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Anarock Profit Rose 53, but Cash Flow Turned Negative: What Should IPO Investors Trust More?
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Anarock's Profit Rose 53%, but Cash Flow Turned Negative. Which Number Matters More?
Anarock is preparing for a ₹1,000 crore IPO with strong FY26 earnings.
Revenue rose 33.8% to ₹881.90 crore.
Profit increased 53.4% to ₹93.22 crore.
But operating cash flow moved from approximately ₹93 crore positive to ₹12.07 crore negative.
The main reason to watch is receivables.
Money owed by customers increased from roughly ₹316 crore to ₹464.21 crore.
That does not automatically mean customers are failing to pay. Anarock says growth and billing timing contributed to the increase.
The real test is what happens next.
If those receivables convert into cash, FY26 may prove to be a temporary working-capital swing.
If receivables continue growing faster than revenue, cash conversion becomes a bigger IPO question.
There is another important detail.
Of the ₹1,000 crore proposed IPO, only ₹550 crore is fresh issuance. The other ₹450 crore is an OFS for existing shareholders.
Anarock also reportedly had no outstanding borrowings at FY26-end, so this is primarily a growth-capital IPO rather than a debt-repayment story.
See Link -> IPO-bound Anarock’s FY26 operating cash flow turns negative despite 53% rise in profit
Ahead of an IPO, which would you give more weight to: 53% profit growth or negative operating cash flow?