What’s new

• Revenue grew 24% to ₹154.6 cr, net profit up 14% to ₹4.18 cr.
• Operating cash flow turned negative for the year.
• Trade receivables increased sharply, signaling working capital strain.

Why it matters

Top-line growth is encouraging for a nano-cap, but the cash flow reversal and mounting receivables suggest growth is consuming capital faster than it generates returns. The conversion of share warrants into equity provides some cushion, but the underlying cash flow trend is the more important metric.

What we’re watching

• Whether Bhatia Colour Chem can improve cash conversion in FY27.
• Impact of receivables build-up on liquidity.
• Any update on working capital management.

The full read

Bhatia Colour Chem closed FY26 with revenue of ₹154.6 crore, up 24%, and net profit of ₹4.18 crore, up 14%. But beneath the top-line growth, the financials show emerging pressure: operating cash flow turned negative for the full year, and trade receivables jumped significantly. The second half of the year saw a sharp drop in profitability, compounding the cash flow weakness. The company also converted share warrants into equity, strengthening its balance sheet. For a nano-cap, the growth story is intact, but the cash flow deterioration is a red flag that warrants close tracking.

Primary source: BSE · NSE