Revenue from operations stood at ₹377 crores in Q1 FY27, representing growth of 21.1% year-on-year (YoY) but a decline of 6.9% quarter-on-quarter (QoQ).
Gross profit increased by 13.3% to ₹157 crores, while gross margin moderated to 41.7% from 44.5% in Q1 FY26.
Cost of materials consumed (COMC) was 58.34% in Q1 FY27, which is 411 basis points higher than the FY26 average of 54.23%.
EBITDA for the quarter was ₹94 crores with an EBITDA margin of 25.1%, representing an increase of 135 basis points YoY.
Profit before tax (PBT) increased by 48.8% YoY to ₹82 crores, supported by operating growth and substantial reduction in finance cost.
Profit after tax (PAT) stood at ₹60 crores, registering growth of 63.8% YoY with margin at 16%, up 418 basis points YoY.
Business Segment Performance
Payment Solutions: Contributed 42% to total revenue with nominal growth of 5% YoY. The premium metal card business continues to gain strong traction with superior margins.
Communication and Fulfillment: Contributed 40% to total revenue with growth of 13% YoY, providing stability to the overall business.
IoT Solutions: Contributed 18% to total revenue with exceptional growth of 145% YoY. RFID and eSIM businesses showed strong momentum.
Operational Highlights
The company won two multi-year tenders from leading PSU banks representing approximately ₹73 crores in revenue over the tender period.
Top 10 customers contributed 56% of revenues, with more than 95% of revenues coming from existing clients.
Capacity utilization across businesses is currently around 65-70%, reaching 85-90% during peak demand periods.
The Bengaluru facility for metal card production is expected to be operational by the end of calendar year 2026 after regulatory approvals.
The Nagpur facility is still under construction.
Capital Structure and Cash Flow
As of June 30, 2026, the company had cash and cash equivalents of ₹369 crores.
During Q1 FY27, ₹24.4 crores of IPO proceeds were deployed: ₹6.7 crores towards capex, ₹13.7 crores towards general corporate purposes (GCP), and ₹3.9 crores towards issue expenses.
Annual capital expenditure is expected to be in the range of ₹140-160 crores for FY27.
Management Commentary and Guidance
Management reiterated medium-term revenue growth guidance of 8-12%.
H2 FY27 is expected to be stronger driven by seasonal pickup in BFSI demand, steady momentum in communication and fulfillment businesses, and continued growth in IoT segment.
The company is actively working with customers on price revisions to mitigate input cost pressures from geopolitical uncertainties and currency fluctuations.
The IoT business is expected to grow at approximately 45% in FY27, similar to the previous year's growth rate.
Supply Chain and Inventory Management
The company has increased inventory holding of chips for both IoT and payment solutions businesses to secure better pricing and manage longer lead times from suppliers.
Approximately 40-45% of input cost impact is attributable to currency fluctuations, with the remainder due to direct war-related impacts on commodity pricing, logistics, and freight costs.
Market Development
The SIM card business is currently serving 20-25% of the requirements of a large telecom operator (described as the third-largest in the country).
The company is seeing encouraging traction in international markets, particularly Europe and Africa, for card exports.
The pharmaceutical traceability segment within IoT solutions represents a significant long-term opportunity.
