ATC Energies reports Rs 7.2137 crore operating cash outflow

ATC Energies System Limited reported a Rs 7.2137 crore net operating cash outflow for the period ended September 30, 2026, despite a Rs 94.18 lakh profit after tax. A Rs 10.1609 crore working-capital absorption, led by a Rs 9.5868 crore increase in trade receivables, exceeded its Rs 2.9473 crore operating profit before working-capital changes.

Why did ATC Energies report an operating cash outflow?

ATC Energies reported an operating cash outflow because its Rs 2.9473 crore operating profit before working-capital changes was outweighed by a Rs 10.1609 crore net increase in working capital for the period ended September 30, 2026. Under the indirect method prescribed by Accounting Standard 3, or AS-3, cash used in operating activities was Rs 7.2137 crore. No income-tax payment was reported, leaving net operating cash flow at the same negative amount.

The September 2026 outflow was lower than the Rs 32.7899 crore outflow reported for the period ended March 2026. Operating profit before working-capital changes increased from Rs 1.8514 crore to Rs 2.9473 crore, while working-capital absorption fell from Rs 34.6413 crore to Rs 10.1609 crore. The September 2026 statement is unaudited, while the March 2026 statement is audited.

How did receivables and other working capital affect cash?

ATC Energies' largest operating cash use was the Rs 9.5868 crore increase in trade receivables in the period ended September 30, 2026. Its balance sheet recorded trade receivables of Rs 29.962 crore at September 30, 2026, compared with Rs 20.3752 crore at March 31, 2026. That balance-sheet movement corresponds to the receivables adjustment in the cash-flow statement.

Inventories used Rs 72.58 lakh and other current assets used Rs 49.54 lakh, while trade payables used Rs 1.6018 crore and long-term loans and advances used Rs 4 lakh. These outflows were partly offset by a Rs 2.2287 crore increase in other current liabilities, Rs 3.80 lakh from long-term provisions and Rs 2.21 lakh from short-term provisions.

The working-capital mix changed from the period ended March 2026. Inventories used Rs 14.321 crore and other current liabilities used Rs 19.7142 crore in March 2026, while trade receivables generated Rs 3.8582 crore of cash. By September 2026, inventory absorption had reduced to Rs 72.58 lakh and other current liabilities had become a cash source, but receivables had become the principal cash use.

How did ATC Energies' profit compare with operating cash flow?

ATC Energies returned to profit for the period ended September 30, 2026, reporting Rs 98.23 lakh profit before tax and Rs 94.18 lakh profit after tax. In the period ended March 2026, it reported a Rs 1.892 crore loss before tax and a Rs 2.085 crore loss after tax. The September profit did not translate into operating cash generation because of the working-capital movements.

Depreciation and amortisation of Rs 1.2862 crore and finance cost of Rs 93.35 lakh lifted operating profit before working-capital changes to Rs 2.9473 crore from the Rs 98.23 lakh profit before tax. Interest income of Rs 25.48 lakh was deducted in the reconciliation. These non-cash and financing-related adjustments did not offset the Rs 10.1609 crore working-capital absorption.

Revenue from operations was Rs 22.0352 crore for the period ended September 30, 2026, compared with Rs 17.8519 crore for the period ended March 2026. Total income rose to Rs 23.1899 crore from Rs 18.1113 crore, while total expenses increased to Rs 22.2077 crore from Rs 20.0055 crore. ATC Energies disclosed no separate reportable business segments, so the filing does not identify a segment-level driver for receivables growth.

How did ATC Energies fund its overall cash movement?

ATC Energies reported a Rs 1.5736 crore net cash outflow from investing activities for the period ended September 30, 2026. Investment or maturity of deposits used Rs 4.0401 crore and purchases of fixed assets and capital advances used Rs 13.23 lakh. Interest income of Rs 25.48 lakh and a Rs 2.3441 crore movement in other non-current assets partly offset those uses.

Financing activities generated Rs 2.6927 crore in the September 2026 period, principally because short-term borrowings provided Rs 4.9451 crore. Long-term borrowing repayments used Rs 1.283 crore, finance cost used Rs 93.35 lakh and initial public offering issue expenses used Rs 3.59 lakh. In the period ended March 2026, financing activities instead used Rs 12.841 crore, including Rs 12.1808 crore of long-term borrowing repayments.

The combined cash flows resulted in a Rs 6.095 crore decrease in cash and cash equivalents, from Rs 6.3276 crore at the beginning of the period to Rs 23.30 lakh at September 30, 2026. Separately, the September 30, 2026 balance sheet showed Rs 8.3645 crore of other bank balances. The filing presents other bank balances separately from cash and cash equivalents.

What did ATC Energies disclose about IPO proceeds?

ATC Energies reported net initial public offering proceeds of Rs 51.0185 crore, with the allotment dated March 28, 2025. As of September 30, 2026, it had utilised Rs 50.7981 crore and retained Rs 22.04 lakh unutilised. The utilisation certificate stated that there was no deviation or variation in the use of funds raised.

The company reported full utilisation of Rs 9.50 crore allocated to working-capital requirements, Rs 9.5283 crore allocated to repayment or prepayment of borrowings, and Rs 6.7216 crore for refurbishment, civil work and upgrades at its Noida factory. It had used Rs 7.4141 crore of the Rs 7.4688 crore allocation for information-technology upgrades, leaving Rs 5.47 lakh, and Rs 10.4099 crore of the Rs 10.5756 crore general corporate-purpose allocation, leaving Rs 16.57 lakh.

Conclusion

ATC Energies' September 2026 filing shows a difference between accounting profit and cash generation. Its Rs 94.18 lakh profit after tax and Rs 2.9473 crore operating profit before working-capital changes were followed by a Rs 7.2137 crore operating cash outflow because working capital absorbed Rs 10.1609 crore, principally through receivables.

The disclosed matter to watch is deployment of the remaining Rs 22.04 lakh of IPO proceeds, comprising Rs 5.47 lakh for information-technology upgrades at the Noida and Vasai factories and registered office, and Rs 16.57 lakh for general corporate purposes. The filing also shows that the full Rs 9.50 crore IPO allocation for working capital had been used by September 30, 2026.