Ceinsys Tech — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Ceinsys Tech reported strong financial performance for Q3 and 9M FY26, driven by significant growth in its Geospatial and Engineering Services segment. Despite a slight decline in Technology Solutions for the quarter, the company maintained robust overall growth and margin expansion. Management highlighted strategic investments in technology and business development, particularly in the U.S., and discussed a healthy order pipeline, though some closures were delayed due to external factors like government code of conduct.

Highlights

  • Q3 FY26 Operational Revenue grew 52% YoY to INR 170 crores.

  • Q3 FY26 EBITDA increased 88% YoY to INR 40 crores, with margins expanding 452 bps to 23.48%.

  • Q3 FY26 Net Profit stood at INR 39 crores, up 119% YoY, translating to a 22.9% PAT margin.

  • 9M FY26 Operational Revenue grew 78% YoY to INR 490 crores.

  • 9M FY26 EBITDA increased 107% YoY to INR 106 crores, with margins at 21.59% (up 302 bps).

  • New orders booked in Q3 FY26 totaled INR 170 crores, bringing the closing order book to INR 999 crores as of December 31, 2025.

  • Geospatial and Engineering Services revenue increased 122% YoY in Q3 to INR 109 crores.

  • INR 24 crores invested in technology innovations and business development, with INR 16 crores charged to P&L.

Concerns

  • Impact of government code of conduct on order wins

Key financials

2 periods

Q3

  • Operational Revenue
    ₹170 Cr
    YoY +52%
  • EBITDA
    ₹40 Cr
    YoY +88%
  • EBITDA Margin
    23.5%
  • Net Profit
    ₹39 Cr
    YoY +119%

9M

  • Operational Revenue
    ₹490 Cr
    YoY +78%
  • EBITDA
    ₹106 Cr
    YoY +107%
  • Net Profit
    ₹96 Cr
    YoY +133%

What they filed

Q1 FY27: revenue up 0.6%, net profit down 3.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue90 112 142 157 163 +81%170 +52%171 +20%158 +1%
EBITDA17 21 27 30 36 +112%40 +90%40 +48%38 +27%
Net profit12 18 22 32 26 +117%39 +117%37 +68%31 −3%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Q3 Revenue
₹170 Cr Total
  • Geospatial and Engineering Services ₹109 Cr 64.1%
  • Technology Solutions ₹61 Cr 35.9%

Order book

high confidence

Total value

₹999 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹170 Cr

Composition

Mix 2 segments
  • Technology Absorption ₹460 Cr 46.9%
  • Geospatial ₹520 Cr 53.1%

Share of order book by segment, derived from disclosed amounts

Pipeline

deal pipeline tcv

Pursuing INR 600-700 crores worth of orders, with tenders published and anticipated to close in Q4 or Q1 next year.

Cancellations & deferrals

  • deferred: Order closures delayed due to government code of conduct, impacting 4 months of operation.
Management expects to close the order book near INR 1,000 crores and is confident in reaching 90-100% of promised targets, with a robust pipeline for future growth.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹24 Cr
    • Technology innovations and business development (U.S. and other territories) ₹24 Cr
    During the quarter, we invested INR24 crores in technology innovations and business development, specifically aimed at expanding our presence in the U.S. and other territories.
  • Debt Gross ₹30 Cr
    Right now, we are just using our INR29 crores, INR30 crores of CC. So that's the only loan we have in our book.
  • M&A VTS (U.S.A.) Acquisition · Integrated

    Expanded into telecom domain and geospatial business in U.S.A.

    After the acquisition of mobility business of AllyGrow in 2022, we acquired a geospatial business of VTS in U.S.A. in the year 2024, which was majorly operating into telecom domain.
  • Liquidity Undrawn ₹80 Cr Utilizing INR 30 crores out of an INR 80 crores cash credit limit.
    just utilizing INR30 crores out of the INR80 crores limit of our CC.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · quarter-on-quarter · Medium confidence at least stable, hope to sustainably improve
    going forward also, we believe that the margins would be at least stable, and we hope that this should sustainably improve quarter-on-quarter.

    — Kaushik Khona

Revenue

  • Revenue Growth Revenue · quarter-on-quarter · High confidence definitely growing
    As far as revenue goes, we will be definitely growing on the quarter-on-quarter numbers.

    — Abhay Kimmatkar

Order Book

  • Closing Order Book Order Book · Q4 FY26 · Medium confidence 90% to 100% of INR 800-900 crores
    what number we have promised, we will be reaching up to 90% to 100% of those. That's for sure.

    — Abhay Kimmatkar

  • Order Book Pipeline Closure Order Book · Q4 FY26 or Q1 FY27 · Medium confidence INR 600-700 crores
    We stated that we are pursuing some INR600 crores to INR700 crores of order... tenders are published, and we are anticipating to get those closed in Q4, if not Q4, Q1 of next year.

