Apex Ecotech reports Rs 7.76 crore operating cash outflow

Apex Ecotech Limited reported a Rs 7.76 crore operating cash outflow for the half year ended 30 September 2026, despite a Rs 4.00 crore profit after tax, as working-capital movements absorbed Rs 11.76 crore. Higher trade receivables, short-term loans and advances, and inventory were the principal stated uses of cash.

Why did Apex Ecotech report negative operating cash flow?

Apex Ecotech reported negative operating cash flow because its Rs 5.51 crore operating profit before working-capital changes was outweighed by a Rs 11.76 crore working-capital outflow and Rs 1.51 crore of income tax paid. Net cash from operating activities was therefore negative Rs 7.76 crore for the half year ended 30 September 2026.

The company used the indirect method prescribed by Accounting Standard 3 for its cash-flow statement. It started with Rs 5.43 crore of profit before tax, added Rs 32.52 lakh of depreciation, Rs 29.13 lakh of interest expense and Rs 25.21 lakh of asset write-off, then deducted Rs 76.70 lakh of interest income and Rs 2.51 lakh of profit on sale of fixed assets.

The outflow contrasts with Rs 6.77 crore of operating cash generated in the year ended 31 March 2026, although the latest reported period covers six months while the comparison period covers a full year. Working-capital changes alone were negative Rs 11.76 crore in the September half year, compared with negative Rs 9.20 crore in the preceding financial year.

Which balances absorbed Apex Ecotech's operating cash?

Apex Ecotech's trade receivables increased by Rs 5.85 crore to Rs 22.60 crore at 30 September 2026 from Rs 16.76 crore at 31 March 2026. The cash-flow statement records this receivables movement as the largest individual operating-cash outflow in the half year.

Short-term loans and advances rose by Rs 2.34 crore to Rs 14.34 crore, while inventories increased by Rs 1.20 crore to Rs 5.62 crore. These two increases added to the cash absorbed by receivables during the six-month period ended 30 September 2026.

The increase in these balances was partly offset by a Rs 3.75 crore reduction in other current assets, which closed at Rs 13.83 crore from Rs 17.58 crore at 31 March 2026. In the cash-flow statement, this reduction provided Rs 3.75 crore of cash, but did not offset the combined outflows from receivables, advances and inventory.

How did payables and provisions affect Apex Ecotech's cash flow?

Apex Ecotech's trade payables declined by Rs 2.57 crore during the half year, producing a cash outflow under the trade-payables line in the cash-flow statement. Dues to micro and small enterprises fell to Rs 2.94 crore from Rs 4.99 crore, while payables to other enterprises declined to Rs 1.14 crore from Rs 1.67 crore.

Short-term provisions declined by Rs 4.29 crore to Rs 1.98 crore at 30 September 2026 from Rs 6.27 crore at 31 March 2026. The cash-flow statement records the reduction as a Rs 4.29 crore outflow, making it another material component of the total Rs 11.76 crore working-capital movement.

Other current liabilities rose by Rs 62.26 lakh to Rs 11.55 crore from Rs 10.92 crore, providing cash in the statement. Long-term provisions also increased by Rs 12.25 lakh to Rs 88.69 lakh, but those inflows were smaller than the cash effects of receivables, reduced payables and lower short-term provisions.

The filing does not provide an ageing analysis of the Rs 22.60 crore receivables balance or a customer-wise split of advances as at 30 September 2026. It also describes the company's environmental engineering activities as a single reportable segment, so separate working-capital data for Effluent Treatment Plants, Sewage Treatment Plants and Zero Liquid Discharge Systems are not disclosed.

How did profit, borrowings and cash balances change at Apex Ecotech?

Apex Ecotech reported Rs 4.00 crore of profit after tax for the half year ended 30 September 2026, compared with Rs 2.58 crore in the half year ended 30 September 2025. Revenue from operations rose to Rs 94.27 crore from Rs 32.57 crore over those two comparable six-month periods.

Profit after tax was lower than Rs 14.45 crore reported for the six months ended 31 March 2026, which the company labels audited. Revenue also declined sequentially to Rs 94.27 crore from Rs 116.08 crore, while profit before tax declined to Rs 5.43 crore from Rs 19.31 crore.

Financing activities generated Rs 1.53 crore in the September half year, as Rs 1.82 crore of proceeds or repayment of borrowings exceeded Rs 29.13 lakh of interest expense. Short-term borrowings rose to Rs 2.19 crore at 30 September 2026 from Rs 24.89 lakh at 31 March 2026, while long-term borrowings fell to Rs 94.39 lakh from Rs 1.06 crore.

Cash and cash equivalents in the cash-flow statement declined by Rs 6.53 crore to Rs 5.07 crore at 30 September 2026 from Rs 11.60 crore at the beginning of the year. The closing amount comprised Rs 5.00 crore with banks and Rs 6.76 lakh in cash in hand; the balance sheet separately reported Rs 29.49 crore of cash and bank balances.

Conclusion

Apex Ecotech's September 2026 half-year results show that reported profit and revenue growth did not translate into operating cash generation. The Rs 7.76 crore operating cash outflow followed a Rs 11.76 crore working-capital absorption, led by the Rs 5.85 crore rise in receivables, the Rs 2.34 crore increase in short-term loans and advances, and the Rs 1.20 crore inventory increase.

The next results will show whether the Rs 22.60 crore receivables balance, Rs 14.34 crore of short-term loans and advances and Rs 5.62 crore inventory convert into cash. The filing also states that no options had been granted under the Apex Ecotech Employee Stock Option Plan 2026 as of the 12 November 2026 results approval; expense recognition will begin from any grant date over the vesting period.