Financial Performance Highlights

  • Achieved highest-ever quarterly revenue of ₹151.2 crore in Q1 FY27, crossing ₹150 crore milestone for the first time
  • Revenue growth of 11.5% year-on-year and 8.7% sequential growth
  • EBITDA increased to ₹18.4 crore, growing 20% quarter-on-quarter
  • EBITDA margins improved by 113 basis points sequentially to 12.3%
  • Profit After Tax stood at ₹11.2 crore, up 16.9% sequentially

Business Development & Contracts

  • Won ₹33 crore contract with a leading global power management company from North America
  • Increased number of customers generating over $1 million in annual revenue from 16 to 18
  • Order book/ACV for FY27 has crossed last year's revenue
  • 73 live customers currently, with top 25 customers contributing 87% of revenue

Operational Updates

  • Completed first-ever share buyback program during the quarter (promoters did not participate)
  • Chennai design center fully operational with few hundred people working
  • Planning to open fourth design center in Pune in August 2026
  • Fixed price revenue mix at approximately 16% in Q1, with expectation to maintain 80-90% time and material model
  • Subcontracting costs increased 36% YoY from ₹25 crore to ₹34 crore, though annual ratio has decreased

Business Segments & Strategy

  • Three broad verticals: Mechanical Engineering, Embedded and Digital, and Healthcare & Life Sciences
  • Healthcare vertical can grow 20-50% YoY but no clients have crossed $1 million mark yet
  • Focusing on digital engineering, ER&D, offshore delivery expansion, and account mining
  • Investing in subject matter experts, lab infrastructure, proof-of-concept development, and reusable IP
  • Targeting opportunities in data centers, AI, energy sectors across North America and Europe

Management Commentary & Outlook

  • Seeing increased demand for software-defined products, AI-enabled engineering, automation, and digital manufacturing
  • Revenue per employee currently at ~₹22 lakhs with aspiration to reach ₹35 lakhs
  • Focus on moving up technology value chain and increasing offshore mix for margin expansion
  • Committed to delivering double-digit revenue growth and double-digit EBITDA margin annually
  • Pipeline described as "broader and of much higher quality than a year ago"

Geographic Presence

  • Operations across multiple design centers in Chennai, Hyderabad, Bangalore, and Pune
  • Expanding global presence with clients in North America and Europe

Capital Structure Impact

  • Completed share buyback program (details not quantified in disclosure)
  • Promoters did not participate in buyback