Indo-City Infotech receivables climb as inventory contracts

Indo-City Infotech Limited reported trade receivables of Rs 235.51 lakh at September 30, 2026, up from Rs 25.25 lakh a year earlier, while inventories fell to Rs 57.21 lakh from Rs 3.71 crore. The two balances combined declined by Rs 1.03 crore, showing a marked change in the company’s reported working-capital asset mix.

Why did Indo-City Infotech’s working-capital mix change?

Indo-City Infotech’s filing shows that receivables replaced inventories as the larger of the two disclosed working-capital asset balances, but it does not give a commercial explanation for the change. Trade receivables rose by Rs 2.10 crore between September 30, 2025 and September 30, 2026, whereas inventories declined by Rs 3.13 crore over the same period.

The relative position of the two categories reversed during the year. At September 30, 2025, inventory of Rs 3.71 crore exceeded trade receivables of Rs 25.25 lakh by Rs 3.45 crore. At September 30, 2026, trade receivables of Rs 235.51 lakh exceeded inventory of Rs 57.21 lakh by Rs 1.78 crore.

The combined value of receivables and inventories decreased to Rs 2.93 crore at September 30, 2026 from Rs 3.96 crore a year earlier. This Rs 1.03 crore reduction is calculated from the reported balance-sheet figures and is not described by management as a target, policy or operating plan.

The filing does not provide a receivables ageing schedule, identify customers, disclose concentrations of credit exposure or state collection terms. It also does not provide an inventory category analysis, so the reported fall from Rs 3.71 crore to Rs 57.21 lakh cannot be attributed to particular products or stock movements from the supplied disclosure.

What else changed on Indo-City Infotech’s balance sheet?

Indo-City Infotech reported total assets of Rs 12.10 crore at September 30, 2026, compared with Rs 11.86 crore at September 30, 2025. The reported increase of Rs 23.60 lakh came alongside higher receivables and higher bank balances, partly offset by the inventory reduction.

Bank balances other than cash and cash equivalents increased to Rs 5.31 crore from Rs 2.72 crore, a rise of Rs 2.59 crore. Cash and cash equivalents were Rs 9.53 lakh at September 30, 2026, compared with Rs 8.94 lakh a year earlier, while loans were Rs 1.75 crore against Rs 1.72 crore.

Other financial assets rose to Rs 30.37 lakh from Rs 20.55 lakh. The September 2025 balance sheet displays investments of Rs 1.47 crore, while no amount is displayed in the corresponding September 2026 column; the filing does not explain the presentation or identify those investments.

Property, plant and equipment increased to Rs 1.37 crore from Rs 1.17 crore, while loans and advances declined to Rs 2.56 lakh from Rs 7.70 lakh. Current tax assets increased to Rs 7.90 lakh from Rs 6.58 lakh, and other non-financial assets fell to Rs 23.18 lakh from Rs 38.49 lakh.

On the equity and liabilities side, share capital remained Rs 10.40 crore in both periods. Other equity increased to Rs 1.55 crore from Rs 1.39 crore, other financial liabilities declined to Rs 5.67 lakh from Rs 6.52 lakh, and provisions rose to Rs 3.55 lakh from Rs 83,000.

What does Indo-City Infotech’s half-year cash flow show?

Indo-City Infotech reported profit before tax of Rs 33.65 lakh for the half year ended September 30, 2026, compared with Rs 40.43 lakh for the half year ended September 30, 2025. Depreciation and amortisation increased to Rs 3.85 lakh from Rs 2.43 lakh, while operating profit before working-capital changes declined to Rs 12.94 lakh from Rs 24.02 lakh.

The cash-flow statement displays a Rs 72.04 lakh movement for trade receivables in the 2026 half-year, compared with Rs 15.47 lakh in the corresponding 2025 period. The line is presented as an increase or decrease in receivables and is shown in parentheses for both periods, indicating a cash outflow in the statement’s indirect-method presentation.

That half-year cash-flow movement should not be directly matched with the year-on-year balance-sheet increase of Rs 2.10 crore. The cash-flow statement compares the half years ended September 30, 2026 and September 30, 2025, whereas the balance sheet compares the two September closing dates. The supplied filing does not provide the opening September 2026 receivables balance needed to reconcile the two measures.

The inventory line in the cash-flow statement is not clearly rendered, displaying “(024)” for 2026 and “(85;99)” for 2025. Accordingly, the filing supports the clear balance-sheet comparison of inventory levels, but not a precise interpretation of the reported half-year inventory cash-flow movements.

The statement reports net cash used in operations of Rs 29.40 lakh for the half year ended September 30, 2026, compared with Rs 46.04 lakh in the prior-year half-year. Income taxes paid, net of refunds, were Rs 3.01 lakh in 2026, while no comparative amount is displayed for 2025.

How did Indo-City Infotech report investing activity and cash?

Indo-City Infotech reported acquisition of fixed assets, including capital work-in-progress and capital advances, of Rs 10.87 lakh in the half year ended September 30, 2026. Interest received on fixed deposits was Rs 23.77 lakh, compared with Rs 5.73 lakh in the earlier half-year, while dividend income declined to Rs 80,000 from Rs 12.27 lakh.

Net cash from investing activities is displayed as Rs 13.70 lakh for the 2026 half-year. The comparative 2025 figure is not clearly rendered in the supplied cash-flow table, so it does not support a reliable year-on-year comparison of investing cash flow.

The cash-flow statement displays closing cash and cash equivalents of Rs 6.41 crore at September 30, 2026, compared with Rs 2.81 crore a year earlier. It also displays opening cash and cash equivalents of Rs 5.70 crore and a net decrease of Rs 18.71 lakh for 2026, figures that do not clearly reconcile within the rendered table.

The balance sheet separately reports cash and cash equivalents of Rs 9.53 lakh and bank balances other than cash and cash equivalents of Rs 5.31 crore at September 30, 2026. The filing does not provide a reconciliation between those balance-sheet categories and the cash-flow statement’s displayed closing cash and cash equivalents figure.

Conclusion

Indo-City Infotech’s September 2026 filing shows a substantial reallocation across two reported working-capital assets. Receivables increased by Rs 2.10 crore year on year and inventories decreased by Rs 3.13 crore, leaving their combined balance Rs 1.03 crore lower. Total assets nevertheless increased by Rs 23.60 lakh, supported by a Rs 2.59 crore rise in bank balances other than cash and cash equivalents.

The next relevant disclosure will be whether Indo-City Infotech provides an ageing or collection update for the Rs 235.51 lakh receivables balance and clarifies the inventory movement. The September 30, 2026 filing also leaves unresolved the presentation of investments and the relationship between the displayed cash-flow closing balance and the balance-sheet cash categories.