Ceinsys Tech Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Ceinsys Tech Limited (CS TECH Ai) delivered a strong Q3 FY26 performance with significant YoY growth in operational revenue and net profit, driven primarily by its Geospatial and Engineering Services segment. The company maintained a robust order book and stable working capital cycle. However, order inflows were impacted by government tender delays due to the code of conduct, and the inorganic acquisition timeline was pushed back. Management expressed confidence in maintaining growth momentum and achieving long-term order book visibility.

Highlights

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

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

  • Net Profit for Q3 FY26 surged by 119% YoY to INR 39 crores, translating into a healthy PAT margin of 22.9%.

  • 9M FY26 Operational Revenue grew by 78% YoY to INR 490 crores, and Net Profit grew by 133% YoY to INR 96 crores.

  • Geospatial and Engineering Services revenue increased by 122% YoY to INR 109 crores in Q3 FY26.

  • Secured new orders totaling INR 170 crores in Q3, bringing the closing order book to INR 999 crores.

Concerns

  • Technology Solutions revenue declined moderately by 3% YoY to INR 61 crores in Q3 FY26.

  • Inorganic acquisition timeline delayed from 1-2 months to 2-3 months due to ongoing compliance and due diligence processes.

  • Order inflow in Q3 (INR 170 crores) was significantly below analyst expectations of INR 700-800 crores, attributed to election-related code of conduct impacting government tenders for 4 months.

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%
  • 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

  • Geospatial and Engineering Services
    ₹109 Cr Revenue (Q3)
  • Technology Solutions
    ₹61 Cr Revenue (Q3)
  • US Subsidiary
    ₹21 Cr Top Line (9M)20% EBITDA (9M)₹23 Cr FY26 Revenue Contribution

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

Good and robust pipeline for next 7-8 years, including government funding, AI-led engineering, and digital solutions.

Management expects to close the year with an order book close to INR 1,000 crores, or up to INR 900 crores, despite delays in tender completion due to the code of conduct. They have a robust pipeline for the next 7-8 years.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Technology innovations and business development (US and other territories) ₹24 Cr
    • Business development for geospatial business and VTS acquisition (charged to P&L) ₹16 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. Out of this investment, INR16 crores was charged to our profit/loss account.
  • Debt Debt disclosed
    I would request our CFO to supplement, but I could just give you one fact that the borrowings are only cash credit. There are no long-term borrowings. The cash credit is the only borrowing which we have. In fact, if you see there is a net debt to equity is negative. Amita Ji? ... Right now, we are just using our INR29 crores, INR30 crores of CC. So that's the only loan we have in our book. ... Utilizing INR 30 crores out of INR 80 crores CC limit.
  • M&A VTS (geospatial business) Acquisition · Closed

    Operating in telecom domain, part of inorganic growth strategy.

    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.
  • M&A Unnamed Acquisition Target Acquisition · Pending regulatory

    Seeking synergy and opportunities for growth.

    The conclusion should be taking place in next 2, 3 months. ... Hopefully, by quarter end -- quarter 4 end, you will have a little more clarity about the acquisition targets, which we have been pursuing.
  • Liquidity Undrawn ₹50 Cr Utilizing INR 30 crores out of INR 80 crores CC limit, leaving INR 50 crores undrawn.
    Utilizing INR 30 crores out of INR 80 crores CC limit.

Guidance & targets

Order Book

  • Closing Order Book Order Book · FY26 · Medium confidence INR 900-1000 crores
    we have anticipated to close around INR800 crores, but we will be trying to get to up to INR900 crores. That's what numbers we are envisaging to close. We still have a good pipeline, may slip to Q1, but we are trying to close it in Q4. So -- but what number we have promised, we will be reaching up to 90% to 100% of those. That's for sure.

    — Abhay Kimmatkar

  • Long-term Order Book Visibility Order Book · End of FY26-27 · Medium confidence 2 years
    And I think we are 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

Working Capital

  • Net Working Capital Cycle (Debtor Days) Working Capital · FY26 · Medium confidence 120-125 days

    From 160-162 days today

    While we have seen that we have constrained our working capital cycle to almost INR160 crores, our target is to bring it down. ... And we had achieved that in last quarter 4 of last year to around 125 days, and we will strive to bring that down further in this year also.

