Liquidity remains a critical concern as the firm exhibits erratic cash conversion, evidenced by an OCF/NI ratio of -0.62 in 2026Q4 and a history of negative free cash flow margins reaching -22.9% in 2026Q2.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 |
|---|
| Cash from Operations | 6K | -599K | 1.3M | 3.14M | 257.84K | 635.85K | 676.78K | 531.31K | 1.26M | 1.73M | 1.05M | -776.47K | 202.61K | 1.78M | -2.65M | 1.29M | -1.43M | 9.35M | 2.49M | 1.74M | -650.77K |
| Operating CF Margin % | 0.02% | -1.76% | 4.13% | 9.98% | 1.16% | 4.08% | 4.23% | 3.18% | 6.71% | 9.32% | 6.22% | -4.26% | 0.96% | 5.48% | -7.96% | 3.98% | -5.03% | 24.54% | 7.83% | 9.11% | -3.21% |
| Operating CF Growth % | 101% | -145.91% | -58.42% | 1116.98% | -59.45% | -6.05% | 27.38% | -57.7% | -27.38% | 65.04% | 234.98% | -483.23% | -88.61% | 167.22% | -305.78% | 190.21% | -115.26% | 275.29% | 43.28% | 367.09% | - |
| Net Income | -1.66M | -2.75M | -7.04M | -979.01K | -349.83K | 320.63K | -341.57K | 1.1M | -265.91K | 5.08M | 1.36M | -3.58M | -7.1M | -2.41M | -2.12M | 2.69M | 2.04M | 5.93M | 3.52M | 290.23K | -428.15K |
| Depreciation & Amortization | 2.79M | 2.8M | 2.43M | 2.22M | 1.46M | 704.05K | 717.58K | 749.75K | 704.28K | 689.29K | 747.55K | 839.51K | 953.43K | 846.01K | 681.43K | 372.76K | 424.89K | 566.84K | 483.36K | 873.32K | 456.38K |
| Stock-Based Compensation | 635K | 522K | 1.4M | 309.39K | 190.75K | 179.92K | 90.92K | 137.35K | 303.18K | 1.16M | 88.04K | 262.55K | 362.96K | 337.02K | 622.25K | 300.78K | 133.01K | 10.12K | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 1.93M | 195.58K | -192.35K | 181.06K | -73.04K | 423.36K | 825.38K | -2.87M | -69.01K | -709.45K | 0 | 695.76K | -524.17K | -158.72K | -303.51M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 100K | 243K | 258.08K | -241.31K | -1.44M | -71.34K | 782.19K | -84.43K | 142.24K | -648.88K | 240.08K | 269.84K | 2.99M | 270.17K | 887.46K | 5.31K | 303.5M | 0 | 19.15K | 37.73K | 42.5K |
| Working Capital Changes | -1.86M | -1.41M | 2.33M | 1.64M | 590.34K | -678.47K | -499.3K | -1.8M | -452.99K | -1.68M | -1.32M | 2.15M | 2.99M | 2.04M | -2.19M | -1.92M | -4.02M | 2.84M | -1.53M | 536.89K | -721.5K |
| Change in Receivables | -1.57M | -850K | 386.3K | 75.19K | 169.84K | -645.55K | 20.14K | 436.54K | 75.79K | 151.81K | -1.2M | 1.45M | 2.06M | 572.79K | 683.39K | -2.88M | -1.21M | 3.09M | 0 | 0 | -667.06M |
| Change in Inventory | -72K | 368K | 0 | -177.91K | -42.49K | -53.54K | 22.7K | -263.62K | -60.95K | -13.2K | 6.22K | 158.51K | 62.22K | 19.98K | 351.24K | -424K | 51.95K | -155.85K | -12.01K | 30.65K | -127.44K |
| Change in Payables | -22K | 1.03M | -815.96K | -1.2M | 245.74K | 315.78K | -424.02K | 263.38K | -19.6K | -630.76K | -668.29K | -1.22M | 357.12K | 1.17M | 237.05K | 648.62K | -505.95K | -654.47M | 0 | 0 | -565.43M |
| Cash from Investing | 868K | -1.08M | -3.17M | -2.32M | -8.73M | -607.93K | -39.83K | -411.34K | -914.53K | -787.81K | -221.66K | -41.6K | -64.89K | -663.18K | -2.68M | -1.5M | -857.35K | -1.09M | -956.26K | -430.53K | -83.93K |
| Capital Expenditures | -3.27M | -4.12M | -3.23M | -2.33M | -939K | -617.51K | -39.83K | -446.65K | -994.53K | -787.81K | -221.66K | -54.1K | -64.89K | -663.18K | -2.68M | -1.56M | -869.35K | -1.33M | -956.26K | -430.53K | -83.93K |
| CapEx % of Revenue | 10.32% | 12.11% | 10.23% | 7.4% | 4.21% | 3.96% | 0.25% | 2.67% | 5.31% | 4.25% | 1.32% | 0.3% | 0.31% | 2.04% | 8.06% | 4.83% | 3.07% | 3.5% | 3.01% | 2.26% | 0.41% |
| Acquisitions | 4.13M | 0 | 0 | 0 | -7.8M | 0 | 0 | 35.31K | 80K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 3.04M | 61.94K | 7K | 0 | 9.58K | 0 | 35.31M | 80K | 0 | -204.06M | 12.5K | 0 | 0 | 0 | 60K | 12K | 240K | 0 | 0 | 0 |
| Cash from Financing | -638K | 1.74M | 1.47M | -1.34M | 7.4M | 1.17M | -1.74M | -772.55K | -717.48K | 792.43K | -830.06K | 1.07M | -2.13M | -866.02K | 587.43K | -1.02M | 594.69K | -643.02K | -125.5K | -356.43K | 951.47K |
| Debt Issued (Net) | -626K | -233K | 1.52M | -1.28M | 4.38M | 1.2M | -1.71M | -766.35K | -717.48K | 990.88K | -933.65K | 1.46M | -2.13M | -866.02K | 546.04K | 365.88K | 774.04K | -625.78K | -612.44K | -628.15K | -705.53K |
| Equity Issued (Net) | 0 | 2.3M | 0 | 0 | 3.52M | 0 | 9.05K | -188.6K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.65K | 170.06K | 658.44K | 0 | 2.6M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.33M | -186K | -187.3K | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -188.6K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -210K |
| Other Financing | -12K | -329K | -50.36K | -57.72K | -505.3K | -24.61K | -41.63K | 182.4K | 0 | -198.45K | 103.59K | -394K | 0 | 0 | 41.4K | -58.94K | 0 | 0 | -171.5K | 271.71K | -939.76K |
