Complete Sports FY26 profit rose as operating cash stayed negative

Complete Sports reported FY26 profit of Rs 17.95 crore, but its operating activities used Rs 3.8209 crore of cash in the year ended March 31, 2026. The difference primarily reflected a Rs 35.6379 crore increase in trade receivables, which exceeded operating profit before working-capital changes of Rs 25.0035 crore.

Why did Complete Sports’ FY26 profit not produce operating cash?

Complete Sports’ FY26 profit did not translate into operating cash because working-capital movements absorbed more cash than operations generated before those movements. Operating profit before working-capital changes was Rs 25.0035 crore in Fiscal 2026, while net cash used in operating activities was Rs 3.8209 crore. Working capital covers short-term operating assets and liabilities, including receivables, inventory and supplier payables.

The largest disclosed FY26 use was the Rs 35.6379 crore increase in trade receivables, indicating that cash collection did not keep pace with revenue recognised during the year. Other current assets increased by Rs 0.2376 crore, other non-current assets rose by Rs 2.2893 crore and other current liabilities decreased by Rs 16.5676 crore. Income-tax payments of Rs 2.6597 crore added to the cash outflow.

Inventory fell by Rs 14.0509 crore and loans and advances declined by Rs 12.3032 crore in Fiscal 2026, partly releasing funds tied up in operations. Trade payables increased by Rs 2.0626 crore and short-term provisions rose by Rs 0.15 crore, providing further offsets. Operating cash conversion would depend on collecting receivables and avoiding a reversal in the inventory and advances reductions.

How did Complete Sports’ operating cash flow change over three years?

Complete Sports moved from positive operating cash flow in Fiscal 2024 to operating cash outflows in both Fiscal 2025 and Fiscal 2026. Net cash from operating activities was Rs 8.8328 crore in Fiscal 2024, followed by outflows of Rs 3.3277 crore in Fiscal 2025 and Rs 3.8209 crore in Fiscal 2026. The FY26 operating outflow was Rs 0.4932 crore larger than the Fiscal 2025 outflow.

The causes of the two operating outflows changed between the periods. Fiscal 2025 included a Rs 11.1867 crore increase in loans and advances, a Rs 9.3442 crore inventory increase, a Rs 4.6928 crore rise in receivables and Rs 4.5518 crore in income-tax payments. In Fiscal 2026, receivables and the decline in other current liabilities were the larger disclosed drains, while inventory and loans and advances declined.

What does the receivables increase mean for Complete Sports’ liquidity?

The Rs 35.6379 crore increase in trade receivables was Complete Sports’ largest stated FY26 working-capital outflow and represents cash not collected from customers at the reporting date. Complete Sports says its cash flows depend on the timing of collections, working-capital management, capital expenditure, borrowing repayments and cash generated by operations. Extended credit periods or collection delays can therefore increase funding needs.

Customer concentration provides context for that collection risk. Family entertainment centres, or FECs, accounted for Rs 99.3293 crore, or 87.47%, of FY26 revenue from operations, compared with Rs 81.3983 crore, or 73.77%, in Fiscal 2025. Complete Sports states that financial difficulty, liquidity constraints or changed strategies at customers could affect their ability to honour contracts or place new orders.

Geographic concentration also links local customer conditions to collection and demand risk. Maharashtra, Karnataka and Telangana generated Rs 89.2205 crore, or 78.57%, of FY26 revenue from operations, against Rs 67.2572 crore, or 60.95%, in Fiscal 2025. The supplied disclosures do not provide a receivables ageing schedule, so they establish the scale of the FY26 increase but not the due dates or collectability of individual balances.

What other cash demands did Complete Sports face in FY26?

Complete Sports used Rs 2.0691 crore in investing activities in Fiscal 2026, in addition to the Rs 3.8209 crore operating outflow. Property, plant and equipment purchases were Rs 3.176 crore, capital work-in-progress expenditure was Rs 0.568 crore, long-term loans and advances increased by Rs 0.979 crore, and capital advances increased by Rs 0.1252 crore. Capital work-in-progress is expenditure on assets not yet ready for intended use.

Proceeds from term deposits of Rs 2.5618 crore partly offset the FY26 investment outflows, along with interest received of Rs 0.1391 crore and rental income of Rs 0.078 crore. This differed from Fiscal 2025, when investing activities produced Rs 3.9157 crore, and from Fiscal 2024, when investing activities used Rs 8.9966 crore. The Fiscal 2024 outflow included Rs 7.6321 crore invested in term deposits.

Financing activities generated Rs 5.6792 crore in Fiscal 2026, compared with a Rs 0.4987 crore financing outflow in Fiscal 2025. Complete Sports states that continued cash outflows exceeding inflows could require additional borrowings, internal accruals or other financing for working capital, capital expenditure and debt servicing. It also states that financing may not be available on commercially acceptable terms or at all.

What conditions could improve Complete Sports’ cash conversion?

Complete Sports’ cash conversion could improve if trade receivables are collected without a comparable further extension of customer credit. The FY26 receivables increase of Rs 35.6379 crore was larger than the Rs 25.0035 crore operating profit before working-capital changes. The declines in inventory and loans and advances released Rs 26.3541 crore combined, but that release would not support cash flow if those balances rise again.

Supplier concentration may also affect inventory requirements and payment timing. The top 10 suppliers accounted for 81.93% of purchases in Fiscal 2026, while Brunswick Bowling Products, LLC alone represented Rs 26.8162 crore, or 50.77%, of cost of service. Complete Sports says supply disruptions, increased procurement costs or longer lead times could affect operations, profitability and cash flows.

Demand continuity remains relevant because Brunswick equipment generated Rs 57.0135 crore, or 50.21%, of FY26 revenue from operations, while FECs accounted for 87.47%. Complete Sports says future growth depends partly on diversifying its customer base and expanding into new segments. Those plans could broaden revenue sources, but the company also states that growth and expansion may require substantial capital expenditure and additional funding.

Conclusion

Complete Sports’ FY26 figures show that reported profit and operating cash flow measured materially different outcomes in the year ended March 31, 2026. FY26 profit was Rs 17.95 crore, while operating activities used Rs 3.8209 crore as receivables increased by Rs 35.6379 crore and other working-capital movements and tax payments outweighed cash generated before those movements. Fiscal 2025 also recorded an operating outflow of Rs 3.3277 crore, after a Rs 8.8328 crore inflow in Fiscal 2024.

The disclosed issue to watch is whether receivables are collected while working-capital requirements and expansion spending remain controlled. Complete Sports states that its growth and expansion plans may need substantial capital expenditure and additional funding, and that continued excess cash outflows could require borrowings, internal accruals or other financing. The timing of collection for the FY26 receivables increase remains unresolved in the supplied disclosures because no ageing analysis is provided.