Workmates Core2Cloud Solution Limited conducted its H1 FY27 earnings conference call on November 05, 2026. The management team included Mr. Kamal Nath (Co-Founder, Whole Time Director & CEO), Mr. Basanta Kumar Rana (Co-Founder & Managing Director), Mr. Debasish Sarkar (Co-Founder, Whole Time Director & CFO), and Mr. Anirban Dasgupta (Co-Founder, Chief Strategy & Growth Officer).

Financial Performance

  • Revenue from operations for H1 FY27 was ₹95.21 crores on a consolidated basis, up 27.5% year-on-year and 37.7% over the second half of FY26
  • Recurring revenue grew 43% year-on-year to ₹82.97 crores, now constituting 87% of total revenue (up from 77% a year ago)
  • Monthly recurring revenue (MRR) reached ₹15.9 crores by September, up from ₹13.5 crores at the start of FY27
  • Gross profit grew 24.8% to ₹31.92 crores with gross margin of 33.5% (vs 34.3% in H1 FY26)
  • EBITDA grew 24% to ₹16.44 crores, representing a margin of 17.3% (vs 17.7% a year ago)
  • Profit after tax grew 32.4% to ₹12.03 crores with PAT margin improving to 12.6% (from 12.2% in H1 FY26)
  • Earnings per share for the half was ₹9.32
  • The company raised its FY27 revenue outlook from ₹190.56 crores to ₹202 crores

Business Metrics and Operational Highlights

  • Customer base increased from 316 to 337, with 54 new logos added in H1 (34 on recurring contracts, 20 on projects)
  • Enterprise customers grew from 38 to 44, with 20 clients now billing over ₹1 crore annually
  • Financial services is the largest vertical at 41% of revenue
  • Top 20 clients represent 71% of revenue (down from 73%)
  • Billable utilization held at 84%, with a target of 88%
  • Headcount remained essentially flat at 169 employees
  • Revenue per employee for the half rose to ₹56.56 lakhs from ₹44 lakhs
  • Employee costs fell to 10.8% of revenue from 11.2%

AI Accelerators and Technology

  • Six AI accelerators are now in live production with clients:
  • IntelliOps: Handles incident detection, triage, and resolution
  • CloudTrustmate: Manages AI token allocation, cost optimization, observability, and guardrails
  • Enterprise AI Edge: Provides secure access to OpenAI stack through Amazon Bedrock
  • VoxoRA: Runs multilingual contact management
  • VerID: Automates NBFC compliance including video KYC
  • VoyaGE: Agentic solution for the travel industry
  • AI implementation shows 50% reduction in mean time to resolve and over 60% of L1 tickets resolved automatically
  • AI and cybersecurity currently contribute approximately 5% of total revenue
  • The company holds AWS Premier Tier Partner status with AWS Managed Security Services and Generative AI Competency partner status
  • 359 active AWS certifications across the team

International Expansion

  • US subsidiary has been registered to simplify bidding for global customers
  • Middle East expansion plans triggered for FY27
  • Singapore operations continue with active customers, though go-to-market strategy is being re-evaluated
  • International expansion follows a "light model" with initial consultants and partners, delivering from centers in India

Capital Structure and Cash Flow

  • Company remains debt-free
  • Net worth increased to ₹97.71 crores from ₹88.25 crores in March
  • Annualized return on equity for the half was 24.6%
  • Cash and liquid investments stood at ₹43.88 crores after paying FY26 interim dividend of ₹2 per share and capital expenditure of ₹2.36 crores
  • Trade receivables rose to ₹39.5 crores from ₹28.99 crores in March
  • Debtor days moved marginally from 64 days to 62 days
  • Operating cash flow for the half was negative ₹4.7 crores
  • Collection remains a main financial priority for the second half

Partnerships and Strategic Relationships

  • Strategic partnership with OpenAI enables customization of models and joint market traction activities
  • AWS partnership includes Premier Tier status with consumption margins ranging from 8-12% (up to 18-20% for large migrations)
  • AWS plans to invest over $21 billion in cloud and AI infrastructure in India between 2026-2030

Forward Outlook and Pipeline

  • H2 FY27 revenue estimate of ₹107 crores is built on:
  • ₹95.4 crores of contracted recurring revenue
  • ₹1.25 crores of new recurring business
  • ₹10.35 crores of projects
  • Weighted H2 pipeline of ₹110 crores includes:
  • Large cloud migration for an existing NBFC customer
  • Significant cybersecurity opportunity with an existing large financial service client
  • Large migration for a mid-sized global IT services and digital transformation company
  • Signed ₹30 crores of new bookings in H1 across recurring and project work

Q&A Session Highlights

  • Cloud consumption and third-party costs account for 66.5% of revenue, with AWS representing 83% of this
  • No impact seen from AWS capacity constraints or pricing changes mentioned in Amazon's earnings call
  • Capex of ₹2.36 crores primarily relates to accelerator build costs, treated as intangible assets amortized over 5 years
  • AI accelerators expected to drive cross-selling to existing 337 clients and serve as entry points to new accounts
  • Project revenue decline of 27% is cyclical due to project completion timing, not a concern
  • Payment terms: 30 days with AWS, 45-60 days from customers
  • No security incidents or SLA breaches in the last 12 months
  • Company has capability to manage other cloud platforms (Azure, GCP) despite AWS partnership focus
  • No current plans for debt raising, but open to acquisitions in AI, cybersecurity, analytics, or new territories