    — Abhay Kimmatkar

  • Order Book Visibility Order Book · end of FY 2026-'27 · Medium confidence reasonable 2 years order book
    striving to build a good order book at least to ensure that we have reasonable 2 years order book at the end of FY 2026-'27.

    — Kaushik Khona

  • Long-term Pipeline Sustainability Order Book · next 7 to 8 years · Low confidence sustainable for next 7 to 8 years
    trying to create a pipeline which would be sustainable for next 7 to 8 years.

    — Abhay Kimmatkar

Working Capital

  • Net Working Capital Cycle Working Capital · FY26 · Medium confidence bring down further to around 125 days

    Previously 160-162 days → bring down further to around 125 days

    our target is to bring it down... we will strive to bring that down further in this year also.

    — Kaushik Khona

Inorganic Growth

  • Inorganic Acquisition Conclusion Inorganic Growth · next 2, 3 months · Medium confidence conclusion should be taking place
    Yes, that is what. So that process is already on. The conclusion should be taking place in next 2, 3 months.

    — Kaushik Khona

US Subsidiary

  • US Subsidiary Revenue Contribution US Subsidiary · FY26 · High confidence less than 4% to 5%
    if you look at the U.S. subsidiary this year, it will be in the range of around less than 4% to 5%.

    — Kaushik Khona

  • US Subsidiary Revenue US Subsidiary · FY26 · High confidence INR 23-25 crores
    the U.S. subsidiary would be contributing this year at around INR23 crores, INR25 crores at the end of this year.

    — Kaushik Khona

  • US Subsidiary EBITDA Margin US Subsidiary · FY26 · Medium confidence around 20%
    EBITDA will be in the range of around 20%.

    — Kaushik Khona

What to watch in Q4 FY26

Inorganic Acquisition Conclusion

next 2-3 months (Q4 FY26 or Q1 FY27)
Current Due diligence almost over, slight compliance delay
Target Conclusion of acquisition

Why it matters

Successful inorganic growth is a key strategic pillar for expansion and market presence.

The conclusion should be taking place in next 2, 3 months.

Risks & concerns

  • Impact of government code of conduct on order wins

    high

    Two code of conduct periods led to a standstill in government tender decisions and order closures for about 4 months, affecting Q3 order inflows.

    Analyst acknowledged

  • Delays in inorganic acquisition

    medium

    Due diligence and compliance processes are causing delays, pushing conclusion to next 2-3 months instead of earlier timelines.

    Analyst acknowledged

  • Execution delays in large projects

    medium

    Some projects, like the river linking project, are experiencing delays due to government lagging, impacting revenue recognition in specific quarters.

    Analyst acknowledged

Q&A highlights

6 direct
Order book expectations vs. actual closures and future outlook Partial
we will be closing by something close by to that [INR 1,000 crores]. Though you said we will be doing another INR600 crores. That's not the truth. But yes, what we anticipate for INR1,000 crores, we will be closing by something close by to that.

Analyst questioned the discrepancy between prior order book expectations (INR 600-700 crores inflow) and actual Q3 closures (INR 170 crores), and management clarified current closing order book targets and pipeline delays.

Asked by Vaibhav Mishra

Delays in inorganic acquisition timeline Partial
The due diligence process is also almost over. There has been a slight delay from the compliance side because we are evaluating all the aspects. So I think we are not able to give you the answer right now. Hopefully, by quarter end -- quarter 4 end, you will have a little more clarity about the acquisition targets, which we have been pursuing.

Analyst highlighted repeated delays in the inorganic acquisition timeline, and management attributed it to compliance and due diligence, promising clarity by Q4 end or within 2-3 months.

Asked by Aman Soni

Senior management changes and governance concerns Direct
I think the changes which have happened are not something which has affected us, neither there were cultural issues nor there were any strategic movement because of some agreements. But I think it was maybe some one change which I already explained about Prashantji.

Analyst raised concerns about frequent senior leadership changes, and management explained them as planned exits or returns, asserting no negative impact on the company's operations or culture.

Asked by Aman Soni

Reconciliation of order book numbers and impact of mobility/product services Direct
So it's basically we started with INR1,004 crores in -- that was on 30th of September, and we are at the similar order book at the end of this quarter also. However, as we already clarified, this order book does not include the orders in relation to the mobility and the product services division, which is over and above that, which also at any given point of time would be in the range of around INR125 crores to INR150 crores, which is the annual turnover expected from those divisions.

Analyst sought clarification on the order book reconciliation, and management explained the starting point, Q3 inflows/outflows, and clarified that the reported order book excludes significant annual turnover from mobility and product services.

