Ceinsys Tech Limited — Q4 FY26 earnings call

Call held 3 Jun 2026

Management summary

Ceinsys Tech delivered its best-ever quarterly and full-year performance in Q4 FY26 and FY26, respectively, with strong double-digit growth in revenue and profit, coupled with significant margin expansion. The company reported a healthy order book and improved cash position. While unbilled revenue increased due to milestone-based billing, management expressed confidence in its conversion in the coming quarters and outlined plans for inorganic growth and international expansion, alongside continued focus on AI/ML-enabled solutions.

Highlights

  • Q4 FY26 Operational Revenue grew 20% YoY to INR 171 crores.

  • Q4 FY26 EBITDA increased 50% YoY to INR 40 crores, with margins improving by 475 bps to 23.6%.

  • Q4 FY26 Net Profit grew 70% YoY to INR 37 crores, with PAT margins expanding by 641 bps to 21.8%.

  • FY26 Operational Revenue grew 58% YoY to INR 661 crores, and PAT grew 111% YoY to INR 133 crores.

  • Closing order book as of March 31, 2026, stood at a healthy INR 876 crores, with new orders of INR 62 crores booked in Q4.

  • Net cash balance significantly increased to INR 248 crores as of March 31, 2026.

Concerns

  • Unbilled revenue increased, with INR 350 crores outstanding, due to milestones not being achieved by quarter-end.

  • Order intake for FY26 was less than INR 400 crores, lower than the executed revenue for the year.

  • The acquired VTS subsidiary was EBITDA negative in FY26 due to BD expenses, though expected to be profitable in FY27.

Key financials

2 periods

Q4

  • Operational Revenue
    ₹171 Cr
    YoY +20%
  • EBITDA
    ₹40 Cr
    YoY +50%
  • EBITDA Margin
    23.6%
    YoY +4.8%
  • Net Profit (PAT)
    ₹37 Cr
    YoY +70%
  • PAT Margin
    21.8%
    YoY +6.4%

FY26

  • Operational Revenue
    ₹661 Cr
    YoY +58%
  • EBITDA
    ₹145 Cr
    YoY +86%
  • EBITDA Margin
    21.9%
    YoY +3.3%
  • Net Profit (PAT)
    ₹133 Cr
    YoY +111%
  • PAT Margin
    20%
    YoY +5.1%

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 Q4 Revenue
₹170 Cr Total
  • Geospatial Engineering Services ₹102 Cr 60.0%
  • Technology Solutions ₹68 Cr 40.0%

Order book

high confidence

Total value

₹876 Cr

as of 2026-03-31 quantified

Inflow this quarter

₹62 Cr

Execution

execution pipeline of 12 to 18 months

Composition

  • Jal Jeevan Mission (JJM) (client type) 15%

Pipeline

deal pipeline tcv

Strong pipeline in infrastructure (road, metro, building construction) and L1 positions on 3 projects.

Management expects order book to substantiate for FY27 and spillover into FY28, with a strong pipeline for new orders.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹12 Cr
    • IP development ₹12 Cr
    In the recent AOP, we have identified at least 3 major IPs where the expenditure outlay is targeted to be in the range of around INR 12 crores to INR 15 crores, but that is also a part of our revenue expenditure.
  • Debt Net cash ₹248 Cr
    further strengthened our balance sheet with the overall net cash balance increasing to INR 248 crores as on 31st March 2026 from INR 123 crores a year ago.
  • M&A Inorganic Growth Opportunities Acquisition · Pending due diligence · Consideration ₹[object Object] (undisclosed)

    Expand horizons into existing domains and acquire capabilities, potentially through joint ventures.

    Mobilized INR 235 crores earlier, now restructured to include joint ventures, with a slight change in fund requirements.

    And based on these opportunities, we find that the new opportunity which we are tapping right now, there could be a closure of inorganic growth for the purpose of due diligence in next 1 or 2 quarters. The amount of INR 235 crores, which was mobilized had been earlier earmarked for the particular 70%, 20% and 10% kind of scenario. ... the Board has decided to slightly modify and instead of around INR 220 crores being – INR 210 crores for the purpose of acquisition and expansion, that has been now restructured to also include the opportunities by way of joint venture, etcetera, which were not earlier included.
  • Liquidity Cash ₹248 Cr Net cash balance increased from INR 123 crores a year ago to INR 248 crores as of March 31, 2026.
    further strengthened our balance sheet with the overall net cash balance increasing to INR 248 crores as on 31st March 2026 from INR 123 crores a year ago.

Guidance & targets

Profitability

  • VTS Subsidiary EBITDA Profitability · FY27 · High confidence Positive EBITDA
    So we are expecting VTS to not only contribute a turnover of more than INR 20 crores, but it could be also a profitable growth.

