Crayons Advertising Ltd — Q3 FY26 earnings call

Call held 19 Jan 2026

Management summary

Crayons Advertising Limited held an investor meet to discuss its business strategy, segment performance, and future outlook. The company is confident in achieving 20-25% revenue growth in the coming years, driven by a diversified client base, international expansion into the Middle East via a new Dubai subsidiary, and strategic adoption of AI for efficiency. While no specific quarterly financial figures were disclosed, management provided insights into segment-wise revenue mix and profitability, highlighting the high-margin events business as a key growth area.

Highlights

  • Targeting 20-25% revenue growth year-on-year for the coming years, with confidence in 20-25% for FY27.

  • Aiming for 25% of top-line revenue from high-margin events business by FY27, which currently has 15%+ EBITDA margins.

  • Successfully established a subsidiary in Dubai to tap the Middle East market, with team setup in progress for the next few months.

  • Diversified client portfolio including major PSUs, government, and private sector giants like Tata Group and Adani.

  • Strategic adoption of AI to improve efficiency, speed, and profitability across all business aspects within the next 12 months.

Concerns

  • EBITDA margins have fluctuated in the past 2-3 years due to competition and changing industry dynamics.

  • High debtor days, though management states this is an industry norm.

  • General industry risks include global economic conditions and client retention.

What they filed

Q4 FY26: revenue up 35.4%, net profit down 90.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue92 127 99 135 141 +53%172 +35%
EBITDA6 15 4 4 3 −50%2 −87%
Net profit6 11 4 10 3 −50%1 −91%
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

SegmentRevenue ShareEBITDA Margin
Print (Publishing Newspapers)50%5%
Digital20%10%
Out of Home (OOH)10%—
Events & Television (Combined)20%—
Events—15%
Television—6%

Capital allocation

high confidence
  • Capex Capex disclosed
    • Strategic investment in land in Goa ₹5.2 Cr
    the value is 5.2 crores, but we have not paid 5.2 crores for it as yet.
  • Debt Debt disclosed
    • Repayment Long-term borrowings reduced from 3.28 CR (Mar 25) to 2.84 CR (Sep 30) ₹0.44 Cr
    • New borrowing Short-term borrowings (CC limit) increased from 2.15 CR to 13.03 CR ₹10.88 Cr
    Long-term borrowings have reduced, from around March 25 to 3.28 CR long-term borrowing, and in September 30th, you see 2.84 crore. So, this has been reduced, not increased, long-term borrowings. Yes, short-term borrowings are a bit increased from 2.15 to 13.03 CR. So, this is a short-term borrowing is the CC limit, cash credit limit.
  • Liquidity Liquidity disclosed Company has 'good cash on book' and cash credit limits for working capital.
    We have good cash on book.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 and coming years · High confidence 20-25%
    at least a 20% to 25% growth in the years to come. Every year, year on year.

    — Mukesh Singhal

  • Events Revenue Share of Top Line Revenue · FY27 (26-27) · High confidence 25%
    next year, 26-27, we should be able to achieve about 25% of our top line through events.

    — Mukesh Singhal

Margin

  • Overall Margins Margin · times to come · Medium confidence Improvement
    we'll be able to increase our margins in the times to come.

    — Mukesh Singhal

Shareholder Returns

  • Shareholder Wealth Shareholder Returns · coming years · Medium confidence Increase
    increasing business and margins would automatically lead to shareholders benefiting in the times to come.

    — Mukesh Singhal

What to watch in Q4 FY26

Revenue Growth for FY27

FY27
Current Targeting north of 20% for current year
Target Achieve 20-25% YoY growth for FY27

Why it matters

This is the core indicator of the company's business expansion and ability to capture market share in a competitive industry.

we will definitely do above... north of 20% of what we closed this year. We are sure that we'll be between 20% and 25%, 26-27 that part, we are quite confident.

Risks & concerns

  • Global and National Economic Conditions

    medium

    Advertising industry is typically among the first to be impacted by economic downturns or crises.

    Management acknowledged

  • Client Retention

    medium

    Risk of losing key clients, though mitigated by a balanced portfolio of private and government clients and long-standing relationships.

    Management acknowledged

  • Talent Retention

    low

    Risk of employee turnover, but mitigated by a stable senior management team and branch heads.

    Management acknowledged

Q&A highlights

7 direct
Segment-wise business and growth Direct
currently, we would be about... I would put it about 50% for print. That's called publishing newspapers. We would be about 20+ percent for digital, and out of home this year is not too large. I would put it that out of home is... a little less than 10%, and that would make it 80%, with 20% for events and television, currently.

Provides a breakdown of the company's current revenue sources and their relative contributions, which is crucial for understanding its business mix.

Asked by Pritesh Vora

75 crore loan and advances on balance sheet Direct
There are no loans in advances of 75 crores. There's... there seems to be some communication gap. We have got only cash categories for a working capital requirement. Right now, 75% of loan, not at all.

