Nanta Tech reports Rs 6.536 crore operating cash in H1 FY27

Nanta Tech Limited returned to positive operating cash flow in H1 FY27, reporting Rs 6.536 crore for the September 2026 period after outflows of Rs 1.876 crore in FY25 and Rs 10.011 crore in FY26. The change followed Rs 8.243 crore of cash generated from operations, despite Rs 1.670 crore being used in working capital.

Why did Nanta Tech return to operating cash generation?

Nanta Tech returned to positive operating cash generation because operating profit before working-capital changes was Rs 9.913 crore in H1 FY27 while the cash absorbed by working capital was substantially lower than in FY26. Cash generated from operations consequently reached Rs 8.243 crore in the September 2026 period, compared with cash used from operations of Rs 8.059 crore in FY26 and Rs 1.800 crore in FY25.

Net cash from operating activities was Rs 6.536 crore in H1 FY27 after the reported direct-tax deduction of Rs 1.707 crore. This compared with net operating cash outflows of Rs 10.011 crore in FY26 and Rs 1.876 crore in FY25. Nanta Tech had reported a positive Rs 19.6 lakh operating cash inflow in FY24, before the two full-year outflows.

How did working capital change at Nanta Tech?

Nanta Tech's working-capital cash use fell to Rs 1.670 crore in H1 FY27 from Rs 19.582 crore in FY26 and Rs 8.274 crore in FY25. Operating profit before working-capital changes was Rs 9.913 crore in H1 FY27, below Rs 11.523 crore for FY26, but the smaller cash absorption enabled positive cash generation from operations.

Trade receivables declined to Rs 26.395 crore at September 2026 from Rs 39.987 crore at March 2026, a reduction of Rs 13.592 crore. Inventories moved in the other direction, increasing from Rs 10.388 crore to Rs 14.240 crore during the same six months. Trade payables also fell, from Rs 20.402 crore at March 2026 to Rs 8.255 crore at September 2026.

Working-capital days had increased before the H1 FY27 cash-flow improvement, reaching 161 in FY26 from 89 in FY25 and 81 in FY24. Nanta Tech does not report working-capital days for H1 FY27. The presentation therefore does not establish whether the Rs 1.670 crore working-capital cash use represents a sustained shortening of the operating cycle.

What balance-sheet movements accompanied the cash-flow swing?

Nanta Tech's total assets were Rs 78.407 crore at September 2026, compared with Rs 80.095 crore at March 2026. Current assets declined by Rs 9.553 crore to Rs 48.548 crore, led by lower receivables, while non-current assets increased by Rs 7.865 crore to Rs 29.858 crore.

Tangible assets rose from Rs 13.542 crore at March 2026 to Rs 18.246 crore at September 2026, while intangible assets increased from Rs 8.383 crore to Rs 10.920 crore. These balance-sheet changes coincided with Rs 9.886 crore of cash outflow from investing activities in H1 FY27, following Rs 20.300 crore in FY26.

Total equity increased to Rs 55.100 crore at September 2026 from Rs 49.978 crore at March 2026. Reserve and surplus rose by Rs 5.078 crore to Rs 49.926 crore, alongside H1 FY27 profit after tax of Rs 5.073 crore. Share capital remained Rs 5.130 crore at both dates, while minority interest of Rs 4.3 lakh was recorded at September 2026.

How much did Nanta Tech spend and borrow in H1 FY27?

Nanta Tech reported Rs 9.886 crore of cash outflow from investing activities in H1 FY27, while financing activities provided Rs 4.270 crore. The investing outflow was lower than Rs 20.300 crore in FY26, but it exceeded the Rs 6.536 crore operating cash inflow reported for H1 FY27.

Long-term borrowings rose to Rs 6.698 crore at September 2026 from Rs 2.493 crore at March 2026, an increase of Rs 4.205 crore. Short-term borrowings increased by Rs 61.8 lakh to Rs 2.413 crore. The Rs 4.270 crore financing inflow followed an inflow of Rs 31.391 crore in FY26.

Cash and cash equivalents reached Rs 2.050 crore at September 2026, up from Rs 1.129 crore at March 2026. The cash-flow statement reports a Rs 92 lakh net increase in cash for H1 FY27, compared with a Rs 1.079 crore increase in FY26. Operating and financing inflows together exceeded the reported investing outflow in H1 FY27.

Did earnings support Nanta Tech's operating cash flow?

Nanta Tech reported H1 FY27 revenue from operations of Rs 42.55 crore, earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 9.894 crore, and profit after tax of Rs 5.073 crore. EBITDA margin was 23.3% in H1 FY27, compared with 16.4% in FY26, while profit after tax margin was 11.9%, compared with 11.7% in FY26.

Profit before tax was Rs 6.773 crore in H1 FY27, against Rs 11.007 crore for the full FY26 period. The cash-flow statement includes Rs 3.139 crore of adjustments for non-operating items in H1 FY27. The income statement reports depreciation and amortisation of Rs 2.530 crore, compared with Rs 48.6 lakh in FY26, while finance cost rose to Rs 60.9 lakh from Rs 10.9 lakh.

H1 FY27 revenue was below FY26 revenue of Rs 70.104 crore because the periods differ in duration. However, H1 FY27 EBITDA of Rs 9.894 crore was close to FY26 EBITDA of Rs 11.491 crore, while operating cash flow moved into positive territory. The presentation provides no full-year FY27 guidance for operating cash flow.

Conclusion

Nanta Tech's Rs 6.536 crore operating cash inflow in H1 FY27 reversed the Rs 1.876 crore and Rs 10.011 crore outflows in FY25 and FY26. The key change was working-capital cash use falling to Rs 1.670 crore, alongside Rs 9.913 crore of operating profit before working-capital changes and a Rs 13.592 crore reduction in receivables.

The next issue is whether operating cash generation can continue while investment and borrowings remain elevated. Nanta Tech recorded Rs 9.886 crore of investing outflow in H1 FY27, long-term borrowings rose to Rs 6.698 crore and inventories increased to Rs 14.240 crore; the presentation does not disclose a FY27 target for working-capital days, investment spending or operating cash flow.