Ascensive Educare reports ₹9.968 crore operating cash outflow

Ascensive Educare Limited reported a ₹9.968 crore net cash outflow from operating activities for the half year ended September 30, 2026, against ₹1.037 crore used a year earlier, as ₹10.9438 crore of working-capital absorption outweighed ₹1.714 crore of operating profit before working-capital changes and ₹54.30 lakh of profit after tax.

Why did Ascensive Educare report a ₹9.968 crore operating cash outflow?

Ascensive Educare reported a ₹9.968 crore net operating cash outflow in the half year ended September 30, 2026 because working-capital movements used ₹10.9438 crore, exceeding the ₹1.714 crore operating profit generated before those movements. In the corresponding half year ended September 30, 2025, working capital used ₹3.8125 crore and net cash used in operating activities was ₹1.037 crore.

Cash used from operations was ₹9.2298 crore in the September 2026 half year, compared with ₹24.65 lakh in the prior-year period. Net income-tax payments of ₹73.82 lakh then took total operating cash used to ₹9.968 crore, while tax paid was ₹79.05 lakh in the corresponding 2025 half year.

The cash-flow statement was prepared under the indirect method prescribed by Accounting Standard 3, or AS 3, on cash-flow statements. Under that method, Ascensive Educare began with profit before tax of ₹74.31 lakh and added back or adjusted items including ₹12 lakh of depreciation and amortisation, ₹61.68 lakh of finance costs and ₹35.45 lakh of gratuity.

How did working capital change in the September 2026 half year?

Working capital absorbed ₹10.9438 crore in the half year ended September 30, 2026, compared with an absorption of ₹3.8125 crore in the half year ended September 30, 2025. The change reflected cash uses across receivables, other bank balances, trade payables and short-term loans and advances.

Trade receivables accounted for a ₹6.6284 crore cash outflow, the largest individual movement reported in working capital. Other bank balances absorbed ₹1.809 crore, while short-term loans and advances used ₹68.73 lakh and other current assets used ₹3.90 lakh during the September 2026 half year.

Trade payables reduced by ₹2.0605 crore in the cash-flow statement, creating another use of cash, whereas provisions and other current liabilities contributed ₹32.28 lakh. Other non-current assets used ₹4.24 lakh in the September 2026 period, compared with a ₹36.38 lakh source of cash from that line in the corresponding 2025 half year.

How much did Ascensive Educare’s receivables rise?

Ascensive Educare’s trade receivables rose to ₹27.329 crore at September 30, 2026 from ₹20.9805 crore at March 31, 2026, an increase of ₹6.3485 crore. The cash-flow statement separately records a ₹6.6284 crore outflow for trade receivables during the half year.

Revenue from operations declined to ₹24.9393 crore in the half year ended September 30, 2026 from ₹27.2262 crore in the corresponding 2025 period. Total revenue, including other income, fell to ₹25.3408 crore from ₹27.2965 crore, while the receivables balance increased from the March 2026 closing level.

The filing does not disclose an ageing analysis, customer-level balances or collection dates for the ₹27.329 crore receivables balance. Ascensive Educare says it operates only in skill development training services, which is its single primary segment, so it does not provide segment-level receivables or cash-flow disclosures.

How did Ascensive Educare fund its cash requirements?

Ascensive Educare generated ₹5.2781 crore of net cash from financing activities in the half year ended September 30, 2026, compared with ₹76.33 lakh in the corresponding 2025 period. Borrowing proceeds were ₹13.4817 crore, repayments were ₹7.5868 crore and finance costs paid were ₹61.68 lakh.

Short-term borrowings rose to ₹10.7232 crore at September 30, 2026 from ₹6.6247 crore at March 31, 2026. Long-term borrowings increased to ₹2.9608 crore from ₹1.1643 crore, taking the combined balance of those two borrowing categories to ₹13.684 crore from ₹7.789 crore.

Trade payables moved in the opposite direction, falling to ₹1.4923 crore at September 30, 2026 from ₹3.9105 crore at March 31, 2026. Other current liabilities increased to ₹4.0515 crore from ₹3.7232 crore, while long-term provisions rose to ₹82.57 lakh from ₹53.60 lakh.

What happened to Ascensive Educare’s cash balance and profit?

Ascensive Educare’s cash and cash equivalents fell by ₹5.5308 crore to ₹56.66 lakh at September 30, 2026 from ₹6.0974 crore at the start of the half year. The closing total comprised ₹5.35 lakh of cash in hand and ₹51.31 lakh held in bank current accounts.

Investing activities used ₹84.09 lakh in the September 2026 half year, compared with a ₹2.54 lakh net inflow a year earlier. Purchases of property, plant and equipment, including intangible assets and capital work-in-progress, were ₹88.35 lakh, partly offset by ₹4.26 lakh of interest received on fixed deposits.

Profit after tax was ₹54.30 lakh for the half year ended September 30, 2026, down from ₹2.2572 crore a year earlier. Profit before tax declined to ₹74.31 lakh from ₹3.0332 crore, and total expenses were ₹24.5977 crore compared with ₹24.2633 crore in the corresponding 2025 half year.

The balance sheet separately reports cash and bank balances of ₹3.432 crore at September 30, 2026, down from ₹7.1538 crore at March 31, 2026. The filing presents that balance separately from the ₹56.66 lakh cash-and-cash-equivalents figure in the cash-flow statement and does not provide a reconciliation between the two reported amounts.

Conclusion

Ascensive Educare’s September 2026 half-year results show that the ₹54.30 lakh reported profit did not convert into operating cash, principally because working capital absorbed ₹10.9438 crore. The ₹6.6284 crore receivables outflow, a reduction in trade payables and other bank-balance movements contributed to a ₹9.968 crore operating cash outflow, while financing activities supplied ₹5.2781 crore.

The next reported figures will show whether the ₹27.329 crore receivables balance is collected and whether the combined ₹13.684 crore of short- and long-term borrowings changes. The filing identifies skill development training services as Ascensive Educare’s only primary segment, leaving no segment-level collection or cash-flow detail to assess separately.