    — Kaushik Khona

  • Subsidiary Breakeven Profitability · FY27 · High confidence Breakeven

    From Loss-making today

    We will be in breakeven in this financial year. We are targeting to have that breakeven in these subsidiaries

    — Amita Saxena

Revenue

  • VTS Subsidiary Revenue Revenue · FY27 · High confidence More than INR 20 crores

    Previously INR 7-8 crores (FY26) → More than INR 20 crores

    So we are expecting VTS to not only contribute a turnover of more than INR 20 crores, but it could be also a profitable growth.

    — Kaushik Khona

Order Book

  • Order Inflow Order Book · Q2/Q3 FY27 · Medium confidence Match or surpass FY26 order inflow (INR 350+ crores)

    From INR 350 crores (FY26) today

    We will be able to match what FY 26 will close by Q2. And then we'll be able to surpass what we achieved in FY 26 by Q3.

    — Abhay Kimmatkar

Tax Rate

  • Normalized Tax Rate Tax Rate · FY27-28 · High confidence 25%
    I think FY 27-28, it will be 25% tax rate.

    — Kaushik Khona

Business Mix

  • Government Business Contribution Business Mix · Next 2 to 3 years · Medium confidence Less than 50%

    From Average 70% today

    changing the mix from the present of government business from, let's say, average 70% to less than 50% over the next 2 to 3 years, but while continuing to grow.

    — Kaushik Khona

What to watch in Q1 FY27

Acquisition closure timeline

next 1 or 2 quarters
Current Due diligence in progress for inorganic growth opportunities
Target Closure of acquisition/joint venture

Why it matters

Successful inorganic growth is key to expanding capabilities and market reach, as highlighted by management.

there could be a closure of inorganic growth for the purpose of due diligence in next 1 or 2 quarters.

Risks & concerns

  • Delay in deal closures due to code of conduct issues

    medium

    Several opportunities could not be concluded in the last 12 months due to instances of code of conduct, though positive traction is now seen.

    There are many opportunities which could not be concluded due to several instance of code of conduct in the last 12 months, but now we are seeing positive traction for those opportunities to conclude in the near future.

    Management acknowledged

  • General business risks

    low

    Management acknowledges that risk will always be present in any business but they have mitigation plans.

    risk obviously will always be there for any business, but we are trying to have a mitigation plan for that purpose.

    Management acknowledged

Q&A highlights

6 direct
Acquisition strategy and timeline Partial
there could be a closure of inorganic growth for the purpose of due diligence in next 1 or 2 quarters. The amount of INR 235 crores, which was mobilized had been earlier earmarked... now restructured to also include the opportunities by way of joint venture, etcetera

Analyst questioned the delay in acquisition, and management clarified the revised strategy and timeline for inorganic growth, including joint ventures.

Asked by Ashish Soni

Growth momentum sustainability Direct
I'm sure that things are moving in the same direction. In fact, the kind of capabilities which we have more -- we have developed. You can see that we have enjoyed a growth of almost 58% CAGR in the last years, which is also part of our presentation. And we are hopeful while we are already targeting to that, but we are hopeful that this growth momentum will continue.

Analyst questioned if the strong growth of the past 2-3 years is sustainable, and management affirmed confidence in continued momentum.

Asked by Ashish Soni

Working capital and unbilled revenue Direct
Unbilled revenue, I think, yes, what you have pointed out is correct, that it has increased in this financial year. But this is just because the milestones have not been achieved as on 31st March 2026, which may come up in this financial year, in this first quarter also and in the coming next quarter also. We will be able to bill substantially out of this unbilled revenue because our milestone, we will reach to the milestone of billing in this first and second quarter of this financial year.

Analyst raised concerns about increased unbilled revenue, and management explained it's due to milestone-based billing and expects conversion in Q1/Q2 FY27.

Asked by Kaushal Sharma

VTS acquisition status and profitability Direct
So in the finance year 25-26, the turnover was not significant. It was around INR 7 crores to INR 8 crores. And it was EBITDA positive. But after the BD expenses, it was negative because we had incurred some of the BD expenses. And this, as I said, this year, we are projecting to be more than INR 20 crores with a positive EBITDA and substantial positive EBITDA.

Analyst inquired about the performance of the VTS acquisition, and management provided FY26 revenue and profitability, along with FY27 projections for significant growth and positive EBITDA.

Asked by Kaushal Sharma

Order book inflow and pipeline health Direct
Gunit, I think what we mentioned is that during the year FY 25-26, we had a new order of more than INR 350 crores. And in Q2, Q3 beginning, we should at least get those new orders of that value, although we are not able to quantify because we don't give the numbers. But as and when we will get the confirmation, the same will be kind of intimated. But I think the pipeline is substantially good. And as Abhay sir already mentioned, there are 3 large orders where we are L1.

Analyst questioned the lower order intake in FY26, and management reassured about a strong pipeline and L1 positions, expecting to match or surpass FY26 order inflow by Q2/Q3 FY27.

