Dev Accelerator Limited operating cash flow turns negative in H1

Dev Accelerator reported net cash used in operating activities of Rs 22.48 crore for the half year ended September 30, 2026, against Rs 47.81 crore generated a year earlier, as an Rs 85.81 crore net working-capital outflow exceeded Rs 71.04 crore of operating profit before working-capital changes.

Why did Dev Accelerator report negative operating cash flow?

Dev Accelerator reported negative operating cash flow because working-capital movements consumed Rs 85.81 crore in the half year ended September 30, 2026, compared with an Rs 6.92 crore outflow in the corresponding 2025 period. This outflow was larger than the Rs 71.04 crore operating profit before working-capital changes, resulting in Rs 14.77 crore of cash used in operations before tax payments.

Dev Accelerator paid net direct taxes of Rs 7.71 crore during the September 2026 half year, compared with Rs 0.41 crore a year earlier. This brought net cash flow from operating activities to an outflow of Rs 22.48 crore, reversing an inflow of Rs 47.81 crore in the half year ended September 30, 2025. The unaudited consolidated results were approved by the board on November 3, 2026.

Which working-capital items used Dev Accelerator's cash?

Dev Accelerator's largest disclosed working-capital use was a Rs 55.56 crore increase in other current assets during the half year ended September 30, 2026. A Rs 31.83 crore increase in other non-current assets was the next largest use, while changes in trade and other receivables used Rs 25.80 crore.

These three asset movements used Rs 113.19 crore in total, partly offset by liability movements. Changes in financial and other liabilities provided Rs 18.95 crore, while changes in trade and other payables provided Rs 8.42 crore. In the previous half year, receivables had provided Rs 12.00 crore and payables had provided Rs 24.11 crore, rather than using cash.

Dev Accelerator reported trade receivables of Rs 53.81 crore at September 30, 2026, up from Rs 27.29 crore at March 31, 2026. Other current assets were Rs 102.54 crore at September 30, compared with Rs 47.06 crore at the March year-end. The reported debtors turnover ratio was 4.98 for the September 2026 half year, compared with 4.47 in the prior-year half.

Did Dev Accelerator remain profitable despite the cash outflow?

Dev Accelerator remained profitable in the half year ended September 30, 2026, reporting consolidated profit after tax of Rs 7.00 crore, compared with Rs 1.89 crore a year earlier. Revenue from operations rose to Rs 134.00 crore from Rs 107.46 crore, while profit before tax increased to Rs 7.90 crore from Rs 2.64 crore.

The gap between accounting profit and operating cash flow was reflected in the working-capital bridge rather than operating profit before working-capital changes. In the reconciliation from profit before tax, depreciation and amortisation was Rs 38.07 crore, finance cost was Rs 30.13 crore and interest income was Rs 3.71 crore in the September 2026 half year.

Dev Accelerator's consolidated net profit margin, defined in the results as profit after tax divided by revenue from operations, was 5.22% in the September 2026 half year, compared with 1.76% in the comparable period. Its operating margin, defined as earnings before interest, tax, depreciation and amortisation less other income divided by revenue, was 53.06%, against 49.22% a year earlier.

How did investing and financing cash flows affect Dev Accelerator's cash balance?

Dev Accelerator used Rs 30.51 crore in investing activities during the September 2026 half year, compared with Rs 26.95 crore in the prior-year period. Purchases of property, plant and equipment, intangible assets and capital work-in-progress, including capital advances, used Rs 29.25 crore, while net loans and advances used Rs 9.23 crore.

The investing outflow included Rs 26.20 crore spent on investments, partly offset by Rs 25.10 crore of proceeds from sale of investments and Rs 8.74 crore from sale of property, plant and equipment. In the prior-year half, Dev Accelerator reported no proceeds from property sales and Rs 0.13 crore from investment sales.

Financing activities provided Rs 46.71 crore in the September 2026 half year, compared with Rs 17.41 crore a year earlier. Borrowing proceeds were Rs 179.60 crore and share proceeds, net of issue expenses, were Rs 19.81 crore, while borrowing repayments were Rs 102.14 crore, interest on borrowings was Rs 12.84 crore and lease-liability principal payments were Rs 24.19 crore.

What does Dev Accelerator's balance sheet show after September 2026?

Dev Accelerator ended September 30, 2026 with cash and cash equivalents of Rs 14.80 crore, down from Rs 21.08 crore at March 31, 2026. Other bank balances were Rs 22.50 crore, compared with Rs 34.20 crore at the March year-end, and are separately classified from cash equivalents in the consolidated balance sheet.

Total assets increased to Rs 875.58 crore at September 30, 2026 from Rs 643.98 crore at March 31, 2026. Right-of-use assets rose to Rs 284.09 crore from Rs 192.25 crore, property, plant and equipment rose to Rs 116.27 crore from Rs 64.94 crore, and capital work-in-progress declined to Rs 34.16 crore from Rs 69.77 crore.

Total borrowings, combining current and non-current borrowings, were Rs 222.17 crore at September 30, 2026 versus Rs 144.72 crore at March 31, 2026. Lease liabilities were Rs 321.78 crore across current and non-current classifications, up from Rs 225.69 crore. The reported debt-equity ratio was 1.03 at September 30, compared with 0.78 at March 31.

Conclusion

Dev Accelerator combined higher first-half revenue and profit with a reversal in operating cash generation. The Rs 22.48 crore operating cash outflow reflected Rs 85.81 crore of net working-capital use, particularly movements in other current assets, other non-current assets and receivables, rather than a reported operating loss.

The next disclosed item to watch is deployment of the remaining Rs 27.68 crore of initial public offering proceeds earmarked for fit-outs in proposed centres at September 30, 2026. Dev Accelerator also allotted Rs 100 crore of senior secured, rated, listed non-convertible debentures in August 2026, making subsequent borrowing, fit-out spending and working-capital movements relevant to future cash-flow disclosures.