ASM Technologies reports Rs 30.616 crore operating outflow

ASM Technologies Ltd reported a consolidated operating cash outflow of Rs 30.616 crore for the half year ended September 30, 2026, reversing an inflow of Rs 50.027 crore a year earlier, as trade receivables rose by Rs 131.676 crore and inventories increased by Rs 41.395 crore. Operating profit before working-capital changes was Rs 105.427 crore.

Why did ASM Technologies report an operating cash outflow?

ASM Technologies reported an operating cash outflow because increases in receivables and inventories outweighed operating profit and cash released from several liability movements. Cash generated from operations before direct taxes was negative Rs 24.063 crore for the half year ended September 30, 2026, compared with positive Rs 61.818 crore in the corresponding 2025 half year.

The group recorded operating profit before working-capital changes of Rs 105.427 crore, up from Rs 56.645 crore a year earlier. That figure included profit before tax of Rs 87.286 crore, depreciation and amortisation expense of Rs 10.392 crore, and finance costs of Rs 9.367 crore. The subsequent working-capital movements changed the result from a pre-working-capital operating profit to cash used in operations.

Direct taxes paid increased to Rs 6.553 crore from Rs 1.791 crore in the comparable 2025 half year. After those payments, net cash used in operating activities was Rs 30.616 crore, compared with net cash generated from operating activities of Rs 50.027 crore a year earlier.

How much cash did receivables and inventory absorb?

ASM Technologies recorded a Rs 131.676 crore cash outflow from the increase in trade receivables and a Rs 41.395 crore outflow from the increase in inventories during the September 2026 half year. Together, the two items absorbed Rs 173.071 crore, compared with a Rs 2.635 crore inflow from receivables and a Rs 19.952 crore inventory outflow in the corresponding 2025 period.

Consolidated trade receivables stood at Rs 247.393 crore on September 30, 2026, compared with Rs 115.716 crore on March 31, 2026. Consolidated inventories were Rs 111.025 crore, up from Rs 69.630 crore over the same six-month period. The balance-sheet increases align closely with the working-capital cash-flow movements reported for the half year.

In part, these outflows were offset by increases in trade payables of Rs 7.439 crore, other liabilities of Rs 19.543 crore, and provisions of Rs 15.788 crore. Those three movements added Rs 42.770 crore of cash, but were smaller than the combined increase in receivables and inventory.

What changed in ASM Technologies’ borrowings and cash balances?

ASM Technologies’ consolidated current borrowings rose to Rs 112.089 crore at September 30, 2026 from Rs 43.901 crore at March 31, 2026. Non-current borrowings increased to Rs 81.623 crore from Rs 68.687 crore during the same period, while the cash-flow statement recorded Rs 125.025 crore of proceeds from borrowings in the half year.

The statement also recorded Rs 8.032 crore of long-term borrowing repayments and Rs 8.627 crore of interest paid for the September 2026 half year. Interest paid was higher than Rs 6.221 crore in the corresponding 2025 half year. Dividends paid, including tax on dividend, were Rs 25.282 crore, compared with Rs 1.303 crore a year earlier.

Consolidated cash and cash equivalents nevertheless increased to Rs 23.440 crore at September 30, 2026 from Rs 6.293 crore at the beginning of the year. The cash-flow statement reported a net increase in cash and cash equivalents of Rs 17.147 crore, following the operating outflow, investing cash flows, and financing cash flows during the half year.

What does ASM Technologies’ balance sheet show?

ASM Technologies reported consolidated current assets of Rs 436.100 crore at September 30, 2026, compared with Rs 298.123 crore at March 31, 2026. Receivables rose by Rs 131.677 crore on the balance sheet and inventory rose by Rs 41.395 crore, making them the principal movements within current assets over the six months.

Current liabilities increased to Rs 224.826 crore from Rs 114.175 crore at March 31, 2026. Total consolidated assets rose to Rs 722.134 crore from Rs 502.915 crore, while total equity including non-controlling interest increased to Rs 398.127 crore from Rs 307.039 crore.

The standalone figures showed a similar direction in working capital. Standalone trade receivables rose to Rs 269.121 crore at September 30, 2026 from Rs 148.647 crore at March 31, 2026, while inventories increased to Rs 99.977 crore from Rs 63.642 crore. Standalone net operating cash flow was negative Rs 33.639 crore, against a positive Rs 0.586 crore in the corresponding 2025 half year.

What reporting issue did ASM Technologies disclose?

ASM Technologies said it implemented the TCS iON enterprise resource planning system during the current quarter and that the system was undergoing stabilisation. Management said it was addressing system bugs, process deficiencies, and inaccuracies or inconsistencies in reports generated by the system.

The filing specifically identified opening balances, inventory valuation, amortisation of prepaid expenses, debtor and creditor ageing, the fixed-asset register, and unbilled receivables as affected areas. Management said it had carried out necessary rectifications, but the announcement did not quantify those rectifications or provide a revised operating-cash-flow target.

The board took the half-year results on record on November 7, 2026, after audit committee review. ASM Technologies also declared an interim dividend of Rs 6 per share, according to the filing, while the cash-flow statement reported Rs 25.282 crore of dividends paid during the reported half year.

Conclusion

ASM Technologies’ September 2026 half-year disclosure shows that consolidated profit before tax of Rs 87.286 crore did not translate into operating cash generation. The Rs 173.071 crore combined cash absorption from receivables and inventories exceeded the Rs 42.770 crore contribution from higher payables, other liabilities and provisions, resulting in a Rs 30.616 crore operating outflow.

The next reporting period will show whether receivables of Rs 247.393 crore and inventories of Rs 111.025 crore decline, stabilise, or continue to rise. It will also provide an update on management’s stated TCS iON stabilisation work, particularly for inventory valuation, receivable ageing and unbilled receivables.