Profits Rise but Cash Shrinks: What's Going On with DEWA?
Jakarta, CNBC Indonesia — The financial performance of PT Darma Henwa Tbk (DEWA) in the first quarter of 2026 showed solid growth in net profit on one side. However, on the other side, the cash position shrank sharply.
Based on the financial report as of 31 March 2026, DEWA recorded a net profit of Rp92.7 billion, up from Rp68.9 billion in the same period last year. This increase occurred amid relatively stagnant revenue of Rp1.55 trillion, down from Rp1.58 trillion previously.
The profit increase was mainly supported by margin improvements. The cost of revenue fell more sharply than the revenue decline, resulting in gross profit rising to Rp268.7 billion.
Meanwhile, throughout the first three months of 2026, DEWA’s cash and cash equivalents dropped drastically from Rp1.59 trillion at the start of the year to just Rp486.8 billion at the end of March. This represents a cash reduction of around Rp1.1 trillion in one quarter.
In 2025, cash had instead increased by about Rp117 billion over the running quarter.
From an operational perspective, cash flow still recorded a positive figure of Rp163.3 billion, though significantly down from Rp604.4 billion in the same period the previous year.
The main pressure came from financing activities. DEWA recorded a net cash outflow of Rp991 billion from these activities.
One of the largest factors was the share buyback action worth Rp791 billion. This value contributed more than 70% of the total cash decline during the period.
Quoting the information disclosure, DEWA has realised the share buyback in a short period, from 10 December 2025 to 13 February 2026.
The total funds used reached Rp949.9 billion to purchase around 1.63 billion shares, or nearly the entire allocated funds. This action took place with purchase prices ranging from Rp430 to Rp655 per share. On average, the buyback price was around Rp580 per share.
The impact of this corporate action is also reflected in the share price movement. During the December 2025 to January 2026 period, DEWA’s share price strengthened significantly from around Rp400 to touching the Rp600-650 area, supported by a surge in transaction volume.
However, after the buyback programme ended in February 2026, the upward momentum did not continue. DEWA shares tended to move sideways and are currently around Rp500, or below the average buyback price.
In addition to the buyback, the company also made significant debt and other obligation payments, including payments for other long-term debt of around Rp246 billion and long-term bank loan instalments of Rp167 billion.
On the other hand, cash flow for investments was also negative at Rp275.9 billion, mainly for fixed asset expenditures of Rp253 billion.