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    Canarys Automations Q4 FY26 earnings call

    CANARYS
    Information Technology·27 Jul 2026
    Management Summary

    Canarys Automations Ltd reported a landmark FY26, achieving its highest-ever financial performance with standalone revenue exceeding INR 100 crores and consolidated revenue nearing INR 200 crores, driven by a strategic pivot to AI-native solutions and the Fortira acquisition. While consolidated margins saw moderation due to integration costs and investments, the company anticipates significant margin improvement and continued strong growth over the next 12-24 months, backed by a robust INR 441 crore order book and a focus on high-margin AI products.

    Highlights

    5

    • FY26 standalone revenue of INR 101.7 crores, up 16% YoY, crossing the INR 100 crore milestone for the first time.

    • FY26 consolidated revenue of INR 199.7 crores, up 121% YoY, nearing the INR 200 crore mark.

    • Standalone EBITDA grew 25% to INR 17.5 crores, with margin improving to 17% from 16% in FY25.

    • Order book of INR 441 crores, with INR 370 crores in recurring revenue, providing 3-4 years of revenue visibility.

    • Successful strategic pivot to an AI-native engineering and solution resilience platform, leveraging the proprietary CAR framework and new AI products like AURYIS.

    Concerns

    2

    • FY26 standalone PAT of INR 10 crores was impacted by a one-time exceptional item related to labour code provisions.

    • Consolidated margins moderated in FY26 due to strategic investments in talent, technology, and the integration of Fortira.

    Key financials

    Single quarter

    10 metrics
    1. 01Standalone Total Income₹101.7 Cr+16%YoY
    2. 02Standalone EBITDA₹17.5 Cr+25%YoY
    3. 03Standalone EBITDA Margin17%
    4. 04Standalone PBT₹16.7 Cr+29.0%YoY
    5. 05Standalone PBT Margin16%

    Order Book

    high confidence

    Total Value

    ₹ 441 crores

    as of 2026-03-31

    quantified

    Execution

    Most projects are for 3 years, some extending to the fourth year.

    Composition

    Mix3 service lines
    • Technology Solutions46.7%
    • Fortira46.9%
    • Water Resource Management6.4%

    Share of order book by service line

    Pipeline

    deal pipeline tcv

    Potential to add new orders to the existing order book

    "The core order book (excluding Fortira acquisition) meaningfully grew by 2.3x compared to the previous year."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    M&A

    Fortira Inc.

    acquisition · integrated

    Liquidity

    Liquidity disclosed

    Cash flow is improving, and the company has started collecting payments from customers.

    Guidance & targets

    7
    CategoryTargetPriority
    Profitability
    EBITDA Margin, PAT Margin, Key Growth Parameters
    improve meaningfully
    		Medium
    Profitability
    Gross Margin Potential
    up to 12% point increase
    		Medium
    Profitability
    Fortira Margins
    much beyond the India margin
    		Medium
    Revenue
    Revenue Growth
    20% (achievable), targeting higher
    		High
    Revenue
    Export Revenue Share
    50% plus
    		High
    Revenue
    AI Revenue Share
    at least 30% to 35%
    		Medium
    Product
    AURYIS Scale
    get into that scale mode
    		Medium

    What to watch in Q1 FY27

    5

    Fortira Margin Improvement

    12-18 months
    CurrentModerated consolidated margins, below company average.
    TargetParity with company average, or 'much beyond India margin'.

    Why it matters

    Fortira is a significant part of consolidated revenue; its margin improvement is key to overall profitability and achieving stated targets.

    The correction will definitely take about 12 to 18 months.

    Risks & concerns

    2
    RiskSeverity

    Moderated consolidated margins due to strategic investments and Fortira integration

    Consolidated margins moderated in FY26 as a conscious outcome of strategic investments in talent, technology, and Fortira integration, but expected to improve in 12-24 months. — Management acknowledged

    medium

    One-time exceptional item impacting standalone PAT

    Standalone PAT was affected by a one-time exceptional item relating to the implementation of labour code provisions in FY26. — Management acknowledged

    low

    Q&A highlights

    8

    “The correction will definitely take about 12 to 18 months.”

    Addresses the margin drag from the recent Fortira acquisition and provides a specific timeline for its recovery to company-level profitability.

    asked by Disha

    2 min read6 chapters

    Detailed Narrative

    01

    FY26 Financial Performance Highlights

    Canarys Automations Ltd achieved its highest-ever financial performance in FY26. Standalone total income reached INR 101.7 crores, marking a 16% year-on-year growth, while consolidated total income surged to INR 199.7 crores, up 121% YoY. Standalone EBITDA increased by 25% to INR 17.5 crores, with the margin improving to 17% from 16% in FY25. Consolidated PAT stood at INR 14.8 crores, with international revenue contributing 48% of the total.

    02

    Strategic Pivot to AI-Native Solutions

    FY26 marked a significant strategic pivot for Canarys, transitioning from a trusted engineering services partner to an AI-native engineering and solution resilience platform. This shift is driven by the proprietary CAR (Canarys Automation Resilience) framework, which embeds AI across the complete engineering life cycle. The company aims to smartify existing customer investments rather than a rip-and-replace approach, enabling self-healing and disciplined systems.

    03

    Impact of CAR Framework and AI Products

    The CAR framework is projected to improve engineering productivity by up to 5x, increase revenue per employee by over 40%, and boost gross margin potential by up to 12 percentage points. Leading global enterprises, including a Fortune 100 technology company, are already deploying CAR-powered solutions. Canarys is also scaling its portfolio of AI-powered products, including AURYIS for life sciences, ClubAce for hospitality, and Scholaris for university management, all built AI-native for subscription-based delivery.

    04

    Fortira Acquisition and Margin Outlook

    The acquisition of Fortira Inc. in April 2025 was a strategic move to strengthen North American presence and expand capabilities. While consolidated margins moderated in FY26 due to integration costs and talent investments, management expects Fortira's margins to improve significantly over 12 to 18 months, targeting beyond India margins. The company anticipates overall EBITDA and PAT margins to improve meaningfully over the next 12 to 24 months.

    05

    Robust Order Book and Growth Targets

    The company boasts a strong order book of approximately INR 441 crores, providing healthy revenue visibility for the next 3 to 4 years, with INR 370 crores attributed to recurring revenue. The core order book, excluding Fortira, grew meaningfully by 2.3x compared to the previous year. Canarys targets a revenue growth of at least 20% for the next two years and aims to increase its export revenue share to over 50%.

    06

    Investment in Talent and Culture

    Canarys is investing significantly in talent and capability development, including AI upskilling for its 430-plus professionals, to sustain its competitive edge. The company emphasizes its people-first culture, which has led to steadily improving attrition rates. External recognition includes being named GitHub's 2025 Growth Services and Channel Partner of the Year, reinforcing its position as a top GitHub partner in APAC.

    This is an AI-generated summary of a publicly available earnings call transcript.