| Net Change in Cash | 236K | 57K | -396.07K | -517.66K | -1.08M | 1.2M | -1.11M | -652.46K | -377.05K | 1.73M | -4.16K | 249.62K | -1.99M | 251.89K | -4.72M | -1.23M | -1.69M | 7.61M | 1.41M | 951.2K | 216.77K |
| Free Cash Flow | -3.26M | -4.72M | -1.93M | 812.54K | -681.16K | 18.34K | 636.95K | 84.66K | 261.65K | 941.97K | 826.43K | -830.57K | 137.72K | 1.12M | -5.33M | -274K | -2.3M | 8.01M | 1.53M | 1.31M | -734.7K |
| FCF Margin % | -10.3% | -13.87% | -6.09% | 2.59% | -3.06% | 0.12% | 3.98% | 0.51% | 1.4% | 5.08% | 4.9% | -4.56% | 0.65% | 3.44% | -16.02% | -0.85% | -8.1% | 21.04% | 4.82% | 6.85% | -3.63% |
| FCF Growth % | 30.97% | -145.2% | -336.96% | 219.29% | -3814.7% | -97.12% | 652.39% | -67.64% | -72.22% | 13.98% | 199.5% | -703.1% | -87.66% | 120.94% | -1845% | 88.06% | -128.64% | 422.3% | 17.33% | 277.98% | - |
| FCF per Share | -0.33 | -0.50 | -0.22 | 0.09 | -0.08 | 0.00 | 0.09 | 0.01 | 0.04 | 0.13 | 0.12 | -0.14 | 0.03 | 0.23 | -1.27 | -0.05 | -0.44 | 1.25 | 0.22 | 0.52 | -0.36 |
| FCF Conversion (FCF/Net Income) | -0.00x | 0.22x | -0.19x | -3.21x | -0.74x | 1.98x | -1.98x | 0.48x | -4.72x | 0.34x | 0.77x | 0.22x | -0.03x | -0.74x | 1.25x | 0.48x | -0.70x | 1.58x | 0.71x | 5.99x | 1.52x |
| Interest Paid | 0 | 438K | 0 | 288.08K | 236.57K | 135.32K | 0 | 0 | 343.68K | 789.74K | 0 | 0 | 0 | 0 | 208.22K | 425.93K | 430.8K | 451.97K | 511.61K | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 32.23K | 65K | 0 | 0 | 0 | 0 | 764.31K | 1.59M | 947.11K | 4.08M | 1.75M | 0 | 0 |
Existential liquidity and execution
According to the provided quarterly data, the relationship between net income and operating cash flow is highly erratic, with an OCF/NI ratio of -0.62 in 2026Q4, suggesting that reported earnings are frequently decoupled from the actual cash generation capabilities of the company's core manufacturing operations.
The persistent divergence between net income and operating cash flow highlights the volatility inherent in percentage-of-completion accounting. Investors should monitor whether this disconnect stems from aggressive revenue recognition or simply the timing of milestone payments, as the current trend suggests that accounting profits are not translating into tangible liquidity.
As reported in financial statements, TPCS has struggled to maintain positive free cash flow, with margins reaching a low of -22.9% in 2026Q2, indicating that the company's capital-intensive manufacturing model is currently unable to self-fund its operations without relying on external financing or balance sheet depletion.
The consistent negative free cash flow trajectory underscores the difficulty of scaling operations in a high-fixed-cost environment. The inability to generate sustained positive cash flow suggests that the current project mix may be underpriced relative to the capital required to execute on complex naval and aerospace contracts.
Based on reported figures, TPCS has maintained significant capital expenditure relative to revenue, with CapEx/Rev ratios peaking at 16.9% in 2026Q1, which appears disproportionate given the company's negative operating margins and the ongoing challenges in achieving efficient throughput across its specialized large-format machining centers.
The high level of capital intensity suggests that the company is forced to reinvest heavily just to maintain its specialized certifications and equipment standards. This creates a structural hurdle where the company must achieve higher revenue growth simply to cover the depreciation and maintenance costs of its heavy-duty CNC assets.
As indicated by the quarterly cash flow data, working capital changes have been highly volatile, swinging from a $2.8M outflow in 2026Q2 to a $694K inflow in 2026Q1, which reflects the precarious nature of managing long-lead-time defense contracts with limited cash reserves.
The extreme swings in working capital suggest that the company is highly sensitive to the timing of customer payments and project milestone approvals. Given the low cash balance, these fluctuations represent a significant operational risk, as any delay in collections could immediately threaten the company's ability to meet its payroll and vendor obligations.
Quick answers to the most common questions about buying TPCS stock.
TechPrecision Corporation (TPCS) generated $0.0M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
TechPrecision Corporation (TPCS) reported negative free cash flow of $3.3M in 2026, indicating capital requirements exceeded cash from operations.
TechPrecision Corporation (TPCS) spent $3.3M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.