Abril Paper Tech's full-year profit grows 6% but cash flow turns negative
A modest full-year performance masks a sharp second-half slowdown and a swing to negative operating cash flow for the nano-cap paper maker.
— 1 earlier story on Abril Paper Tech Ltd. →What's new
- Full-year revenue grew 6.8% to ₹6,508.36 lakhs; net profit rose 6.3% to ₹150.22 lakhs.
- Second-half revenue fell to ₹2,705.47 lakhs from H1's ₹3,802.89 lakhs; profit dropped to ₹42.95 lakhs.
- Operating cash flow swung to -₹759.50 lakhs, a significant deterioration from the prior year.
Why this matters
The annual headline is steady growth, but the underlying picture is weaker. The second-half slump and negative cash flow suggest the business is tying up capital in receivables and advances, which could strain its nano-cap balance sheet. IPO fund utilisation was compliant, removing one potential overhang.
What we're watching
- Whether the H2 slowdown is a one-off or the start of a trend.
- How management plans to reverse the negative cash flow trend.
- Liquidity management given the increase in short-term loans.
The full read
Abril Paper Tech's full-year results show 6.8% revenue growth to ₹6,508.36 lakhs and a 6.3% profit rise to ₹150.22 lakhs. That headline hides a deeper story. The second half saw revenue slide to ₹2,705.47 lakhs from ₹3,802.89 lakhs in H1, with profit falling to just ₹42.95 lakhs. More concerning is the cash flow. Operating cash flow swung to -₹759.50 lakhs, a deterioration tied to a jump in short-term loans, advances, and receivables. For a nano-cap, that's a drain on liquidity. The one positive: the filing confirmed no deviation in IPO fund utilisation. The annual numbers are fine. The second-half and cash flow trends are not.
Questions answered
- How did Abril Paper Tech's full-year performance compare to the prior year?
- Full-year revenue grew 6.8% to ₹6,508.36 lakhs and net profit increased 6.3% to ₹150.22 lakhs. The growth was modest and entirely front-loaded, as the second half was significantly weaker.
- What happened in the second half of the fiscal year?
- Second-half revenue fell to ₹2,705.47 lakhs from ₹3,802.89 lakhs in H1, and profit dropped to ₹42.95 lakhs from ₹107.27 lakhs. This indicates a material slowdown in business activity after the first six months.
- Why did operating cash flow turn negative?
- The swing to -₹759.50 lakhs was driven by a large increase in short-term loans and advances and higher receivables. This means cash is being tied up in the working capital cycle rather than flowing back to the business.
- Were there any issues with the company's IPO fund usage?
- No. The audited results confirmed there was no deviation in the utilisation of IPO proceeds, which was one area of potential scrutiny for the company.
Story so far
All notes on APTL →- 25 May 2026 · 7:15 PM IST Abril Paper Tech's full-year profit grows 6% but cash flow turns negative
- 42d ago Abril Paper Tech's first year as a public company ends with a cash-flow crunch.