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Ceinsys Tech Limited — Q1 FY27 earnings call

Call held 14 Aug 2026

Company page: Ceinsys Tech share price, financials & guidance record

Management summary

Ceinsys Tech reported a mixed Q1 FY27, with strong EBITDA growth and margin expansion driven by operational efficiency and robust order inflows, particularly in Geospatial Engineering Services. However, PAT saw a marginal decline, and the Technology Solutions segment faced a revenue contraction. The company is strategically investing in AI and expects improved working capital and cash flow in coming quarters.

Highlights

  • EBITDA increased substantially by 27% YoY to ₹39 crores, driven by project delivery efficiency.

  • EBITDA margins improved to 24.4%, an expansion of 505 bps over the corresponding period last year.

  • Geospatial Engineering Services revenue grew 30% YoY to ₹94 crores, indicating strong performance in a key segment.

  • Order book reached ₹990 crores at quarter-end, providing healthy revenue visibility, with fresh contracts of ₹143 crores secured.

  • Investment of up to ₹25 crores approved for a joint venture with AI Fabric USA to create a sovereign AI cloud in India.

Concerns

  • Profit after tax (PAT) marginally declined to ₹31 crores, with PAT margin contracting by 59 bps YoY to 19.6%.

  • Technology Solutions segment revenue declined by 25% YoY to ₹63 crores.

  • Working capital cycle remained high at 164 days, though expected to improve with government fund releases.

  • Poor cash flow conversion from EBITDA to operating cash flow, with OCF at ₹19 crores against EBITDA of over ₹170 crores last year (standalone).

Key financials

  1. Operational Revenue ₹158 Cr +1%YoY
  2. EBITDA ₹39 Cr +27%YoY
  3. EBITDA Margin 24.4% +5.1%YoY
  4. Profit After Tax ₹31 Cr
  5. PAT Margin 19.6% -0.59%YoY

What they filed

Q1 FY27: revenue down 1.3%, net profit down 13.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue85 107 138 150 158 +86%164 +53%164 +19%148 −1%
EBITDA21 25 32 37 42 +100%47 +88%46 +44%40 +8%
Net profit28 20 24 36 40 +43%43 +115%35 +46%31 −14%
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 Revenue
₹157 Cr Total
  • Geospatial Engineering Services ₹94 Cr 59.9%
  • Technology Solutions ₹63 Cr 40.1%

Order book

high confidence

Total value

₹990 Cr

as of 2026-06-30 quantified

Inflow this quarter

₹143 Cr

Execution

Weighted average execution timeline of 12-18 months, with some orders as short as 3 months and O&M extending 2-5 years.

Pipeline

deal pipeline tcv

Robust funnel, with several opportunities where the company has bid and expects results shortly, and 2 more L1 orders in offering.

The company has a healthy order book providing revenue visibility and expects further improvement, with a focus on pushing execution.

Source: Prepared remarks

Capital allocation

high confidence
  • M&A Allegro Mobility business Acquisition · Integrated

    Expanded into mobility domain.

    After the acquisition of Mobility business of Allegro in 2022, we acquired a geospatial business of VTS in U.S.A in 2024, which was majorly operating in telecom domain.
  • M&A VTS Geospatial business (U.S.A) Acquisition · Integrated

    Expanded into geospatial domain, particularly telecom.

    After the acquisition of Mobility business of Allegro in 2022, we acquired a geospatial business of VTS in U.S.A in 2024, which was majorly operating in telecom domain.
  • M&A AI Fabric USA Joint venture · Announced · Consideration ₹[object Object] (cash)

    To create a sovereign AI new cloud in India for government, citizens, and companies, focusing on cybersecurity, GPU-as-a-service, model-as-a-service, and AI services.

    Investment up to INR25 crores in two phases: INR5 crores for incorporation and INR20 crores after due diligence.

    We have approved an investment up to INR25 crores in joint venture with AI Fabric USA to be incorporated to create a sovereign Al new cloud in India for Indian government, citizens and companies focused on cybersecurity, services and defense to offer GPU-as-a-service, model-as-a-service and Al service, to build or lease data center capacity.
  • Liquidity Liquidity disclosed The company has mobilized approximately USD28 million for geospatial engineering services and technology solutions. Funds raised for acquisitions and expansion, totaling INR238 crores, with INR130 crores received in March '26 and INR100 crores in Sep '24, are now largely received and on track to be properly used.
    the company has already mobilized almost around USD28 million.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · FY27 · High confidence 24.4%
    This quarter, we have clocked 24.4%. So I guess we should be able to do that.

