Acme India profit rose 48% as operations used ₹11.5016 crore

Acme India Industries Limited, referred to below as Acme India, reported FY26 consolidated profit of ₹24.3577 crore, up 48% from ₹16.4568 crore in FY25, while operations used ₹11.5016 crore of cash. A ₹94.1124 crore increase in trade receivables was larger than the ₹45.1221 crore operating profit before working-capital changes.

Why did Acme India’s profit rise in FY26?

Acme India’s FY26 profit rose because total income increased faster than total expenditure. Revenue from operations rose 25.6% to ₹263.7077 crore in FY26 from ₹209.9952 crore in FY25, while other income was ₹4.1795 crore. Total income reached ₹267.8872 crore and total expenditure rose to ₹234.6667 crore, producing profit before tax of ₹33.2205 crore, compared with ₹24.1365 crore in FY25.

Profit for the year was ₹24.3577 crore in FY26, compared with ₹16.4568 crore in FY25 and ₹19.2072 crore in FY24. The FY26 increase followed a FY25 decline from the FY24 profit figure. Finance cost increased to ₹12.7123 crore from ₹9.8769 crore and purchases of stock-in-trade rose to ₹101.0288 crore from ₹77.7363 crore, while employee-benefit expense declined to ₹15.3192 crore from ₹20.5439 crore and other expenses fell to ₹23.9062 crore from ₹30.2446 crore.

Why did Acme India’s operating cash turn negative?

Acme India’s operating cash turned negative because a net working-capital cash outflow of ₹54.9576 crore exceeded its ₹45.1221 crore operating profit before working-capital changes. Working capital is the balance of short-term operating assets and liabilities. Cash generated from operations was therefore negative ₹9.8354 crore; after direct taxes paid of ₹1.6661 crore, net cash used in operating activities was ₹11.5016 crore.

The largest FY26 outflow was the ₹94.1124 crore increase in trade receivables, or amounts recorded as due to Acme India. Inventory increased by ₹10.2292 crore and other current assets increased by ₹3.6458 crore. Those movements were partly offset by a ₹46.7821 crore increase in trade payables and a ₹6.2477 crore increase in other current liabilities. In FY25, operating activities generated ₹23.9728 crore despite a ₹4.4511 crore receivables increase and a ₹21.7124 crore inventory increase.

The cash-flow statement uses the indirect method under Accounting Standard 3 on Cash Flow Statement, or AS 3. This method adjusts profit before tax for non-cash items and deferrals or accruals of cash receipts and payments. Acme India recorded FY26 provisions of ₹11.63 lakh for doubtful debts and ₹50.28 lakh for other advances and receivables, along with ₹3.34 lakh of bad debts and ₹40.54 lakh of other advances and receivables written off.

How concentrated was Acme India’s balance sheet in receivables?

Acme India’s March 31, 2026 balance sheet was concentrated in trade receivables, which stood at ₹252.1846 crore. The balance increased from ₹158.2219 crore at March 31, 2025 and ₹153.7709 crore at March 31, 2024. FY26 trade receivables represented about 66% of total assets of ₹382.7895 crore and about 72% of current assets of ₹351.4437 crore, based on the restated statement of assets and liabilities.

Inventory increased to ₹40.2341 crore at March 31, 2026 from ₹30.0049 crore a year earlier, while cash and bank balance rose to ₹35.7922 crore from ₹29.1328 crore. The cash-flow statement separately reported cash and cash equivalents of ₹34.62 lakh at year-end, comprising ₹14.21 lakh in cash on hand and ₹20.40 lakh in bank current accounts. The balance-sheet cash and bank balance and the cash-flow cash-equivalents measure are therefore separately stated disclosures.

Trade payables also increased alongside receivables. Dues to micro enterprises and small enterprises were ₹51.9142 crore at March 31, 2026, and dues to other creditors were ₹110.8541 crore, for a combined ₹162.7683 crore. The March 31, 2025 combined figure was ₹115.9440 crore. The resulting ₹46.7821 crore payable increase offset less than half of the ₹94.1124 crore receivables increase in the FY26 operating cash-flow calculation.

What funded Acme India while operating cash was negative?

Acme India generated ₹15.4386 crore from financing activities in FY26, exceeding the ₹11.5016 crore operating cash outflow and the ₹3.9716 crore investing cash outflow. Borrowing proceeds were ₹31.5207 crore and repayments were ₹27.5073 crore. The company also received ₹1.2800 crore from share-capital issuance and ₹22.5400 crore in share premium, while finance cost paid was ₹12.3948 crore.

Cash and cash equivalents nevertheless declined by ₹3.45 lakh in FY26 to ₹34.62 lakh. Investing activities used ₹3.9716 crore, including a ₹7.3882 crore outflow in the line captioned “proceeds from security deposits and advances.” Purchases of fixed assets, including capital work in progress, used ₹62.86 lakh, while interest received on bank deposits added ₹2.1386 crore. Future cash conversion would depend on movements in receivables, inventory, payables and financing inflows.

Conclusion

Acme India’s FY26 accounts show that a 48% rise in reported profit and 25.6% revenue growth did not translate into operating cash generation. The central driver was the ₹94.1124 crore receivables increase, which exceeded the ₹46.7821 crore increase in trade payables and contributed to negative ₹9.8354 crore cash generated from operations before direct taxes.

The next financial update should show whether Acme India converts the ₹252.1846 crore trade-receivables balance reported at March 31, 2026 into collections and restores positive operating cash flow. The supplied FY26 financial summary does not disclose a receivables-collection plan or timing, leaving the pace of cash conversion unresolved.