Amtech’s receivable days hit 92 as receivables climb 49% in FY26

Amtech’s receivable days rose to 92 in FY26 from 68 in FY25, while trade receivables increased 48.57%, or Rs 3.3462 crore, to Rs 10.2352 crore. Revenue from operations grew 10.26% to Rs 40.6712 crore, creating a larger balance of sales awaiting collection.

Why did Amtech’s receivable days rise to 92 in FY26?

Amtech’s receivable days rose because receivables expanded faster than revenue in FY26. Trade receivables increased from Rs 6.889 crore in FY25 to Rs 10.2352 crore in FY26, while revenue from operations rose from Rs 36.8869 crore to Rs 40.6712 crore during the same period.

Debtor days measure the time sales remain unpaid by customers through the receivables cycle. Amtech reported 92 debtor days in FY26, which was 24 days above FY25’s 68 days and 23 days above FY24’s 69 days. FY26 therefore departed from the broadly similar collection periods reported for FY24 and FY25.

Amtech’s Rs 10.2352 crore receivables balance represented about 25% of FY26 revenue from operations of Rs 40.6712 crore. In FY25, receivables of Rs 6.889 crore represented about 19% of revenue. The increase in unpaid sales relative to annual revenue is the central working-capital change in Amtech’s FY26 disclosure.

What does Amtech’s lower receivables turnover ratio mean?

Amtech’s trade receivables turnover ratio fell to 4.75 times in FY26 from 6.38 times in FY25, showing that the receivables balance was larger relative to revenue. The ratio was also below FY24’s 6.15 times. Higher debtor days and lower turnover are two reported measures of the same FY26 shift in the receivables cycle.

The ratio declined by 1.63 times between FY25 and FY26 despite the Rs 3.7843 crore increase in revenue from operations. For the 92-day measure to fall, recoveries would need to improve relative to sales or receivables would need to grow more slowly than revenue. Amtech says managing trade receivables requires evaluating customer creditworthiness and setting suitable terms and conditions.

Amtech identifies delayed recoveries, bad debts and write-offs as potential results if customer creditworthiness or terms are not assessed effectively. Amtech says a delay in realising receivables could create a liquidity crunch, increase working-capital borrowings and raise finance costs. These are disclosed risks, rather than reported FY26 bad-debt write-offs or borrowing defaults.

How does the receivables increase affect Amtech’s funding needs?

Amtech’s larger receivables balance can increase the need for working-capital funding if customer dues are not recovered on time. Amtech had total outstanding borrowings of Rs 4.043 crore as of August 22, 2026, comprising cash credit, term-loan and other working-capital facilities from banks and financial institutions. Those facilities include conditions on security, drawing power, financial covenants and operational restrictions.

Amtech’s Rs 10.2352 crore receivables at March 31, 2026 were more than twice its Rs 4.043 crore outstanding borrowings reported on August 22, 2026. The balances are from different dates and measure different items, so they are not interchangeable. Amtech states that insufficient cash flow, credit facilities or other funding sources could affect its ability to meet working-capital requirements and pay debts.

Amtech reported positive net cash flow from operating activities in all three reported years: Rs 1.9746 crore in FY24, Rs 2.7153 crore in FY25 and Rs 4.15 crore in FY26. The FY26 operating cash flow shows cash generation during that year, but Amtech’s risk disclosure says a further delay in receivable recoveries could still cause liquidity pressure.

Can planned debt repayment reduce Amtech’s working-capital risk?

Amtech proposes to use approximately Rs 3.9774 crore of net offer proceeds to repay or prepay certain outstanding borrowings. That proposed amount is near the Rs 4.043 crore of total borrowings reported as of August 22, 2026. Amtech says repayment is expected to reduce finance costs and improve its leverage position, but does not state that every borrowing will be repaid.

Debt repayment does not itself recover the Rs 10.2352 crore due from customers as of March 31, 2026. Amtech says it cannot assure that repayment will mitigate all indebtedness risks or prevent a need for further borrowings for business or working-capital requirements. The receivables risk therefore depends on the timing and recoverability of customer dues as well as continuing access to credit facilities.

Amtech reported negative investing cash flow of Rs 3.9872 crore and negative financing cash flow of Rs 90.88 lakh in FY26. Amtech attributed the investing outflow mainly to property, plant and equipment, capital work in progress and goodwill, while it attributed the financing outflow to repayment of borrowings and interest payments. These stated uses of cash make the collection cycle relevant alongside capital expenditure and debt servicing.

How could customer concentration influence Amtech’s collections?

Amtech’s customer concentration means payment behaviour at a limited group of customers can affect the receivables cycle. Its top 10 customers generated Rs 16.5859 crore, or 40.78% of FY26 revenue from operations, while its top five generated Rs 11.8199 crore, or 29.06%. The largest customer accounted for Rs 4.0015 crore, or 9.84%, of FY26 revenue.

The top-10 customer contribution declined to 40.78% of FY26 revenue from 45.29% in FY25, while revenue from those customers fell slightly from Rs 16.7061 crore to Rs 16.5859 crore. Amtech operates on a purchase-order basis and has no long-term agreements with customers. Amtech says changes in customer financial condition, disputes, plant shutdowns or reduced purchases could affect revenue and cash flows.

Amtech reported no significant loss of customers and no complaints from key customers that materially affected results in FY24, FY25 or FY26. However, Amtech says it cannot assure that it will retain or increase business from key customers. A sustained reduction from 92 debtor days would require collection performance from existing and future customer sales to improve relative to recorded revenue.

Conclusion

Amtech’s FY26 working-capital profile changed as trade receivables rose 48.57% to Rs 10.2352 crore while revenue from operations grew 10.26% to Rs 40.6712 crore. The difference reduced receivables turnover to 4.75 times from 6.38 times and raised debtor days by 24 days to 92. Positive FY26 operating cash flow of Rs 4.15 crore coexisted with a larger balance of unpaid customer sales.

The disclosed next development is Amtech’s proposed use of about Rs 3.9774 crore in net offer proceeds for repayment or prepayment of certain borrowings. Amtech also says future working-capital borrowing may be required and that customer business is conducted through purchase orders without long-term agreements. Subsequent receivables, debtor days and recovery performance will indicate whether the FY26 collection period improves.