Alacrity Securities operating cash flow turns negative in half-year

Alacrity Securities Ltd reported net cash used in operating activities of Rs 31.06 lakh for the half year ended 30 September 2026, reversing an Rs 11.15 crore inflow a year earlier. Alacrity Securities remained profitable, with profit before tax of Rs 8.52 crore, but working-capital movements and Rs 1.17 crore of tax payments absorbed operating cash.

Why did Alacrity Securities report negative operating cash flow?

Alacrity Securities reported negative operating cash flow because Rs 86.18 lakh of cash generated from operations was lower than Rs 1.17 crore of income taxes paid in the half year ended 30 September 2026. Net cash used in operating activities was therefore Rs 31.06 lakh, compared with an Rs 11.15 crore inflow in the corresponding half year ended 30 September 2025.

Operating profit before working-capital changes fell to Rs 7.17 crore from Rs 13.11 crore a year earlier. The cash-flow statement recorded a Rs 4.94 crore use of cash from inventories and a Rs 4.73 crore use from other current assets, partly offset by a Rs 4.58 crore release from trade receivables. In the 2025 half year, inventories used Rs 14.21 crore, but loans and advances generated Rs 16.48 crore and other current assets generated Rs 5.67 crore.

How did Alacrity Securities' profit compare with cash generation?

Alacrity Securities reported profit after tax of Rs 6.67 crore for the half year ended 30 September 2026, while operating activities used Rs 31.06 lakh of cash. In the half year ended 30 September 2025, profit after tax was Rs 9.62 crore and operating activities generated Rs 11.15 crore, showing that reported profit and operating cash moved differently across the two periods.

The half-year profit before tax of Rs 8.52 crore included a pre-tax loss of Rs 87.08 lakh in the quarter ended 30 September 2026, after a pre-tax profit of Rs 9.39 crore in the quarter ended 30 June 2026. Revenue from operations for the half year was Rs 156.71 crore, down from Rs 173.21 crore a year earlier, while total expenses declined to Rs 150.84 crore from Rs 160.71 crore.

Cash-flow adjustments included depreciation of Rs 37.13 lakh, compared with Rs 31.61 lakh in the 2025 half year, and interest expense of Rs 46.42 lakh, compared with Rs 28.32 lakh. The 2026 statement also included a Rs 1.92 crore profit on sale of investments, Rs 22.88 lakh of interest income and Rs 4.36 lakh of dividend received in calculating cash generated from operations.

What changed in Alacrity Securities' working capital and balance sheet?

Alacrity Securities' working-capital movements changed most visibly in receivables, inventories and other current assets during the half year ended 30 September 2026. Trade receivables produced an Rs 4.58 crore cash release, compared with Rs 8.54 lakh in the prior-year half year, whereas other current assets used Rs 4.73 crore after generating Rs 5.67 crore a year earlier.

The balance sheet showed inventories of Rs 48.38 crore at 30 September 2026, up from Rs 43.45 crore at 31 March 2026. Trade receivables fell to Rs 1.89 crore from Rs 6.47 crore over the same period, while other current assets rose to Rs 17.65 crore from Rs 12.93 crore and other financial assets increased to Rs 15.64 crore from Rs 14.46 crore.

Alacrity Securities held Rs 2.79 crore of cash and cash equivalents at 30 September 2026, compared with Rs 7.15 crore at 31 March 2026. Bank balances other than cash equivalents increased to Rs 7.20 crore from Rs 1.68 crore, while current investments declined to Rs 15.18 crore from Rs 17.45 crore. The company said its activities fall within one primary business segment.

How did investing and financing cash flows affect Alacrity Securities' cash?

Alacrity Securities generated Rs 1.93 crore from investing activities in the half year ended 30 September 2026, reversing an Rs 3.33 crore outflow in the corresponding 2025 period. The change reflected Rs 1.73 crore of cash from the sale or purchase of investments in 2026, compared with an Rs 86.25 lakh outflow on that line a year earlier.

Interest received was Rs 22.88 lakh in the 2026 half year, compared with Rs 22.14 lakh in 2025, and dividend received was Rs 4.36 lakh compared with Rs 1.08 lakh. The cash-flow statement also recorded Rs 7.14 lakh related to sale of fixed assets in 2026, against Rs 2.74 crore in the prior-year period.

Financing activities used Rs 46.41 lakh in the half year ended 30 September 2026, compared with Rs 28.43 lakh used a year earlier. The statement reported a net increase in cash and cash equivalents of Rs 1.15 crore for 2026, below the Rs 7.54 crore increase reported for the half year ended 30 September 2025.

Conclusion

Alacrity Securities' first-half results show that Rs 8.52 crore of pre-tax profit did not convert into positive operating cash during the period ended 30 September 2026. Lower operating profit before working-capital changes, a Rs 4.94 crore inventory cash use, a Rs 4.73 crore use in other current assets and tax payments reduced operating cash flow to a Rs 31.06 lakh outflow.

The next results will clarify whether the inventory and other-current-asset cash movements reverse or continue, as the filing gives no operating-cash-flow target or management plan. Alacrity Securities said its Board approved the unaudited half-year results on 2 November 2026, and the auditor's limited review reported no matter causing it to believe the results contained a material misstatement.