    — Kaushik Khona

Profitability

  • EBITDA Margins Profitability · Ongoing · Medium confidence Stable to improve QoQ
    So 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

Inorganic Growth

  • Acquisition Conclusion Inorganic Growth · Q4 FY26 / Q1 FY27 · Medium confidence 2-3 months

    Previously 1-2 months → 2-3 months

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

    — Kaushik Khona

Revenue

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

    — Abhay Kimmatkar

What to watch in Q4 FY26

Headcount disclosure

Next quarter call
Current Not disclosed
Target To be disclosed

Why it matters

Headcount numbers provide insight into the company's growth and recruitment efforts, especially for an IT services firm.

We will try to share that [headcount] from next quarter call. We'll also provide you that.

Risks & concerns

  • Inorganic acquisition delays

    medium

    The timeline for inorganic acquisitions has been delayed from 1-2 months to 2-3 months due to ongoing compliance and due diligence processes.

    Analyst acknowledged

  • Slowdown in order inflows from government projects

    medium

    Order inflows in Q3 were below expectations, primarily due to the election-related code of conduct which stalled government tender completions for approximately four months.

    Analyst acknowledged

  • Technology Solutions revenue decline

    low

    Technology Solutions revenue declined moderately by 3% YoY in Q3 FY26, attributed to the cycle of a major river linking project.

    Management acknowledged

  • Senior management churn

    low

    Multiple senior-level changes, including CFO and CEO, over the past 12-15 months were questioned by analysts, but management stated these were planned and expected changes.

    Analyst downplayed

Q&A highlights

5 direct, 1 evasive
Inorganic acquisition timeline and delays 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.

Analysts questioned the repeated delays in inorganic acquisition, which management attributed to compliance and due diligence, pushing the timeline further out.

Asked by Aman Soni

Senior management churn and governance Evasive
I think the changes are all, I would say, expected, planned. And I think we are we have rebuilt the entire management team to focus on the growth, which you can see how the growth has performed.

An analyst raised concerns about multiple senior-level changes, including CFO and CEO, over the past 12-15 months, questioning the stability and potential underlying issues, which management largely dismissed as planned.

Asked by Aman Soni

Discrepancy in order book calculation Direct
Sir, INR1,192 crores was as on 1st of April. And we are since April, we have executed orders of around INR490 crores. And every quarter, we give that order book reconciliation. So in this quarter, after the execution of INR170 crores, the closing order book is INR999 crores, on which the overall order book of the new orders, which have been added is INR170 crores.

An analyst pointed out a significant gap between the expected order book (based on Q2 figures and Q3 execution/inflow) and the reported INR 999 crores, which management clarified by explaining the starting point and execution.

Asked by Garvit Goyal

Impact of code of conduct on order inflows 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.

Analysts questioned the lower-than-expected order inflows, and management directly attributed this to the election-related code of conduct, which stalled government tender completions for four months.

Asked by Garvit Goyal

US subsidiary financials and investment Partial
So 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%.

Analysts sought clarity on the financial performance of the US subsidiary, especially given significant investments, with management providing top-line and EBITDA figures but not PAT.

Asked by Darshil Jhaveri

INR 40 crores capital infusion vs. P&L charge Direct
INR 40 crores was infusion of capital. ... What we have mentioned in the P&L is only INR16 crores, which is towards the business development for the geospatial business and the acquisition -- the new business which we took of VTS.

An analyst questioned the nature of the INR 40 crores transfer to the US subsidiary and its relation to the INR 16 crores charged to P&L, which management clarified as capital infusion versus P&L expensed business development costs.

Asked by Gunit Singh

Sustainability of working capital cycle Direct
As CFO had also explained, our working capital cycle, in fact, this quarter, we got the collection of INR170 crores against a top line of INR170 crores. So I think it's a reasonable effort which the entire team is doing.