    — Kaushik Khona

Revenue

  • Technology Solutions Segment Revenue Share Revenue · Ongoing · Medium confidence beyond 51%
    As a team, the company aims to enhance its technology services segment revenue and aims to go beyond 51% of the total segment revenue.

    — Kaushik Khona

Growth

  • Overall Turnover Growth Growth · Next 2-3 quarters · Medium confidence continue trend
    So, you will see the growth in next 2 to 3 quarters. As I again reiterate and for the benefit of all the listeners, we don't give forward-looking statements, and therefore, we will be restricting ourselves to mention about the numbers, but we are sure to have -- continue the trend of the growth, which we have seen in the last 2.5 years.

    — Kaushik Khona

Working Capital

  • Working Capital Cycle Working Capital · Next 2-3 quarters · Medium confidence improve
    We expect recent we have received recent government institution issued by Maharashtra government towards allocation of funds for the dues related to IoT and other projects to support collection and meaningfully improve the working capital cycle over the next 2 to 3 quarters.

    — Kaushik Khona

Cash Flow

  • Operating Cash Flow Cash Flow · This financial year · Medium confidence better
    However, as our CFO, Amita-ji already clarified, we expect this financial year to have a better, maybe how much better? Obviously, we will not be able to pin down a number, but we should certainly have a better operating cash flow in this financial year.

    — Kaushik Khona

What to watch in Q2 FY27

Working Capital Cycle Improvement

Next 2-3 quarters
Current 164 days
Target Improved cycle

Why it matters

Improvement in working capital is crucial for better cash flow generation and operational efficiency.

We expect recent we have received recent government institution issued by Maharashtra government towards allocation of funds for the dues related to IoT and other projects to support collection and meaningfully improve the working capital cycle over the next 2 to 3 quarters.

Risks & concerns

  • High working capital cycle

    medium

    Working capital cycle stood at 164 days, broadly in line with previous quarters, primarily due to delayed government dues related to IoT and other projects under JJM.

    Management acknowledged

  • Low cash flow conversion from EBITDA

    medium

    Standalone operating cash flow was significantly lower than EBITDA (₹19 crores vs >₹170 crores last year), attributed to working capital intensity and unbilled revenue.

    Analyst acknowledged

  • Revenue decline in Technology Solutions segment

    low

    Technology Solutions segment revenue declined by 25% YoY to ₹63 crores, though the company aims to enhance this segment's contribution.

    Management acknowledged

Q&A highlights

4 direct, 1 evasive
Order book execution timeline and funnel quantification Partial
On an average, the execution time line weighted average will be between 12 to 18 months. ... Exact number, I wouldn't be able to tell you. But I think Mr. Khona has indicated you the kind of funnel, a number, but not exactly the number. But definitely, we have surpassed, already said that -- you also said that already cost about INR1,000 crores.

Analysts sought specific timelines and quantification for the order book and pipeline, which management provided as a weighted average and qualitative range, respectively, indicating future revenue visibility.

Asked by Deepak Poddar

Reconciliation of order book changes and non-order business Partial
Not all the businesses go into the order book, there are certain run rate businesses, which we don't build in the order book. For example, the Mobility business, we don't build in the order book. ... I can make a reconciliation and then give it to the IR agency who can then forward it to you.

Addressed analyst's query on discrepancies in order book changes by clarifying the existence of significant run-rate businesses not included in the reported order book, promising further reconciliation.

Asked by Madhur Rathi

Strategic investment in AI Fabric JV and its business model Direct
This is the initial phase of evaluating the business opportunity of setting up the Al cloud for the purpose of sovereign cloud for the government. ... We intend to be the Al solutions company. That's the objective. ... the business model and how we will structure the business model because the phase of due diligence, etcetera, will take another 3 to 4 months. And by that time, we will be able to freeze the business model.

Clarified the strategic intent and phased approach for the INR25 crore AI JV, emphasizing its focus on AI solutions for government defense and outlining the timeline for business model finalization.

Asked by Madhur Rathi

Resolution of trade receivables, particularly from JJM projects Direct
the Government of Maharashtra has issued a GR where they have said that the majority of the funds which was stuck earlier for the IoT-related projects under the Jal Jeevan mission, they have already resolved that the major funds will be disbursed. ... We expect funds by end of third quarter, most probably.

Provided crucial update on the expected release of significant government funds for IoT/JJM projects, which is anticipated to improve the company's working capital cycle and cash flow.

