Clinitech revenue rises 85% as operating cash use hits Rs 118 lakh

Clinitech Laboratory Limited reported Rs 9.42 crore of consolidated revenue from operations for the half year ended September 30, 2026, up 85.5% from Rs 5.08 crore a year earlier, while net cash used in operating activities was Rs 118.24 lakh after trade receivables rose by Rs 1.69 crore.

How did Clinitech's revenue and profit change?

Clinitech's consolidated revenue from operations rose to Rs 9.42 crore in the half year ended September 30, 2026, from Rs 5.08 crore in the corresponding half year ended September 30, 2025. Total income increased to Rs 9.45 crore from Rs 5.19 crore, although other income declined to Rs 2.79 lakh from Rs 11 lakh. Revenue was also above the Rs 4.41 crore reported in the preceding half year ended March 31, 2026.

Clinitech reported profit before tax of Rs 61.43 lakh, compared with Rs 35.08 lakh a year earlier and Rs 24.54 lakh in the March 2026 half-year. Total tax expense was Rs 17.19 lakh, leaving profit after tax before minority interest of Rs 44.24 lakh. Profit attributable to owners of the parent reached Rs 36.33 lakh, against Rs 30.03 lakh in September 2025 and Rs 11.77 lakh in March 2026.

What changed in Clinitech's cost base?

Clinitech's total expenses increased to Rs 8.84 crore in the September 2026 half-year from Rs 4.84 crore a year earlier. Cost of consumables used was the largest expense at Rs 4.06 crore, compared with Rs 1.38 crore in the September 2025 half-year. Other expenses rose to Rs 2.26 crore from Rs 1.42 crore, while employee benefits expense increased to Rs 1.93 crore from Rs 1.57 crore.

Clinitech's finance costs rose to Rs 12.44 lakh from Rs 4.74 lakh, and depreciation and amortisation increased to Rs 30.37 lakh from Rs 25.05 lakh. Laboratory testing charges moved lower to Rs 16.04 lakh from Rs 17.43 lakh. The company identifies pathology and healthcare as its single reportable business segment, stating that subsidiary activities are not material enough to require separate segment reporting.

Why did Clinitech's operating cash flow turn negative?

Clinitech used Rs 118.24 lakh in operating activities during the half year ended September 30, 2026, after generating Rs 99.75 lakh of operating profit before working-capital changes. The cash-flow statement, prepared under the indirect method, added back Rs 30.37 lakh of depreciation and amortisation and Rs 8.80 lakh of interest expense. Income taxes paid totalled Rs 15.80 lakh.

The largest working-capital cash use was the Rs 1.69 crore increase in trade receivables. Inventories increased by Rs 47.16 lakh, other assets rose by Rs 33.31 lakh and other non-current assets increased by Rs 9.29 lakh. These uses exceeded positive movements including a Rs 26.66 lakh increase in trade payables, a Rs 15.27 lakh increase in short-term provisions and a Rs 14.24 lakh increase in other liabilities.

Clinitech's year ended March 31, 2026 also recorded an operating cash outflow, of Rs 79.26 lakh, although that full-year period is not directly comparable with the September 2026 half-year. At September 30, 2026, trade receivables stood at Rs 3.54 crore, compared with Rs 1.85 crore at March 31, 2026, and inventories were Rs 1.20 crore, compared with Rs 73.05 lakh. The filing does not provide receivables ageing, inventory composition or collection dates.

How did Clinitech fund investment and working-capital needs?

Clinitech used Rs 1.48 crore in investing activities in the September 2026 half-year, driven mainly by Rs 1.49 crore spent on property, plant and equipment and intangible assets. Financing activities generated Rs 2.53 crore, including Rs 2.54 crore of proceeds from long-term borrowings and Rs 7.14 lakh from short-term borrowings. Interest paid was Rs 8.80 lakh in the cash-flow statement.

Clinitech's long-term borrowings increased to Rs 3.08 crore at September 30, 2026 from Rs 53.75 lakh at March 31, 2026. Property, plant and equipment rose to Rs 3.60 crore from Rs 2.14 crore over the same dates. Despite financing inflows, cash and cash equivalents declined by Rs 13.77 lakh during the half-year to Rs 1.97 crore because operating and investing activities together used Rs 2.67 crore.

Total consolidated assets increased to Rs 14.80 crore at September 30, 2026 from Rs 11.18 crore at March 31, 2026. Non-current assets rose to Rs 5.07 crore from Rs 3.80 crore, while current assets increased to Rs 9.73 crore from Rs 7.37 crore. Shareholders' funds including minority interest were Rs 9.70 crore, compared with Rs 9.25 crore, and reserves and surplus increased to Rs 7.33 crore from Rs 6.97 crore.

What did Clinitech disclose about the review and IPO proceeds?

Clinitech's Audit Committee reviewed and its board took on record the unaudited consolidated results on November 13, 2026. Kale Malde & Co., the statutory auditor, said its limited review had not identified anything causing it to believe the results lacked required disclosures or contained a material misstatement. The auditor also stated that a review is narrower in scope than an audit and does not provide an audit opinion.

Clinitech had fully applied Rs 5.78 crore of initial public offering, or IPO, proceeds as of September 30, 2026, according to a separate certificate dated November 13, 2026. The certificate listed Rs 4.99 crore for diagnostic-business expansion, Rs 41.33 lakh for general corporate purposes and Rs 38.30 lakh for issue-related expenses. It recorded no unutilised IPO proceeds at the reporting date.

Conclusion

Clinitech paired an 85.5% year-on-year rise in September-half revenue with an increase in parent-attributable profit to Rs 36.33 lakh. The cash-flow result differed from the profit result because receivables, inventory and other assets absorbed cash, producing a Rs 118.24 lakh operating outflow while long-term borrowing proceeds were Rs 2.54 crore.

What to watch next is whether subsequent reporting provides evidence of cash conversion from the Rs 3.54 crore receivables balance and the Rs 1.20 crore inventory balance, for which the September filing gives no ageing or composition. The reported Rs 3.08 crore of long-term borrowings and Rs 3.60 crore of property, plant and equipment will also show how the disclosed diagnostic-business expansion is reflected in later periods.