IKIO Technologies reports cash outflow despite profit rise

IKIO Technologies Limited reported a consolidated net profit of Rs 23.903 crore for the half year ended September 30, 2026, but recorded a Rs 4.345 crore operating cash outflow. Trade receivables used Rs 36.118 crore of cash and inventory used Rs 28.261 crore, outweighing the increase in reported profit from Rs 13.268 crore a year earlier.

Why did IKIO Technologies report negative operating cash flow?

IKIO Technologies reported net cash used in operating activities of Rs 4.345 crore for the half year ended September 30, 2026, compared with net operating cash generated of Rs 5.101 crore in the corresponding 2025 period. Cash generated from operating activities before net tax payments was Rs 4.391 crore, versus Rs 4.941 crore a year earlier, while net income-tax paid was Rs 8.736 crore.

Profit before tax rose to Rs 35.956 crore from Rs 17.696 crore, and the operating result before working-capital changes and other adjustments increased to Rs 54.828 crore from Rs 32.595 crore. Depreciation and amortisation was Rs 15.675 crore, finance cost was Rs 3.914 crore and employee stock option plan expense was Rs 1.399 crore during the September 2026 half year.

How did working capital affect IKIO Technologies cash flow?

IKIO Technologies' working-capital movements used cash chiefly through a Rs 36.118 crore increase in trade receivables and a Rs 28.261 crore inventory increase in the cash-flow statement. In the half year ended September 30, 2025, receivables used Rs 17.088 crore, while inventory movements generated Rs 1.380 crore of cash rather than consuming it.

The September 30 balance sheet also showed higher operating-asset balances than at March 31, 2026. Inventories were Rs 230.312 crore, up from Rs 201.106 crore, and trade receivables were Rs 166.533 crore, up from Rs 133.015 crore. Other current assets increased to Rs 40.565 crore from Rs 21.326 crore, while the cash-flow statement showed Rs 9.379 crore used in other assets.

Increases in liabilities partly offset the cash use from receivables and inventory. Trade payables provided Rs 10.702 crore of cash, other financial liabilities provided Rs 5.865 crore and other liabilities provided Rs 5.687 crore. At September 30, dues to creditors other than micro and small enterprises were Rs 42.055 crore, compared with Rs 27.289 crore at March 31, while micro and small enterprise dues declined to Rs 12.554 crore from Rs 17.756 crore.

How did IKIO Technologies profit compare with revenue growth?

IKIO Technologies' consolidated net profit increased to Rs 23.903 crore in the September 2026 half year from Rs 13.268 crore in the prior-year period, even as operating cash flow changed from a Rs 5.101 crore inflow to a Rs 4.345 crore outflow. The difference reflects the cash absorbed by working-capital movements and Rs 8.736 crore of net tax paid during the six months.

Revenue from operations rose to Rs 378.011 crore from Rs 284.353 crore, while total income increased to Rs 382.728 crore from Rs 290.724 crore. Cost of materials consumed increased to Rs 211.494 crore from Rs 165.151 crore, employee-benefit expense rose to Rs 59.136 crore from Rs 40.890 crore and other expenses increased to Rs 42.441 crore from Rs 30.836 crore.

Profit attributable to owners was Rs 22.726 crore, compared with Rs 12.148 crore a year earlier, while profit attributable to non-controlling interests was Rs 1.178 crore against Rs 1.120 crore. Basic earnings per share, on equity shares with a Rs 10 face value, increased to Rs 2.94 from Rs 1.72. IKIO Technologies identifies manufacturing of LED lighting as its single business segment.

How did financing and investment activity change IKIO Technologies cash?

IKIO Technologies used Rs 8.533 crore in investing activities in the half year ended September 30, 2026, compared with Rs 2.879 crore in the previous first half. Purchases of property, plant and equipment, including intangible assets and capital advances, were Rs 27.963 crore, close to Rs 27.812 crore in the corresponding 2025 period. Movement in fixed deposits provided Rs 18.599 crore, below Rs 21.527 crore a year earlier.

Financing activities generated Rs 14.693 crore, reversing a Rs 2.060 crore outflow in the prior-year half. The cash-flow statement recorded a Rs 19.914 crore increase in short-term bank borrowings, compared with a Rs 17.25 lakh decrease a year earlier. IKIO Technologies also paid Rs 4.030 crore of lease liabilities and Rs 2.622 crore of interest in the September 2026 half year.

Cash and cash equivalents increased by Rs 1.815 crore over the half year, compared with a Rs 16.20 lakh increase in the corresponding 2025 period. IKIO Technologies ended September 30, 2026 with Rs 23.566 crore of cash and cash equivalents, against Rs 21.751 crore at March 31, 2026. Bank balances other than cash and cash equivalents decreased to Rs 17.273 crore from Rs 35.872 crore.

What did IKIO Technologies' September 2026 balance sheet show?

IKIO Technologies had total assets of Rs 827.428 crore at September 30, 2026, compared with Rs 767.174 crore at March 31, 2026. Current assets increased to Rs 478.927 crore from Rs 413.738 crore, led by higher inventory and trade receivables. Non-current assets declined to Rs 348.501 crore from Rs 353.436 crore during the same period.

Property, plant and equipment rose to Rs 176.694 crore from Rs 148.154 crore, while capital work-in-progress declined to Rs 82.513 crore from Rs 95.627 crore. Current borrowings increased to Rs 60.901 crore from Rs 39.887 crore, and non-current borrowings rose to Rs 1.641 crore from Rs 1.310 crore. Total current liabilities increased to Rs 168.903 crore from Rs 131.489 crore.

Total equity, including non-controlling interests, was Rs 634.207 crore at September 30, compared with Rs 609.371 crore at March 31. Other equity increased to Rs 548.139 crore from Rs 524.845 crore, while non-controlling interests rose to Rs 8.787 crore from Rs 7.245 crore. The board approved the unaudited consolidated results on November 5, 2026, and statutory auditors performed a limited review.

Conclusion

IKIO Technologies' first-half filing shows that profit and operating cash flow moved in different directions. Revenue increased by Rs 93.658 crore and net profit rose by Rs 10.635 crore year on year, but the Rs 64.379 crore combined cash use recorded for inventory and trade receivables, alongside Rs 8.736 crore of net tax paid, resulted in negative operating cash flow.

The filing discloses no working-capital reduction plan or cash-flow target. The next reported periods will therefore show whether inventory of Rs 230.312 crore and receivables of Rs 166.533 crore convert into operating cash, and whether current borrowings remain above the September 30, 2026 balance of Rs 60.901 crore.