DiGiSPICE operating cash outflow reaches Rs 9.0216 crore

DiGiSPICE Technologies Limited reported a Rs 9.0216 crore net cash outflow from operating activities for the half year ended September 30, 2026, reversing a Rs 72.6263 crore inflow a year earlier, as a Rs 38.5695 crore fall in other payables outweighed higher profit before tax of Rs 22.2664 crore.

Why did DiGiSPICE report negative operating cash flow?

DiGiSPICE reported negative operating cash flow because working-capital movements changed from a cash source in the prior-year half to a cash use in the half year ended September 30, 2026. Cash used in operations before direct taxes was Rs 5.8799 crore, compared with cash generated of Rs 77.9572 crore in the half year ended September 30, 2025. Net direct taxes paid were Rs 3.1417 crore, resulting in a Rs 9.0216 crore operating cash outflow.

The largest working-capital movement was a Rs 38.5695 crore decrease in other payables, compared with a Rs 68.0367 crore increase in the previous corresponding half. Trade receivables increased by Rs 1.0475 crore, trade payables decreased by Rs 59.08 lakh and provisions fell by Rs 2.1873 crore. These uses were partly offset by a Rs 20.2413 crore decrease in other receivables and a Rs 51,000 decrease in inventories.

Operating profit before working-capital changes increased to Rs 16.2687 crore from Rs 15.6728 crore. Total profit before tax also rose to Rs 22.2664 crore from Rs 19.4734 crore, including a Rs 23.2735 crore profit before tax from continuing operations and a Rs 1.0071 crore loss from discontinued operations. The cash-flow statement included Rs 12.308 crore of interest income, Rs 3.1061 crore of depreciation and amortisation, and Rs 2.076 crore of exceptional items.

What caused DiGiSPICE's investing cash outflow to increase?

DiGiSPICE used Rs 56.6859 crore in investing activities during the half year ended September 30, 2026, compared with Rs 16.9805 crore in the corresponding half of 2025. The increase primarily reflected Rs 44.009 crore used to increase fixed deposits and Rs 23.4075 crore spent on plant, property, equipment and intangible assets, including capital work in progress, intangible assets under development, capital-goods payables and capital advances.

The corresponding 2025 half included Rs 20.7725 crore used for fixed-deposit additions and Rs 5.87 crore spent on plant, property, equipment and intangible assets. It also included Rs 4.499 crore paid to acquire an investment in a subsidiary, an item not recorded in the latest half. Interest received decreased to Rs 10.8549 crore from Rs 12.0251 crore, while loans to a body corporate produced a Rs 9.56 lakh outflow after a Rs 1.9992 crore inflow a year earlier.

The September 30, 2026 balance sheet recorded capital work in progress of Rs 31.8325 crore, up from Rs 16.2325 crore at March 31, 2026. Property, plant and equipment rose to Rs 11.4859 crore from Rs 10.412 crore, while bank balances other than cash equivalents increased to Rs 142.2069 crore from Rs 125.2457 crore. The increase in those bank balances is consistent with the cash-flow statement's fixed-deposit outflow.

How did DiGiSPICE fund its cash outflows?

DiGiSPICE generated Rs 18.5735 crore from financing activities in the half year ended September 30, 2026, compared with a Rs 66.4938 crore financing outflow in the previous corresponding half. Net proceeds from current borrowings were Rs 19.187 crore, reversing net current-borrowing repayments of Rs 66.1025 crore a year earlier. Proceeds from share capital and securities premium totalled Rs 26.5 lakh.

Current borrowings stood at Rs 101.1438 crore at September 30, 2026, up from Rs 81.9568 crore at March 31, 2026. Financing cash flows also included Rs 29.72 lakh paid towards lease liabilities, including interest, and Rs 58.13 lakh of interest paid. In the half year ended September 30, 2025, the comparable payments were Rs 36.43 lakh for lease liabilities and Rs 88.57 lakh for interest.

Cash and cash equivalents, including discontinued operations, decreased by Rs 47.134 crore during the half to Rs 176.5354 crore from Rs 223.6694 crore at the beginning of the year. The cash-flow statement said Rs 7.6448 crore of closing cash and cash equivalents related to discontinued operations, compared with Rs 9.0614 crore in the previous period. The balance sheet separately reported Rs 168.8906 crore of cash and cash equivalents and Rs 142.2069 crore of other bank balances at September 30, 2026.

How did DiGiSPICE's profit and operating business compare with cash flow?

DiGiSPICE's profit increased even as operating cash flow turned negative because the profit statement and cash-flow statement captured different working-capital and non-cash movements. Continuing-operations profit before tax rose to Rs 23.2735 crore from Rs 19.6578 crore, while the discontinued operations loss before tax widened to Rs 1.0071 crore from Rs 18.44 lakh. Total profit before tax therefore increased by Rs 2.793 crore year on year.

Financial Technology Services, identified in the segment disclosure as Spice Money, recorded Rs 226.3531 crore of revenue for the half year ended September 30, 2026, down from Rs 248.3414 crore a year earlier. However, segment profit before exceptional items, interest and tax increased to Rs 27.9553 crore from Rs 23.9418 crore. The filing also recorded a Rs 2.076 crore impairment loss on an investment property during the quarter ended June 30, 2026.

Financial Technology Services segment assets were Rs 642.5268 crore at September 30, 2026, compared with Rs 646.5462 crore at March 31, 2026. Segment liabilities decreased to Rs 525.191 crore from Rs 550.9803 crore over the same period. The consolidated cash-flow statement does not allocate operating, investing or financing movements by segment, so it does not identify the entities responsible for each cash-flow movement.

Conclusion

DiGiSPICE's half-year results show that a Rs 22.2664 crore profit before tax did not convert into operating cash generation. The Rs 38.5695 crore reduction in other payables, Rs 56.6859 crore of investing outflows and Rs 47.134 crore fall in cash and cash equivalents occurred alongside Rs 19.187 crore of net proceeds from current borrowings.

The disclosed event to watch is the proposed amalgamation of Spice Money Limited, E-Arth Travel Solutions Private Limited and Vikasni Fintech Private Limited into DiGiSPICE. Shareholders approved the scheme on July 13, 2026, and the second-motion petition was filed with the National Company Law Tribunal on July 24, 2026; the scheme remains conditional on tribunal and regulatory approvals and disposal of shares held by two specified trusts.