Bench Mark Infotech Services' Receivables Reach 91% of Revenue

Bench Mark Infotech Services Limited reported trade receivables of Rs 54.98 crore at March 31, 2026, equal to 90.83% of FY26 revenue of Rs 60.53 crore. Of that balance, Rs 10.17 crore was unpaid for more than one year, while holding days rose to 280 from 232 in FY25.

Why did Bench Mark Infotech's receivables reach 91% of revenue?

Bench Mark Infotech's receivables increased faster than turnover across FY24 to FY26. Trade receivables rose from Rs 25.59 crore at March 31, 2024 to Rs 37.96 crore at March 31, 2025 and Rs 54.98 crore at March 31, 2026. Turnover rose from Rs 34.10 crore in FY24 to Rs 50.04 crore in FY25 and Rs 60.53 crore in FY26, lifting receivables as a share of turnover from 75.07% to 90.83% over the period.

The increase means a larger portion of funds remained in the operating cycle at the FY26 year-end. Bench Mark Infotech says its projects require funding for hardware and equipment procurement, project execution, inventory, supplier payments and day-to-day operations. Its working-capital requirement can change with project size, procurement schedules, customer payment cycles, contractual milestones, inventory needs and supplier credit terms.

Holding days, the period for which receivables remained outstanding, increased by 41 days from FY24 to FY26 and by 48 days from FY25. Bench Mark Infotech attributes the FY26 rise mainly to higher government-customer exposure, longer billing and certification cycles, and greater revenue concentration in the third and fourth quarters. Competitive credit terms to private-sector customers also contributed to FY26 receivable days.

How much was overdue for more than one year?

Bench Mark Infotech had Rs 10.17 crore in trade receivables outstanding for more than one year at March 31, 2026. The aged balance represented 18.50% of total receivables of Rs 54.98 crore and 38.31% of net worth. It increased from Rs 4.84 crore at March 31, 2024 and Rs 8.30 crore at March 31, 2025.

The largest FY26 aged category was dues outstanding for one to two years, at Rs 6.39 crore, or 11.62% of total receivables. Dues aged two to three years were Rs 2.32 crore and amounts outstanding for more than three years were Rs 1.46 crore. Although the aged share fell from 21.86% in FY25 to 18.50% in FY26, the absolute aged balance increased by Rs 1.87 crore as total receivables grew.

Bench Mark Infotech recognised a provision for doubtful debts of Rs 41.38 lakh based on its assessment of recoverability. Management considers the outstanding receivables, including amounts older than one year, recoverable in the ordinary course based on underlying projects, customer profiles, contractual arrangements and past collection experience. The prospectus says the provision may be insufficient if recovery is further delayed or becomes doubtful.

Why do government projects lengthen Bench Mark Infotech's collection cycle?

Government projects can lengthen Bench Mark Infotech's collection cycle because its integrated information-technology infrastructure contracts involve defined billing milestones, certification, approval and payment processes. The company says the timing of revenue recognition and billing may not align with actual collections. Delays in certification, approval or payment can therefore extend the period between project work and cash receipt.

Government customers generated Rs 44.25 crore, or 73.10%, of FY26 revenue from operations, compared with 95.01% in FY25 and 92.91% in FY24. Despite the lower government-revenue share in FY26, Bench Mark Infotech identifies higher government-customer exposure as one cause of the increase in holding days to 280. The company also says government budget reprioritisation, order reductions, project delays or policy changes could affect its operations and cash flows.

Government contracts are generally awarded through tenders, and Bench Mark Infotech reported a 30.43% bid-to-win ratio in FY26, with 14 successful bids out of 46 submitted. The ratio was 37.25% in FY25 and 41.07% in FY24. Future contract awards depend on tender requirements, pricing, qualification criteria and the number of competing bidders, adding uncertainty to both project timing and future revenue.

What makes the receivables balance a working-capital risk?

The receivables balance is a working-capital risk because Bench Mark Infotech may have to fund procurement and project execution before customer payments are realised. At March 31, 2026, receivables of Rs 54.98 crore equalled nearly nine-tenths of FY26 turnover. A mismatch between customer collections and supplier payments, inventory purchases or contractual obligations can increase the funding required for operations.

The prospectus identifies delayed payments, failure to recover dues, longer inventory holding periods, changes in supplier credit terms and cash-flow mismatches as factors that can increase funding needs. If these factors persist, Bench Mark Infotech may need additional working-capital borrowings or other financing, which could increase finance costs. The company says that inadequate working capital could affect procurement, project execution and contractual obligations.

Operating cash flow provides a related, though not standalone, measure of pressure. Bench Mark Infotech reported net cash used in operating activities of Rs 6.77 crore for the year ended March 31, 2026, compared with net cash generated from operating activities of Rs 6.54 crore in the year ended March 31, 2025 and Rs 4.87 crore in the year ended March 31, 2024. The filing does not attribute the FY26 operating cash outflow solely to receivables.

What needs to happen for Bench Mark Infotech's cash conversion to improve?

Bench Mark Infotech's cash conversion would improve if collections become better aligned with revenue recognition, billing and procurement outflows. Under its disclosed project model, this would require billing milestones to be certified and approved without extended delays, customers to pay within expected timelines and aged receivables to be realised. Inventory, supplier-credit and customer-credit cycles would also need to avoid creating a wider cash-flow mismatch.

Bench Mark Infotech does not disclose a numerical target or a specific plan to reduce its 280 holding days. It states that receivables are recoverable in the ordinary course, but acknowledges that project disputes, delayed collection or deterioration in customer creditworthiness may require additional provisions or write-offs. Subsequent receivable ageing, holding days, operating cash flow and financing needs are the disclosed measures that would show whether the FY26 pattern is changing.

Conclusion

Bench Mark Infotech's FY26 position combines faster growth in receivables than turnover, longer holding days and Rs 10.17 crore of dues aged beyond one year. The company attributes the lengthening cycle to its project mix, including government work with milestone-based billing, certification and payment processes. That structure can cause recognised revenue to precede cash collection.

The next disclosed issue to watch is recovery of the Rs 10.17 crore aged beyond one year and whether the Rs 41.38 lakh doubtful-debt provision remains sufficient. Bench Mark Infotech has not stated a numerical collection-reduction plan, so later updates on receivable ageing, holding days, operating cash flow and any additional working-capital borrowing will indicate whether the FY26 cash-conversion pattern persists.