Influx Healthtech cash fell Rs 15.5 crore on H1 investment

Influx Healthtech Limited ended H1 FY27 with cash and cash equivalents of Rs 9.6 crore, down Rs 15.5 crore from Rs 25.2 crore at FY26, after Rs 22.7 crore of investing outflows exceeded Rs 7.2 crore generated from operations. Purchases of property, plant, equipment and intangible assets accounted for Rs 19.9 crore of the investment outflow.

Why did Influx Healthtech’s cash balance decline in H1 FY27?

Influx Healthtech’s cash balance declined because its Rs 22.7 crore investing outflow exceeded its Rs 7.2 crore operating cash inflow, while financing activities generated Rs 0.0 crore in H1 FY27. The resulting net decrease in cash and cash equivalents was Rs 15.5 crore, compared with a Rs 23.3 crore increase in FY26.

FY26’s cash increase included Rs 44.7 crore of initial public offering proceeds net of issue expenses, whereas H1 FY27 recorded no such financing inflow. Cash and cash equivalents were Rs 9.6 crore at the end of H1 FY27, compared with Rs 25.2 crore at FY26 and Rs 1.9 crore at FY25.

Where did Influx Healthtech invest Rs 22.7 crore in H1 FY27?

Influx Healthtech spent Rs 19.9 crore on purchases of property, plant, equipment and intangible assets and recorded Rs 2.8 crore of other investment activities in H1 FY27. Those two items totalled the Rs 22.7 crore net cash used in investing activities, compared with Rs 25.2 crore in FY26 and Rs 8.6 crore in FY25.

The balance sheet shows property, plant, equipment and intangible assets at Rs 34.4 crore in H1 FY27, up from Rs 27.6 crore at FY26 and Rs 18.8 crore at FY25. Capital work-in-progress increased to Rs 15.0 crore from Rs 3.5 crore at FY26, an Rs 11.5 crore increase; the presentation does not identify the underlying projects or provide a completion timetable.

Historical performance data separately lists capital expenditure of Rs 19 crore for H1 FY27, versus Rs 25 crore for FY26 and Rs 9 crore for FY25. This is lower than the Rs 19.9 crore cash-flow item for asset purchases, and the presentation does not reconcile the Rs 0.9 crore difference between the two disclosed measures.

Did operating cash flow cover Influx Healthtech’s investment spending?

No. Influx Healthtech generated Rs 7.2 crore from operating activities in H1 FY27, which did not cover the Rs 22.7 crore investing outflow, and financing cash flow was nil. Operating cash generation was higher than the Rs 3.9 crore reported for FY26 and close to the Rs 7.1 crore reported for FY25, though FY26 and FY25 are full-year periods.

The operating cash-flow calculation started with Rs 16.2 crore of profit before tax and included Rs 2.3 crore of depreciation and amortisation. It was reduced by Rs 7.5 crore for inventories, Rs 3.3 crore for loans and advances, and Rs 6.0 crore of tax paid, partly offset by a Rs 5.1 crore movement in trade payables.

Trade receivables used Rs 0.4 crore of cash in H1 FY27, while other working-capital adjustments added Rs 0.5 crore. Profit after tax was Rs 12.0 crore, up 20.0% from Rs 10.0 crore in H1 FY26, showing that the cash reduction accompanied reported profit growth and investment spending rather than a reported operating loss.

How did Influx Healthtech’s working capital change?

Influx Healthtech’s inventories rose to Rs 23.4 crore at H1 FY27 from Rs 15.9 crore at FY26, while inventory days increased to 124 from 99. The cash-flow statement recorded a Rs 7.5 crore inventory outflow during H1 FY27, making inventory the largest individual working-capital cash use disclosed for the period.

Short-term loans and advances increased to Rs 8.3 crore from Rs 3.9 crore at FY26, while trade receivables were broadly unchanged at Rs 33.9 crore from Rs 33.8 crore. Debtor days fell to 72 from 84, but payable days rose to 127 from 119 and the cash conversion cycle increased to 69 days from 64 days.

The cash conversion cycle had been negative 7 days in FY24 and negative 23 days in FY25 before moving to 64 days in FY26. Asset turnover was 5.0 in H1 FY27, down from 5.3 in FY26 and 7.3 in FY24; the presentation states that H1 FY27 asset turnover and return on equity are annualised.

What did profit and funding look like alongside the outflow?

Influx Healthtech reported revenue from operations of Rs 85.4 crore in H1 FY27, up 27.9% from Rs 66.8 crore in H1 FY26, while earnings before interest, tax, depreciation and amortisation increased 25.1% to Rs 18.3 crore. Its earnings before interest, tax, depreciation and amortisation margin was 21.5%, compared with 22.0% a year earlier.

Material costs, including finished goods and work-in-progress, rose 35.4% to Rs 50.8 crore, faster than revenue growth. Employee-benefit expense increased 29.0% to Rs 6.6 crore, while depreciation and amortisation rose 38.9% to Rs 2.3 crore; profit after tax margin declined to 14.1% from 15.0%.

Borrowings were Rs 0.0 crore at H1 FY27, unchanged from FY26 and below Rs 0.2 crore at FY25. Equity capital and reserves increased to Rs 112.8 crore from Rs 100.8 crore at FY26, while the historical debt-to-equity ratio was 0.00 in H1 FY27; no borrowing proceeds or repayments were recorded in the half-year cash-flow statement.

Conclusion

Influx Healthtech’s H1 FY27 cash movement reflected investment and working-capital requirements alongside higher reported revenue and profit. Rs 7.2 crore of operating cash generation was outweighed by Rs 22.7 crore of investment outflows, reducing cash to Rs 9.6 crore as fixed assets, capital work-in-progress and inventories increased from their FY26 balances.

The next disclosures should clarify whether the Rs 15.0 crore capital work-in-progress balance is transferred into operating assets and how the Rs 23.4 crore inventory balance develops. The presentation does not provide a project-completion schedule, investment target or cash-flow target for the remainder of FY27.