Clarifies a potential misunderstanding regarding a significant balance sheet item, distinguishing between actual loans and operational advances/current assets.

Asked by Tejas Khandelwal

Why margins are less than peers Direct
most of them are outdoor companies that own assets. We are not advertising companies... So, what we do is we are creative, we are buyers, and we are not sellers.

Explains the company's distinct business model as a creative and media-buying agency, differentiating it from asset-owning peers and justifying margin differences.

Strategy to expand government clientele Direct
government business generally comes with a lot of eligibility criteria... governments generally don't choose just one agency. They will end up choosing two to three, maybe up to four agencies as a panel, and then the business gets divided between them.

Details the approach to securing business from the significant government sector, highlighting the competitive and eligibility-driven nature of these contracts.

Investment in 5.2 CR land in Goa Direct
we feel that there is a good potential, it's an area which is going to be developed very majorly... in the next 3 years, that's going to have a huge upside, and it's a very small... and we've not invested, we've just blocked a little bit of advanced money right now. We haven't put in... the value is 5.2 crores, but we have not paid 5.2 crores for it as yet.

Provides insight into the company's non-core asset investments and the strategic rationale behind them, indicating a long-term value creation perspective.

Global market strategy and Dubai subsidiary Direct
We have just recently been able to establish a subsidiary in Dubai for the international market, especially the Middle East market... The company has been registered, and now we're in the process, in the next few months to, you know, put up the team there and start the work there.

Confirms a concrete international expansion plan and its current status, indicating a new avenue for growth in the Middle East.

AI impact on business model Direct
Al is an enabler. It's not a... it's a disruption... the whole objective is... that the new talent that we are hiring is all completely Al, let's say Al-trained professionals... it will be helping us become a much more efficient and a much more swift agency.

Outlines the company's proactive strategy for leveraging AI to enhance efficiency, reduce costs, and improve service delivery, framing AI as a competitive advantage rather than a threat.

Mainboard switch plans Partial
We'll take a call on this when we come there, but right now we're not eligible, so I don't know what those methods would be and what the process would be, because it's still about 6 months, 7 months, and maybe rules May change

Indicates the company's aspiration for a mainboard listing, which could enhance liquidity and investor visibility, while acknowledging current ineligibility and timeline uncertainties.

2 min read 6 chapters

Detailed narrative

Business Overview and Market Positioning

Crayons Advertising Limited, an independent full-stack marketing communications agency with 40 years of experience, operates across diverse sectors including FMCG, BFSI, real estate, and government. The company maintains a strong presence in major Indian cities and has recently established a subsidiary in Dubai. Management emphasized its unique positioning as a creative and media-buying agency, distinct from asset-owning outdoor media companies, which influences its margin structure.

Segment Performance and Profitability

The company's current revenue mix is approximately 50% from Print (publishing newspapers), over 20% from Digital, less than 10% from Out of Home (OOH), and around 20% combined from Events and Television. Profitability varies significantly by segment: Print and Television yield 5-7% and 6-8% EBITDA margins respectively, Digital is 10-14%, and Events is the most profitable at 15%+. Management aims to increase the contribution of the high-margin events business to 25% of the top line by FY27.

Strategic Focus on AI and Technology Adoption

Crayons views Artificial Intelligence (AI) as a critical enabler for future growth and efficiency, rather than a disruptive force. The company is actively deploying AI technology and resources across all business functions, including creative, media planning, and finance, to enhance output, reduce costs, and improve operational speed. This strategy involves hiring AI-trained professionals and is expected to yield significant benefits in efficiency and profitability within the next 12 months.

Government and PSU Client Expansion

A key growth area for Crayons is the government and Public Sector Undertaking (PSU) segment, which is increasingly investing in communication and advertising. The company leverages its size, track record, and adherence to eligibility criteria (turnover, experience, resources) to secure mandates. Government business is typically tender-based, with contracts lasting 1-3 years, and often involves being selected as one of several agencies on a panel, ensuring a consistent flow of projects.

International Expansion and Future Outlook

Crayons has initiated international expansion by establishing a subsidiary in Dubai, targeting the growing Middle East market, including UAE, Saudi Arabia, Bahrain, and Qatar. The company is currently in the process of building its local team. Management expressed confidence in achieving 20-25% year-on-year revenue growth for the coming years, including FY27, driven by this international expansion, a diversified client base, and ongoing technology integration.

Capital Structure and Investments

As of September 30, 2025, the company's long-term borrowings have reduced to 2.84 crores from 3.28 crores in March 2025, while short-term borrowings (cash credit limit) increased from 2.15 crores to 13.03 crores. Management clarified that a query about a '75 crore loan' was a misunderstanding, referring instead to current assets and advances paid for ongoing jobs. Crayons has also made a strategic investment in land in Goa, valued at 5.2 crores, anticipating significant appreciation within three years, though the full payment has not yet been made.

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