Data Patterns turns operating cash positive on collections

Data Patterns (India) Limited generated Rs 110.16 crore of net cash from operating activities in the half-year ended 30 September 2026, reversing a Rs 49.80 crore outflow a year earlier, chiefly because trade receivables provided Rs 224.33 crore of cash despite an Rs 82.36 crore increase in inventories.

How did Data Patterns return to positive operating cash flow?

Data Patterns returned to positive operating cash flow because working-capital movements generated Rs 171.48 crore of cash before tax payments in the half-year ended 30 September 2026, compared with Rs 16.54 crore of cash used in operations in the corresponding half-year of 2025. Net tax payments were Rs 61.32 crore, versus Rs 33.26 crore a year earlier, leaving net operating cash inflow of Rs 110.16 crore.

The reversal occurred even though profit before tax fell to Rs 59.00 crore in the 2026 half-year from Rs 100.31 crore a year earlier. Operating profit before working-capital changes also declined to Rs 67.79 crore from Rs 103.77 crore. The reported shift in cash generation therefore came from movements in operating assets and liabilities rather than from a higher pre-tax profit base.

Non-cash and investment-related adjustments also changed the starting point for cash generation. Data Patterns recorded Rs 12.97 crore of depreciation and amortisation, Rs 6.33 crore of finance cost and Rs 2.12 crore of liquidated damages written off in the 2026 half-year. Those items were partly offset by Rs 12.76 crore of profit on sale of investments and Rs 4.40 crore of bank-deposit interest income.

What happened to Data Patterns' receivables and inventory?

Data Patterns' trade receivables fell to Rs 498.80 crore at 30 September 2026 from Rs 727.77 crore at 31 March 2026, while the cash-flow statement recorded a Rs 224.33 crore inflow from receivables during the half-year. The balance-sheet reduction was Rs 228.97 crore, and the cash-flow amount reflects the working-capital movement reported by Data Patterns.

Inventory moved in the opposite direction, rising to Rs 356.25 crore at 30 September 2026 from Rs 273.89 crore at 31 March 2026. The cash-flow statement classified this as an Rs 82.36 crore use of cash, compared with a Rs 50.84 crore cash release from inventories in the half-year ended 30 September 2025. The inventory movement therefore reduced the cash benefit created by receivable collections.

The reported figures show a working-capital mix that changed substantially from the prior-year half. In 2025, trade receivables used Rs 71.04 crore of cash and inventory released Rs 50.84 crore; in 2026, receivables became the principal cash source and inventories became a cash use. Other current and non-current assets also used Rs 74.53 crore of cash in 2026, versus providing Rs 25.61 crore in 2025.

Which liabilities supported or absorbed Data Patterns' cash generation?

Data Patterns reported a Rs 54.10 crore increase in other current and non-current liabilities as a source of operating cash in the 2026 half-year, reversing a Rs 96.11 crore use of cash in the prior-year half. This movement added to the Rs 224.33 crore receivables inflow, while a Rs 5.82 crore reduction in trade payables and a Rs 1.21 crore reduction in provisions absorbed cash.

On the balance sheet, trade payables to creditors other than micro and small enterprises declined to Rs 61.82 crore at 30 September 2026 from Rs 75.96 crore at 31 March 2026. Other current liabilities increased to Rs 99.11 crore from Rs 45.73 crore over the same period. Total current liabilities rose to Rs 179.84 crore from Rs 140.44 crore, while total liabilities rose to Rs 232.76 crore from Rs 193.25 crore.

Data Patterns also reported Rs 10.81 crore of cash used by other financial assets and Rs 74.53 crore used by other current and non-current assets. The latter movement accompanied a rise in other current assets to Rs 102.77 crore from Rs 33.14 crore and in other non-current assets to Rs 26.39 crore from Rs 8.70 crore. These balances limited the extent to which the receivable reduction translated into operating cash.

How did operating cash flow affect Data Patterns' cash and spending?

Data Patterns ended the half-year with Rs 68.09 crore of cash and cash equivalents, up from Rs 56.85 crore at the beginning of the financial year, after a net Rs 11.24 crore increase. The positive operating cash flow of Rs 110.16 crore was partly deployed in Rs 36.06 crore of net investing outflow and Rs 62.86 crore of financing outflow.

Investing cash outflow included Rs 54.67 crore spent on property, plant and equipment and capital work in progress, and Rs 10.89 crore on intangible assets and assets under development. Data Patterns also paid Rs 1.50 crore to invest in a subsidiary and advanced Rs 8.50 crore as a loan to the subsidiary. Purchases of investments totalled Rs 158.00 crore, while sale proceeds from investments were Rs 184.48 crore.

Financing outflow was led by Rs 55.96 crore of dividend payments, compared with Rs 44.23 crore in the prior-year half. Interest paid was Rs 6.10 crore and lease-liability payments were Rs 0.80 crore. The balance sheet reported current investments of Rs 312.58 crore at 30 September 2026, down from Rs 328.85 crore at 31 March 2026, alongside the increase in cash and cash equivalents.

Conclusion

Data Patterns' Rs 110.16 crore operating-cash inflow for the half-year ended 30 September 2026 was principally a working-capital outcome: a Rs 224.33 crore receivables inflow outweighed an Rs 82.36 crore inventory build, lower operating profit before working-capital changes and Rs 61.32 crore of tax payments. This contrasts with the Rs 49.80 crore operating-cash outflow recorded in the half-year ended 30 September 2025.

The next reported periods will show how the Rs 356.25 crore inventory balance changes and whether collections continue to support operating cash flow. Data Patterns also disclosed Rs 21.85 crore of unutilised qualified institutional placement proceeds at 30 September 2026, comprising Rs 20.25 crore for product development and Rs 1.60 crore for an EMI-EMC testing facility, while it completes purchase-price allocation for ST Advanced Composites Pvt Ltd during the measurement period.