CSM

CSM Technologies, established in 1998, has evolved into a specialized GovTech company, operating in 14 countries and 20 Indian states/union territories. The company employs approximately 1300 people and manages over 180 active projects across diverse industries. It emphasizes its deep sectorial expertise in GovTech, working with various government ministries and public sector undertakings, and has received national recognition for its projects, such as the 'Excellence in Public Administration' award in 2008.

For the full fiscal year 2026, CSM Technologies reported a 12% year-on-year increase in revenue from operations, reaching Rs. 226 crores. EBITDA grew significantly by 57% YoY to Rs. 48 crores, leading to an EBITDA margin expansion to 21% from 15% in FY25. Profit After Tax (PAT) saw a robust 70% YoY growth to Rs. 24 crores, with the PAT margin improving to 10.5% from 7% in the previous fiscal year. In Q4 FY26, revenue was Rs. 60 crores, EBITDA grew 3% to Rs. 16 crores (26.6% margin), and PAT grew 7% to Rs. 9 crores (15.1% margin).

As of March 31, 2026, the company's order book stood at Rs. 357.63 crores, providing revenue visibility for more than 24 months, with typical contract durations of 3-5 years. In the last quarter alone, the company clocked Rs. 44 crores in order inflows. Management highlighted a 'healthy funnel' of RFPs and expects significant deal execution by the end of Q2, expressing confidence that order bookings will surpass last year's figures.

CSM Technologies made strategic investments to strengthen its technological capabilities. This included Rs. 10 crores in intangible assets for proprietary products and platforms, and Rs. 3.17 crores in property, plant, and equipment, covering AI licenses, new hardware, cloud, and COTS licenses. An additional Rs. 1.17 crores was invested in working capital to bolster its technology infrastructure and support future growth, with a focus on enhancing capabilities in AI, machine learning, data analytics, cloud, and cybersecurity.

The company is actively expanding its international footprint, particularly in Africa, where it has consolidated operations with a delivery center in Nairobi and added new geographies like Malawi and Cabo Verde. International revenue contributed 5% to the total revenue in FY26, with export revenue at 9%. Management anticipates this percentage to grow at a faster pace in the current year, driven by recent deal bookings in these markets.

CSM Technologies positions AI as a key enabler for efficiency and a differentiator in the GovTech sector. The company is developing large language models by training them on historical government data and rules to enhance decision-making and service delivery. This approach, combining deep domain knowledge with technical AI skills, allows CSM to offer comprehensive solutions for governments' AI journeys, particularly for mission-critical public sector applications.

The Board of Directors recommended a final dividend of Rs. 0.5 per equity share for Financial Year 2026, subject to shareholder approval. The company also noted a one-time^📎 exceptional charge^📎 of Rs. 2.7 crores during the year, related to the statutory impact of new Labor Codes, which was accounted for while maintaining robust profitability.