An analyst inquired about how the company maintains a lower working capital cycle compared to peers despite sector challenges, and management explained it through efficient collections and milestone-based billing.

Asked by Apeksha Bajaj

Borrowings and debt profile Direct
I would request our CFO to supplement, but I could just give you one fact that the borrowings are only cash credit. There are no long-term borrowings. The cash credit is the only borrowing which we have. In fact, if you see there is a net debt to equity is negative. ... Right now, we are just using our INR29 crores, INR30 crores of CC. So that's the only loan we have in our book.

An analyst raised concerns about increasing borrowings, but management clarified that these are only short-term cash credits, with a negative net debt to equity, indicating a healthy balance sheet.

Asked by Athar Syed

3 min read 7 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Ceinsys Tech Limited reported a robust Q3 FY26, with operational revenue growing 52% year-on-year to INR 170 crores. EBITDA saw an 88% increase to INR 40 crores, leading to a significant margin expansion of 452 basis points, reaching 23.48%. Net profit for the quarter was INR 39 crores, up 119% year-on-year, with a healthy PAT margin of 22.9%. The company also highlighted strong 9M FY26 performance, with operational revenue up 78% to INR 490 crores and net profit up 133% to INR 96 crores.

Segmental Performance and Order Book Health

The strong Q3 performance was primarily driven by the Geospatial and Engineering Services segment, which grew 122% year-on-year to INR 109 crores. In contrast, the Technology Solutions segment experienced a moderate decline of 3% year-on-year, reaching INR 61 crores. The company booked new orders worth INR 170 crores in Q3, bringing the closing order book as of December 31, 2025, to INR 999 crores. The order book composition is approximately INR 460 crores for technology absorption and INR 520-530 crores for geospatial services, largely driven by the river linking project.

Strategic Investments and Inorganic Growth Initiatives

Ceinsys Tech is actively pursuing inorganic growth, having acquired VTS's geospatial business in 2024 and identifying further targets. The company invested INR 24 crores in Q3 in technology innovations and business development, particularly for expanding its presence in the U.S. and other territories, with INR 16 crores of this charged to the P&L. The ongoing inorganic acquisition process, however, has been delayed from an initial 1-2 month timeline to 2-3 months due to compliance and due diligence requirements.

Working Capital Management and Receivables

The company maintained its net working capital cycle within the range of 160 to 162 days. Collections in Q3 were strong, matching the operational revenue at INR 170 crores, partly due to significant collections from Jal Jeevan Mission (JJM) projects. Management aims to further reduce debtor days from the current 160-162 to approximately 120-125 days, a level achieved in Q4 of the previous year, anticipating improved government disbursements in Q4.

Government Project Landscape and Order Inflow Challenges

Order inflows in Q3 were lower than analyst expectations, primarily due to the election-related code of conduct, which caused a standstill in government tender completions for about four months. Despite these delays, management confirmed that no opportunities were lost, and tenders are either published or anticipated to close in Q4 FY26 or Q1 FY27. The company is actively bidding for large government projects, including the INR 1,000 crores-plus land mapping and resurveying projects in various states.

US Subsidiary Performance and Growth Strategy

The US subsidiary contributed approximately INR 21 crores to the total top line for the nine months ended December 31, 2025, with an EBITDA margin of around 20%. Management expects the US subsidiary's full-year contribution to be INR 23-25 crores, representing less than 4-5% of the total turnover. The company is investing in building capabilities, data mining from VTS logos, and product development for the infrastructure domain in the US, with more clarity on the strategy expected by Q4 FY26 or Q1 FY27.

Capital Allocation and Debt Profile

Ceinsys Tech maintains a conservative debt profile, with borrowings consisting solely of cash credit. The company is currently utilizing INR 29-30 crores out of an INR 80 crores cash credit limit, indicating significant headroom. Management highlighted a negative net debt to equity ratio, reinforcing its asset-light and financially prudent approach. Investments in technology and business development are primarily expensed to the P&L, with only some elements capitalized.

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

More Information Technology earnings calls