Aptech Limited reports Rs 9.07 crore operating cash outflow

Aptech Limited reported a Rs 9.07 crore net cash outflow from operating activities for the period ended September 30, 2026, reversing a Rs 1.94 crore inflow a year earlier, as a Rs 25.56 crore working-capital outflow on receivables and unbilled revenue and Rs 5.86 crore of tax payments outweighed operating profit.

Why did Aptech report negative operating cash flow?

Aptech reported negative operating cash flow because cash tied up in working capital exceeded the cash generated before those movements. Operating profit before working-capital changes rose to Rs 23.95 crore in the period ended September 30, 2026 from Rs 22.16 crore in the corresponding 2025 period, while profit before tax increased to Rs 22.01 crore from Rs 18.71 crore. The operating cash outcome nevertheless moved to an outflow of Rs 9.07 crore from an inflow of Rs 1.94 crore.

The principal recorded use of cash was a Rs 25.56 crore increase in trade receivables and unbilled revenue, although this was lower than the Rs 34.75 crore increase in the previous corresponding period. Other current liabilities declined by Rs 19.06 crore, compared with a Rs 27.16 crore decline a year before. These outflows were partly offset by a Rs 9.04 crore increase in trade payables, current financial liabilities and provisions, and a Rs 12.42 crore reduction in other current assets.

How much did Aptech's receivables increase?

Aptech's trade receivables rose by Rs 12.02 crore to Rs 79.03 crore at September 30, 2026 from Rs 67.00 crore at March 31, 2026. The balance-sheet increase is consistent with the cash-flow statement's Rs 25.56 crore use of cash under trade receivables and unbilled revenue during the six-month period. The cash-flow line covers unbilled revenue as well as reported trade receivables, so it is not directly comparable with the balance-sheet receivables line alone.

The reported receivables movement occurred alongside a Rs 67.06 lakh increase in inventories, which reached Rs 1.10 crore at September 30 from Rs 43.27 lakh at March 31. Aptech also recorded Rs 3.34 crore of net allowances for expected credit loss in the half-year cash-flow reconciliation, lower than Rs 5.96 crore in the prior-year period. That non-cash adjustment does not itself represent a collection, but it was included in reconciling profit before tax to operating cash generation.

How did Aptech fund the cash outflow?

Aptech funded part of its cash requirements through Rs 13.36 crore of net bank borrowings in the period ended September 30, 2026. The consolidated balance sheet recorded current borrowings of Rs 13.36 crore at September 30, whereas the March 31, 2026 balance sheet showed no reported balance in that line. This was the only bank-borrowing movement disclosed in the financing cash-flow section.

Financing activities still used Rs 15.00 crore of cash overall, compared with a Rs 28.04 crore outflow in the prior-year period. Aptech paid Rs 26.10 crore in dividends, nearly unchanged from Rs 26.10 crore a year earlier, and paid Rs 1.41 crore of lease-liability principal and Rs 60 lakh of lease interest. The new borrowings partly offset those payments, while the statement also records Rs 24.21 lakh of interest expenses.

What happened to Aptech's cash and balance sheet?

Aptech's cash and cash equivalents fell by Rs 13.42 crore to Rs 13.68 crore at September 30, 2026 from Rs 27.10 crore at March 31, 2026. The cash-flow statement also reports a Rs 10.65 crore investing cash inflow, compared with Rs 18.45 crore in the prior-year period. Interest income of Rs 5.10 crore and a net movement in bank deposits other than cash equivalents were included in investing activities, while purchases of property, plant and equipment totalled Rs 1.42 crore.

Total assets declined to Rs 415.47 crore at September 30 from Rs 427.75 crore at March 31, even as current assets increased to Rs 340.04 crore from Rs 275.37 crore. The increase included other current financial assets of Rs 177.63 crore, up from Rs 99.17 crore, in addition to the rise in trade receivables. Total equity fell by Rs 9.33 crore to Rs 239.28 crore, with other equity at Rs 181.28 crore compared with Rs 190.61 crore at the financial-year end.

What does Aptech's September 2026 balance sheet show?

Aptech ended September with Rs 13.68 crore of cash and cash equivalents, Rs 7.79 crore of bank balances other than cash equivalents, and Rs 13.36 crore of current borrowings. Current liabilities were Rs 162.82 crore, marginally below Rs 163.39 crore at March 31, while current assets were Rs 340.04 crore. The filing therefore shows that the half-year operating deficit coincided with both lower cash balances and the appearance of bank borrowings.

The disclosed working-capital movements were mixed. Other current liabilities decreased to Rs 72.37 crore from Rs 93.41 crore, while dues to micro and small enterprises within trade payables fell to Rs 1.58 crore from Rs 2.14 crore. Non-current lease liabilities declined to Rs 8.77 crore from Rs 10.00 crore and provisions declined to Rs 4.59 crore from Rs 5.74 crore, although current lease liabilities increased to Rs 2.96 crore from Rs 2.58 crore.

Conclusion

The half-year figures show a gap between Aptech's reported profit and cash conversion: profit before tax increased by Rs 3.30 crore year on year, but working-capital movements and Rs 5.86 crore of tax payments resulted in an operating cash outflow. Borrowings of Rs 13.36 crore appeared alongside a Rs 13.42 crore decline in cash and cash equivalents during the period to September 30, 2026.

The disclosed unresolved item is the financial-statement effect of the New Labour Codes. In its November 4, 2026 filing, Aptech said it continued to monitor finalisation of government rules and clarifications on other aspects of the codes before finalising their impact on its financial statements.