Ceinsys Tech

Ceinsys Tech delivered robust financial results for Q2 FY26, with operational revenue growing 82% year-on-year to Rs. 164 crores. EBITDA increased by 112% to Rs. 36 crores, achieving a margin of 21.77%, a 310 basis points improvement. Net profit surged 120% to Rs. 26 crores, with PAT margins at 15.72%. For the first half of FY26, operational revenue reached Rs. 320 crores (up 95% YoY), EBITDA was Rs. 66 crores (up 119% YoY) with a 20.56% margin, and net profit was Rs. 57 crores (up 143% YoY) with a 17.93% PAT margin.

The company's improved profitability is attributed to the completion of older, lower-margin projects and a strategic focus on new, higher-margin technology-advanced projects. Technology Solutions revenue in Q2 FY26 saw a 2.5-fold increase to Rs. 88 crores, now contributing 54% to the total turnover. This shift towards AI and ML-enabled applications and solutions is expected to further enhance margins and drive turnover growth, reflecting a commitment to innovation and competitive advantage.

As of September 2025, Ceinsys Tech's total order book stands at Rs. 1,092 crores, indicating strong demand. The company anticipates major sign-offs from its substantial pipeline, estimated between Rs. 700-800 crores, during Q3 and Q4 FY26. Management expects a high win probability of 70-80% for these pipeline projects, particularly those in niche technology areas. The average execution timeline for projects is 18 to 24 months, with O&M contracts extending up to five years.

The working capital cycle currently stands at 160 days, primarily due to slower disbursements from government projects, which typically occur in Q3 and Q4. Management expects this cycle to reduce to approximately 120-130 days in the coming quarters^⏳, with significant recoveries anticipated in November, December, and January. Approximately 80% of the company's debtors are less than 6 months old, with the remaining 20% being older, which are expected to be recovered by the financial year-end.

Ceinsys Tech continues to invest in technology innovation and business development, particularly in the US market. Out of Rs. 21 crores invested this quarter, Rs. 13 crores were expensed, and Rs. 8 crores were capitalized for IP and future business prospects. While these investments contribute to a short-term EBITDA impact at the consolidated level, they are expected to drive a bigger pipeline and improved revenue absorption of costs from Q4 FY26. The company is actively pursuing two acquisition targets in geospatial engineering and technology upgradation, with announcements expected in Q3 or Q4 FY26.

The Geospatial and Engineering Services segment demonstrated healthy growth, increasing 39% year-on-year to Rs. 75 crores in Q2 FY26. This growth is driven by an increased focus on water, IoT, and enterprise solutions. The company also highlighted its expertise in geospatial engineering and other engineering services, offering a broad range of geospatial intelligence services including data creation, analytics, and decision support systems.