Annu Projects’ Receivable Days Rise to 237, Widening Gap

Annu Projects’ receivable days rose to 237 in Fiscal 2026 from 163 in Fiscal 2025 and 138 in Fiscal 2024, while trade receivables reached Rs 156.77 crore. The longer collection cycle coincided with a Rs 156.92 crore working-capital gap and negative operating cash flow for a second consecutive year.

Why did Annu Projects’ receivable days reach 237?

Annu Projects’ receivable days reached 237 because trade receivables grew faster than revenue from operations in Fiscal 2026. Trade receivables, excluding unbilled revenue, rose to Rs 156.77 crore in Fiscal 2026, equal to 64.98% of revenue, from Rs 80.41 crore, or 44.66% of revenue, in Fiscal 2025. In Fiscal 2024, receivables were Rs 58.04 crore and represented 37.69% of revenue.

Annu Projects states that its government customers generally take longer to make payments despite payment milestones in project agreements. This timing difference matters because projects require spending on materials, performance securities and other operating assets before customer cash is received. The company says delayed customer payments can constrain its ability to meet working-capital requirements and may require additional borrowings.

The 99-day increase in receivable days between Fiscal 2024 and Fiscal 2026 means a larger proportion of reported revenue remained unpaid at each year-end. For the measure to decline, collections would need to improve relative to revenue, particularly from government customers. The disclosed receivables figure excludes unbilled revenue, which Annu Projects reports separately among current assets.

How did the longer receivable cycle widen Annu Projects’ funding gap?

Annu Projects’ working-capital gap expanded to Rs 156.92 crore in Fiscal 2026 from Rs 109.65 crore in Fiscal 2025 and Rs 45.41 crore in Fiscal 2024. The gap is the excess of current assets over current liabilities, and its expansion was led by trade receivables and unbilled revenue. Current assets rose by Rs 94.14 crore during Fiscal 2026, while current liabilities increased by Rs 46.87 crore.

Trade receivables were the largest current-asset category at Rs 156.77 crore in Fiscal 2026, followed by unbilled revenue of Rs 76.81 crore. Unbilled revenue is an amount reported separately from billed trade receivables, and it increased from Rs 60.15 crore in Fiscal 2025 and Rs 16.43 crore in Fiscal 2024. Together, the two categories totalled Rs 233.58 crore in Fiscal 2026, compared with Rs 140.56 crore a year earlier.

Annu Projects funded the Fiscal 2026 gap through Rs 31.37 crore of short-term borrowings and Rs 125.56 crore of internal accruals. Short-term borrowings rose from Rs 8.99 crore in Fiscal 2024, while internal accruals rose from Rs 36.42 crore over the same period. This funding pattern depends on the continued availability of lender facilities and internal accruals for project requirements.

Has Annu Projects turned reported operations into operating cash flow?

Annu Projects did not generate positive net operating cash flow in either Fiscal 2026 or Fiscal 2025. Net cash used in operating activities was Rs 24.70 lakh in Fiscal 2026, following an outflow of Rs 35.38 crore in Fiscal 2025; Fiscal 2024 recorded positive operating cash flow of Rs 8.21 crore. The company attributes the Fiscal 2026 outflow primarily to higher trade receivables and direct taxes paid, partly offset by higher trade payables and other liabilities.

The Fiscal 2025 operating outflow arose from higher trade receivables, direct tax payments and inventory build-up, with higher trade payables providing a partial offset. Inventory subsequently fell to Rs 6.15 crore in Fiscal 2026 from Rs 19.68 crore in Fiscal 2025, but receivables increased by Rs 76.36 crore in the same year. The reduction in inventory therefore did not offset the increase in cash tied up in customer balances.

Annu Projects’ investing cash outflow rose to Rs 23.44 crore in Fiscal 2026 from Rs 1.41 crore in Fiscal 2025, mainly because of property, plant and equipment purchases and fixed deposits placed as bank margin money. Financing activities supplied Rs 26.11 crore in Fiscal 2026 after supplying Rs 34.28 crore in Fiscal 2025. The company says the Fiscal 2026 deficit was funded by borrowings, whereas the Fiscal 2025 deficit was largely funded through share allotment.

What could put further pressure on Annu Projects’ collections and liquidity?

Annu Projects’ concentration in government-related project execution and its project-completion risks could put further pressure on collections and liquidity. The company says government customers typically take longer to pay, while Bihar, Jharkhand, Goa, West Bengal and Madhya Pradesh together contributed more than 70.00% of revenue from operations in each of Fiscals 2026, 2025 and 2024. A payment delay, cancellation or default on projects in these markets could affect revenue, profit and cash flow.

Contract timing also has a direct connection to cash conversion. Annu Projects sought extensions in 30 instances in Fiscal 2026, compared with 25 in Fiscal 2025 and 16 in Fiscal 2024. Although none of its extension applications was rejected in those three fiscal years, delayed completion can increase project costs and may postpone billing or payment milestones.

Bank guarantees add another funding requirement because they may need collateral or margin money. Bank guarantees submitted to customers totalled Rs 89.49 crore in Fiscal 2026, equal to 37.10% of revenue from operations, compared with Rs 65.24 crore in Fiscal 2025. The company reported no invocation of performance bank guarantees in Fiscals 2026, 2025 or 2024, but says an inability to provide collateral for letters of credit, guarantees or security deposits could restrict bidding for new projects.

Conclusion

Annu Projects’ working-capital gap widened because customer-related current assets increased substantially, with trade receivables rising to Rs 156.77 crore and unbilled revenue reaching Rs 76.81 crore in Fiscal 2026. The 237-day receivable cycle, compared with 138 days in Fiscal 2024, coincided with two years of negative operating cash flow and higher short-term borrowings and internal accruals.

The next item to watch is whether Annu Projects’ disclosed plan to expand into newer geographies changes its collection and funding requirements. The company had ongoing projects across eight states and one Union Territory as of June 30, 2026, and won one Kerala package after bidding for 16 BharatNet Phase III packages as a consortium partner. Expansion would require working capital for project execution, while the pace of receivable collections and unbilled-revenue conversion remains unresolved in the filing.