Abril Paper Tech’s record shows a company transformed by its IPO: revenue multiplied nearly tenfold in two years, yet the reported profit has not produced a single rupee of operating cash. The ₹13.42 crore raised from public shareholders in September 2025 has funded working capital, and a GST demand equal to nearly twice the latest full-year profit sits unresolved without a provision.
Key findings
- Operating cash flow is deeply negative across all three reported years
Major- Cumulative operating cash flow from FY24 through FY26 was a negative ₹14 crore against a cumulative profit of ₹3 crore, a ratio of -4.56 times. In FY26 alone, the company reported a profit of ₹1.50 crore while cash from operations was a negative ₹7.60 crore. The ₹13.42 crore raised through a fresh issue of 22,00,000 equity shares in the September 2025 IPO has funded the business, while capital work-in-progress stood at just ₹0.41 crore as of FY26, representing 102% of net PP&E, and the company’s notes show this entire amount is projects in progress under one year. - Revenue surged to ₹65 crore, but receivables grew faster and the auditor flagged the risk
Major- Revenue rose from ₹6.83 crore in FY24 to ₹60.91 crore in FY25 and ₹65.08 crore in FY26, yet cumulative operating cash flow over the same three years was a negative ₹14 crore. Receivables increased 22% from ₹6.09 crore to ₹7.43 crore in FY26, outpacing the 7% revenue growth in that period, and customer advances included in other current liabilities rose from ₹0.33 lakh to ₹2.11 lakh. The auditor identified revenue recognition as a Key Audit Matter, an area requiring the most judgement, citing the significant increase in revenue and the risk of fraudulent financial reporting. - A ₹2.91 crore GST demand with equal penalty is under dispute, and no provision has been made
Minor- As of 31 March 2026, the company reported a contingent liability of ₹3.01 crore. On 3 February 2026, the Directorate General of GST Intelligence issued a Show Cause Notice alleging short payment of GST for FY24 and FY25, with alleged tax of ₹2.91 crore, an equal penalty of ₹2.91 crore, plus interest. Management stated the demand is not maintainable and envisages no financial impact, and no provision has been recorded.
What to watch
- GST hearing. A personal hearing on the Show Cause Notice dated 3 February 2026 was scheduled for 7 April 2026.
- Director re-appointment. The re-appointment of Mr. Ashvinbhai Laxmanbhai Lathiya as Whole-time Director is subject to shareholder approval at the ensuing AGM, the date of which was not specified in the FY26 annual report.
Bottom line: This is a record where reported growth has run far ahead of cash generation, and the IPO proceeds have filled the gap. The auditor has pointed directly at revenue recognition as the area of greatest judgement, and the GST demand, if upheld, would wipe out nearly two years of profit at the FY26 run rate. Watch the outcome of the April 2026 hearing and whether the receivables book converts before the next funding need arises.