Detailed Narrative
Strong Financial Performance in FY26
CMRSL achieved its best-ever financial year performance in FY26, with revenue growing to INR 91.60 crore, a 20.62% YoY increase, significantly outperforming the industry's 12% adex growth. EBITDA surged by 45.06% YoY to INR 5.42 crore, and PAT reached INR 3.48 crore. The fourth quarter also demonstrated robust growth, with revenue at INR 25.60 crore and EBITDA at INR 1.35 crore, compared to INR 18.59 crore and INR 81.28 Lakh respectively in the prior year's corresponding period. EPS for FY26 stood at INR 11.89, up from INR 7.91 in FY25.
Growth Across Business Segments and Digital Initiatives
The company's domestic business expanded by 25.7% YoY, with the market research segment growing over 40%. The digital marketing business added more than 50 new logos, leveraging expertise in programmatic and ConnectedTV campaigns. The revenue mix for FY26 saw advertising contributing approximately 50%, CMR and data analytics 15-20%, and publisher monetization 30-35%. All three segments experienced double-digit growth, with market research and data analytics leading at over 40% YoY.
CMGalaxy SaaS Product Traction
CMGalaxy, the company's leading SaaS product, has initiated aggressive go-to-market activities since Q4 FY25. The company has already onboarded 12 new logos, primarily in the D2C and education sectors. Management aims to onboard up to 100 logos in FY27, indicating strong ambition for this product's growth. New sales and marketing resources are being added to support this initiative.
AI Integration and Operational Efficiency
CMRSL has deployed numerous AI tools and agents across its organization, including finance, accounts, sales, marketing, and operations. The company is rolling out its own AI infrastructure and utilizing tools like Claude, Antigravity, and Cursor AI for product development. This integration is enhancing client servicing, improving retention rates for products like AuxoAds, streamlining internal processes, controlling costs, and directly driving top-line revenue growth through CMGalaxy.
Update on Merger with CMIL
The merger of CMRSL with CMIL is progressing, with the application forwarded to SEBI in March 2026 after receiving no observation from NSE and BSE. SEBI's queries in April and May 2026 have been addressed, and the application is currently under review. Completion is anticipated between December 2026 and March 2027, subject to regulatory approvals. This consolidated structure is expected to drive significant cost optimization and deliver robust value to investors.
Outlook for FY27 and International Expansion
Management anticipates a very positive overall growth for FY27, expecting to outpace industry growth by a good margin despite geopolitical uncertainties. While international business was relatively flat YoY in FY26, the company expects a 6-8% growth in FY27 from its Singapore operations, driven by expanded client portfolios for AuxoAds and favorable exchange rates. The company plans to continue growing its team and business in both Indian and international markets at a faster rate than the industry.
Debt and Receivables Management
The company successfully reduced its debt-equity ratio to 0.26 times in FY26 from 0.35 times in FY25. Although trade receivables increased by INR 7.77 crore (29.05%) to INR 34.52 crore in FY26, the debtors-turnover ratio improved slightly from 124 days to 123 days. Management confirmed that payments are being collected on schedule, and the situation is under control, posing no cause for concern regarding cash flow.