Century Business Media projects Rs 17.2764 crore working capital

Century Business Media Limited projects a standalone net working-capital requirement of Rs 17.2764 crore at March 31, 2027, up from Rs 10.3301 crore at March 31, 2026. The projected financial year (FY) 2027 estimate combines trade receivables of Rs 18.5 crore with trade payables of Rs 1.85 crore, while Rs 3.25 crore is proposed from net issue proceeds.

Why is Century Business Media's working capital need rising to Rs 17.2764 crore?

Century Business Media's projected working-capital requirement rises because current assets are expected to increase while current liabilities are projected to decline in FY 2027. Net working capital, defined in the estimate as total current assets less total current liabilities, is projected at Rs 17.2764 crore at March 31, 2027, compared with Rs 10.3301 crore at March 31, 2026, an increase of Rs 6.9463 crore.

Trade receivables, which are amounts due from customers, are the largest component of the projection. Century Business Media expects receivables to rise from Rs 14.158 crore at March 31, 2026 to Rs 18.5 crore at March 31, 2027. Total current assets are projected to increase from Rs 15.183 crore to Rs 19.8 crore, including Rs 1.3 crore of short-term loans and advances, compared with Rs 1.0199 crore in FY 2026.

Current liabilities move in the opposite direction in the FY 2027 projection. Century Business Media forecasts total current liabilities of Rs 2.5236 crore, down from Rs 4.8529 crore in FY 2026, principally because trade payables are estimated to decline from Rs 3.5848 crore to Rs 1.85 crore. Trade payables are amounts owed to suppliers, so the lower balance represents less supplier credit financing operations at the reporting date.

How do 99-day receivables and 25-day payables affect working capital?

Century Business Media's FY 2027 assumptions mean it expects to collect customer dues in 99 days while paying suppliers in 25 days. The assumed trade-receivable holding period is one day longer than the 98 days reported for FY 2026, while the assumed trade-payable holding period is 16 days shorter than the FY 2026 level of 41 days.

Collection timing has lengthened over the three reported years. Century Business Media recorded receivables holding periods of 88 days in FY 2024, 97 days in FY 2025 and 98 days in FY 2026. Management says the 99-day FY 2027 assumption is based on current credit terms and is anticipated as a proportion of total revenue from operations.

Supplier-payment timing has moved in the reverse direction. Century Business Media reported payable holding periods of 57 days in FY 2024, 49 days in FY 2025 and 41 days in FY 2026, before estimating 25 days in FY 2027. The company says additional working-capital funding would allow it to make timely creditor payments and seek competitive purchase prices and more favourable supplier terms for products and services.

The planned reduction in creditor days therefore affects the estimate independently of sales growth. If customers continue to take about 99 days to pay while suppliers are paid after 25 days, Century Business Media must fund a larger interval between cash outflows and cash receipts. The projection depends on customer collections remaining consistent with the 99-day assumption and on the company securing the envisaged supplier terms.

What changed between FY 2024 and FY 2027?

Century Business Media's working-capital requirement is projected to rise from Rs 7.741 crore in FY 2024 to Rs 17.2764 crore in FY 2027. Over the same period, receivables are projected to increase by Rs 9.7294 crore, whereas trade payables are projected to decline by Rs 1.2533 crore, widening the net cash requirement in the operating cycle.

Century Business Media linked the FY 2025 increase to revenue from operations rising 14.42% to Rs 36.6529 crore from Rs 32.0339 crore in FY 2024. Trade receivables consequently increased to Rs 10.7135 crore in FY 2025 from Rs 8.7706 crore. Net working capital increased by Rs 0.7851 crore in that year, from Rs 7.741 crore to Rs 8.5261 crore.

For FY 2026, revenue from operations increased 26.68% to Rs 46.4334 crore, and trade receivables rose to Rs 14.158 crore from Rs 10.7135 crore. The stated result was a further increase in net working capital to Rs 10.3301 crore. Century Business Media attributes the FY 2027 projected increase primarily to expected revenue growth from airport and Metro advertising services, although it does not state a projected FY 2027 revenue figure.

How does Century Business Media plan to fund the FY 2027 requirement?

Century Business Media plans to fund Rs 3.25 crore of its FY 2027 working-capital requirement from net issue proceeds and Rs 14.0264 crore through borrowings and internal accruals. The Rs 3.25 crore allocation is specifically designated for working-capital requirements, while the balance is to be raised or generated at an appropriate time according to the requirement.

The funding plan is not confined to proposed issue proceeds. Century Business Media states that it has funded a majority of ordinary-course working-capital needs from internal accruals. Its FY 2026 requirement of Rs 10.3301 crore was shown as funded entirely through borrowings and internal accruals, compared with the FY 2027 projection that includes the Rs 3.25 crore proposed infusion.

The working-capital forecast is a management estimate based on standalone restated audited financial information. The related certificate was issued on August 14, 2026 by Lodha Patel Wadwa & Co., Chartered Accountants. None of the issue objects, including the Rs 3.25 crore working-capital object, has been appraised by a bank, financial institution or independent third party, and Century Business Media says any shortfall would be met through internal accruals or unsecured loans.

Conclusion

Century Business Media's Rs 17.2764 crore FY 2027 working-capital projection reflects two simultaneous movements: receivables are projected to reach Rs 18.5 crore on a 99-day collection assumption, while payables are projected to fall to Rs 1.85 crore on a 25-day settlement assumption. The Rs 3.25 crore proposed working-capital allocation would cover part of that requirement, leaving Rs 14.0264 crore to internal accruals and borrowings.

The next point to watch is implementation of the stated payment and collection assumptions during FY 2027, particularly whether faster supplier settlements secure the envisaged commercial terms while customer collections remain near 99 days. Century Business Media says its audit committee and management will monitor net issue proceeds, with half-yearly disclosures to the audit committee until the proceeds are fully used.