Asked by Garvit Goyal

Impact of government 'code of conduct' on order wins and future growth Direct
There has been a code of conduct, which we didn't anticipate back-to-back, 2 code of conduct has come and it's almost lost over 4 months of operation. So government was standstill on taking decisions and coming out with tenders.

Analyst questioned the lower-than-expected order wins, and management attributed it to government code of conduct periods that stalled tender processes, assuring that opportunities are still in the pipeline for Q4/Q1 next year.

Asked by Garvit Goyal

Visibility and future orders from the Jal Jeevan Mission (JJM) scheme Direct
I think we still have a lot of visibility about JJM orders. As you are aware, JJM mission is -- scheme is on until 2028, and we already have a few orders which are being executed. And some of the orders in pipeline is also pursued in respect of the JJM orders.

Analyst inquired about the impact of past issues on JJM and future order flow, and management confirmed continued visibility and ongoing pursuit of JJM orders, with the scheme extending until 2028.

Asked by Krishna Revan

US subsidiary revenue and profitability details Direct
till 9 months, we have achieved around INR19 crores of the top line. And if you consider other revenue items, the total top line is around INR21 crores for the 9 months in U.S. ... EBITDA will be in the range of around 20%.

Analyst requested specific financial details for the US subsidiary, and management provided 9-month revenue and estimated EBITDA margin, clarifying that BD expenses for the US are expensed there.

Asked by Darshil Jhaveri

Competitors and differentiation in large geospatial bids Direct
CS TECH, which is our company, is mainly a geospatial platform. So what we do is our geospatial technology services are a horizontal platform. And on that, we build the different domain infrastructure solutions. So we have presence in water, we have presence in energy, we have presence in land reforms and road asset management and all.

Analyst asked about key competitors in large geospatial bids and Ceinsys Tech's differentiation, to which management explained their horizontal platform approach across various infrastructure domains and the fragmented nature of competition.

Asked by Charu Manral

3 min read 7 chapters

Detailed narrative

Strong Financial Performance in Q3 and 9M FY26

Ceinsys Tech delivered robust results in Q3 FY26, with operational revenue growing 52% YoY to INR 170 crores. EBITDA saw an 88% YoY increase to INR 40 crores, pushing margins to 23.48%, an expansion of 452 basis points. Net profit surged 119% YoY to INR 39 crores, achieving a PAT margin of 22.9%. For the nine-month period, revenue grew 78% YoY to INR 490 crores, and net profit increased 133% YoY to INR 96 crores.

Geospatial and Engineering Services Drive Growth

The Geospatial and Engineering Services segment was a primary growth driver, recording a 122% YoY revenue increase to INR 109 crores in Q3 FY26. Over the nine months, this segment grew 77% YoY to INR 257 crores. In contrast, the Technology Solutions segment experienced a moderate 3% decline in Q3 to INR 61 crores, though it still posted a 79% YoY growth for the nine-month period to INR 233 crores.

Order Book and Pipeline Health

The company booked new orders totaling INR 170 crores in Q3 FY26, bringing the closing order book to INR 999 crores as of December 31, 2025. Management indicated a robust pipeline, with expectations to close INR 600-700 crores worth of orders in Q4 FY26 or Q1 FY27. The order book composition is split between approximately INR 460 crores in Technology Absorption and INR 520-530 crores in Geospatial projects.

Strategic Investments and Inorganic Growth Pursuit

Ceinsys Tech invested INR 24 crores in technology innovations and business development, primarily aimed at expanding its presence in the U.S. and other territories, with INR 16 crores of this charged to the P&L. The company is actively pursuing inorganic acquisition opportunities, with due diligence nearing completion and a conclusion expected within the next 2-3 months, despite some compliance-related delays.

Working Capital Management and Receivables

The net working capital cycle remained stable at 160-162 days, with Q3 collections matching operational revenue at INR 170 crores. Total debtors as of December 31, 2025, stood at INR 150 crores, with approximately INR 25-27 crores being over 365 days. Unbilled revenue was approximately INR 250 crores. Management aims to reduce the working capital cycle to around 125 days by year-end, leveraging higher Q4 government disbursements.

Impact of Government Code of Conduct and Project Delays

Order closures were significantly impacted by two periods of government code of conduct, which stalled tender processes and decision-making for about four months. This led to lower-than-expected order inflows in Q3. Additionally, some large projects, such as river linking, have experienced delays due to government processes, affecting revenue recognition in specific quarters.

US Subsidiary Performance and Strategic Alliances

The U.S. subsidiary is expected to contribute INR 23-25 crores in revenue for FY26, representing less than 4-5% of total revenue, with a projected EBITDA margin of around 20%. For the first nine months, the U.S. operations generated INR 21 crores in total top line. The company has also formed strategic MOUs with Tech Mahindra and Aetosky to enhance global business development, execution, and leverage niche AI technology and market presence.

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