Pace E-Commerce Ventures posts Rs 1.54 crore cash outflow

Pace E-Commerce Ventures Limited recorded a Rs 1.54 crore net operating cash outflow for the half year ended September 30, 2026, despite net profit of Rs 2.67 crore. Trade and other receivables consumed Rs 14.02 crore of cash, compared with Rs 1.87 crore in the corresponding half year ended September 30, 2025.

How did Pace E-Commerce Ventures’ operating cash flow change?

Pace E-Commerce Ventures moved from a Rs 2.51 crore net operating cash inflow in the half year ended September 30, 2025 to a Rs 1.54 crore outflow in the half year ended September 30, 2026. The reversal followed working-capital movements that exceeded the Rs 3.96 crore operating profit reported before working-capital changes. For the year ended March 31, 2026, the company had reported a Rs 3.74 crore operating cash inflow.

The September 2026 half-year cash-flow statement shows Rs 56.06 lakh of cash outflow from operations before direct tax, against a Rs 3.31 crore inflow in the previous corresponding period. Direct tax paid was Rs 98 lakh, compared with Rs 79.65 lakh a year earlier. That tax payment took the pre-tax operational outflow to the reported Rs 1.54 crore net cash outflow from operating activities.

The change in operating cash flow was different from the change in profit. Operating profit before working-capital changes increased by Rs 92.99 lakh from Rs 3.03 crore in the September 2025 half year, while net operating cash shifted by Rs 4.05 crore from an inflow to an outflow. The filing therefore shows that cash movements in working capital, rather than the pre-working-capital operating result, determined the period’s cash outcome.

What working-capital movements caused the cash outflow?

Trade and other receivables were the largest disclosed cash use, absorbing Rs 14.02 crore in the half year ended September 30, 2026. This was substantially higher than the Rs 1.87 crore use in the half year ended September 30, 2025. Inventories used another Rs 3.89 crore, versus Rs 9.70 lakh in the earlier period.

Trade payables provided Rs 10.37 crore of cash during the September 2026 half year, partly offsetting the receivables and inventory movements. Short-term loans and advances provided a further Rs 3.22 crore, while non-current investments used Rs 1.01 crore. Long-term loans and advances also used Rs 35.97 lakh, according to the cash-flow statement.

The balance sheet reported trade receivables of Rs 28.16 crore at September 30, 2026, compared with Rs 14.14 crore at March 31, 2026 and Rs 8.57 crore at September 30, 2025. Inventories increased to Rs 9.85 crore from Rs 5.95 crore at the March 2026 year end. The cash-flow line covers trade and other receivables, whereas the balance sheet separately identifies trade receivables and other financial assets, so the filing does not provide an ageing analysis or a line-by-line reconciliation of that cash-flow adjustment.

Did Pace E-Commerce Ventures’ profit convert into operating cash?

No, Pace E-Commerce Ventures reported higher profit but did not generate positive operating cash in the September 2026 half year. Net profit rose to Rs 2.67 crore from Rs 2.15 crore a year earlier, while operating cash flow moved from a Rs 2.51 crore inflow to a Rs 1.54 crore outflow. The disclosed receivables and inventory cash uses outweighed the operating profit generated before working-capital changes.

Revenue from operations increased to Rs 52.84 crore in the half year ended September 30, 2026 from Rs 42.12 crore in the corresponding 2025 period. Total revenue rose to Rs 53.88 crore from Rs 43.18 crore, and profit before tax increased to Rs 3.65 crore from Rs 2.95 crore. The financial results therefore show higher reported revenue and profit alongside a negative cash-conversion result for the half year.

Earnings per share, which Pace E-Commerce Ventures says is not annualised for the half year, was Rs 1.18 compared with Rs 0.96 in the September 2025 half year. The company reported that it operates in a single primary business segment, meaning the filing provides no segment-level split of revenue, profit, receivables or cash flow. It consequently does not identify the activity, customer group or collection term behind the receivables movement.

How was Pace E-Commerce Ventures’ overall cash movement funded?

Pace E-Commerce Ventures generated Rs 1.50 crore from financing activities in the half year ended September 30, 2026, helping offset the Rs 1.54 crore operating cash outflow and Rs 2.26 lakh used in investing activities. Financing cash flow included a Rs 3.91 crore increase in secured loans, a Rs 2.38 crore reduction in unsecured loans, Rs 1.07 crore of interest paid and Rs 1.04 crore of interest received.

Cash and cash equivalents declined by Rs 6.07 lakh to Rs 26.27 lakh at September 30, 2026 from Rs 32.33 lakh at March 31, 2026. Cash and cash equivalents had been Rs 3.35 crore at September 30, 2025, showing a materially lower closing balance in the latest half year. Fixed-asset purchases were Rs 2.26 lakh in September 2026, compared with Rs 3.40 lakh in the prior-year half.

Current borrowings were Rs 11.35 crore at September 30, 2026, down from Rs 13.74 crore at March 31, 2026. Non-current borrowings increased to Rs 7.52 crore from Rs 3.61 crore over the same six-month interval, while total equity rose to Rs 82.67 crore from Rs 80.00 crore. The filing does not explain how the changes in borrowing classifications relate to particular receivable collections or inventory holdings.

Was the September 2026 result audited?

The September 2026 half-year financial results were unaudited and subject to a limited review by Bharat Parikh & Associates. The auditor’s report dated November 6, 2026 states that a review provides less assurance than an audit and that the auditor did not express an audit opinion. The Audit Committee reviewed and recommended the results, and the Board approved them on November 6, 2026.

The auditor stated that nothing had come to its attention that caused it to believe the accompanying unaudited results had not disclosed the required information or contained a material misstatement. The company prepared the standalone results for the half year ended September 30, 2026 under the applicable accounting standards and listing regulations. This limited-review status applies to the Rs 1.54 crore operating cash outflow and the balance-sheet figures reported for September 30, 2026.

Conclusion

The half-year results present two different measures of performance: revenue from operations rose to Rs 52.84 crore and net profit reached Rs 2.67 crore, but cash generated by operations was negative. The disclosed reason was principally the Rs 14.02 crore cash absorbed by trade and other receivables, with a Rs 3.89 crore inventory use only partly countered by the Rs 10.37 crore cash contribution from trade payables.

The key unresolved matter is the collection profile behind trade receivables of Rs 28.16 crore at September 30, 2026, as the filing gives no receivables ageing, customer concentration, collection target or working-capital plan. Subsequent financial disclosures will show whether those receivables convert into cash and whether inventory, payables and the Rs 26.27 lakh cash balance change further.