Fly-Hi Maritime FY26 profit rose, but operating cash turned negative

Fly-Hi Maritime reported restated profit after tax of ₹8.43 crore in FY26, its highest result across the three reported financial years, but used ₹98.20 lakh in operating activities. A ₹15.05 crore increase in trade and other receivables exceeded the company’s ₹12.49 crore operating profit before working-capital adjustments and absorbed cash.

Why did Fly-Hi Maritime’s FY26 profit not become operating cash?

Fly-Hi Maritime’s FY26 operating cash outflow arose principally because revenue had not yet been collected in cash by March 31, 2026. Profit before tax was ₹11.36 crore and operating profit before working-capital adjustments was ₹12.49 crore, after adjustments including ₹41.65 lakh of depreciation and amortisation, ₹88.28 lakh of interest expense, ₹16.38 lakh of investment income and ₹1.32 lakh of miscellaneous income.

The decisive adjustment was the ₹15.05 crore increase in trade and other receivables, meaning a greater amount was due from customers or other counterparties at year-end. This use of cash was larger than the ₹12.49 crore operating profit before working-capital changes. The cash-flow statement therefore reports cash generated or used, rather than income recognised under the accounting basis used to calculate profit.

How large was the receivables increase behind Fly-Hi Maritime’s operating cash outflow?

Fly-Hi Maritime’s ₹15.05 crore receivables increase in FY26 was far larger than the ₹3.24 lakh increase reported in FY25 and the ₹1.54 crore increase in FY24. The change from FY25 to FY26 was therefore not simply proportional to the rise in reported business activity: receivables expanded by ₹15.01 crore more than in FY25 while revenue from operations rose by ₹16.64 crore.

Other working-capital movements partly offset the receivables cash use in FY26. Trade payables increased by ₹1.77 crore, provisions increased by ₹1.67 crore, short-term loans and advances decreased by ₹87.23 lakh, other current assets decreased by ₹5.89 lakh, and other current liabilities increased by ₹11.99 lakh. Together, those listed offsets totalled ₹4.50 crore, leaving the receivables movement as the principal reason operating profit did not translate into positive operating cash.

What changed between FY25 and FY26 for operating cash flow?

Fly-Hi Maritime moved from operating cash generation of ₹92.08 lakh in FY25 to an operating cash outflow of ₹98.20 lakh in FY26, a reversal of ₹1.90 crore. In the same comparison, operating profit before working-capital adjustments rose from ₹5.27 crore to ₹12.49 crore, while profit before tax increased from ₹4.72 crore to ₹11.36 crore. The comparison shows that the cash-flow reversal came from working-capital and tax movements rather than a fall in reported pre-tax profit.

FY25 had a much smaller ₹3.24 lakh receivables increase, although it included cash uses from a ₹2.66 crore decrease in trade payables, a ₹55.33 lakh increase in short-term loans and advances, and a ₹38.68 lakh increase in other current assets. FY26 instead recorded a ₹1.77 crore increase in trade payables and a ₹1.67 crore increase in provisions, but these offsets did not cover the ₹15.05 crore receivables increase and ₹2.92 crore direct-tax payment.

Across the three reported years, Fly-Hi Maritime generated positive operating cash only in FY25, while FY24 recorded an operating cash outflow of ₹91.70 lakh. Cash and cash equivalents ended at ₹2.93 crore in FY24, ₹3.67 crore in FY25 and ₹3.76 crore in FY26. The FY26 increase in cash therefore reflected cash from financing activities rather than a positive operating cash contribution.

How did revenue and profit grow in FY26?

Fly-Hi Maritime’s revenue from operations increased 36.66% to ₹62.04 crore in FY26 from ₹45.40 crore in FY25. Total income rose 36% to ₹62.21 crore from ₹45.75 crore, while other income declined 49.50% to ₹17.71 lakh from ₹35.06 lakh. The stated reason for the revenue increase was higher sales of services in the normal course of business.

Restated profit after tax increased 144.69% to ₹8.43 crore in FY26 from ₹3.44 crore in FY25, following an 89.06% increase from ₹1.82 crore in FY24 to FY25. Fly-Hi Maritime attributed the FY26 margin increase to higher ticket prices linked to a war scenario and last-minute crew-transfer bookings, better vendor pricing from prompt payment terms, and better exchange rates from banks. These are stated explanations for reported profitability; cash conversion still depends on when receivables are collected and liabilities are paid.

Did financing activity support Fly-Hi Maritime’s year-end cash balance?

Fly-Hi Maritime generated ₹2.05 crore from financing activities in FY26, which exceeded the combined ₹98.20 lakh operating outflow and ₹96.85 lakh investing outflow. Financing cash was primarily driven by ₹2.91 crore of proceeds from short-term borrowings and ₹3.15 lakh of long-term borrowings, offset by ₹88.98 lakh of interest expenses. As a result, cash and cash equivalents rose by ₹9.82 lakh to ₹3.76 crore at March 31, 2026 from ₹3.67 crore at the beginning of the year.

Borrowing levels also rose in the results discussion, where Fly-Hi Maritime reported long-term and short-term borrowings of ₹12.97 crore in FY26 compared with ₹10.03 crore in FY25. As of March 31, 2026, secured borrowings outstanding were ₹8.42 crore and unsecured borrowings were ₹4.55 crore. The secured credit facility from HDFC Bank Limited accounted for ₹7.20 crore of the ₹8.42 crore secured balance, or about 86% of that category.

Conclusion

Fly-Hi Maritime’s FY26 accounts show a difference between reported earnings and operating cash: ₹8.43 crore of restated profit after tax coincided with a ₹98.20 lakh operating cash outflow. Revenue growth to ₹62.04 crore and profit growth were accompanied by a ₹15.05 crore receivables build-up, which was only partly offset by increases in payables and provisions and a ₹2.92 crore direct-tax payment.

The next item to watch is whether Fly-Hi Maritime converts the FY26 receivables balance into cash without a comparable further build-up. The prospectus states that no material events occurred after the March 31, 2026 restated audited financial statements, and it discloses exposure to interest-rate, inflation and credit risk. It also says future costs and revenues will be determined by demand and supply conditions, technology, government policy and other economic factors.