Sistema Smart Annual Reports, Balance Sheet and Financials

 Sistema Smart Technologies Limited Standalone Balance Sheet (Rs in Crores)

Sistema Smart Technologies Limited Standalone Profit & Loss Statement (Rs in Crores)

Sistema Smart Technologies Limited Standalone Cash Flow Statement (Rs in Crores)

Summary of the Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities

The company reported a net cash outflow from operating activities of ₹18.10 crore in FY 2025–26, compared with ₹7.77 crore in FY 2024–25. This shows a significant deterioration in operating cash generation. The company’s loss increased from ₹2,167.63 crore to ₹2,512.77 crore, while finance costs also increased substantially from ₹2,160.16 crore to ₹2,502.16 crore. After adjusting for non-cash items and working-capital movements, operating cash flow before tax remained negative at ₹18.05 crore. Thus, the company’s core operations are not generating sufficient cash, which is a major concern for its financial sustainability.

Cash Flow from Investing Activities

Investing activities generated a net cash inflow of ₹18.14 crore in FY 2025–26, compared with ₹8.58 crore in FY 2024–25. The major sources of this inflow were ₹14.22 crore of interest received and ₹4.63 crore released from margin money deposits. The company also invested ₹5.50 crore in mutual funds but received ₹5.54 crore from their disposal. Capital expenditure was very low at only ₹0.09 crore. Therefore, the positive investing cash flow primarily reflects interest income and release of funds rather than strong investment or expansion activity.

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹0.63 crore in FY 2025–26, slightly higher than the ₹0.60 crore outflow in FY 2024–25. The major financing cash outflow was repayment of lease liabilities of ₹0.51 crore, along with ₹0.13 crore paid towards interest and other finance charges. There were no significant proceeds from borrowings or equity financing. Hence, financing activities had a relatively small negative impact on the overall cash position.

Net Cash Position

The company experienced a net decrease in cash and cash equivalents of ₹0.59 crore during FY 2025–26, compared with a net increase of ₹0.21 crore in the previous year. Consequently, cash and cash equivalents declined from ₹0.93 crore to ₹0.34 crore at the end of the year. The positive investing cash flow was almost entirely offset by the negative operating and financing cash flows. Overall, the statement indicates weak operating cash generation, increasing losses and finance costs, and a very limited closing cash balance, suggesting that the company may face liquidity pressure if the negative operating cash-flow trend continues.

Financial ratios of Sistema Smart Technologies Limited

Summary of Financial Ratios for the year 2026 and 2025:

Current Ratio

The Current Ratio declined from 1.70 in FY 2024–25 to 0.82 in FY 2025–26, indicating a significant deterioration in the company’s short-term liquidity position. A ratio below 1 suggests that the company’s current liabilities exceed its current assets, which may create difficulty in meeting short-term obligations. Therefore, the company’s liquidity position has weakened considerably during the year.

Debt Equity Ratio

The Debt Equity Ratio improved marginally from -1.01 to -1.00. However, the negative ratio indicates a negative equity/net worth position, making the ratio different from a conventional positive debt-equity ratio. The marginal movement does not represent a significant improvement in the company’s solvency. Overall, the ratio reflects considerable financial weakness and an adverse capital structure.

Return on Equity Ratio

The Return on Equity Ratio remained unchanged at -0.15 in both FY 2025–26 and FY 2024–25. The negative ratio indicates that the company continued to generate negative returns for its shareholders because of its losses. The absence of improvement suggests that the company has not yet been able to improve its profitability or generate positive returns on shareholders’ funds.

Trade Receivables Turnover Ratio

The Trade Receivables Turnover Ratio increased from 1.37 to 2.27, indicating an improvement in the efficiency of receivables management. A higher turnover ratio generally indicates that receivables are being collected more quickly and that less capital is being tied up in outstanding customer balances. Thus, the company showed better collection efficiency during FY 2025–26.

Trade Payables Turnover Ratio

The Trade Payables Turnover Ratio increased from 9.88 to 11.84, indicating that the company settled its trade payables at a faster rate during FY 2025–26. This reflects improved efficiency in managing supplier obligations, although a higher turnover also means that the company is paying suppliers relatively quickly. Overall, the ratio indicates improved payables management.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio improved from 0.10 to 0.29, indicating better utilization of net capital for generating revenue compared with the previous year. However, the ratio remains relatively low, suggesting that the company is still not generating a strong level of revenue in relation to its net capital employed. Hence, although there is improvement, capital utilization remains weak.

Net Profit Ratio

The Net Profit Ratio deteriorated from -253.35% to -287.67%. The negative ratio indicates that the company incurred substantial losses in relation to its revenue. The further decline in FY 2025–26 shows that the company’s profitability has worsened significantly, reflecting continued pressure on its financial performance.

Return on Capital Employed

The Return on Capital Employed declined from -0.06 to -0.11, indicating that the company generated increasingly negative returns from the capital employed in the business. This deterioration reflects the impact of continuing losses and suggests that the company is not efficiently generating returns from the capital invested in its operations. Overall, the ratio points to a weakening profitability and capital-utilization position.