Synoptics H1 Revenue Rises 50% as Operating Cash Turns Negative

Synoptics Technologies Limited (Synoptics) reported consolidated revenue of Rs 44.47 crore for the half year ended September 30, 2026, up 50% from Rs 29.64 crore a year earlier, while operating activities used Rs 2.36 crore of cash after trade receivables increased by Rs 24.02 crore to Rs 47.28 crore.

What drove Synoptics' H1 revenue increase?

Synoptics' revenue from operations rose by Rs 14.83 crore year on year to Rs 44.47 crore in the half year ended September 30, 2026. The comparative figure was Rs 29.64 crore for the half year ended September 30, 2025, and the consolidated statement records the same Rs 44.47 crore as total income from operations.

Synoptics does not provide a revenue split because it reports one business segment. Purchases and infrastructure operation costs rose to Rs 30.35 crore from Rs 13.44 crore in the corresponding prior half year, an increase of Rs 16.91 crore that was larger than the Rs 14.83 crore increase in revenue.

Total expenses increased to Rs 38.25 crore from Rs 23.84 crore over the two half-year periods. Consequently, profit from operations before other income, finance costs and exceptional items increased by Rs 0.42 crore to Rs 6.23 crore, compared with Rs 5.81 crore in the September 2025 half year.

How did Synoptics' H1 profit change?

Synoptics' consolidated net profit rose to Rs 3.81 crore for the half year ended September 30, 2026, from Rs 3.40 crore a year earlier. Profit before tax was Rs 5.09 crore, compared with Rs 4.55 crore in the half year ended September 30, 2025.

Basic and diluted earnings per share were each Rs 5.93 in the latest half year, against Rs 4.01 in the prior-year period. Depreciation and amortisation expense increased to Rs 1.66 crore from Rs 1.61 crore, while the increase in total expenses limited the increase in net profit to Rs 0.41 crore.

Synoptics' September 2026 consolidated results are unaudited and were approved by its board on November 6, 2026. The independent accountant conducted a limited review under Standard on Review Engagement 2410 and stated that nothing had come to its attention indicating that the results contained a material misstatement.

Why did Synoptics' operating cash flow turn negative?

Synoptics recorded net cash used in operating activities of Rs 2.36 crore in the half year ended September 30, 2026, despite reporting Rs 5.09 crore of profit before tax. The cash-flow statement identifies a Rs 24.02 crore increase in trade and other receivables as the largest working-capital outflow.

Cash generated from operations before working-capital changes was Rs 7.89 crore after adjustments including Rs 1.66 crore of depreciation and Rs 1.14 crore of interest expense. Working-capital changes reduced cash by Rs 9.07 crore and net income taxes paid were Rs 1.18 crore, producing the negative operating cash-flow result.

The filing places the latest six-month cash-flow figures alongside the year ended March 31, 2026 rather than a comparable half year. For that prior full year, Synoptics reported Rs 9.37 crore of net operating cash generation and a Rs 4.26 crore increase in trade and other receivables, making the Rs 24.02 crore latest movement materially larger but not a like-for-like period comparison.

How did Synoptics' working-capital balances change?

Synoptics' trade receivables rose to Rs 47.28 crore at September 30, 2026 from Rs 23.26 crore at March 31, 2026. The Rs 24.02 crore increase took the balance to more than twice its March level and corresponds with the principal receivables outflow reported in the cash-flow statement.

Current assets increased to Rs 98.42 crore at September 30 from Rs 71.11 crore at March 31. Inventories rose to Rs 4.12 crore from Rs 2.60 crore, while cash and cash equivalents increased to Rs 3.84 crore from Rs 3.58 crore despite the negative operating cash flow.

Current liabilities rose to Rs 57.95 crore from Rs 36.02 crore over the same six months. Trade payables increased to Rs 25.93 crore from Rs 10.19 crore, a Rs 15.74 crore movement that partly offset the receivables-related cash outflow, while total assets rose to Rs 147.00 crore from Rs 120.99 crore.

What did the limited review disclose about Synoptics?

Synoptics' limited-review report draws attention to an interim Securities and Exchange Board of India order restraining the promoters and Synoptics from buying, selling or otherwise dealing in the securities market until further orders. The report does not state the date of that interim order or provide additional detail on the underlying matter.

The reviewer said its conclusion was not modified in respect of the Securities and Exchange Board of India matter. The report covers Synoptics and subsidiary Synoptics Communication Services Private Limited for the half year ended September 30, 2026, and it states that a limited review has a narrower scope than an audit.

The financial-results notes also say that trade payables, loans and advances, and other current liabilities remain subject to confirmation and reconciliation. Synoptics says any consequent adjustments will be accounted for in the year in which confirmation or reconciliation occurs, making this an unresolved matter for the Rs 57.95 crore current-liabilities balance at September 30.

Conclusion

Synoptics' September 2026 half-year filing shows a clear divergence between reported earnings and cash conversion. Revenue rose 50% to Rs 44.47 crore and net profit rose to Rs 3.81 crore, but the Rs 24.02 crore expansion in receivables and other working-capital movements resulted in operating cash outflow of Rs 2.36 crore.

The next disclosed matter to watch is Synoptics' confirmation and reconciliation of trade payables, loans and advances, and other current liabilities, which may lead to adjustments in the year of resolution. Subsequent results will also show whether the Rs 47.28 crore receivables balance at September 30, 2026 converts into cash and whether operating cash generation changes from the H1 outcome.