Syschem operating cash outflow reaches Rs 5.85 crore in half year

Syschem (India) Limited recorded a Rs 5.85 crore net operating cash outflow for the half year ended September 30, 2026, although it reported Rs 0.24 crore profit after tax. A Rs 25.65 crore inventory increase and a Rs 39.78 crore decline in trade and other payables outweighed Rs 54.98 crore released from receivables.

Why did Syschem report negative operating cash flow?

Syschem reported an operating cash outflow because working-capital movements used more cash than its operating profit and non-cash adjustments produced. Operating profit before working-capital changes was Rs 5.03 crore in the half year ended September 30, 2026, compared with Rs 5.78 crore in the corresponding half year ended September 30, 2025.

The largest working-capital cash source was a Rs 54.98 crore reduction in trade and other receivables, which the cash-flow statement classifies across non-current and current balances. This inflow did not offset a Rs 25.65 crore inventory increase and a Rs 39.78 crore decrease in trade and other payables, resulting in a net Rs 10.45 crore working-capital outflow.

Cash generated from operations was an outflow of Rs 5.41 crore, compared with an inflow of Rs 13.89 crore in the prior-year half year. Net income taxes paid of Rs 0.43 crore took net cash used in operating activities to Rs 5.85 crore, versus net cash generated of Rs 13.24 crore a year earlier.

How did working capital change at Syschem?

Syschem’s inventory balance rose to Rs 83.89 crore at September 30, 2026, from Rs 58.24 crore at March 31, 2026. The Rs 25.65 crore balance-sheet increase closely corresponds with the Rs 25.65 crore inventory cash outflow in the half-year cash-flow statement.

Trade receivables fell to Rs 91.54 crore at September 30, 2026, from Rs 144.49 crore at March 31, 2026. That movement is consistent with the Rs 54.98 crore cash inflow from trade and other receivables, though the cash-flow line also includes non-current balances.

Trade payables declined to Rs 117.14 crore at September 30, 2026, from Rs 160.39 crore at March 31, 2026. The cash-flow statement shows a Rs 39.78 crore decrease in trade and other payables, which reduced operating cash generation because lower unpaid balances require cash settlement.

The latest half year differed from the half year ended September 30, 2025, when inventory movements provided Rs 26.95 crore of cash rather than consuming Rs 25.65 crore. Payables remained a cash outflow in both periods, at Rs 39.78 crore in 2026 and Rs 38.78 crore in 2025, while the receivables cash release rose from Rs 18.93 crore to Rs 54.98 crore.

How did Syschem profit compare with cash generation?

Syschem remained profitable on a reported basis, but the half-year profit did not convert into positive operating cash flow. Profit before tax was Rs 0.68 crore for the half year ended September 30, 2026, down from Rs 4.22 crore in the comparable 2025 period, while profit after tax declined to Rs 0.24 crore from Rs 3.57 crore.

Depreciation and amortisation of Rs 3.13 crore and net interest paid of Rs 1.23 crore were included in the reconciliation from profit before tax to operating profit before working-capital changes. These adjustments lifted that measure to Rs 5.03 crore, before the working-capital movements reduced cash generation.

Revenue from operations increased to Rs 255.74 crore in the half year ended September 30, 2026, from Rs 244.68 crore a year earlier. Total expenses rose to Rs 255.11 crore from Rs 240.48 crore, leaving profit before tax of Rs 0.68 crore rather than Rs 4.22 crore in the prior-year period.

The quarterly results were uneven during the six months. Syschem reported Rs 1.91 crore profit after tax for the quarter ended September 30, 2026, after a Rs 1.67 crore loss in the quarter ended June 30, 2026, producing the Rs 0.24 crore half-year profit; the filing gives cash flow only for the full half year.

How much did Syschem spend on assets and how was it funded?

Syschem used Rs 15.65 crore in investing activities during the half year ended September 30, 2026, including Rs 12.52 crore for purchases of property, plant and equipment and intangible assets. It also placed a net Rs 3.13 crore in bank deposits, and the filing states that the investing cash-flow figure excludes capital advances.

The Rs 12.52 crore capital-expenditure outflow exceeded Rs 10.92 crore in the corresponding half year ended September 30, 2025. Property, plant and equipment stood at Rs 65.28 crore at September 30, 2026, compared with Rs 67.60 crore at March 31, 2026, while capital work-in-progress was Rs 11.68 crore at September 30.

Financing activities generated Rs 15.02 crore in the latest half year. The statement records Rs 16.25 crore in proceeds from share capital and Rs 1.23 crore in interest and finance charges paid, while it does not show a dividend payment amount for the period.

Equity share capital was Rs 53.62 crore at September 30, 2026, compared with Rs 49.01 crore at March 31, 2026. Total equity increased to Rs 139.66 crore from Rs 122.43 crore, while non-current borrowings were Rs 0.62 crore and current borrowings were Rs 0.25 crore at September 30.

What changed in Syschem’s cash balance and liabilities?

Syschem’s cash-flow statement shows cash and cash equivalents falling from Rs 8.11 crore at the beginning of the year to Rs 1.62 crore at the end of the half year. The fall followed the Rs 5.85 crore operating outflow and Rs 15.65 crore investing outflow, partly offset by Rs 15.02 crore from financing activities.

The balance sheet separately reports cash and cash equivalents of Rs 1.63 crore at September 30, 2026, alongside Rs 3.13 crore in other balances with banks. The Rs 16,000 difference between the balance-sheet cash-equivalents amount of Rs 162.62 lakh and the cash-flow closing amount of Rs 162.46 lakh is not reconciled in the filing.

Total current assets decreased to Rs 186.63 crore at September 30, 2026, from Rs 218.57 crore at March 31, 2026. Total current liabilities fell to Rs 120.13 crore from Rs 163.03 crore, with lower receivables contributing to the asset reduction and lower trade payables contributing to the liability reduction.

Conclusion

Syschem’s half-year results show a gap between accounting profit and cash generation: Rs 0.24 crore of profit after tax accompanied a Rs 5.85 crore operating cash outflow. The Rs 54.98 crore receivables release was outweighed by Rs 65.43 crore absorbed through higher inventories and lower trade and other payables, while Rs 12.52 crore of asset purchases added to overall cash use.

The unresolved item in the September 30, 2026 filing is the Rs 16,000 difference between cash and cash equivalents reported in the cash-flow statement and balance sheet. Subsequent Syschem disclosures may show whether inventory, receivables and payables reverse their cash effects and whether the reported cash amounts are reconciled.