Asked by Gunit Singh

Technology solutions segment decline in Q4 Direct
No, no, it is completely temporary. In fact, the overall mix of technology solutions in the contract has been more than 55%, 60%. And as it happens during a particular quarter, maybe I have not achieved a milestone for recognizing the revenue. And therefore, the percentage of the technology solutions revenue is slightly lower. But if you see the overall annual percentage, I think we have grown 41% on the technology solutions also. So it's a temporary.

Analyst noted a Q4 decline in technology solutions revenue, and management clarified it was temporary due to milestone recognition, with full-year growth remaining strong.

Asked by Shubham

International business trajectory and government dependency Direct
if you look at our vision statement before more than 1 year, that is our vision that we want to expand into international, reduce the government dependency, but still grow both simultaneously. So I think that's what we are doing.

Analyst asked about the international business becoming a larger part of the mix and reducing government dependency, which management confirmed as a strategic vision.

Asked by Ashish Soni

Long-term vision and growth Partial
I think long-term vision, we have already shared once and then our idea is to grow. Obviously, I can't quantify, grow and grow in both the segments, which is the International segment as well as India segment. India segment continues to be kind of contributed more by government business. So grow international faster, grow India business at its own pace without taking much exposure or risk and still have a combination of changing the mix from the present of government business from, let's say, average 70% to less than 50% over the next 2 to 3 years, but while continuing to grow.

Analyst sought clarity on the long-term strategic direction, and management reiterated plans for growth in both international and India segments, with a shift away from government dependency.

Asked by Gunit Singh

3 min read 7 chapters

Detailed narrative

Q4 & FY26 Performance Highlights

Ceinsys Tech reported its best-ever quarterly and full-year performance for Q4 FY26 and FY26. Q4 operational revenue grew 20% YoY to INR 171 crores, with EBITDA increasing 50% YoY to INR 40 crores, leading to a 475 bps expansion in EBITDA margins to 23.6%. Net profit for Q4 surged 70% YoY to INR 37 crores, and PAT margins expanded by 641 bps to 21.8%. For the full year FY26, operational revenue stood at INR 661 crores, a 58% YoY growth, and net profit reached INR 133 crores, marking a 111% YoY increase, with PAT margins surpassing 20% for the first time.

Strategic Initiatives & Inorganic Growth

The company is actively pursuing inorganic growth opportunities, with a current focus on due diligence for potential acquisitions or joint ventures expected to close in the next 1-2 quarters. An earlier earmarked amount of INR 235 crores for acquisition and expansion has been restructured to include joint ventures. This strategy aims to acquire new capabilities and expand into new domains, building on past acquisitions like Allygrow's mobility business in 2022 and VTS's geospatial business in 2024.

Order Book & Pipeline Dynamics

Ceinsys closed FY26 with a healthy order book of INR 876 crores as of March 31, 2026, which is executable over the next 12-18 months. New orders booked in Q4 FY26 aggregated to INR 62 crores. While FY26 order intake was less than INR 400 crores, management expressed confidence in a strong pipeline, particularly in infrastructure (road, metro, building construction), with 3 projects currently in L1 status. They anticipate matching or surpassing FY26 order inflow by Q2/Q3 FY27.

Geospatial & Technology Solutions Segment Performance

The Geospatial Engineering Services segment saw robust growth, with Q4 revenue increasing 75% to INR 102 crores and FY26 revenue growing 76% to INR 359 crores. The Technology Solutions segment, while experiencing a slight decline in Q4 revenue to INR 68 crores, still grew 41% YoY for the full year to INR 301 crores. Management clarified that the Q4 decline in Technology Solutions was temporary, attributed to milestone recognition, and the overall mix of technology solutions in contracts remains strong.

Working Capital & Cash Flow

The company maintained discipline in working capital, with the cycle marginally improving to 157 days from 162 days. Strong cash generation was a key highlight, with the net cash balance increasing significantly to INR 248 crores as of March 31, 2026, up from INR 123 crores a year ago. Management addressed concerns about increased unbilled revenue (INR 350 crores), explaining it's due to milestone-based billing on government projects and expects substantial conversion in Q1 and Q2 FY27.

International Expansion & Subsidiary Performance

Ceinsys is committed to international expansion, aiming to reduce dependency on government business from an average of 70% to less than 50% over the next 2-3 years. The VTS subsidiary, acquired in 2024, generated INR 7-8 crores in FY26 and was EBITDA negative due to business development expenses. However, management projects VTS revenue to exceed INR 20 crores with positive EBITDA in FY27. The company expects its loss-making subsidiaries to achieve breakeven in FY27.

IP Development & AI/ML Focus

The company is investing in product solutions focused on infrastructure and emerging technologies, particularly AI and Machine Learning. Two IPs have already been developed and applied for registration, with commercial utilization underway. For the current year, an expenditure outlay of INR 12-15 crores is targeted for developing at least 3 major IPs, which is part of the revenue expenditure. This vertical aims to enhance delivery and maintain a competitive edge in the dynamic technological landscape.

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

More Information Technology earnings calls