SSMD Agrotech’s reported profit is not backed by cash: the company earned ₹11cr of cumulative profit over three years but consumed ₹8cr of cash from operations, and the FY26 gap is stark. Receivables have ballooned alongside a 52x revenue scale-up, while the auditor’s clean opinion sits beside an unverifiable audit trail, missing physical-verification reports, and admitted delays in loan repayments and statutory dues. The promoter family has consolidated board control with zero shareholder dissent, and the company still leans on director personal property as collateral.
Key findings
- Reported profit is not backed by cash
Major- Cumulative operating cash flow was ₹-8cr against cumulative profit of ₹11cr over FY24-FY26, a CFO-to-profit ratio of -0.72x. FY26 alone shows operating cash flow of ₹-10.20cr against profit of ₹5.53cr, a ratio of -1.84x. The Sloan accruals ratio, which measures how much of profit is not cash, was 46.6% in FY26. - Revenue scaled 52x but cash conversion collapsed
Major- Revenue grew from ₹2.20cr in FY24 to ₹99.18cr in FY25 to ₹115cr in FY26. Receivables stood at ₹18.09cr in FY26, with receivables days rising from 11.29 in FY25 to 57.25 in FY26. The receivables-to-revenue ratio rose 407% in FY26, flagged as an extreme earnings-quality driver. - Clean audit opinion, but the auditor could not verify key records
Major- The statutory auditor issued an unqualified opinion on the FY2025-26 standalone financial statements and stated “there are no key audit matters to communicate in our report”. The auditor reported the accounting software “did not have a feature of recording audit trail (edit log) facility throughout the period,” so the auditor was “unable to comment on audit trail feature of the said software”. The auditor also stated “we have not been provided any physical verification report” for property, plant and equipment, and reported delays in loan repayments and in depositing undisputed statutory dues. - Debt fell sharply, but director property still backs working capital
Minor- The debt-equity ratio reduced from 0.88x to 0.04x during FY2025-26, which the MD&A attributes to reduced reliance on external borrowings. The company has been sanctioned working capital limits in excess of ₹5 crore from banks and financial institutions on the basis of security of personal property of a director. The company delayed repayment of loans or borrowings or payment of interest during FY2025-26, with delays of ₹9.37 lakhs on secured borrowings and ₹73.30 lakhs on unsecured borrowings as on 31.03.2026. - Promoter family consolidates board control with zero dissent
Minor- Promoter shareholding stood at 68.24% with 0.00% pledge as of FY2025-26. Ms. Vandana Munjal was appointed as Additional Director (Non-Executive) on April 6, 2026, recommended by the Nomination and Remuneration Committee. All three resolutions at the July 2026 shareholder meeting received 5,849,689 valid votes, all in favour, with 0 votes against.
What to watch
- FY2026-27 annual report. Whether operating cash flow turns positive and whether the FY26 negative operating cash flow of ₹-10.20cr reverses (D1 FY2025-26 Annual Report).
Bottom line: This is a company whose reported profit has not yet shown it can convert into cash, and whose receivables are growing far faster than sales. The auditor’s clean opinion is qualified by what the auditor could not verify, and the promoter family’s control is complete and unchallenged. Watch the next annual report for whether the cash cycle reverses, and read the receivables line with the FY26 collapse in mind.