Crizac Free Cash Rose to ₹595.8 Crore Despite H1 Profit Fall

Crizac held ₹595.8 crore of free cash on September 30, 2026, up from ₹469.3 crore at March 2026, while net cash from operating activities was ₹126.9 crore in the first half of fiscal year 2027 (H1 FY27). The cash increase came as profit after tax fell 10.7% year on year to ₹84 crore and Crizac reported a ₹70 crore interim dividend.

How much free cash did Crizac hold in September 2026?

Crizac held ₹595.8 crore of free cash at September 2026, an increase of ₹126.5 crore from ₹469.3 crore at March 2026 and ₹199.3 crore from ₹396.5 crore a year earlier. The company defines free cash as cash and cash equivalents, bank balances and fixed deposits across all maturities. The balance is therefore broader than immediately available cash and cash equivalents.

Crizac reported net debt of negative ₹594.8 crore at September 2026, compared with negative ₹467.4 crore at March 2026, under its definition of borrowings plus lease liabilities minus free cash. Borrowings declined to ₹0.9 crore from ₹1.8 crore over the six months, while total equity increased by ₹82.2 crore. Total assets decreased to ₹866.2 crore from ₹875.6 crore, and net current assets, excluding specified cash balances, were negative ₹90.3 crore.

What did Crizac's H1 FY27 cash conversion show?

Crizac generated ₹126.9 crore of net cash from operating activities (NCOA) in H1 FY27, equal to 136% of operating earnings before interest, tax, depreciation and amortisation (Op EBITDA) of ₹93 crore. This compared with NCOA-to-Op EBITDA conversion of 51% in FY26, when NCOA was ₹144.1 crore and Op EBITDA was ₹282.4 crore. The two periods differ in duration because H1 FY27 covers six months and FY26 covers a full year.

Crizac reported cumulative NCOA of ₹455.3 crore over FY23 to FY26, with FY25's ₹183.6 crore the highest figure in that four-year period. The balance-sheet presentation showed free cash-to-Op EBITDA of 3.21 times at September 2026, compared with 1.66 times at March 2026. The presentation does not provide a working-capital bridge for H1 FY27 and does not identify the individual drivers of the 136% conversion rate.

Why did Crizac's H1 FY27 profit decline?

Crizac's profit after tax (PAT) declined to ₹84 crore in H1 FY27 from ₹94.1 crore in H1 FY26 as operating income fell 18.3% to ₹303.9 crore from ₹371.8 crore. Op EBITDA decreased 24.9% to ₹93 crore from ₹123.9 crore, while the Op EBITDA margin declined to 30.6% from 33.3%. PAT margin nevertheless increased to 26.3% from 24.3%.

The second quarter accounted for much of the first-half reduction. Q2 FY27 operating income was ₹102.7 crore, down 36.7% year on year and 49.0% sequentially from ₹201.2 crore in Q1 FY27, while Q2 PAT was ₹36.9 crore. H1 FY27 other income was ₹15.8 crore against ₹15.3 crore a year earlier, and depreciation fell to ₹7.3 crore from ₹12.8 crore. Crizac disclosed that it changed its depreciation method from written-down value to straight-line method from April 1, 2026, with the change accounted for prospectively.

How is Crizac allocating its cash?

Crizac reported a ₹70 crore interim dividend in H1 FY27 alongside PAT of ₹84 crore for the period. In FY26, it paid ₹140 crore of dividends against PAT of ₹219.1 crore, which management described as a 63.9% payout. Free cash increased by ₹126.5 crore from the March 2026 balance during the period in which the company reported the H1 FY27 dividend.

Crizac said it is actively evaluating acquisitions that complement its strategy and extend market reach, with funding expected from internal accruals and its cash-rich balance sheet. It listed Inova Education in July 2026, ForeignAdmits in June 2026, Medway Educational Consultant in April 2026 and Global Tree Careers in January 2026 among recent acquisitions or investments. These transactions added destination or source markets, or adjacent services, while the September 2026 cash balance is the financial resource management identified for evaluating further opportunities.

Conclusion

Crizac's H1 FY27 figures combine a higher free-cash balance, operating cash generation and a shareholder distribution with lower operating income, Op EBITDA and PAT. Free cash rose to ₹595.8 crore, NCOA was ₹126.9 crore and borrowings were ₹0.9 crore, while the company reported a ₹70 crore interim dividend and a 10.7% year-on-year decline in PAT.

The next disclosed matter to watch is management's evaluation of acquisitions that could extend Crizac's market reach and be funded through internal accruals and its cash balance. Management's subsequent capital-allocation decisions, including any further acquisition announcements or dividend distributions, will determine how the reported September 2026 cash balance is deployed.