CFO — Finance, Cash & Capital

Quality of earnings, 13-week cash, covenant runway, working-capital unlock and the value levers behind the PE thesis.

Invesco Asset Management (India) · FY26 (modeled)

Top 10 mutual fund managers in India

410 employees · 0+ US sites · 1 countries

▲ Executive read· the answer, then the moves

Liquidity of $8.7M (≈ 6 weeks of cover) and $115M of deal capacity make capital the lever, not the constraint. Free the trapped cash first: normalizing DSO to 48d releases ≈ $-5.8M and clears $1.5M of overdue receivables.

8 of 8 headline metrics improving vs prior · still off target: Revenue $60M vs $65M, EBITDA $22M vs $25M, EBITDA Margin 36.7% vs 38.0%

Do now — ranked by urgency

1
Institutional Client: ICICI Bank credit exposureAct now
Why it matters
Move to credit hold pending paydown; reforecast ARR net of likely churn.
What's driving it
Overdue AR
Signal: Alert
FYI
Distress filings + overdue AR; churn risk High on $6.4M account.
Act →▤ open the overdue book
2
Covenant headroom 0.9× (lev 4.6× vs 5.5×)Act now
Why it matters
Sets deal capacity and refinancing risk.
What's driving it
Q1 (act)
Signal: Threshold
FYI
Net-debt/EBITDA 4.6× against a 5.5× ceiling.
Owner: CFO · Treasury
Act →
3
Pull working capital — drive DSO 13→48dWatch
Why it matters
Closing the DSO gap releases ≈ $-5.8M of one-time cash; $1.5M is already >60 days overdue and at collection risk.
What's driving it
DSO 13d vs 48d target
Overdue (>60d) $1.5M of $9M AR
FYI
Brand-level unlock to a 50d stretch ≈ $0.7M
Owner: Treasury
Collect →▤ open the overdue receivables
4
3 brands running DSO > 65 daysWatch
Why it matters
Targeted collections sprint on $0.9M; tighten milestone billing on ISC projects.
What's driving it
DSO
Signal: Alert
FYI
ISC (67d), Fund Admin System (66d), Institutional Client: ICICI Bank account (67d) lifting blended DSO.
Act →▤ open the overdue book

Adjusted EBITDA

$22M

+26% YoY · 36.7% margin

Liquidity

$8.7M

≈ 6 weeks of disbursements

M&A deal capacity

$115M

≈ $12M EBITDA @ ~10x to 5.5x

Working-capital unlock

$-5.8M

DSO 13→48d target

Quality of earnings

Reported → Adjusted EBITDA

$14.969999999999999M of add-backs (68% of adj.) — the diligence-grade walk.

Driver bridge

EBITDA — prior to current year

Organic vs. acquisitive vs. price/mix vs. cost.

Treasury

13-week direct cash flow forecast

Breach risk

Net weekly cash (bars) and ending cash (line) vs. $20M minimum. Forecast trough: $2.19M.

$2.6M

Opening cash

$19M

13-wk collections

$18M

13-wk disbursements

$2.84M

Closing cash

Capital structure

Leverage runway vs. covenant

Net Debt/EBITDA deleveraging path against the 5.5x covenant ceiling.

Headroom = firepower

Deal capacity

Net-debt capacity to 5.5x

$115M

≈ $12M acquirable EBITDA @ ~10x

Net Debt/EBITDA0.3x

Covenant Headroom1.9x

Debt Service Coverage Ratio4.8x

Free Cash Flow$17M

Where the cash is trapped

Working-capital cash unlock

$0.7M opportunity

Normalizing laggard brands to a 50-day DSO releases ~$0.7M of one-time cash.

CRM / KYC Portal67d

$0.1M

NRI Wealth Portfolio61d

$0.1M

ELSS Fund A56d

$0.1M

Fund Admin System66d

$0.1M

Portfolio Management60d

$0.1M

Hybrid Fund B58d

$0.1M

Tax-Saving Fixed Deposit54d

$0.0M

Concentrated in newer cohorts (ISC, Signet, RFI) where billing discipline lags integration — the fastest cash win this fiscal year.

Revenue quality

Recurring engine & margin

Annuity growth and where EBITDA is generated.

Recurring Fee Income

$45M

▲ 9.8% vs priorTarget $48M

Recurring Mix

74.5%

▲ 4.6% vs priorTarget 78.0%

Net Revenue Retention

91.8%

▲ 2.9% vs priorTarget 94.0%

Gross Revenue Retention

96.2%

▲ 0.7% vs priorTarget 97.0%

Annuity engine

ARR bridge

Trend

ARR growth

By business unit

EBITDA margin

Collections

AR aging

Total AR $9M

Current days$4.17M

1-30 days$2.22M

31-60 days$1.03M

61-90 days$0.75M

90+ days$0.71M

Overdue (>60d) = $1.5M at collection risk.

By account

Receivables & credit watch

Accounts ranked by DSO and credit/churn risk.

Account	Revenue	DSO	NRR	Credit/Churn
Institutional Client: ICICI Bank	$0.49M	67d	97%	High
NRI Wealth Client: A. Patel	$0.99M	63d	104%	Medium
Hybrid Fund Investor: K. Rao	$0.31M	59d	100%	Medium
R. Mehta	$1.09M	58d	112%	Low
Tax-saving Investor: M. Desai	$0.55M	55d	105%	Medium
IBM	$0.74M	52d	101%	Medium
UPS	$0.86M	49d	106%	Low
S. Gupta	$1.42M	47d	108%	Low
Corporate Treasury: Tata Group	$1.23M	44d	119%	Low
Retirement Planner: L. Singh	$0.44M	41d	110%	Low

M&A

Acquisition cohort economics

EBITDA uplift, DSO normalization and synergy realization (as-acquired → current).

Brand (cohort)	Acq.	Revenue	EBITDA %	DSO	Integration	Synergy	Status
Hybrid Fund B	2021	$2.6M	0.69→1.07%	71→58d	100%	92%	Integrated
Tax-Saving Fixed Deposit	2021	$1.68M	0.61→0.99%	66→54d	100%	90%	Integrated
ELSS Fund A	2022	$7.34M	0.84→1.22%	68→56d	95%	88%	Integrated
NRI Wealth Portfolio	2023	$4.43M	0.76→0.99%	70→61d	82%	74%	In progress
CRM / KYC Portal	2024	$3.13M	0.69→0.84%	73→67d	60%	55%	In progress
Portfolio Management	2024	$2.83M	0.69→0.92%	71→60d	80%	78%	In progress
Fund Admin System	2024	$2.22M	0.61→0.69%	69→66d	45%	40%	Early

Supply

Supplier terms & risk

Partner spend, DPO (working-capital lever), delivery and risk.

Supplier	Category	Spend	DPO	OTIF	Score	Risk
Custodian Bank	Video Surveillance	$4.89M	45d	96%	91	Low
KYC Verification Vendor	Fire & Access	$4.43M	42d	93%	88	Low
Fund Admin System	Critical Comms	$3.13M	38d	90%	85	Medium
Income Tax Portal	Video Surveillance	$2.06M	36d	89%	83	Medium
CRM / KYC Portal	Video VMS	$1.76M	40d	95%	87	Low
Invest Partners	AV / Collaboration	$1.45M	44d	92%	86	Low