Techno Crats H1 FY27 cash outflow reached Rs 50.397 crore

TECHNO CRATS, referred to below as Techno Crats, reported Rs 50.397 crore of net cash used in operating activities in H1 FY27. The outflow occurred despite Rs 11.948 crore of profit after tax, as a Rs 47.167 crore increase in trade receivables, a Rs 19.493 crore inventory increase and other working-capital movements absorbed cash.

Why did Techno Crats report negative operating cash flow in H1 FY27?

Techno Crats reported negative operating cash flow because working-capital uses exceeded its Rs 17.051 crore operating profit before working-capital changes. Net cash used in operating activities was Rs 50.397 crore in H1 FY27, compared with Rs 10.369 crore in H1 FY26, widening the operating cash outflow by Rs 40.028 crore even as profit before tax increased to Rs 15.975 crore from Rs 9.107 crore.

Trade receivables were the largest stated cash use, rising by Rs 47.167 crore in H1 FY27 versus Rs 23.214 crore in H1 FY26. Inventory consumed Rs 19.493 crore, compared with Rs 4.944 crore a year earlier, while other working-capital adjustments used Rs 29.172 crore versus Rs 2.867 crore. The presentation says the latter category includes other current assets, liabilities, provisions, deferred tax, other non-current assets and long-term loans and advances.

How much did Techno Crats' working-capital balances increase?

Techno Crats' trade receivables rose to Rs 68.142 crore at H1 FY27 from Rs 20.975 crore at FY26, while inventories increased to Rs 52.676 crore from Rs 33.183 crore. Together, the two balances increased by Rs 66.66 crore from the FY26 closing level, matching the principal operating-cash uses shown in the H1 FY27 cash-flow statement.

The balance-sheet expansion accompanied a 97.4% year-on-year rise in revenue from operations to Rs 103.551 crore in H1 FY27 from Rs 52.470 crore. Cost of materials consumed, including changes in work in progress and finished goods, increased 108.3% to Rs 82.590 crore. Other current assets also increased to Rs 35.729 crore from Rs 1.200 crore, while trade payables rose to Rs 32.956 crore from Rs 11.241 crore and provided Rs 21.715 crore of cash-flow support.

Did Techno Crats remain profitable while operating cash was negative?

Techno Crats remained profitable in H1 FY27, reporting profit after tax, or PAT, of Rs 11.948 crore, up 50.8% from Rs 7.923 crore in H1 FY26, while operating cash flow was negative. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 78.0% to Rs 17.039 crore. The difference between profit and cash generation reflects the reported working-capital movements rather than an operating loss.

Margins declined despite the revenue increase. EBITDA margin fell 179 basis points to 16.5% from 18.2%, and PAT margin fell 356 basis points to 11.5% from 15.1%. Employee benefit expenses rose to Rs 1.551 crore from Rs 19.9 lakh, finance costs increased 102.9% to Rs 97.7 lakh, and materials costs grew faster than revenue. Capacity utilisation was about 75.0% in H1 FY27 versus 50.1% in FY26.

How did Techno Crats fund the H1 FY27 cash requirement?

Techno Crats funded the H1 FY27 cash requirement mainly through Rs 52.626 crore of proceeds from issue of capital, including securities premium and share application money. Net financing cash inflow was Rs 50.609 crore, compared with Rs 11.008 crore in H1 FY26. This financing inflow offset the Rs 50.397 crore operating outflow and Rs 19 lakh investing outflow, leaving cash and cash equivalents up by Rs 19.2 lakh.

Financing activities included net long-term borrowing proceeds of Rs 5.184 crore, repayment of Rs 6.225 crore of short-term borrowings and Rs 97.7 lakh of interest paid. Shareholders' funds increased to Rs 103.579 crore at H1 FY27 from Rs 39.006 crore at FY26. Long-term borrowings rose to Rs 13.156 crore from Rs 7.972 crore, while short-term borrowings fell to Rs 53.4 lakh from Rs 675.9 lakh.

What should readers monitor in Techno Crats' working capital next?

Readers should monitor whether receivables, inventory and other current assets convert into operating cash in later periods. At H1 FY27, those three balance-sheet items totalled Rs 156.547 crore, while total assets were Rs 162.184 crore, compared with total assets of Rs 72.055 crore at FY26. The presentation does not disclose collection days, inventory days, customer payment terms or an operating-cash-flow target.

Readers can also compare further revenue growth with funding needs. The H1 FY27 PAT of Rs 11.948 crore was 80.0% of the Rs 14.936 crore reported for all of FY26, but the presentation gives no FY27 full-year forecast. H1 FY27 capital expenditure was Rs 19 lakh, below Rs 1.053 crore for FY26, indicating that working capital rather than fixed-asset purchases was the principal disclosed use of cash in the half year.

Conclusion

Techno Crats' H1 FY27 results combine higher revenue and profit with a substantial call on cash. Revenue increased 97.4% to Rs 103.551 crore and PAT rose 50.8% to Rs 11.948 crore, but receivables, inventory and other working-capital adjustments resulted in Rs 50.397 crore of cash used in operating activities.

The next reporting period should show whether the H1 FY27 receivables balance of Rs 68.142 crore, inventory of Rs 52.676 crore and other current assets of Rs 35.729 crore convert into cash. The presentation discloses no formal cash-conversion target or full-year FY27 guidance, while the Rs 52.626 crore capital issue was the largest identified H1 funding source.