.50 crore raised and Rs 20.36 crore utilised, with unutilised proceeds stated to be part of bank balances.

From that issue, AEIM reported Rs 9.00 crore used for land acquisition, Rs 9.00 crore for machinery, Rs 11 lakh for general corporate purposes and Rs 2.25 crore for acquisitions of companies. It reported no utilisation for construction of a building. The disclosed modified allocation was Rs 28.50 crore, against an original allocation of Rs 40.16 crore.

AEIM also reported Rs 53.67 crore raised through a November 17, 2025 preferential issue of equity shares and convertible warrants. It disclosed Rs 39.02 crore used for working capital from equity-share proceeds and Rs 14.65 crore from convertible-warrant proceeds. Total utilisation was Rs 53.67 crore, with no reported deviation from the stated objects.

Conclusion

AEIM's H1 2026 filing shows that consolidated revenue and reported profit did not translate into operating cash generation. Revenue from operations was Rs 118.32 crore and net profit was Rs 18.05 crore, but a Rs 138.90 crore increase in short-term loans and advances was the largest contributor to the Rs 157.55 crore operating cash outflow.

The key unresolved item for subsequent disclosures is the composition, terms and recovery profile of short-term loans and advances, which stood at Rs 138.90 crore on September 30, 2026. Investors can also track movement in the Rs 8.14 crore of unutilised proceeds from the October 2024 preferential issue that AEIM said formed part of bank balances.