GPT Healthcare cash flow rises despite receivables increase

GPT Healthcare Limited generated Rs 34.23 crore of net operating cash in the half year ended September 30, 2026, up from Rs 33.65 crore a year earlier, despite a Rs 12.57 crore cash outflow from higher trade receivables. Cash generated before working-capital changes rose to Rs 52.64 crore from Rs 40.65 crore.

How much operating cash did GPT Healthcare generate?

GPT Healthcare generated Rs 34.23 crore of net cash from operating activities in the half year ended September 30, 2026, compared with Rs 33.65 crore in the half year ended September 30, 2025. The increase of Rs 0.58 crore came as profit before tax rose to Rs 37.84 crore from Rs 26.18 crore and direct taxes paid, net of refunds, fell to Rs 3.71 crore from Rs 7.77 crore.

Cash generated from operations before working-capital changes increased to Rs 52.64 crore from Rs 40.65 crore. The pre-working-capital cash figure included Rs 13.93 crore of depreciation and amortisation, against Rs 13.03 crore a year earlier, and Rs 4.26 crore of finance costs, against Rs 3.80 crore in the corresponding period.

Cash generated from operations after working-capital changes declined to Rs 37.93 crore from Rs 41.42 crore. This indicates that working-capital movements absorbed Rs 14.71 crore more cash than they did in the prior-year half, but the rise in pre-working-capital cash generation and the lower tax payment left reported operating cash above the previous period.

Why did GPT Healthcare’s trade receivables absorb cash?

GPT Healthcare recorded a Rs 12.57 crore cash outflow from an increase in trade receivables in the September 2026 half year, compared with an Rs 8.80 crore outflow in the same period of 2025. The receivables movement was the largest working-capital cash outflow disclosed for the 2026 half year.

Trade receivables on the balance sheet stood at Rs 31.64 crore at September 30, 2026, compared with Rs 20.28 crore at March 31, 2026. The Rs 11.35 crore balance-sheet increase differs from the Rs 12.57 crore cash-flow adjustment, and GPT Healthcare did not provide a reconciliation between the two figures in the filing.

The receivables increase occurred as revenue from operations rose to Rs 261.83 crore for the half year from Rs 226.02 crore a year earlier. Profit after tax increased to Rs 28.13 crore from Rs 18.29 crore, while GPT Healthcare identified healthcare services in India as its sole reportable business and geographical segment, without providing hospital-level or payer-level collection data.

What other working-capital changes affected GPT Healthcare’s cash flow?

GPT Healthcare used Rs 1.02 crore of cash for higher inventories in the half year ended September 2026, compared with Rs 3.44 crore in the corresponding 2025 half. Inventories stood at Rs 11.62 crore at September 30, 2026, compared with Rs 10.60 crore at March 31, 2026.

Contract assets declined by Rs 0.07 crore during the 2026 half year, compared with a Rs 0.45 crore decline a year earlier. Closing contract assets were Rs 5.44 crore at September 30, 2026, marginally below Rs 5.51 crore at March 31, 2026, while the cash-flow statement showed a Rs 0.19 crore decrease in other financial assets.

Trade payables increased by Rs 1.85 crore in the September 2026 half year, compared with an increase of Rs 14.10 crore in the prior-year period. The lower increase reduced cash support from supplier balances; trade payables to parties other than micro and small enterprises were Rs 42.90 crore at September 30, 2026, versus Rs 40.85 crore at March 31, while dues to micro and small enterprises were Rs 0.84 crore versus Rs 1.06 crore.

Other working-capital lines also reduced the cash generated before tax. GPT Healthcare reported a Rs 0.87 crore cash outflow from increased non-financial assets and a Rs 3.58 crore outflow from lower other financial liabilities, against respective outflows of Rs 1.92 crore and Rs 0.60 crore in the previous corresponding half.

How did earnings and non-cash items support cash generation?

GPT Healthcare’s profit before tax increased by Rs 11.66 crore year on year to Rs 37.84 crore for the half year ended September 30, 2026. Revenue from operations increased by Rs 35.81 crore to Rs 261.83 crore, while total expenses rose by Rs 26.22 crore to Rs 228.96 crore, producing the higher pre-tax result.

Depreciation and amortisation, which are non-cash charges added back in the cash-flow statement, were Rs 13.93 crore, compared with Rs 13.03 crore in the prior-year half. GPT Healthcare also added back Rs 0.88 crore for allowances for expected credit losses, up from Rs 0.40 crore, and recorded Rs 0.34 crore of bad debts, compared with no amount in the corresponding 2025 period.

Finance costs of Rs 4.26 crore were added back in the operating cash-flow calculation, compared with Rs 3.80 crore a year earlier. The statement also included a Rs 0.43 crore write-back of liabilities or provisions no longer required, against Rs 0.12 crore in the prior period, alongside Rs 0.16 crore of deferred government-grant income and Rs 3.83 crore of interest income deducted in reaching the pre-working-capital cash figure.

Where did GPT Healthcare deploy cash outside operations?

GPT Healthcare used Rs 16.49 crore in investing activities during the half year ended September 30, 2026, compared with Rs 22.75 crore in the prior-year period. Purchases of property, plant and equipment, intangible assets and capital work in progress were Rs 18.27 crore, lower than Rs 26.16 crore a year earlier, while purchases of investments rose to Rs 14.23 crore from Rs 10.45 crore.

The company reported Rs 20.96 crore of net cash used in financing activities, compared with Rs 11.09 crore in the 2025 half year. This included Rs 12.31 crore of dividend payments in both periods, Rs 4.47 crore of long-term borrowing repayments, Rs 0.83 crore of interest payments and Rs 6.56 crore paid towards the principal portion of lease liabilities.

Cash and cash equivalents decreased by Rs 3.22 crore during the 2026 half year, falling from Rs 4.13 crore at the beginning of the period to Rs 91.38 lakh at September 30, 2026. Separately, current investments increased to Rs 45.46 crore from Rs 42.94 crore between March 31 and September 30, 2026.

Conclusion

GPT Healthcare’s first-half results show that operating cash generation rose to Rs 34.23 crore despite a Rs 12.57 crore receivables-related outflow and lower cash support from trade payables. Higher profit before tax, which reached Rs 37.84 crore, and lower direct taxes paid offset the larger working-capital absorption.

The next reported period will show whether trade receivables, which stood at Rs 31.64 crore at September 30, 2026, decline, stabilise or rise further relative to revenue. GPT Healthcare also said that its Rs 1 per-share interim dividend declared on November 5, 2026 was expected to be paid on or before December 4, 2026.