Panabyte H1 financing inflow exceeds operating cash outflow

Panabyte Technologies Limited reported a Rs 37.14 lakh operating cash outflow for the half year ended 30 September 2026, while a Rs 48.14 lakh financing inflow exceeded that operating use. After a Rs 12.98 lakh investing outflow, Panabyte recorded a Rs 1.99 lakh net cash outflow across all activities.

Why did Panabyte report an operating cash outflow?

Panabyte reported an operating cash outflow because Rs 42.46 lakh of net working-capital use and Rs 3.45 lakh of tax paid exceeded its Rs 8.77 lakh operating profit before working-capital changes in the half year ended 30 September 2026. Cash generated from operations was negative Rs 33.69 lakh before tax, resulting in net operating cash outflow of Rs 37.14 lakh.

The largest working-capital cash use was a Rs 75.04 lakh increase in other current assets. This was partly offset by a Rs 45.33 lakh reduction in trade receivables, a Rs 23.80 lakh increase in current provisions and a Rs 12.60 lakh reduction in other current financial assets. Inventories used Rs 7.55 lakh, trade payables used Rs 3.57 lakh, other current financial liabilities used Rs 1.28 lakh and other current liabilities used Rs 36.75 lakh.

Panabyte’s accounting result also moved into a loss during the six-month period. The company reported a Rs 7.93 lakh loss after tax for H1 ended 30 September 2026, compared with a Rs 23.11 lakh profit in the corresponding prior-year half. Profit before tax changed to a Rs 8.79 lakh loss from a Rs 23.77 lakh profit, while total income fell to Rs 2.4749 crore from Rs 4.8702 crore.

What financed Panabyte’s H1 cash requirement?

Panabyte financed its H1 cash requirement mainly through Rs 75.48 lakh of borrowings taken during the half year ended 30 September 2026. After interest, lease and processing-charge payments, net cash flow from financing activities was an inflow of Rs 48.14 lakh.

Financing cash outflows included Rs 21.44 lakh of interest paid, Rs 4.55 lakh of lease rent paid and Rs 1.35 lakh of processing charges. Panabyte recorded no proceeds from share warrants in H1, unlike the Rs 1.2078 crore of warrant proceeds reported in the year ended 31 March 2026. The disclosed financing items reconcile to the Rs 48.14 lakh net financing inflow.

Panabyte’s balance sheet showed Rs 50 lakh of non-current borrowings at 30 September 2026, compared with no amount displayed at 31 March 2026. Current borrowings rose to Rs 3.6562 crore from Rs 3.3799 crore over the same period. The filing does not provide a separate reconciliation between each closing borrowing category and the Rs 75.48 lakh cash borrowing proceeds.

How does Panabyte’s H1 cash flow compare with the prior year?

Panabyte’s Rs 1.99 lakh H1 net cash decline was smaller than the Rs 83.43 lakh decline reported for the year ended 31 March 2026. The comparison is not like-for-like because H1 covers six months while the earlier figure covers a full year, but the H1 financing inflow offset most operating and investing cash uses.

Operating cash flow was negative Rs 37.14 lakh in H1 ended 30 September 2026, compared with negative Rs 2.0188 crore for the year ended 31 March 2026. Investing activities used Rs 12.98 lakh in H1, against Rs 32.98 lakh in the full financial year. Financing cash flow was a Rs 48.14 lakh inflow in H1, compared with a Rs 1.2375 crore inflow for the year ended 31 March 2026.

The reported profit movement does not alone determine the cash-flow movement because the H1 cash calculation included non-cash and working-capital adjustments. Panabyte recorded Rs 4.22 lakh of depreciation on property, plant and equipment and Rs 4.02 lakh of depreciation of right-of-use assets in H1. It also reported Rs 13.81 lakh of interest income, Rs 21.44 lakh of interest paid and Rs 1.35 lakh of loan processing and other charges in the cash-flow calculation.

Which balance-sheet movements affected Panabyte’s cash position?

Panabyte’s trade receivables fell to Rs 3.9476 crore at 30 September 2026 from Rs 4.4009 crore at 31 March 2026, consistent with the Rs 45.33 lakh H1 cash inflow from receivables. That collection was a major offset to the Rs 75.04 lakh cash use attributed to other current assets, whose composition was not separately identified in the filing.

Inventories increased to Rs 1.8332 crore at 30 September 2026 from Rs 1.7577 crore at 31 March 2026, matching the Rs 7.55 lakh H1 cash use shown in the cash-flow statement. Trade payables declined to Rs 3.7286 crore from Rs 3.7544 crore, while other current liabilities fell to Rs 43.90 lakh from Rs 80.65 lakh. These liability movements contributed to the working-capital outflow.

Total assets increased to Rs 16.5351 crore at 30 September 2026 from Rs 16.0576 crore at 31 March 2026. Equity share capital was unchanged at Rs 6.69 crore, while other equity declined to Rs 82.42 lakh from Rs 90.35 lakh. The reduction in other equity was broadly in line with Panabyte’s Rs 7.93 lakh H1 loss after tax.

Conclusion

Panabyte’s H1 cash-flow statement shows that a Rs 37.14 lakh operating outflow and Rs 12.98 lakh investing outflow were largely funded by a Rs 48.14 lakh financing inflow. Borrowings taken of Rs 75.48 lakh were the principal disclosed financing source, while changes in other current assets and liabilities drove the Rs 42.46 lakh working-capital outflow.

The next financial results will show whether receivables, inventory and other current assets continue to consume or release cash after H1 ended 30 September 2026. Investors can also watch the unresolved income-tax assessment for financial year 2018-19, for which the Income Tax Department raised a demand including interest of Rs 11.897 lakh, as disclosed on 5 November 2026.