Financial Performance Highlights

Q4 FY26 Results:

  • Revenue from operations: ₹402 crores, representing 22% year-on-year growth
  • EBITDA: ₹36 crores, growing 26% year-on-year

Full Year FY26 Results:

  • Revenue from operations: ₹1,424 crores, reflecting 12% year-on-year growth
  • EBITDA: ₹146 crores, significant 41% year-on-year growth
  • EBITDA margins: 10.2% (improved from 8.1% in FY25)
  • Profit after tax: ₹85 crores, increased by 17% year-on-year

Key Order Wins and Business Developments

The company secured several marquee orders during FY26:

  • Reserve Bank of India's enterprise application platform project: ₹249 crores
  • Punjab and Sind Bank's private cloud infrastructure project: ₹109 crores
  • LIC's digital workplace solutions engagement: ₹138 crores
  • Jammu and Kashmir Bank's DaaS (Device-as-a-Service) project: ₹75 crores
  • SBI's SD-WAN project: ₹75 crores

A major milestone was the successful rollout of core banking as a service using NABARD's initiative, enabling 38 banks to go live.

Strategic Initiatives and Partnerships

  • Entered strategic partnership with Cygeniq to deliver AI-driven cybersecurity and trusted AI solutions across India, Middle East and APAC markets
  • Expansion of Device-as-a-Service and digital workplace offerings
  • Focus on AI-ready infrastructure projects and cybersecurity-led engagements
  • Strengthening of enterprise infrastructure capabilities through SD-WAN deployments and private cloud solutions

Order Book and Pipeline

  • Order book as of May 30, 2026: Approximately ₹3,000 crores
  • Bidding pipeline: Approximately ₹5,100 crores (as of May 2026)
  • Historical conversion ratio: Around 30%
  • Average execution timeframe: 18-24 months for current order book

Balance Sheet and Capital Structure

  • Property, plant and equipment: Increased from ₹8 crores in FY25 to ₹68 crores in FY26
  • Right-of-use assets: Significant increase due to 'as-a-service' business models
  • Net debt: ₹68 crores as of March 31, 2026 (compared to ₹17 crores previous year)
  • Net debt-to-equity ratio: 0.2x
  • Working capital cycle: Net working capital days increased from 14 days to 17 days
  • Trade receivables: Increased from ₹301 crores to ₹602 crores over 4 years
  • Trade payables: Increased from ₹219 crores to ₹443 crores over 4 years

Business Segments and Revenue Mix

  • Data center and cloud business emerging as key growth engine
  • 34% of revenues coming from data center segment
  • Increasing contribution from higher-value infrastructure and service engagements
  • Growth in managed services, DaaS and annuity offerings creating recurring revenue streams

Margin Drivers and Outlook

Management attributed margin improvement to multiple structural factors:

  • Higher contribution from data center and cloud infrastructure projects
  • Increased participation in solution-led engagements (cloud infrastructure, SD-WAN, cybersecurity, digital workplace transformation)
  • Growth in managed services and annuity offerings supporting better operating leverage

While quarterly margins may fluctuate with project mix, management believes current margin levels (around 10%) are sustainable and working to maintain them through operating efficiencies and richer services mix.

Market Environment and Growth Drivers

  • India's IT spending expected to exceed USD 176 billion by 2026
  • Strong investment in digital infrastructure driven by cloud adoption, data consumption, cybersecurity requirements, and AI-led transformation
  • Data center capacity expected to grow significantly
  • Rising adoption of AI, automation, and data-driven operations accelerating investment in modern digital infrastructure

Risk Factors Mentioned

  • Supply chain disruptions and cost escalations in certain technology components
  • Short-term margin pressures due to supply side tightness from strong demand for AI-ready infrastructure
  • Project-based revenue recognition timing differences affecting quarterly performance

Management Outlook

Management remains focused on:

  • Expanding presence in data center and cloud infrastructure
  • Strengthening AI-ready infrastructure and cybersecurity capabilities
  • Growing managed services and annuity-led revenue streams
  • Increasing wallet share within existing customers
  • Adding new logos across BFSI, government and enterprise segments
  • Exploring opportunities in newer geographies and emerging technology domains

While not providing specific revenue guidance, management expressed optimism about maintaining strong growth trajectory given current momentum and market tailwinds.

Q&A Session Key Points

  • Margin sustainability: Management believes 10% EBITDA margins are structurally sustainable despite quarterly fluctuations
  • Order book mix: Company does not disclose segment-wise breakup due to confidentiality reasons
  • Fixed asset increase: Primarily due to right-of-use assets for 'as-a-service' business models and NABARD core banking project
  • RBI project details: 5-year timeframe including go-live and O&M, but revenue breakdown not disclosed
  • Working capital: Longer receivable cycles due to larger project sizes and milestone-based payments, offset by strong supplier credit support
  • Cybersecurity opportunities: Seeing increased interest and pipeline from BFSI sector following government directives
  • Supply chain impact: Short-term cost pressures expected to normalize as supply conditions improve