EMA Partners — Q4 FY26 earnings call

Call held 24 Apr 2026

Management summary

EMA Partners reported strong H2 FY26 performance with revenue up 35% YoY and EBITDA up 70% YoY, primarily driven by its robust core Executive Search business. While new business verticals are currently loss-making, management expressed confidence in their path to profitability within the next 12 months, with MyRCloud already showing a financial turnaround. The company also announced its first share buyback, signaling commitment to shareholder value, and is actively evaluating potential acquisitions to drive future growth.

Highlights

  • H2 FY26 revenue from operations stood at around INR 47 crores, reflecting a strong growth of approximately 35% year-on-year.

  • H2 FY26 EBITDA was around INR 7 crores, up 70% year-on-year, with margins improving to 14.25%, an expansion of 292 basis points.

  • The core Executive Search business delivered an EBITDA margin of ~29% and PAT margins of roughly 25%, with EBITDA of around INR 25 crores and PAT of INR 22 crores.

  • The MyRCloud business actually registered a financial turnaround during this financial year.

  • The company approved a buyback aggregating to INR 7.25 crores at a price of INR 100 rupees per share, reflecting confidence in the business.

Concerns

  • New business verticals are currently loss-making, with an EBITDA loss of INR 11 crores and a PAT loss of approximately INR 9 crores in FY26.

  • FY26 consolidated EBITDA margins declined by 156 basis points year-on-year to 16.45%.

  • Other income erosion due to MTM losses on mutual funds and public market instruments in H2 FY26.

  • Geopolitical events caused pressure on the Dubai business in March, though it is now stabilizing.

Key financials

2 periods

H2

  • FY26 Revenue
    ₹47 Cr
    YoY +35%
  • FY26 EBITDA
    ₹7 Cr
    YoY +70%
  • FY26 EBITDA Margin
    14.3%
  • FY26 Net Profit
    ₹5 Cr

FY26

  • Revenue
    ₹87 Cr
    YoY +18%
  • EBITDA
    ₹14 Cr
    YoY +8%
  • EBITDA Margin
    16.4%
  • Net Profit
    ₹12 Cr

What they filed

Q4 FY26: revenue up 23.7%, net profit down 44.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue29 38 39 35 41 +41%47 +24%
EBITDA7 10 9 4 8 +14%7 −30%
Net profit6 9 7 6 7 +17%5 −44%
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 FY26 Revenue
₹112.5 Cr Total
  • Core Executive Search Business (Mature) ₹82 Cr 72.9%
  • Dubai Core Business ₹23.5 Cr 20.9%
  • New Business Verticals (James Douglas, MyRCloud) ₹4 Cr 3.6%
  • Singapore Subsidiary ₹3 Cr 2.7%

Capital allocation

high confidence
  • Buyback ₹[object Object] Max ₹[object Object]/share
    In our recently concluded board meeting, we approved a buyback aggregating to INR 7.25 crores at a price of INR 100 rupees per share. This is the first buyback announced by the Company, and we expect to buy back approximately 3.12% of the paid-up capital, reflecting our confidence in the business and our commitment to delivering value to our shareholders.
  • Liquidity Cash ₹107 Cr Company has net cash of INR 107 crore and is conserving cash for potential acquisition opportunities.
    Our market cap is INR 200 crore. INR 100 crore is the net cash... No, you have seen the cash in our balance sheet. So, I don't want to get into specifics on what we are going to deploy. We are tracking two or three potential acquisition opportunities.

Guidance & targets

Profitability

  • New Business Verticals EBITDA Profitability · this financial year · High confidence EBITDA positive
    We are looking at this financial year these businesses will be EBITDA positive.

    — K. Sudarshan

  • Long-term PAT Margin Profitability · long term · High confidence 25%
    We said that in the long term our business will deliver 25% PAT margin, is what has been our consistent position over the years on a steady state basis.

    — K. Sudarshan

  • New Business (MyRCloud) PAT Profitability · FY27 · High confidence PAT positive
    So, we do expect for FY27, the new business can be both EBITDA positive and PAT positive, right? Absolutely, yes.

