Ventura Guaranty Limited reports Rs 161 crore operating outflow

Ventura Guaranty Limited recorded a Rs 161.08 crore net cash outflow from operating activities in the half year ended September 30, 2026, despite consolidated profit after tax of Rs 20.36 crore. A Rs 160.85 crore cash use from trade and other payables, alongside higher receivables and loans, outweighed operating profit.

Why did Ventura Guaranty report an operating cash outflow despite profit?

Ventura Guaranty reported that working-capital movements turned Rs 17.05 crore of operating profit before working-capital changes into a Rs 154.80 crore cash outflow from operations before tax in the half year ended September 30, 2026. Net tax paid of Rs 6.28 crore then took net cash used in operating activities to Rs 161.08 crore.

Reported earnings increased over the comparative period. Consolidated profit after tax rose to Rs 20.36 crore from Rs 12.00 crore in the restated half year ended September 30, 2025, while profit before tax increased to Rs 27.90 crore from Rs 16.42 crore. The difference between profit and operating cash flow arose from the disclosed movements in balance-sheet items rather than from a fall in reported profit.

The operating cash outflow increased by Rs 9.94 crore from Rs 151.14 crore a year earlier, while profit after tax increased by Rs 8.35 crore. Ventura Guaranty said the September 2025 comparative figures were restated after the amalgamation of Ventura Allied Services Private Limited with Ventura Securities Limited, which became effective on August 12, 2026 and was accounted for from April 1, 2024.

Which working-capital movements used Ventura Guaranty's cash?

Ventura Guaranty's largest disclosed operating cash use was a Rs 160.85 crore reduction in trade and other payables during the September 2026 half year. Trade receivables used Rs 21.64 crore, loans used Rs 26.25 crore, and other bank balances used Rs 19.61 crore.

These cash uses were partly offset by Rs 37.67 crore generated from other receivables and Rs 19.94 crore from other financial assets. The cash-flow statement also recorded Rs 2.24 crore used for investments in the trading portfolio classified as fair value through profit or loss, or FVTPL, and Rs 3.45 crore used through lower other non-financial liabilities.

The September 30 balance sheet records trade payables of Rs 441.93 crore, down from Rs 562.95 crore at March 31, 2026, and other payables of Rs 13.82 crore, down from Rs 23.99 crore. Over the same period, trade receivables rose to Rs 87.35 crore from Rs 65.71 crore and loans rose to Rs 212.52 crore from Rs 190.50 crore.

How did the cash outflow affect Ventura Guaranty's liquidity?

Ventura Guaranty's cash and cash equivalents fell to Rs 46.74 crore at September 30, 2026 from Rs 161.54 crore at March 31, 2026. The cash-flow statement reported a Rs 114.80 crore net decrease in cash and cash equivalents for the half year, compared with a Rs 175.39 crore increase in the restated prior-year half year.

Investing activities generated Rs 18.80 crore, led by Rs 20.03 crore of interest received. Financing activities generated Rs 27.48 crore, including Rs 43.16 crore of proceeds from short-term borrowings, partly offset by Rs 9.85 crore shown against long-term borrowings, Rs 4.23 crore of interest paid and Rs 1.60 crore of lease payments.

Ventura Guaranty separately reported Rs 602.24 crore of bank balances other than cash equivalents at September 30, 2026, up from Rs 582.64 crore at March 31, 2026. Its cash-flow statement lists opening cash and bank balances of Rs 167.54 crore, while the March 31 balance sheet lists Rs 161.54 crore of cash and cash equivalents; the filing does not explain this difference.

Which businesses produced Ventura Guaranty's first-half revenue and results?

Ventura Guaranty's broking activity was the larger reported segment, generating Rs 123.75 crore of revenue from operations in the half year ended September 30, 2026, compared with Rs 118.01 crore in the restated prior-year period. Its segment result increased to Rs 17.80 crore from Rs 10.00 crore.

The non-banking financial company, or NBFC, activity reported Rs 5.34 crore of revenue, compared with Rs 3.54 crore a year earlier, while its segment result rose to Rs 2.57 crore from Rs 2.00 crore. Intercompany eliminations were Rs 1.04 crore, leaving consolidated revenue from operations of Rs 128.05 crore, up from Rs 121.13 crore.

The filing does not allocate the Rs 161.08 crore operating cash outflow between broking and NBFC activity. It reported Rs 1,040.30 crore of broking segment assets and Rs 54.99 crore of NBFC segment assets at September 30, 2026, before unallocated items and intercompany eliminations.

Conclusion

Ventura Guaranty's results show higher first-half earnings alongside a larger cash requirement from operations. The Rs 20.36 crore profit after tax and Rs 128.05 crore of revenue did not prevent a Rs 161.08 crore operating cash outflow because payables fell while receivables and loans increased.

What to watch next is whether the disclosed movements in payables, receivables and loans reverse in later filings, and whether cash equivalents recover from Rs 46.74 crore. The unexplained difference between the Rs 167.54 crore opening cash and bank balance in the cash-flow statement and the Rs 161.54 crore March 31 cash-equivalents balance is also unresolved in the filing.