Date: 2026.08.04

Management Comment

Commenting on the Company performance, Mr. Ketan Patel, Chairman & Managing Director of Creative Newtech said:

The strong start to FY27 reflects Creative Newtech's continued execution across its technology-focused distribution platform and reinforces the resilience of our diversified business model. Despite a dynamic operating environment and evolving global technology landscape, we remained focused on driving profitable growth through disciplined execution, operational efficiency, and expanding our presence across high-growth technology segments.

For Q1 FY27, our consolidated total income stood at ₹476.84 crore, registering a growth of 20.06% YoY compared to ₹397.19 crore in the corresponding quarter last year. EBITDA increased by 64.73% YoY to ₹24.89 crore, while EBITDA margin improved to 5.22% from 3.80% in Q1 FY26, reflecting stronger operating leverage and improved operational efficiencies. Profit After Tax (PAT) stood at ₹13.54 crore, registering a growth of 32.89% YoY despite higher finance costs during the quarter.

The quarter was marked by several strategic milestones that further strengthened our long-term growth platform. We secured a ₹35.89 crore order from the Food Corporation of India (FCI) for the Smart Warehousing Project across 150 depots and received an Advance Work Order from BSNL for the BharatNet Middle Mile Network Project in the Odisha Telecom Circle, with a total project value of approximately ₹3,194.83 crore. We also expanded our consumer technology ambitions with the launch of WOZOYO, our global consumer technology brand under Secured Connection Limited (Hong Kong), entered into a strategic partnership with Ravel Electronics to strengthen India's fire and life safety technology ecosystem, and the acquisition of Infinova India, further enhancing our capabilities in surveillance and enterprise security solutions.

The rapid adoption of artificial intelligence, increasing investments in digital infrastructure, and growing demand for intelligent surveillance, cybersecurity, enterprise networking, and connected technologies continue to create significant opportunities across our focus areas. As enterprises and governments accelerate digital transformation initiatives, we believe our diversified portfolio, deep technology partnerships, and value-added distribution model position us well to capitalize on these long-term growth trends.

Looking ahead, our focus remains on expanding our technology portfolio, strengthening strategic partnerships, scaling WOZOYO into a meaningful consumer technology brand, integrating our recent acquisitions, and enhancing operational efficiencies across the business. Backed by strong execution capabilities, an expanding ecosystem of global technology partners, and increasing participation across enterprise, government, and consumer segments, we remain confident in our ability to deliver sustainable long-term growth and create lasting value for all our stakeholders.

Financial Results (Standalone & Consolidated)

Consolidated Financial Highlights (Q1 FY27 vs Q1 FY26):

  • Total Income: ₹476.84 crore vs ₹397.19 crore (20.06% growth YoY)
  • EBITDA: ₹24.89 crore vs ₹15.11 crore (64.73% growth YoY)
  • EBITDA Margin: 5.22% vs 3.80%
  • Profit Before Tax (PBT): ₹16.70 crore vs ₹11.80 crore (41.54% growth YoY)
  • Profit After Tax (PAT): ₹13.54 crore vs ₹10.18 crore (32.89% growth YoY)
  • PAT Margin: 2.84% vs 2.56%
  • Diluted EPS: ₹8.23 vs ₹5.92
  • Interest Cost: ₹7.63 crore vs ₹3.01 crore
  • Depreciation: ₹0.57 crore vs ₹0.30 crore
  • Tax: ₹3.17 crore vs ₹1.62 crore
  • Exceptional Items: ₹0.07 crore vs ₹0.00 crore

Standalone Financial Highlights (Q1 FY27 vs Q1 FY26):

  • Total Income: ₹448.29 crore vs ₹356.94 crore (25.59% growth YoY)
  • Other Operating Income: ₹0.77 crore vs ₹4.22 crore
  • Total Expenditure: ₹428.28 crore vs ₹346.76 crore
  • Employee Cost: ₹4.97 crore vs ₹3.42 crore
  • Other Expenses: ₹11.70 crore vs ₹7.22 crore
  • Total Raw Material: ₹411.62 crore vs ₹336.12 crore
  • EBITDA: ₹20.00 crore vs ₹10.19 crore (96.33% growth YoY)
  • EBITDA Margin: 4.46% vs 2.85%
  • PBT: ₹12.17 crore vs ₹6.93 crore
  • PAT: ₹9.01 crore vs ₹5.31 crore (69.63% growth YoY)
  • PAT Margin: 2.01% vs 1.49%

Notes:

1. The Middle East business has been severely impacted by ongoing geopolitical tensions and instability. This has affected market demand, supply chains, and overall business operations in the region.

2. Approximately ₹8 crore has been incurred towards the launch and development of the WOZOYO brand. The expenditure primarily covers brand building, marketing, product development, and market expansion initiatives.

Recent Brand Agreements & Developments

  • Received a ₹35.89 crore order from the Food Corporation of India (FCI) for the Smart Warehousing Project across 150 depots
  • Received an Advance Work Order from BSNL for the BharatNet Middle Mile Network Project in the Odisha Telecom Circle, with total project value of approximately ₹3,194.83 crore
  • Launched WOZOYO, a global consumer technology brand under its wholly owned subsidiary Secured Connection Limited (Hong Kong)
  • Partnered with Ravel Electronics to strengthen India's Fire & Life Safety Technology ecosystem
  • Acquisition of Infinova India, enhancing capabilities in video surveillance, security solutions, and intelligent infrastructure

Strategic Developments

The company is evolving into a tech-enabled infrastructure company built on three pillars:

1. Strategic Brand Portfolio (Own + Acquired): Driving growth through owned and acquired brands including WOZOYO consumer technology brand

2. Infrastructure Solutions in Surveillance & Data Connectivity: Extending into surveillance, networking, and data connectivity solutions aligned with India's digital infrastructure push

3. Value-Added Market Entry Specialist: Strengthening core distribution business through technology, analytics, and integrated services

Market Positioning

Creative Newtech has strategic alignment with national priorities through:

  • Exclusive tie-ups with Matrix and Sparsh (STQC-certified Indian surveillance brands)
  • Dual-engine model combining Value-Added Distribution + Brand Ownership
  • Nationwide network across 300+ cities, retail, modern trade, and e-commerce
  • Trusted distribution partner for over 50+ global and domestic brands
  • Focused on surveillance leadership, data centre enablement, and Make-in-India execution

Management Team

Key management personnel include:

  • Mr. Ketan Patel: Chairman & Managing Director
  • Ms. Purvi Patel: Chief Strategy Officer
  • Mr. Vijay Advani: Sales and B2B relationships
  • Mr. Mohit Anand: CEO of Secure Connection (ex-Microsoft, ex-Belkin)
  • Mr. Ajit Thakur: Finance leadership (17+ years experience)
  • Mr. Amol Patil: Product management (20+ years experience)
  • Mr. Upendra Singh: National channel & corporate sales (30+ years experience)
  • Mr. Tejas Doshi: Chief Compliance Officer & Company Secretary (17+ years expertise)

Investor Contact

Mr. Tejas Doshi, Chief Compliance Officer & Company Secretary: cs@creativenewtech.com

Investor Relations: SAAA Consultants Pvt. Ltd., Ms. Sejal Dukhande: sejal.dukhande@saaaconsultants.com