Bench Mark Infotech’s FY26 cash-flow claim is unverified

Bench Mark Infotech’s supplied FY26 disclosures do not verify either Rs 55 crore of receivables or negative operating cash flow. The extracts report profit after tax of Rs 10.22 crore for the year ended March 31, 2026, against Rs 5.83 crore in FY25, but contain no cash-flow statement, receivables balance or receivables ageing schedule.

Does Bench Mark Infotech’s FY26 disclosure verify the cash-flow claim?

No. Bench Mark Infotech’s supplied pages provide a restated profit-and-loss statement for FY24, FY25 and FY26, together with narrative discussion of income, expenses and earnings before interest, tax, depreciation and amortisation, or EBITDA. The supplied material does not provide a statement of cash flows for FY26, so it does not state cash generated from or used in operating activities during the year ended March 31, 2026.

The same limitation applies to the receivables element of the claim. Bench Mark Infotech does not disclose a closing trade-receivables figure, an ageing analysis, or the amount outstanding for more than one year in the supplied pages. As a result, the supplied information cannot establish whether receivables were Rs 55 crore, whether about Rs 10 crore was overdue for more than one year, or whether payment timing from government and public-sector undertaking customers affected FY26 cash generation.

Profit after tax and operating cash flow are separate measures. Bench Mark Infotech reported Rs 10.22 crore of FY26 profit after tax after net tax expense of Rs 3.42 crore, but a cash-flow statement would be needed to show the effect of collections, payments and movements in operating balances. The supplied disclosures do not contain FY26 opening or closing figures for trade receivables, trade payables or operating cash flow.

What does Bench Mark Infotech’s FY26 profit figure show?

Bench Mark Infotech reported higher accounting profit in FY26, supported by revenue growth, a higher stated operating EBITDA margin and increased other income. Revenue from operations rose 20.96% to Rs 60.53 crore in FY26 from Rs 50.04 crore in FY25, while profit before tax increased to Rs 13.64 crore from Rs 7.94 crore. Profit after tax rose 75.25% to Rs 10.22 crore from Rs 5.83 crore.

Total income increased 25.98% to Rs 63.99 crore in FY26 from Rs 50.80 crore in FY25, exceeding the growth rate in revenue from operations. Other income was Rs 3.46 crore in FY26, compared with Rs 75.69 lakh in FY25. Bench Mark Infotech recorded Rs 2.93 crore of creditors written back in FY26, compared with Rs 25.33 lakh in FY25, and states that the old creditor balances were no longer payable after management’s review.

The three-year comparison shows that revenue from operations rose from Rs 34.10 crore in FY24 to Rs 60.53 crore in FY26, while profit after tax rose from Rs 1.48 crore to Rs 10.22 crore. However, the FY26 profit figure includes other income of Rs 3.46 crore. The disclosed profit-and-loss data therefore shows reported profitability, rather than whether the revenue and profit translated into cash collections.

How did Bench Mark Infotech’s operating EBITDA change in FY26?

Bench Mark Infotech reported operating EBITDA of Rs 11.70 crore in FY26, up from Rs 7.53 crore in FY25, using a company-defined calculation. EBITDA means earnings before interest, tax, depreciation and amortisation. Bench Mark Infotech calculates operating EBITDA by deducting other income from EBITDA and adding back sundry balances written off.

Under that calculation, the operating EBITDA margin increased to 19.34% of revenue from operations in FY26 from 15.04% in FY25, a 4.30-percentage-point increase. Bench Mark Infotech reported EBITDA of Rs 14.06 crore in FY26 and Rs 8.28 crore in FY25, while other income was Rs 3.46 crore and Rs 75.69 lakh, respectively. The FY26 calculation also adds back Rs 1.11 crore of sundry balances written off, compared with Rs 32,000 in FY25.

Bench Mark Infotech attributes the margin movement to higher-margin projects, annual maintenance contracts, fibre-optic network maintenance and a greater contribution from non-government projects during FY26. The supplied material does not quantify revenue, profit or collections by government and non-government customer category. That means the stated project-mix explanation cannot be used to measure customer concentration or the cash-collection pattern for either category.

What changed in Bench Mark Infotech’s project and cost mix?

Bench Mark Infotech says FY26 included a higher proportion of service-oriented, system-integration and annual maintenance contract projects. Revenue from IT infrastructure solutions projects increased to Rs 50.45 crore in FY26 from Rs 42.47 crore in FY25. Sale of services increased to Rs 10.08 crore from Rs 7.57 crore, leaving IT infrastructure solutions as the larger disclosed revenue category in both years.

The project mix corresponded with a material shift in costs. Purchases of stock-in-trade declined 15.34% to Rs 22.32 crore in FY26 from Rs 26.36 crore in FY25, while direct expenses increased 89.44% to Rs 20.98 crore from Rs 11.07 crore. Bench Mark Infotech attributes the movement to greater spending on manpower, technical support, installation, logistics and project execution, with comparatively lower procurement of traded goods.

Employee-benefit expense rose 18.39% to Rs 3.19 crore in FY26 from Rs 2.69 crore in FY25, which Bench Mark Infotech attributes to additional technical, project-execution and marketing personnel. Other expenses rose 60.61% to Rs 3.87 crore from Rs 2.41 crore. Total expenses increased to Rs 50.36 crore in FY26 from Rs 42.85 crore in FY25, even as purchases of stock-in-trade declined.

Which disclosed items provide limited context on payment risk?

Bench Mark Infotech disclosed a Rs 41.38 lakh provision for bad and doubtful debts in FY26, compared with Rs 59.04 lakh in FY25. A provision is an accounting charge for estimated potential credit losses, but the supplied material does not identify the customers, invoice dates or receivable balance associated with the provision. It therefore cannot determine the scale of overdue customer dues at March 31, 2026.

Sundry balances written off increased to Rs 1.11 crore in FY26 from Rs 32,000 in FY25. The supplied narrative does not specify whether those written-off balances were receivables, payables or another category, nor does it give counterparty details or ageing. The amount is included in Bench Mark Infotech’s operating EBITDA calculation as an add-back, but it does not substitute for a receivables ageing schedule.

Finance costs rose 33.46% to Rs 57.87 lakh in FY26 from Rs 43.36 lakh in FY25. Bench Mark Infotech attributes the increase partly to greater use of bank-guarantee facilities for government projects, where tender conditions typically require earnest money deposits of 2% of tender value and performance bank guarantees of 10% of awarded contract value. These requirements explain a disclosed source of financing and guarantee charges, but they do not disclose operating cash flow or delayed customer collections.

Conclusion

Bench Mark Infotech’s supplied FY26 disclosures support the finding that reported revenue and profit increased, with revenue from operations reaching Rs 60.53 crore and profit after tax reaching Rs 10.22 crore. They also show that other income, including Rs 2.93 crore of creditor write-backs, and a revised project-cost mix were relevant to the reported result. They do not support the separate claim of Rs 55 crore in receivables or negative FY26 operating cash flow.

What to watch next is a disclosure containing Bench Mark Infotech’s FY26 cash-flow statement, trade-receivables balance and ageing analysis as at March 31, 2026. Those items would show whether operating activity generated or used cash, whether customer dues rose, and whether any receivables were outstanding beyond one year.