Nature of Disclosure:

This is a submission of the transcript for the Q4 and FY26 earnings conference call held on June 5, 2026, pursuant to Regulation 30 of SEBI LODR Regulations, 2015.

Management Participants:

  • Mr. Vinod Babu Bollikonda – Managing Director & Group CEO
  • Mr. Chandrashekar Mudraganam – CEO
  • Mr. MHVSN Sambhu Prasad – Company Secretary & Compliance Officer

Business Overview:

The company described itself as an "AI-First" company operating through five business units:

1. Enterprise Smart Applications: Flagship products include AccessGenie (AI-driven facial recognition for public safety monitoring) and Blura SAGA (social media monitoring for law enforcement and brands).

2. Cybersecurity: Offers services including access management, data protection, and threat detection. Unique products are BluTOR (dark web incident tracking) and BluHawk (VAPT solution).

3. Healthcare: Products include BluHealth (AI platform generating vital parameters via face recognition in 60 seconds) and BioSter (advanced space sterilization technology).

4. Telecom: Focused on building 5G infrastructure, specifically Captive Non-Public Network (CNPN) and Private Mobile Network (PMN).

5. Domestic IT Consulting: Provides infrastructure and technology support services.

Financial Performance & Order Book:

  • The company confirmed it met its expected top-line for the year without deviation.
  • The confirmed order book for FY27 is ₹1,100 crore.
  • The revenue mix of this order book is:
  • Cybersecurity: 46-47%
  • Enterprise Applications: 24-26%
  • Healthcare: 14%+
  • IT Consulting: The remainder
  • The management reiterated its revenue guidance of ₹3,000 crore for FY27 and projected a 30% year-on-year growth for FY28.
  • The ₹1,100 crore represents recurring business from existing long-term contracts (some running until 2030), while the balance to reach ₹3,000 crore is expected from a pipeline of orders in negotiation and MOU stages, including contributions from organic and inorganic growth.

Margins & Profitability:

  • Q4 saw an improvement in EBITDA margins, reaching approximately 17%, up from 12% in the previous quarter.
  • This expansion was attributed to the productization of past R&D investments (e.g., a 2.5-year investment in social media monitoring AI now generating premium subscriptions) and improved revenue realization from SaaS-based platforms.
  • Management expects margins to be sustained or improve further in FY27 as the company moves from a development to a productization and scaling phase.
  • Sustainable EBITDA margins are expected to be in the 10-15% range going forward.
  • The revenue mix is approximately 70% recurring and 30% project-based.

Customer Concentration & Geographies:

  • The customer mix is approximately 80% private/enterprise and 20% government (CGIS - Commercial Government Industrial Service Sector).
  • The company is pursuing international expansion, with advanced discussions and potential business in West African countries (Ghana, Liberia, Senegal, Mauritius) and with the ECOWAS region.

Capital Expenditure (CAPEX) & Depreciation:

  • FY27 CAPEX is guided at ₹150-200 crore, with potential upside. This is primarily for telecom projects (CNPN/PMN hardware) and data center development.
  • Depreciation was ₹3 crore in Q4 FY26. Management expects it to remain in a similar range for FY27, not crossing an "ideal limit" of ~₹100 crore for the year, as much of the business utilizes cloud infrastructure with lower depreciation.
  • Projects involving hardware for specific clients (e.g., jewelry showrooms) will have higher depreciation.

Acquisitions & Strategic Updates:

  • Geo Impex Acquisition: The company has received in-principle approval from BSE for the acquisition. The process of conducting a meeting and following due process is ongoing. Geo Impex has a strong order book in the EV and renewable energy sector.
  • Data Center Plans: The acquisition of ConnectM and the land from Geo Impex are the first steps towards starting a data center. The first phase is aimed to be ready by Q1 2027. This is expected to improve margins by reducing recurring cloud costs (15-35% of current costs) and signing long-term contracts.
  • AIS Anywhere: This acquisition is expected to contribute ₹170-180 crore in revenue. The company is shifting its model from providing customized source code to clients to a SaaS model, leveraging the code across multiple clients to improve value.
  • BluBio Sciences SPV: The company holds a 25% stake in this SPV related to biosciences where Blue Cloud's AI healthcare technology will be used. It is not currently consolidated.

Balance Sheet & Cash Flow:

  • An unusual spike in accounts receivables as of March 31, 2026, was noted and attributed to a timing effect and payment delays from international clients due to geopolitical situations.
  • The company is addressing this by moving to a pro-rata, modular billing approach instead of billing upon project completion to improve cash flow timing. An improvement is expected in the next quarter.
  • The current ratio was mentioned to be roughly 1, with an expectation of improvement based on the new billing models.

R&D and Hiring:

  • R&D spend was 10-12% of costs over the last two years but is expected to reduce as focus shifts to a Continuous Integration/Continuous Deployment (CICD) model for existing AI platforms.
  • Attrition is low (2-3%), and headcount is expected to remain stable or grow, not be reduced by AI. New hires will be needed for large government PPP orders and customizations.

Product Specifics:

  • The accuracy of the flagship AccessGenie AI surveillance platform is between 87-96%.
  • The company's AI algorithms and small language models (SLM) are built in-house and indigenously, not relying on external GPTs.

Regulatory Reference:

This disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.