CMS Info Systems generates Rs 177.26 crore H1 operating cash

CMS Info Systems Limited generated Rs 177.26 crore of net operating cash in the half year ended September 30, 2026, reversing a Rs 116.95 crore outflow a year earlier. Operating inflows exceeded financing outflows only partly, as Rs 167.93 crore of buybacks, Rs 40.02 crore of dividends and lease payments reduced cash and cash equivalents by Rs 53.15 crore to Rs 59.10 crore.

How did CMS Info Systems' operating cash flow change in H1 2026?

CMS Info Systems reported Rs 177.26 crore of net cash generated from operating activities for the half year ended September 30, 2026, against Rs 116.95 crore used in the corresponding 2025 period. The reversal occurred although profit before tax declined to Rs 208.39 crore from Rs 221.20 crore a year earlier.

Cash generated before working-capital changes rose to Rs 377.70 crore from Rs 338.21 crore. Working-capital movements then left Rs 237.27 crore of cash generated from operations, and Rs 60.02 crore of net taxes paid reduced the final operating inflow to Rs 177.26 crore.

Non-cash adjustments were higher in the 2026 half. Depreciation and amortisation on property, plant and equipment and intangible assets were Rs 100.93 crore, compared with Rs 68.25 crore, while depreciation on right-of-use assets rose to Rs 45.10 crore from Rs 24.46 crore.

What working-capital movements affected CMS Info Systems' cash flow?

CMS Info Systems recorded working-capital cash outflows from a Rs 100.96 crore increase in trade receivables, a Rs 27.53 crore increase in inventories and a Rs 25.92 crore increase in other assets and prepayments during the 2026 half. These movements were partly offset by a Rs 18.08 crore increase in trade payables and other liabilities.

The company also reported a Rs 4.10 crore decrease in provisions, which reduced operating cash generation. In the comparable 2025 half, trade receivables absorbed Rs 214.55 crore and trade payables and other liabilities declined by Rs 71.32 crore, contributing to the Rs 55.48 crore cash use in operations.

The September 30 balance sheet reflects the receivables and inventory movements. Trade receivables rose to Rs 970.85 crore from Rs 892.20 crore at March 31, 2026, while inventories increased to Rs 96.72 crore from Rs 69.19 crore; other current assets were Rs 95.59 crore, versus Rs 96.77 crore.

CMS Info Systems does not provide a customer-level or segment-level split of the receivables increase. Its managed services segment had Rs 1,550.67 crore of assets at September 30, 2026, compared with Rs 954.28 crore for cash management services and Rs 36.51 crore for card services.

How did buybacks and dividends affect CMS Info Systems' liquidity?

CMS Info Systems used Rs 254.13 crore in financing activities in the half year ended September 30, 2026, compared with Rs 133.91 crore in the prior-year half. The largest financing outflow was Rs 167.93 crore spent on the buyback of equity shares, followed by Rs 40.02 crore of dividends and Rs 41.77 crore of lease-principal payments.

The company also incurred Rs 2.06 crore of buyback transaction costs and repaid Rs 12.04 crore of loans. Proceeds of Rs 99.78 lakh from the issue of equity shares partly offset these outflows, but financing cash use remained Rs 120.22 crore higher than in the comparable 2025 period.

The buyback and dividend payments coincided with a reduction in shareholders' equity. Equity share capital fell to Rs 160.06 crore at September 30, 2026 from Rs 164.64 crore at March 31, while other equity decreased to Rs 2,227.66 crore from Rs 2,267.70 crore, taking total equity attributable to shareholders to Rs 2,387.72 crore.

The 2025 half had a different mix of shareholder payments. CMS Info Systems paid Rs 102.73 crore in dividends in that period, while the cash-flow statement shows no buyback outflow; lease-principal payments were Rs 23.44 crore, compared with Rs 41.77 crore in the 2026 half.

What did investing cash flow and the balance sheet show?

CMS Info Systems generated Rs 23.72 crore from investing activities in the 2026 half, down from Rs 75.37 crore a year earlier. Redemptions of mutual funds and non-convertible debentures totalled Rs 1,109.62 crore, exceeding Rs 971.02 crore invested in those instruments.

Investing outflows included Rs 149.44 crore for property, plant and equipment and intangible assets, Rs 25.00 crore of business-acquisition consideration and Rs 18.00 crore of loans given to corporates. Proceeds from disposal of property, plant and equipment were Rs 2.97 crore, while interest received was Rs 20.08 crore.

Property, plant and equipment increased to Rs 813.78 crore at September 30, 2026 from Rs 725.31 crore at March 31. Capital work-in-progress declined to Rs 67.31 crore from Rs 113.47 crore, while right-of-use assets rose to Rs 237.60 crore from Rs 192.88 crore.

Cash and cash equivalents closed at Rs 59.10 crore, compared with Rs 112.26 crore at the beginning of the period. Current and non-current investments together were Rs 237.52 crore at September 30, down from Rs 373.85 crore at March 31, while bank balances other than cash equivalents rose to Rs 44.70 crore from Rs 42.34 crore.

Conclusion

CMS Info Systems converted operations into Rs 177.26 crore of cash in the half year ended September 30, 2026, despite profit before tax falling by Rs 12.81 crore from a year earlier. The operating inflow and Rs 23.72 crore from investing activities were more than offset by Rs 254.13 crore used in financing, principally for the buyback, dividends and lease-principal payments.

The next results will show whether the Rs 970.85 crore receivables balance and Rs 96.72 crore inventory balance continue to absorb operating cash. Further changes in property, plant and equipment, which reached Rs 813.78 crore after Rs 149.44 crore of half-year spending, and in investments of Rs 237.52 crore will also affect the cash-flow profile disclosed by CMS Info Systems.