CapitalNumbers Infotech Limited held its H2 and FY 2025-26 earnings conference call on June 1, 2026. The call was moderated by Dhruvi from EquibridgeX Advisors Private Limited and featured management representatives including CEO Mukul Gupta, Executive Director Vipul Gupta, CFO Sanket Harlalka, Director of Operations Anindya Mukherjee, and Director of HR Subhrajit Das.

Financial Performance for FY26 (Year Ended March 31, 2026)

  • Total Income: INR115.60 crores, representing year-on-year growth of 9.4%
  • Revenue from Operations: INR105.05 crores (compared to INR99.7 crores in FY25)
  • EBITDA: INR35.80 crores (compared to INR35.69 crores in FY25)
  • EBITDA Margin: 31% (moderated from previous year due to planned investments)
  • Profit After Tax (PAT): INR25.50 crores (compared to INR25.80 crores in FY25)
  • PAT Margin: 22.1%
  • Basic Earnings Per Share: INR10.44 (compared to INR11.83 in FY25)
  • Operating Cash Generation: INR17.29 crores
  • Cash and Bank Balances: INR88.62 crores
  • Current Investments: INR81.13 crores
  • Trade Receivables: INR10.23 crores
  • Total Assets: INR199.59 crores
  • Shareholder Funds: INR191.55 crores
  • Current Ratio: Approximately 29.8 times
  • Debt Position: Company remains fully debt-free

Business Overview and Operations

  • Founded in 2012 in Kolkata, listed on BSE on January 27, 2025
  • 500+ professionals serving 250+ active clients globally
  • Development centers in Kolkata and Gurgaon with onsite presence in Saudi Arabia, Egypt, and Morocco
  • Service offerings include software engineering, cloud transformation, AI, enterprise automation, Salesforce, and digital transformation
  • Maintains ISO 9001, ISO 27001, and SOC 2 Type 2 certifications
  • Received industry recognitions including Times Business Award for excellence in AI solutions, Economic Times Best Tech Brands 2025, Clutch 1000, and Nasscom SME Inspire 2025
  • Promoter group holding: 74.98% as of March 31, 2026
  • CEO Mukul Gupta increased personal shareholding from 39.8% to 40.4% through open market purchases

Revenue Structure and Geographic Distribution

  • Revenue Model: 91% from time and material engagements
  • Geographic Revenue Distribution:
  • US: 41%
  • Europe and UK: 31%
  • India: 10%
  • Middle East: 11%
  • Rest of World: 7%
  • AI Revenue: Exceeded 10% of total company revenue for the first time

Strategic Initiatives and Investments

  • Substantial investments in AI capabilities, talent, delivery framework, and internal enablement
  • Established AI Center of Excellence focusing on R&D, enterprise AI implementation, and delivery methodology
  • Expanded dedicated AI and machine learning hiring initiatives at Gurgaon center
  • Participated in nine international trade shows including London Tech Week and Mobile World Congress Barcelona
  • Generated over 500 qualified leads from trade show participation
  • Secured two Fortune 500 client wins (life sciences/healthcare and chemical/materials sectors)
  • Increased investment in global business development activities

Epitome Cloud Acquisition

  • Target Company: Epitome Cloud Inc. (US-incorporated technology services company with Indian subsidiary)
  • Headquarters: New Jersey, USA
  • Delivery Centers: Bangalore and Hyderabad
  • Specialization: Salesforce consulting, CPQ, revenue life cycle transformation, contract life cycle management, workflow automation
  • Consideration: Approximately INR40 crores
  • Revenue: Approximately INR28 crores (CY26)
  • Employee Strength: 7 onsite in US, 45 in India
  • Expected Contribution: 25-30% of FY27 revenue growth
  • Status: Due diligence completed, definitive documentation in advanced stages
  • Expected Completion: Within 8-12 weeks from June 1, 2026
  • Funding: IPO proceeds and internal accruals (no external debt)
  • Strategic Rationale: Strengthens US market presence, expands capabilities in premium enterprise technology segments, enhances access to certified Salesforce talent

Future Outlook and Guidance

  • FY27 Revenue Growth Target: Minimum 35% in INR terms
  • EBITDA Margin Target: Gradual recovery towards 33% (200 basis point improvement)
  • Growth Drivers: Operating leverage from Gurgaon expansion, productivity gains from senior hires, improved utilizations, higher-value enterprise engagements
  • Three-Year Goal: Achieve INR200 crores top line while maintaining current EBITDA margin
  • Additional Acquisitions: Planning 2-3 more acquisitions in coming years, focusing on companies with domain expertise in AI, preferably in fintech or healthtech verticals

Dividend Distribution

  • FY26 Interim Dividend: 10% of face value (already distributed)
  • Proposed Final Dividend: 10% of face value (subject to shareholder approval at forthcoming AGM)
  • Total Dividend Payout: Approximately 20-25% of current profit

Operational Challenges

  • FY26 growth below internal expectations due to elongated enterprise decision-making cycles and delayed ramp-ups in large engagements
  • Middle East investments didn't reflect planned revenue in H2 due to regional disturbances
  • Intentional reduction in Middle East commitments for FY27 (only 2-3 major events planned)
  • Pivot to US and European markets with physical base establishment post-Epitome acquisition
  • Client retention rate: Approximately 90%
  • Natural client churn: Approximately 10%

IPO Related Information

  • IPO Proceeds Raised: INR169 crores
  • IPO Expenses: INR21 crores total (promoters reimbursed INR11 crores, net company expense INR9-10 crores)
  • Expense Timing: Most expenses met in FY25-26 with reimbursement in FY25-26

Management Commentary

The company characterized FY26 as a "year of investment, capability building and strategic positioning." Despite below-expectation growth, management emphasized maintaining profitability while continuing investments in long-term growth areas including business development, leadership hiring, AI capability development, enterprise sales, and delivery expansion. The strong balance sheet position provides financial flexibility to pursue strategic opportunities and navigate market cycles effectively.