Techd Cybersecurity Limited reports negative operating cash flow

Techd Cybersecurity used Rs 91.50 lakh in operating activities during the half year ended September 30, 2026, despite reporting Rs 12.64 crore of standalone profit before tax. A Rs 16.35 crore increase in trade receivables and a Rs 3.29 crore outflow for loans, advances and other assets outweighed operating profit before working-capital changes.

Why did Techd Cybersecurity use cash in operations?

Techd Cybersecurity used Rs 91.50 lakh in operations because working-capital outflows exceeded the Rs 12.80 crore operating profit generated before those changes in the half year ended September 30, 2026. Trade receivables consumed Rs 16.35 crore, while loans, advances and non-current and current assets consumed another Rs 3.29 crore.

Trade payables supplied Rs 5.49 crore of cash and other liabilities and provisions added Rs 52.56 lakh in the September 2026 half year. These inflows were insufficient to offset the receivables and asset movements, resulting in Rs 82.91 lakh of cash used in operations before Rs 8.59 lakh of net income-tax payments.

The cash-flow outcome differed from the year ended March 31, 2026, when Techd Cybersecurity generated Rs 13.28 crore from operations before tax and Rs 8.55 crore after Rs 4.73 crore of tax payments. The company’s receivables increase was Rs 6.78 crore for that full year, compared with Rs 16.35 crore in the six months to September 30, 2026.

How much did Techd Cybersecurity's receivables increase?

Techd Cybersecurity’s trade receivables rose to Rs 35.70 crore at September 30, 2026 from Rs 19.35 crore at March 31, 2026. The Rs 16.35 crore balance-sheet increase matches the receivables movement reported as an operating cash outflow in the standalone cash-flow statement.

Revenue from operations was Rs 38.91 crore for the half year ended September 30, 2026, compared with Rs 33.63 crore in the half year ended March 31, 2026 and Rs 18.18 crore in the half year ended September 30, 2025. The September 2026 receivables balance was therefore close to revenue reported for the latest six-month period.

The filing does not provide customer credit terms, receivables ageing or a collection schedule for the Rs 35.70 crore balance at September 30, 2026. Other current assets rose to Rs 11.14 crore from Rs 7.45 crore, while short-term loans and advances declined to Rs 2.34 crore from Rs 2.45 crore during the same six months.

Did Techd Cybersecurity remain profitable in September 2026?

Techd Cybersecurity remained profitable on a standalone accounting basis, recording Rs 12.64 crore of profit before tax and Rs 9.60 crore of profit after tax for the half year ended September 30, 2026. Profit before tax was Rs 10.69 crore and profit after tax was Rs 7.67 crore in the preceding half year ended March 31, 2026.

Revenue from operations increased by Rs 5.28 crore sequentially to Rs 38.91 crore, while total income was Rs 39.43 crore, including Rs 52.07 lakh of other income. Total expenses were Rs 26.78 crore, comprising Rs 17.59 crore in cybersecurity-services costs and Rs 6.70 crore in employee benefit expense.

Against the half year ended September 30, 2025, revenue rose from Rs 18.18 crore and profit after tax increased from Rs 6.37 crore. Basic and diluted earnings per share, which were not annualised, were Rs 12.84 for the latest half year, compared with Rs 10.08 in the March 2026 half year and Rs 11.46 a year earlier.

The Board approved the standalone results on November 6, 2026, and the statutory auditor issued an unmodified limited-review conclusion. Techd Cybersecurity reports a single business segment, information technology and cybersecurity services, rather than separate operating segments.

What happened to Techd Cybersecurity's cash outside operations?

Techd Cybersecurity generated Rs 5.99 crore from investing activities in the half year ended September 30, 2026, primarily through Rs 16.98 crore of net proceeds from fixed deposits with banks. This exceeded Rs 11.16 crore spent on property, plant and equipment, intangible assets, capital work-in-progress and assets under development, plus Rs 31.09 lakh of loans and advances given.

Capital work-in-progress increased to Rs 12.98 crore at September 30, 2026 from Rs 6.28 crore at March 31, 2026. Intangible assets under development rose to Rs 4.70 crore from Rs 3.22 crore, while intangible assets increased to Rs 91.15 lakh from Rs 79.02 lakh.

Financing activities used Rs 41.14 lakh, including Rs 38.49 lakh of net short-term borrowing repayments and Rs 2.65 lakh of finance costs paid. Cash and cash equivalents increased by Rs 4.66 crore to Rs 12.67 crore, but total cash and bank balances declined to Rs 30.78 crore from Rs 43.10 crore as bank deposits of more than three months fell to Rs 18.11 crore from Rs 35.09 crore.

What disclosed spending plans remain for Techd Cybersecurity?

Techd Cybersecurity had utilised Rs 13.61 crore of Rs 38.99 crore in initial public offering proceeds by September 30, 2026, leaving Rs 25.38 crore unutilised. The company stated that the proceeds had been used only for the purposes stated in its September 18, 2025 prospectus, with no deviation or variation.

Of the unutilised amount, Rs 22.77 crore was allocated to investment in human resources and Rs 2.54 crore to capital expenditure for a Global Security Operation Centre in Ahmedabad. The company had used Rs 3.32 crore against the Rs 26.09 crore human-resources allocation and Rs 3.35 crore against the Rs 5.89 crore Global Security Operation Centre allocation by September 30, 2026.

Techd Cybersecurity also incorporated four subsidiaries between April 18, 2026 and June 16, 2026, including TechD CyberAGI Private Limited in India and wholly owned entities in Canada, GIFT City International Financial Services Centre and Mauritius. The standalone filing does not state how the Rs 16.35 crore receivables increase relates to those new entities or their activities.

Conclusion

The September 2026 standalone results show that Techd Cybersecurity’s reported profit and operating cash movement diverged during the half year. The Rs 16.35 crore rise in receivables exceeded the Rs 12.80 crore operating profit before working-capital changes, producing a Rs 91.50 lakh operating cash outflow despite Rs 9.60 crore of profit after tax.

The next disclosed milestones are deployment of the Rs 25.38 crore of unutilised initial public offering proceeds, including funding for human resources and the Ahmedabad Global Security Operation Centre. The subsequent cash-flow and balance-sheet disclosures will also show whether the Rs 35.70 crore receivables balance is collected or continues to absorb cash.