IRIS RegTech reports Rs 6.06 crore operating cash outflow

IRIS RegTech Solutions Limited recorded a Rs 6.06 crore net operating cash outflow for the half year ended September 30, 2026, as trade receivables increased by Rs 16.65 crore to Rs 43.93 crore despite a Rs 12.25 lakh profit from continuing operations. The board approved the unaudited consolidated results on November 5, 2026.

Why did IRIS RegTech report negative operating cash flow?

IRIS RegTech reported negative operating cash flow because working-capital movements and taxes exceeded cash generated before those movements in the half year ended September 30, 2026. Operating profit before working-capital changes was Rs 1.96 crore, but the increase in trade receivables used Rs 16.65 crore of cash and the increase in other assets used Rs 5.33 crore.

The receivables and other-assets movements were partly offset by a Rs 14.09 crore increase in other liabilities and a Rs 4.93 crore decrease in other financial assets. Cash outflow from operating activity before taxes was Rs 3.20 crore, while net taxes paid were Rs 2.86 crore, resulting in the Rs 6.06 crore net outflow from operating activities.

The cash-flow statement was prepared using the indirect method under Indian Accounting Standard 7, or Ind AS 7. Its adjustments included Rs 3.30 crore of depreciation and amortisation, a Rs 1.47 crore allowance for doubtful trade receivables, Rs 81.22 lakh of finance costs and Rs 2.87 crore of interest income.

How much did IRIS RegTech's receivables increase?

IRIS RegTech's trade receivables increased by Rs 16.65 crore during the September 2026 half year, reaching Rs 43.93 crore on September 30 from Rs 27.49 crore on March 31, 2026. This was the largest negative item among the disclosed working-capital movements and was greater than the Rs 1.96 crore operating profit before working-capital changes.

The balance-sheet movement matches the Rs 16.65 crore cash outflow shown for increased trade receivables. The filing does not provide a receivables ageing schedule, customer concentration data or collection dates, so it does not specify why collections trailed the recognition of revenue during the period.

IRIS RegTech booked a Rs 1.47 crore allowance for doubtful trade receivables in the latest half year. In the half year ended September 30, 2025, the cash-flow statement instead recorded a Rs 67.85 lakh reversal of allowances for doubtful trade receivables.

Revenue from operations increased to Rs 71.49 crore in the September 2026 half year from Rs 53.76 crore a year earlier. Management said segment-level assets and liabilities were not practicable to disclose because they are used interchangeably across the business, so the filing does not assign receivables to SupTech, RegTech, DataTech or Others.

How does IRIS RegTech's cash flow compare with last year?

IRIS RegTech's operating cash flow changed from a Rs 117.31 crore inflow in the half year ended September 30, 2025 to a Rs 6.06 crore outflow in the latest half year. The prior-period operating figure included cash flows connected with the sale of the Taxtech GST ASP business, which were absent from the September 2026 statement.

The prior-year cash-flow statement recorded Rs 128.74 crore of proceeds from the GST ASP business sale, Rs 2.89 crore of transaction costs on the slump sale, Rs 4.90 crore for acquiring a minority stake in a subsidiary and Rs 6.61 crore of proceeds from selling an investment in a subsidiary. These items mean the reported year-on-year operating-cash comparison includes transactions not present in the latest period.

Trade receivables provided Rs 71.30 lakh of cash in the September 2025 half year but used Rs 16.65 crore in the September 2026 half year. The latest filing also recorded no cash flows from discontinued operations, whereas the comparable period included Rs 111.21 crore of operating cash inflows from discontinued operations.

What happened to IRIS RegTech's cash and investment balances?

IRIS RegTech ended September 30, 2026 with Rs 14.07 crore of cash and cash equivalents, up Rs 75.64 lakh from Rs 13.32 crore at March 31, 2026. The Rs 8.70 crore net investing inflow more than offset the operating outflow of Rs 6.06 crore and financing outflow of Rs 1.89 crore.

Investing activities included Rs 24.29 crore of short-term mutual-fund redemptions, Rs 2.01 crore of realised gains on short-term investments and Rs 83.08 lakh of interest received. Those inflows were partly offset by Rs 19.99 crore invested in short-term mutual funds and Rs 3.31 crore spent on property, plant and equipment, intangible assets and intangible assets under development.

Current investments stood at Rs 55.33 crore on September 30, 2026, compared with Rs 59.91 crore at March 31, 2026. Bank balances other than cash and cash equivalents increased to Rs 74.08 crore from Rs 32.03 crore over the same period.

Current borrowings declined to Rs 92.19 lakh from Rs 99.71 lakh. Lease liabilities, including current and non-current portions, rose to Rs 14.16 crore from Rs 65.63 lakh, while the financing cash-flow statement showed Rs 1.47 crore of lease-liability repayments during the half year.

What operating performance accompanied the cash outflow?

IRIS RegTech reported Rs 71.49 crore of revenue from operations in the half year ended September 30, 2026, up from Rs 53.76 crore in the corresponding prior-year period. SupTech contributed Rs 41.26 crore and RegTech Rs 27.37 crore, compared with Rs 32.85 crore and Rs 18.25 crore, respectively, a year earlier.

DataTech revenue declined to Rs 82.58 lakh from Rs 88.30 lakh, while the Others segment increased to Rs 2.04 crore from Rs 1.78 crore. SupTech's segment result was Rs 11.70 crore versus Rs 9.48 crore a year earlier, while RegTech's segment result was Rs 2.16 crore compared with a Rs 21.43 lakh loss.

Profit before tax and exceptional items from continuing operations was Rs 81.89 lakh, down from Rs 2.88 crore in the comparable half year. Finance costs rose to Rs 81.22 lakh from Rs 23.94 lakh, and depreciation and amortisation expense increased to Rs 3.30 crore from Rs 1 crore.

KKC & Associates LLP conducted a limited review of the consolidated results and said nothing had come to its attention to indicate that the statement failed to make required disclosures or contained a material misstatement. The auditor noted that financial information from two subsidiaries had not been reviewed by their auditors, but said management considered that information not material to the group.

Conclusion

IRIS RegTech's September 2026 half-year results show that higher revenue did not translate into operating cash generation. Revenue rose by Rs 17.74 crore year on year, but the Rs 16.65 crore receivables increase, other working-capital movements and Rs 2.86 crore of net taxes paid produced a Rs 6.06 crore operating cash outflow.

The filing does not disclose a future reporting date or collection target. The next results will show whether receivables of Rs 43.93 crore convert into cash, whether the Rs 1.47 crore doubtful-receivables allowance changes, and how cash and cash equivalents of Rs 14.07 crore move alongside current investments of Rs 55.33 crore.