Nanta Tech’s record shows a company in sprint: revenue multiplied fivefold in two years and the IPO brought in fresh capital. Two things deserve attention: operating cash flow has stayed deeply negative even as reported profit turned positive, and billing tied to project completion means revenue and receivables are recognised only at the end of long installation cycles.
Key findings
- Revenue surged 5x but operating cash flow stayed deeply negative
Major- Revenue rose from ₹13.35 crore in FY24 to ₹51.24 crore in FY25 and ₹70.10 crore in FY26. Over the same three years, cumulative operating cash flow was negative ₹11.67 crore against cumulative profit after tax of ₹14.72 crore, a cash conversion of -0.79x. Management explained that invoices in the project-based AV business are raised only after installation, testing, and commissioning, which delays both revenue recognition and receivable billing. Receivable days stood at 308 in FY24 and 148 in FY25. - IPO proceeds fund a nearly complete centre, but the balance sheet shows no work-in-progress
Major- The company raised ₹31.81 crore through an IPO on 31 December 2025. Management stated in the Q4 FY26 transcript that the Experience Center funded by those proceeds is approximately 95% complete and expected to open soon. Yet the FY26 standalone financial statements show zero capital work-in-progress and zero intangible assets under development. The auditor’s CARO report confirms IPO funds were used for stated objects, with an unutilised portion kept in a designated current account. - Two new subsidiaries are being added, with the UAE entity expected to generate ₹30 crore in FY27
Minor- Nanta Tech plans to route FY27 R&D spend of ₹2-5 crore through a new 51%-owned subsidiary, TRN (The Robotics Nexus). A wholly owned UAE subsidiary, Nanta Technologies FZ LLC, has incurred setup costs of approximately ₹20-25 lakh, and management expects it to generate around ₹30 crore of business in FY27.
What to watch
- Related-party resolution vote. Shareholders vote on 14 August 2026 on a special resolution approving related-party transactions for FY2026 and future years.
- Experience Center opening. Management stated in the Q4 FY26 transcript (March 2026) that the centre was \~95% complete and expected to open soon.
- UAE revenue delivery. The FY27 Annual Report will show actual revenue from Nanta Technologies FZ LLC against the ₹30 crore expectation stated in the Q4 FY26 transcript.
- Robotics subsidiary formation. The FY27 Annual Report will disclose the formation, capitalisation, and consolidation of TRN, including actual R&D spend routed through the subsidiary.
Bottom line: This is a fast-growing business whose reported profits have not yet turned into operating cash. The record is disclosed and the IPO funds are accounted for, but the gap between profit and cash collection is wide, and the absence of capital work-in-progress for a nearly complete centre raises a question about how costs are being held. Watch the Experience Center opening and the first revenue numbers from the UAE subsidiary for evidence that the growth is converting into cash.