Protean eGov cuts cash outflow, receivables hit Rs 269 crore

Protean eGov Technologies Limited reported a Rs 20.69 crore operating cash outflow for the six months ended 30 September 2026, compared with an outflow of Rs 47.71 crore a year earlier, while trade receivables rose to Rs 269.07 crore from Rs 202.71 crore at 31 March 2026. These are standalone unaudited results.

Why did Protean eGov report negative operating cash flow?

Protean eGov reported negative operating cash flow because a Rs 66.65 crore working-capital outflow exceeded Rs 41.76 crore of operating cash flow before working-capital changes in the six months ended 30 September 2026. Cash generated from operations was negative Rs 24.51 crore, and the final operating cash outflow was Rs 20.69 crore after net income taxes paid of Rs 3.82 crore.

The operating cash outflow narrowed by Rs 27.02 crore from Rs 47.71 crore in the six months ended 30 September 2025. However, cash flow before working-capital changes declined by Rs 25.62 crore from Rs 67.38 crore, showing that the improvement in the final operating cash figure came alongside a smaller pre-working-capital cash surplus.

Profit before tax was Rs 28.94 crore for the six-month period, down from Rs 69.65 crore a year earlier. In the reconciliation to operating cash flow, depreciation and amortisation rose to Rs 36.24 crore from Rs 21.01 crore, while interest income on financial assets at amortised cost was Rs 16.97 crore and interest income on bank deposits was Rs 7.45 crore.

How much did Protean eGov's receivables increase?

Protean eGov's trade receivables increased by Rs 66.36 crore to Rs 269.07 crore at 30 September 2026 from Rs 202.71 crore at 31 March 2026. The rise occurred during a six-month period in which revenue from operations increased by Rs 61.43 crore to Rs 520.91 crore from Rs 459.48 crore in the corresponding period of 2025.

Current assets rose by Rs 19.98 crore to Rs 623.88 crore at 30 September 2026, despite the receivables increase. Other current assets fell by Rs 25.86 crore to Rs 54.63 crore, current investments declined by Rs 14.62 crore to Rs 124.16 crore, and bank balances other than cash and cash equivalents fell by Rs 10.63 crore to Rs 123.29 crore.

The cash-flow statement records a total working-capital outflow of Rs 66.65 crore and separately lists movements in receivables, other assets, trade payables, and other liabilities and provisions. The filing does not provide an ageing profile, customer-level balance, or collection timetable for the Rs 269.07 crore receivables balance, so it does not permit a precise attribution of the working-capital outflow to receivables alone.

What changed in Protean eGov's operating performance?

Protean eGov's revenue increased but its six-month profit declined in the period ended 30 September 2026. Revenue from operations rose to Rs 520.91 crore from Rs 459.48 crore, while profit for the period fell to Rs 22.31 crore from Rs 52.70 crore and profit before tax declined to Rs 28.94 crore from Rs 69.65 crore.

Several expense lines increased from the prior-year six-month period. System implementation, support and maintenance expense rose by Rs 33.59 crore to Rs 127.44 crore, employee benefits expense increased by Rs 21.85 crore to Rs 135.03 crore, and depreciation and amortisation rose by Rs 15.23 crore to Rs 36.24 crore. The filing states that system implementation, support and maintenance includes equipment and software-licence costs incurred in delivering project services.

The quarter ended 30 September 2026 was more profitable than the immediately preceding quarter. Profit for the September quarter was Rs 16.33 crore, compared with Rs 5.98 crore in the quarter ended 30 June 2026, while revenue from operations increased to Rs 270.46 crore from Rs 250.45 crore. Against the quarter ended 30 September 2025, quarterly profit fell from Rs 26.20 crore even as revenue rose from Rs 249.50 crore.

Protean eGov reports one business segment and one geographic segment, India. Its stated activities include citizen services, e-governance solutions, system integration, business process re-engineering, data-centre co-location and information technology consulting services.

What happened to Protean eGov's cash, investments and liabilities?

Protean eGov ended 30 September 2026 with cash and cash equivalents of Rs 52.22 crore, up from Rs 47.45 crore at 31 March 2026. Investing activities generated Rs 41.66 crore in the six-month period, compared with Rs 63.19 crore a year earlier, while financing activities used Rs 16.20 crore after using Rs 42.54 crore in the prior-year period.

Investing cash flow included Rs 93.50 crore spent on property, plant and equipment, including capital advances, compared with Rs 1.40 crore in the six months ended 30 September 2025. Protean eGov also spent Rs 20.96 crore on intangible assets including assets under development, received Rs 120.85 crore from the sale of non-current investments, and recorded Rs 415.84 crore of proceeds from sale of current investments.

Non-current assets increased to Rs 893.71 crore at 30 September 2026 from Rs 872.86 crore at 31 March 2026. Property, plant and equipment increased by Rs 87.26 crore to Rs 150.18 crore, capital work-in-progress rose by Rs 18.39 crore to Rs 20.16 crore, and right-of-use assets increased by Rs 37.31 crore to Rs 117.58 crore; non-current investments fell by Rs 115.14 crore to Rs 395.24 crore.

Total liabilities rose by Rs 54.82 crore to Rs 454.61 crore at 30 September 2026, while total equity declined by Rs 13.99 crore to Rs 1,062.98 crore. Non-current lease liabilities increased by Rs 33.03 crore to Rs 102.72 crore, and current lease liabilities increased by Rs 7.13 crore to Rs 24.93 crore. The financing cash flow included Rs 10.64 crore of lease-liability payments and Rs 5.72 crore of interest on lease liabilities.

Conclusion

Protean eGov reduced its six-month operating cash outflow by Rs 27.02 crore year on year, but cash conversion remained negative as working-capital changes absorbed Rs 66.65 crore. Revenue increased by Rs 61.43 crore to Rs 520.91 crore, yet profit for the period fell to Rs 22.31 crore and trade receivables rose by Rs 66.36 crore to Rs 269.07 crore.

The main unresolved matter is whether the receivables balance declines after the Rs 66.36 crore increase since 31 March 2026, as the filing gives no ageing profile or collection timetable. Cash flow will also reflect the effect of Rs 93.50 crore of property, plant and equipment spending and Rs 20.96 crore of intangible-asset spending recorded in the first six months.