Asked by Pujan Shah

Utilization of idle funds and rationale against share buyback Evasive
We have been evaluating few opportunities, but you will appreciate we don't want to invest just because we have funds. So we don't want to invest into an opportunity which is not going to give us a margin or profit margins or something like that, which we are right now in. ... The funds which we have arranged is for the growth and development of the organization rather than for this buying back of shares.

Management defended its decision not to pursue a share buyback despite idle funds, emphasizing strategic investments for growth and margin sustainability over short-term shareholder returns, but did not fully address the 'idle for 2 years' concern.

Asked by Gunit Singh

Poor cash flow conversion from EBITDA and high unbilled revenue Direct
Sir, I think your observation is perfectly correct. ... However, as our CFO, Amita-ji already clarified, we expect this financial year to have a better, maybe how much better? Obviously, we will not be able to pin down a number, but we should certainly have a better operating cash flow this financial year.

Analyst highlighted a critical concern regarding the company's low EBITDA to operating cash flow conversion, which management acknowledged and attributed to working capital investments and UBR, promising improvement this fiscal year.

Asked by Keshav Garg

Acquisition strategy and valuation multiples given current stock price Partial
I'm not in that official position to do that. Question is at what rate of EV EBITDA we will evaluate. Obviously, we will evaluate based on what additional EBITDA percentage we are able to acquire. ... we will obviously evaluate what, how much that will add to our top line and bottom line, which should be incremental.

Analyst challenged management on acquisition strategy and valuation multiples, given the company's own stock trading at 7x EV/EBITDA, prompting management to reiterate its focus on value-accretive acquisitions that enhance top-line and bottom-line.

Asked by Keshav Garg

Phaneesh Murthy's resignation and its correlation with stock performance Direct
Sir, Phaneesh Murthy-ji has resigned in the month of April 2026 and not November 2025. So there is a correction in the date. And there is no relevance of share price and exit of Mr. Phaneesh Murthy. He has resigned because of his personal reasons. So there is no correlation between November '25 or share price going down.

Management clarified the correct resignation date of a key executive and explicitly denied any correlation between his departure and the company's stock price movements, attributing the resignation to personal reasons.

Asked by Keshav Garg

2 min read 6 chapters

Detailed narrative

Q1 FY27 Financial Performance Overview

Ceinsys Tech reported an operational revenue of ₹158 crores for Q1 FY27, marking a marginal 1% year-on-year growth. Despite this, EBITDA saw a substantial 27% increase to ₹39 crores, with EBITDA margins expanding by 505 basis points to 24.4%. Profit after tax, however, marginally declined to ₹31 crores, resulting in a PAT margin contraction of 59 basis points to 19.6%.

Segmental Performance and Strategic Focus

The Geospatial Engineering Services segment demonstrated strong growth, with revenue increasing by 30% year-on-year to ₹94 crores. Conversely, the Technology Solutions segment experienced a 25% year-on-year decline, reaching ₹63 crores. Management aims to enhance the Technology Solutions segment's contribution to over 51% of total segment revenue, indicating a strategic shift towards balancing segment contributions.

Order Book and Revenue Visibility

The company secured fresh contracts worth ₹143 crores during the quarter, contributing to a robust order book of ₹990 crores at the quarter-end. The weighted average execution timeline for these orders is estimated at 12-18 months, with some projects having shorter durations of 3-6 months and O&M contracts extending up to 2-5 years. Management expressed confidence in maintaining the growth trend seen over the last 2.5 years.

Strategic Investments in AI and Emerging Technologies

Ceinsys Tech has approved an investment of up to ₹25 crores in a joint venture with AI Fabric USA. This JV aims to establish a sovereign AI new cloud in India, targeting government, citizens, and companies with services like GPU-as-a-service and model-as-a-service. The investment will be in two phases, with ₹5 crores for incorporation and ₹20 crores following due diligence, which is expected to finalize the business model within 3-4 months.

Working Capital and Cash Flow

The working capital cycle remained high at 164 days, consistent with previous quarters, largely due to delayed government dues. However, a recent GR from the Maharashtra government is expected to facilitate the release of funds for IoT and other projects under the Jal Jeevan Mission, with approximately ₹100 crores from IoT debtors anticipated by Q3. This is projected to significantly improve the working capital cycle and lead to better operating cash flow for the financial year.

International Business and New Opportunities

The international geospatial mobility business showed meaningful improvement, with new business development and contract awards gaining momentum. The company also secured international orders, including approximately ₹4 crores for beta development of a hybrid power transfer case for Emotiv Mobility USA. Discussions are ongoing with the government for opportunities in the transport domain (ITMS/ATMS), with positive developments expected in the next 1-2 quarters.

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