Financial Performance Highlights
H2FY26 (1st October 2025 to 31st March 2026) - Consolidated Basis
- Revenue: ₹28.97 crores
- EBITDA: ₹1.61 crore (Positive)
- Operating Margin: 5.32%
- PAT: ₹0.44 crore (Positive)
- PAT Margin: 1.44%
Full Year FY26 - Consolidated Basis
- Revenue: ₹71.05 crores
- Operating Margin: Close to 10% (₹7.09 crores in absolute terms)
- PAT: ₹3.65 crore
- PAT Margin: A little over 5%
- Earnings Per Share (EPS): ₹3.29 per share
Balance Sheet & Liability Management
- Total liabilities fell sharply from ₹50 crores to ₹12.20 crores, a reduction of close to 75%.
- Debt-to-Equity Ratio stands at 0.12, described as the lowest in the peer group.
- Trade payables were reduced from ₹30.21 crores to ₹3.77 crores.
- Debt was reduced by 40%.
Operational Highlights & Management Commentary
The financial year FY26 was described as a year of two distinct halves.
H1FY26 Performance:
- Period of strong operational execution.
- Revenue from operations stood at ₹42.08 crores.
- EBITDA margin was nearly 13%.
H2FY26 Challenges:
- Materially impacted by an externally-driven global supply chain crisis affecting the entire IT integration sector.
- Global manufacturing capacity shifted toward AI infrastructure, causing demand-supply issues for traditional IT networking components.
- Component prices experienced inflation of 40% to over 300%.
- Component lead times extended from 6-8 weeks to between 9-12 months for certain critical items.
- The company chose to defer execution of fixed-price contracts that had become financially unviable due to cost inflation, prioritizing financial discipline and balance sheet strength over headline revenues.
- No customers or market share were lost; competitive position remained fully intact.
Order Book & Business Outlook
- Confirmed Executable Order Book (as of 31st March 2026): ₹32 crores.
- In the last 45 days (from the call date), the company received fresh orders of ₹3.2 crores.
- The company has implemented structural changes to mitigate future risks:
- Diversified vendors.
- Added price escalation clauses to new contracts to eliminate fixed price risk.
- Locked in better supplier visibility.
- Shifted more procurement to 'Make in India' product lines.
FY27 Guidance
Management did not provide a point-specific revenue guidance due to market uncertainty but provided the following building blocks:
- Expects FY27 revenue to be "meaningfully higher" than FY26.
- Aims to surpass FY25 revenue numbers by close to 15%.
- Targets a repeat of H1FY26 revenue (₹42 crores) as a minimum run rate for H1FY27.
- Expects a sustainable EBITDA margin band of 11-13% for FY27.
- The current supply chain turbulence is expected to last another 3-4 months maximum, as per industry feedback.
Q&A Session Key Points
Order Book Details:
- The ₹32 crore order book comprises ₹12 crores for services (operation and maintenance) and ₹20 crores for supply and installation.
- The fixed-price contracts within this book are protected as orders have already been placed with OEMs with frozen prices.
- Out of the ₹32 crore order book, ₹20-22 crores are expected to be billed in H1FY27. ₹4-5 crores from multi-year contracts will spill over into subsequent years.
Revenue Mix & Strategy:
- FY26 mix was 85% government (60% state government, 40% PSUs) and 15% enterprise/private.
- Target mix in 2-3 years is 30% state government, 40% PSUs, and 30% enterprise business to improve working capital cycles.
Geographical Expansion:
- The company has taken steps for expansion in the West region (Mumbai) and is focusing on the East (Assam, Tripura, Agartala).
Peer Context:
- Management cited Allied Digital (swung to a net loss) and Tejas Networks (Q4 revenue declined 82%) as evidence of industry-wide challenges, justifying their strategy of not chasing unviable revenue.
Closing Comments:
Management expressed confidence in the company's strategy and commitment to delivering long-term value, thanking participants for their continued trust and support.