DAPS Advertising posts Rs 1.9209 crore operating outflow

DAPS Advertising Limited recorded a Rs 1.9209 crore net cash outflow from operating activities in the half-year ended 30 September 2026, despite reporting Rs 49.45 lakh profit after tax. A Rs 2.4071 crore working-capital outflow, led by higher receivables and lower trade payables, contributed to a Rs 3.1049 crore reduction in cash and cash equivalents.

Why did DAPS Advertising report an operating cash outflow?

DAPS Advertising reported an operating cash outflow because its Rs 64.34 lakh operating profit before working-capital changes was outweighed by a Rs 2.4071 crore net working-capital outflow in the half-year ended 30 September 2026. The reported operating profit included Rs 16.17 lakh of depreciation and amortisation, Rs 19.22 lakh of interest income deducted, and Rs 1.54 lakh of finance cost added back.

Cash generated from operations was negative Rs 1.7637 crore, compared with negative Rs 79.32 lakh in the corresponding half-year ended 30 September 2025. After Rs 15.72 lakh of income tax, net cash used in operating activities was Rs 1.9209 crore, versus Rs 94.64 lakh used a year earlier, while profit before tax rose to Rs 65.85 lakh from Rs 60.11 lakh.

The wider operating outflow resulted from working-capital movements rather than a fall in the pre-working-capital operating result. The working-capital outflow increased from Rs 1.3301 crore in the half-year ended 30 September 2025 to Rs 2.4071 crore in the latest half-year, a change of Rs 1.077 crore.

How did DAPS Advertising’s working capital change?

DAPS Advertising’s trade receivables increased by Rs 95.41 lakh during the half-year ended 30 September 2026, reaching Rs 10.4273 crore at 30 September 2026 from Rs 9.4733 crore at 31 March 2026. This increase was recorded as a cash outflow in the cash-flow statement and occurred while revenue from operations was Rs 9.3662 crore for the half-year.

Trade payables declined by Rs 96.82 lakh to Rs 2.8638 crore at 30 September 2026 from Rs 3.8319 crore at 31 March 2026. The decline in supplier balances was also a cash outflow, and, together with the receivables increase, accounted for Rs 1.9223 crore of the Rs 2.4071 crore total working-capital movement.

Other current assets rose by Rs 62.45 lakh to Rs 91.05 lakh, adding another cash use during the six months. These outflows were partly offset by a Rs 10 lakh increase in other current liabilities and a Rs 5.58 lakh increase in provisions, while short-term loans and advances increased by Rs 1.61 lakh.

How did DAPS Advertising’s cash balance move during the half-year?

DAPS Advertising’s cash and cash equivalents fell by Rs 3.1049 crore during the half-year ended 30 September 2026, closing at Rs 6.7158 crore compared with an opening balance of Rs 9.8207 crore. In the corresponding half-year ended 30 September 2025, cash and cash equivalents increased by Rs 66.49 lakh to Rs 8.6167 crore.

The operating outflow of Rs 1.9209 crore was accompanied by a Rs 1.4013 crore financing outflow. Financing cash use included a Rs 1.3727 crore reduction in short-term borrowings, a Rs 1.32 lakh reduction in long-term borrowings and Rs 1.54 lakh of finance cost.

Investing activities generated a Rs 21.73 lakh net cash inflow, compared with Rs 30,000 in the corresponding half-year of 2025. DAPS Advertising spent Rs 30.94 lakh on fixed assets and received Rs 33.45 lakh from the movement in security deposits, while interest income received was Rs 19.22 lakh.

What profit and revenue did DAPS Advertising report?

DAPS Advertising reported Rs 49.45 lakh profit after tax for the half-year ended 30 September 2026, up from Rs 44.79 lakh in the corresponding period a year earlier. Profit before tax increased to Rs 65.85 lakh from Rs 60.11 lakh, and basic and diluted earnings per share rose to Rs 0.96 from Rs 0.87.

Revenue from operations declined to Rs 9.3662 crore from Rs 9.8394 crore in the half-year ended 30 September 2025. Total income decreased to Rs 9.5942 crore from Rs 10.0857 crore, while management said reduced print-media activity was partly offset by improved outdoor-media activity.

Management attributed the improvement in profitability to the change in business mix. Cost of services rendered fell to Rs 7.4936 crore from Rs 8.1579 crore, a larger reduction than the Rs 47.32 lakh decline in revenue, while employee benefits expense increased to Rs 80.20 lakh from Rs 71.65 lakh.

What do DAPS Advertising’s balance-sheet movements show?

DAPS Advertising’s total assets declined to Rs 22.2875 crore at 30 September 2026 from Rs 23.9845 crore at 31 March 2026. Current assets fell to Rs 18.8089 crore from Rs 20.4691 crore because the Rs 3.1049 crore reduction in cash and bank balances exceeded increases in receivables and other current assets.

Shareholders’ funds increased to Rs 18.5108 crore from Rs 18.0163 crore, as reserves and surplus rose to Rs 13.3359 crore from Rs 12.8414 crore. Current liabilities decreased to Rs 3.7487 crore from Rs 5.9338 crore, reflecting lower trade payables and short-term borrowings, partly offset by higher other current liabilities and provisions.

DAPS Advertising had short-term borrowings of Rs 4.08 lakh at 30 September 2026, down from Rs 1.4135 crore at 31 March 2026, while long-term borrowings fell from Rs 1.32 lakh to nil. The company disclosed one reportable business segment, so the filing does not provide separate revenue, profit, receivables or cash-flow figures for print and outdoor media activities.

Conclusion

DAPS Advertising’s half-year results show that higher reported profit did not translate into operating cash generation in the period ended 30 September 2026. Profit after tax increased to Rs 49.45 lakh, but receivables rose by Rs 95.41 lakh, trade payables fell by Rs 96.82 lakh and other current assets increased by Rs 62.45 lakh, producing a Rs 1.9209 crore operating cash outflow.

The next disclosed results will show whether receivables, which stood at Rs 10.4273 crore on 30 September 2026, and trade payables, which stood at Rs 2.8638 crore, change further. DAPS Advertising disclosed no collection target, cash-flow guidance or working-capital plan, while management identified reduced print-media activity and improved outdoor-media activity as the factors affecting the half-year revenue mix.