Transline Technologies Annual Reports, Balance Sheet and Financials

 Transline Technologies Limited Standalone Balance Sheet (Rs in Crores)

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

Transline Technologies Limited Standalone Cash Flow Statement (Rs in Crores) 

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

Cash Flow from Operating Activities

The company’s operating cash flow improved significantly in FY 2025-26, although it remained negative. Net cash used in operating activities reduced from ₹79.92 crore in FY 2024-25 to ₹7.21 crore in FY 2025-26, indicating a substantial improvement in the company’s ability to generate cash from its core operations. Profit before tax increased from ₹68.57 crore to ₹93.94 crore, while operating profit before working capital changes rose from ₹79.61 crore to ₹111.19 crore. However, working capital requirements continued to consume substantial cash, particularly due to increases in inventories (₹36.83 crore), trade receivables (₹29.69 crore), financial assets (₹74.80 crore), and other assets (₹8.17 crore). This was partly offset by higher trade payables of ₹43.10 crore and other financial liabilities/provisions of ₹6.32 crore. After payment of income tax of ₹18.34 crore, operating cash flow remained negative at ₹7.21 crore. Overall, the trend is positive because the operating cash deficit has reduced sharply, but the company still needs to improve working capital management and cash collection.

Cash Flow from Investing Activities

The company continued to report an investing cash outflow of ₹5.83 crore in FY 2025-26, compared with ₹6.02 crore in FY 2024-25. The major investment was in Property, Plant and Equipment (₹3.40 crore), indicating continued expenditure on physical assets and business capacity. The company also incurred ₹3.02 crore on intangible assets, including assets under development, which suggests investment in technology, software, intellectual property, or other intangible resources. This outflow was partly offset by ₹0.58 crore of proceeds from sale/purchase of investments. Compared with the previous year, the investing outflow remained broadly stable, declining only marginally by ₹0.19 crore. The investing cash flow therefore reflects continued capital expenditure and investment in long-term assets, but the relatively moderate level of outflow suggests that the company has not undertaken exceptionally high capital expansion during the year.

Cash Flow from Financing Activities

Financing activities generated ₹13.05 crore of net cash in FY 2025-26, compared with a much higher ₹83.78 crore in FY 2024-25. The main source of financing cash during FY 2025-26 was net proceeds from borrowings of ₹24.63 crore. Unlike the previous year, the company did not raise equity capital; in FY 2024-25, it had received ₹46.56 crore from the issue of equity shares, which had significantly strengthened financing cash flows. The company also paid ₹0.63 crore towards lease liabilities and ₹10.95 crore towards finance costs. Thus, although financing activities continued to provide positive cash support, the substantial reduction from ₹83.78 crore to ₹13.05 crore indicates greater dependence on borrowings and the absence of fresh equity funding. The finance cost is also significant and should be monitored because continued borrowing could increase the company’s financial burden.

Net Cash Flow and Financial Position

Overall, the company’s cash flow position showed considerable improvement in FY 2025-26. Operating activities used ₹7.21 crore, investing activities used ₹5.83 crore, while financing activities generated ₹13.05 crore. Consequently, the net movement in cash was approximately nil, with cash and cash equivalents remaining at ₹0.13 crore at the end of both years. This indicates that the positive financing cash flow was almost entirely absorbed by operating and investing requirements. The key positive factor is the sharp reduction in operating cash outflow from ₹79.92 crore to ₹7.21 crore, demonstrating improved cash generation from operations. However, the company still has a very low cash balance, and a large portion of its operating cash is tied up in receivables, inventories, and financial assets. Therefore, while the cash flow position has improved substantially, the company should focus on working capital efficiency, faster receivable collections, inventory control, and prudent debt management to strengthen its future liquidity.

Transline Technologies Financial ratios of Limited 

Summary of Financial Ratios for the year 2026 and 2025:

Current Ratio: The Current Ratio remained broadly stable at 1.81 in 2025–26, compared with 1.80 in 2024–25, indicating that the Company maintained a satisfactory level of short-term liquidity and was adequately positioned to meet its current obligations.

Debt to Equity Ratio: The Debt to Equity Ratio improved from 0.48 to 0.44, reflecting a reduction in the Company’s relative dependence on debt financing. This indicates a strengthening of the capital structure and lower financial leverage during the year.

Debt Service Coverage Ratio: The Debt Service Coverage Ratio increased from 0.88 to 0.95. Although it remains below 1.00, the improvement indicates a better capacity to service debt obligations compared with the previous year.

Return on Equity Ratio: Return on Equity declined from 36.86% to 32.87%. Despite the decrease, the ratio continues to reflect a strong return generated on shareholders’ funds, although the efficiency of equity utilisation moderated during the year.

Inventory Turnover Ratio: Inventory Turnover Ratio declined significantly from 13.51 to 7.13, indicating that inventory was converted into sales at a slower rate during the year. This may suggest relatively higher inventory holding or slower movement of inventory compared with the previous year.

Trade Receivables Turnover Ratio: Trade Receivables Turnover Ratio improved marginally from 2.26 to 2.40, indicating a slight improvement in the efficiency of collection from customers and management of trade receivables.

Trade Payables Turnover Ratio: Trade Payables Turnover Ratio decreased from 3.27 to 3.00, suggesting that the Company took relatively longer to settle its trade payables compared with the previous year.

Net Capital Turnover Ratio: Net Capital Turnover Ratio improved from 0.33 to 0.41, indicating better utilisation of net working capital in generating revenue during the year.

Net Profit Ratio: Net Profit Ratio increased from 13.00% to 14.35%, reflecting an improvement in overall profitability. The increase indicates that the Company generated a higher proportion of net profit from its revenue during the year.

Return on Capital Employed: Return on Capital Employed declined from 53.37% to 46.99%. While the return remains strong, the decrease indicates that the efficiency in generating operating returns from the capital employed moderated compared with the previous year.