Financial Performance Highlights (Q1 FY27)

  • Consolidated revenue from operations: ₹51 crores, representing 11% year-on-year growth
  • Operational EBITDA: ₹10 crores, showing 89% year-on-year increase
  • EBITDA margin: 20.59%, expanding by 855 basis points
  • Profit after tax: ₹6 crores, representing 77% year-on-year growth
  • PAT margin: 11.88%, improving by 444 basis points
  • The significant profitability expansion was driven by favorable business mix with higher service contribution and better operating leverage

Business Segments and Revenue Mix

  • Data center infrastructure and IT operations: 48% of revenue
  • Enterprise applications: 26% of revenue
  • Proprietary platforms: 14% of revenue
  • Digital services: 12% of revenue
  • Service revenue contribution increased to 65-68% in Q1 FY27 from approximately 46% in Q1 FY26

Order Book and Pipeline

  • Order book as of June 30, 2026: ₹373 crores across 55 projects
  • 55% of order book executable during FY27
  • Active bid pipeline: ₹1,200 crores
  • Customer mix: 55% non-government, 45% government customers
  • Execution model mix: 45% direct orders, 55% indirect orders
  • Approximately 40-45% of pipeline in advanced stages, with expected conversion of 30% in next quarter

Operational Highlights

  • Company has delivered 175 projects during FY24-FY26
  • Executed 50+ data center command center projects
  • Presence spans 15+ states and 10+ industries
  • Government and PSU customers accounted for 47% of FY26 revenue
  • Workforce: 500+ permanent employees and 370+ contractual employees
  • XtraTrust platform has 850,000+ subscribers on recurring model with 10,000+ partners

Management Guidance and Outlook

  • FY27 revenue target: ₹500+ crores (35-40% growth over FY26 revenue of ₹365 crores)
  • Data center segment targeting 35-40% annual growth
  • Target revenue mix: Data center (50-55%), Enterprise applications (20-25%), Proprietary platforms & digital services (30%+)
  • Maintain 60%+ service revenue contribution for margin sustainability
  • Tax rate expectation: 25% for next two years
  • Internal IRR benchmark: 17-18% for project evaluation

Working Capital and Execution Cycles

  • Government project cycle: 120-150 days
  • Service revenue cycle: 45-60 days
  • Data center project execution: 12-15 months end-to-end
  • CAPEX-OPEX model split: 50-60% CAPEX (6-18 months execution), 40% OPEX (3-7 years annuity)
  • Order conversion timeline: Government/PSU - 60-90 days; Enterprise/BFSI - 30-60 days

Proprietary Platforms Business

  • XtraTrust: MeitY-approved Certifying Authority for digital signature certificates and e-sign services
  • Competing with 11 private players in PKI market, primarily eMudhra
  • Synergy platform: Low-code AI-native digital transformation platform
  • Focus on both B2B (enterprise, BFSI, aviation, government) and B2C segments
  • Contract durations: 3-7 years with annual subscription models

Risk Factors and Challenges

  • Hardware prices increased 3-4x in last 6-8 months
  • Product availability challenges due to global supply chain disruptions
  • Strategic inventory management to mitigate price escalation impacts
  • Implementing price escalation clauses in new bids to account for dollar variation and supply chain issues

Conference Participants

Management: Sukhbir Singh Kukreja (Managing Director and Promoter), Chetan Anand (Group CFO)

Investor Relations: Valorem Advisors (Purvangi Jain)

Question Participants: Rohan Joshi, Rohit Singh, Binoy Jariwala (Upadhyaya Investment), Ankit Mittal, Maitree (Sapphire), Khushboo (Sixth Sense), Vinay Jariwala