Umiya Mobile H1 FY27 operating cash outflow hit Rs 21.20 crore

UMIYA MOBILE® reported a Rs 21.20 crore net operating cash outflow in H1 FY27, while inventory increased to Rs 154.34 crore from Rs 106.85 crore at FY26-end. The half-year period also recorded 45.0% year-on-year revenue growth and a 92.0% rise in profit after tax.

Why did Umiya Mobile report negative operating cash flow in H1 FY27?

Umiya Mobile reported net cash flow from operating activities of negative Rs 21.20 crore in H1 FY27. The presentation does not provide a line-by-line reconciliation of operating cash flow or explicitly assign the outflow to individual working-capital items. It does, however, show higher inventory and short-term loans and advances at the H1 FY27 balance-sheet date alongside the operating cash-flow result.

The result changed from FY26, when operating activities generated Rs 2.98 crore, after outflows of Rs 15.16 crore in FY25 and Rs 6.57 crore in FY24. The comparison is not like-for-like because H1 FY27 covers six months while FY24 through FY26 are full financial years. Even so, the H1 FY27 operating outflow exceeded the outflows reported for either of the preceding two full years.

The cash-flow statement reported a Rs 0.59 crore net increase in cash and cash equivalents for H1 FY27, ending the period at Rs 4.13 crore versus Rs 3.54 crore at its beginning. Its investing and financing rows are labelled as cash used, but the presentation shows Rs 8.75 crore and Rs 13.05 crore, respectively, without parentheses in H1 FY27. The stated line items therefore do not establish the direction of those two cash-flow categories beyond the explicit operating outflow.

How much did Umiya Mobile's inventory and advances increase?

Umiya Mobile's inventory increased by Rs 47.49 crore, or about 44%, to Rs 154.34 crore in H1 FY27 from Rs 106.85 crore at FY26-end. Inventory had also expanded from Rs 67.27 crore in FY25 and Rs 41.77 crore in FY24. The H1 FY27 balance continued the increase in stock carried on the balance sheet, although the presentation does not disclose inventory units, ageing, turnover or product-level stock composition.

Short-term loans and advances rose by Rs 9.33 crore during the same six-month comparison, reaching Rs 48.09 crore from Rs 38.76 crore at FY26-end. Trade receivables moved in the other direction, declining by Rs 1.48 crore to Rs 5.07 crore from Rs 6.55 crore. The disclosed increase in inventory and advances was Rs 56.83 crore, while the receivables reduction partly offset that change by Rs 1.48 crore.

Total current assets rose to Rs 214.85 crore in H1 FY27 from Rs 156.19 crore at FY26-end, an increase of Rs 58.66 crore. Inventory represented about 72% of H1 FY27 current assets based on the presented balances, while short-term loans and advances represented about 22%. Current investments increased to Rs 3.21 crore from Rs 0.49 crore, and cash and cash equivalents increased to Rs 4.13 crore from Rs 3.54 crore.

Did Umiya Mobile's revenue and profit still rise in H1 FY27?

Umiya Mobile's revenue from operations rose 45.0% year on year to Rs 529.49 crore in H1 FY27 from Rs 365.19 crore in H1 FY26, while profit after tax rose 92.0% to Rs 7.26 crore from Rs 3.78 crore. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 78.0% to Rs 11.32 crore. These income-statement gains occurred alongside the Rs 21.20 crore operating cash outflow.

Gross profit increased 63.2% to Rs 41.47 crore in H1 FY27 from Rs 25.41 crore in H1 FY26. Purchases of raw material or stock-in-trade were Rs 535.51 crore, compared with Rs 379.57 crore a year earlier, while the change in inventories was negative Rs 47.49 crore versus negative Rs 39.80 crore. Employee benefit expense increased to Rs 3.97 crore from Rs 2.83 crore, and other expenses rose to Rs 26.18 crore from Rs 16.22 crore.

Financial costs were Rs 1.17 crore in H1 FY27, up from Rs 0.99 crore in H1 FY26, and depreciation and amortisation expense was Rs 0.53 crore versus Rs 0.39 crore. Profit before tax was Rs 9.72 crore compared with Rs 5.04 crore, while tax expense was Rs 2.45 crore compared with Rs 1.26 crore. Diluted earnings per share were Rs 5.11, up from Rs 3.23 in the earlier half year.

How did Umiya Mobile's liabilities change during H1 FY27?

Umiya Mobile's total current liabilities rose by Rs 39.47 crore to Rs 104.85 crore in H1 FY27 from Rs 65.38 crore at FY26-end. Trade payables increased by Rs 10.61 crore to Rs 59.76 crore, short-term borrowings increased by Rs 14.22 crore to Rs 20.55 crore, and other current liabilities increased by Rs 15.25 crore to Rs 21.24 crore. Short-term provisions declined to Rs 3.30 crore from Rs 3.91 crore.

Other non-current liabilities rose to Rs 63.37 crore from Rs 51.75 crore at FY26-end, an increase of Rs 11.62 crore. Shareholders' equity increased by Rs 7.26 crore to Rs 55.66 crore, comprising Rs 14.22 crore of share capital and Rs 41.44 crore of reserves and surplus. The presentation showed no long-term borrowing in FY26 or H1 FY27, whereas it listed Rs 0.79 crore in FY24.

The balance sheet reported total assets of Rs 223.87 crore at H1 FY27, up from Rs 165.52 crore at FY26-end. Total non-current assets declined slightly to Rs 9.03 crore from Rs 9.33 crore, while total current assets rose by Rs 58.66 crore. Umiya Mobile presented a FY26 current ratio of 2.39 times, but did not provide an H1 FY27 current ratio in its ratio table.

Conclusion

Umiya Mobile's H1 FY27 figures show a difference between accounting earnings and operating cash generation: revenue increased by Rs 164.30 crore year on year and profit after tax by Rs 3.48 crore, but operating activities used Rs 21.20 crore. The balance sheet simultaneously recorded Rs 47.49 crore more inventory than at FY26-end and Rs 9.33 crore more short-term loans and advances, while receivables decreased by Rs 1.48 crore.

The unresolved matter in the presentation is the absence of an operating-cash-flow reconciliation that identifies the components of the H1 FY27 outflow. Future disclosures can be assessed against the H1 FY27 balances of Rs 154.34 crore of inventory, Rs 48.09 crore of short-term loans and advances, Rs 59.76 crore of trade payables and Rs 20.55 crore of short-term borrowings.