Management Commentary

Mr. Kunal Shah, Chairman & Managing Director, stated that H1 FY27 was a period of significant progress marked by strong financial performance and strategic expansion. The integration of Beanstalk Web Solutions LLC (acquired March 5, 2026) continues to progress smoothly with Mumbai and St. Louis teams working as one cohesive unit. Delivery is progressively transitioning to the Mumbai Global Capability Center. Beanstalk's 250+ US clients now have access to expanded capabilities across DXP, WCAG and AI services, creating cross-selling opportunities.

The company launched Beanstalk Governance Studio, its first group product - a privacy-first desktop application supporting accessibility compliance with WCAG norms and website health audits. Getivity, an AI-native time tracking platform, is coming soon, representing the company's commitment to building proprietary intellectual property.

Financial Performance Highlights

H1 FY27 Income Statement (INR Lakhs)

  • Revenue from Operations: ₹1,034.6 lakhs, up 207% YoY (H1 FY26: ₹336.8 lakhs)
  • EBITDA: ₹285.5 lakhs, up 140% YoY (H1 FY26: ₹119.1 lakhs)
  • EBITDA Margin: 27.6% (down 780 bps from 35.4% in H1 FY26)
  • Profit After Tax: ₹171.3 lakhs, up 96% YoY (H1 FY26: ₹87.4 lakhs)
  • PAT Margin: 16.6% (down 930 bps from 25.9% in H1 FY26)
  • EPS: ₹4.98 (H1 FY26: ₹2.54)

H1 FY27 Balance Sheet (INR Lakhs)

  • Total Assets: ₹2,574.2 (Mar-26: ₹1,661.3)
  • Tangible Assets: ₹207.8 (Mar-26: ₹26.0)
  • Intangible Assets: ₹1,268.2 (Mar-26: ₹776.6)
  • Intangible assets under development: ₹215.6 (Mar-26: ₹139.5)
  • Cash and Cash Equivalents: ₹177.4 (Mar-26: ₹264.9)
  • Trade Receivables: ₹621.9 (Mar-26: ₹379.6)
  • Total Equity: ₹543.0 (Mar-26: ₹400.4)
  • Long Term Borrowings: ₹1,172.0 (Mar-26: ₹883.8)

H1 FY27 Cash Flow Statement (INR Lakhs)

  • Net Cash from Operating Activities: ₹441.0
  • Cash Flow from Investing Activities: -₹752.9
  • Cash Flow from Financing Activities: ₹224.4
  • Net Decrease in Cash: -₹87.5

Business Overview

Company Profile:

  • 14+ years presence, 200+ digital projects completed
  • Serves Insurance/BFSI, Pharma, Healthcare, Technology, Non-Profits, Communications industries
  • ISO/IEC 27001:2022 Certified
  • 100% In-House Full Stack Delivery
  • Partnered with 4 DXP Platforms: Crownpeak, Optimizely, Contentful, Kentico

Services Offered:

  • Digital Applications (web, mobile, voice & chat)
  • Cloud Infrastructure
  • DXP Implementation
  • QA & Test Automation
  • Web & Mobile Apps
  • WCAG Accessibility (ADA & WCAG testing and remediation)
  • Web Development (WordPress-based)
  • Custom Chatbots & Voice Bots (AI-powered)
  • Digital Marketing (PPC, SEO, social media, analytics, CRM-driven lead generation)

Market Opportunity

DXP Industry:

  • Global Digital Experience Platform market projected to grow at 13.7% CAGR through 2030
  • North America represents over 43% of global market share
  • Demand for multi-platform DXP implementation partners outpaces supply

WCAG & Digital Accessibility:

  • 4,600+ ADA lawsuits in 2023
  • 97% of top 1M websites fail WCAG compliance
  • DOJ's April 2024 final rule mandated WCAG 2.1 AA compliance for public-sector websites

Digital Marketing Industry:

  • US digital advertising agencies grew at 7.5% CAGR
  • Internet marketing & SEO consulting expanded at 15.3% over five years
  • Digital advertising accounts for ~69% of total media ad spend, forecast to approach 75% by 2027

Growth Strategy

US Market Expansion:

  • Established Accelerate Next Inc. as US Holding Company
  • Acquired Beanstalk Web Solutions LLC (decade-old US digital agency, St. Louis MO)
  • Beanstalk contributes $1M+ recurring revenue from retainers & hosting
  • 250+ active mid-market clients
  • $1.6–1.8M annual revenue

Cross-Selling Strategy:

  • DXP, WCAG & AI cross-selling opportunity to 250+ existing Beanstalk clients
  • Beanstalk's web development projects scaling through Mumbai's full engineering team
  • India time zone extends effective delivery capacity to 24 hours

Acquisition Roadmap:

  • Targets under active evaluation assessed on capability, complementarity, and scale
  • Discipline focused on building complete, integrated digital services group

Competitive Advantages

  • Proprietary Product Layer (Getivity AI-native SaaS platform)
  • Established Relationships with diverse Customer Base
  • Integrated Technology Platform (full-stack Microsoft and Node-based capabilities)
  • Specialty DXP Platforms (certified across 4 major platforms)
  • Accessibility Compliance practice
  • MAGNET Global Network membership

Historical Financial Performance

Income Statement Trend (INR Lakhs)

| Period | Revenue | EBITDA | PAT | EPS |

| FY24 | 678.9 | 189.6 | 3.1 | 5.4 |

| FY25 | 677.1 | 120.1 | 73.3 | 2.57 |

| FY26 | 691.8 | 146.7 | 64.6 | 1.88 |

| H1-FY27 | 1034.6 | 285.5 | 171.3 | 4.98 |

Key Financial Metrics

  • Return on Equity (ROE): 37.7% (FY24), 17.2% (FY25), 12.10% (FY26)
  • Return on Capital Employed (ROCE): 0.8% (FY24), 16.8% (FY25), 16.10% (FY26)
  • Working Capital Days: 678.9 (FY24), 677.1 (FY25), 691.8 (FY26)