    — K. Sudarshan

Revenue

  • Core Business Growth Revenue · going forward · High confidence 18-20%
    We delivered about 18% to 20% this year we delivered on the core business in terms of top-line growth. We continue to maintain that we should be able to deliver a growth which is consistent. Over the three years we have maintained that 18% to 20% growth in the core business.

    — K. Sudarshan

  • New Business (INR 5 crores revenue) Growth Revenue · this year · Medium confidence doubling
    And this INR 5 crores, I mean, we are at least targeting doubling it in this year.

    — Deepak Poddar

Headcount

  • Salary Increase Headcount · this year · High confidence 8-12%
    So, the typical, I mean, this is the year, the end of the financial year has been like any other organization we look at salary increases. So, this typically anywhere it will range from 8% to 12% depending on the performance of the individual.

    — K. Sudarshan

  • Total Salary Bill Increase Headcount · every year · Medium confidence 10%
    So, can we expect the total salary bill of like INR 54 crore on consolidated basis last year, should one expect this to increase by around 10% year-on-year every year? I think that is a fair assumption to make, yes.

    — K. Sudarshan

What to watch in Q1 FY27

Profitability of new business verticals (James Douglas, MyRCloud)

this financial year (FY27)
Current EBITDA loss of INR 11 crores, PAT loss of INR 9 crores (FY26). MyRCloud registered financial turnaround.
Target EBITDA positive for new verticals.

Why it matters

Achieving profitability in new ventures is crucial for overall margin improvement and validating the company's investment strategy.

As a result, the new verticals are currently loss-making, with an EBITDA loss of INR 11 crores and a PAT loss of approximately INR 9 crores... However, we are already seeing early signs of operating leverage, with revenue growth outpacing employee cost growth in the second half, and we do see a clear path to profitability over the next 12 months.

Risks & concerns

  • New business verticals (James Douglas, MyRCloud) are currently loss-making

    medium

    New verticals had an EBITDA loss of INR 11 crores and a PAT loss of INR 9 crores in FY26, but a clear path to profitability is expected within 12 months.

    Management acknowledged

  • Volatility in subsidiary performance (Singapore, Dubai)

    medium

    Singapore subsidiary revenue and EBITDA declined in FY25, leading to restructuring. Dubai's EBITDA margin shrunk in FY25 due to new business ramp-up and geopolitical events.

    Analyst acknowledged

  • Geopolitical impact on Dubai business

    medium

    The war that broke out around February 28, 2026, caused pressure on the Dubai professional business in March, especially affecting candidate travel, though the situation is now stabilizing.

    Analyst acknowledged

  • Erosion of other income due to MTM losses

    low

    Other income was low in H2 FY26 due to market-related mark-to-market losses on mutual funds and public market instruments, which are not considered permanent losses.

    Analyst acknowledged

Q&A highlights

8 direct
Impact of AI on new businesses (James Douglas, MyRCloud) and hiring volumes Direct
Firstly, we see AI as an enabler for our business... MyRCloud business actually registered a financial turnaround during this financial year... for the James Douglas business... we do not see any substantial impact of AI reducing the number of jobs which would happen in the mid-to-senior levels as we speak.

Addresses a key industry concern (AI disruption) and provides positive updates on new business performance, indicating AI as an enabler rather than a threat to hiring volumes.

Asked by Rishi Maheshwari

Performance and investment details of James Douglas business Direct
this business added roughly about 30 people during this financial year... people costs are upfront loaded in the business, and they start turning positive, and typically this gestation period is anywhere between 6 to 12 months... So, we expect a turnaround of this business during this financial year.

Provides insight into the investment phase, headcount, and expected timeline for profitability for a key new vertical, clarifying the nature of upfront costs.

Asked by Rishi Maheshwari

Sustainability of core EMA Partners business growth and margins Direct
we think we will still be able to maintain near about 24-25% what we see this year... over three years you have seen margin accretive performance for the core business, and so we expect as we scale, we expect the margins to remain steady there in matured business.

Confirms management's confidence in maintaining strong margins and consistent growth in the established business, despite investments in new ventures.

Asked by Rishi Maheshwari

Rationale for buyback quantum and plans for surplus cash, including potential acquisitions Direct
the buyback was also intended to sort of, we also want to note that the promoters are not participating in the buyback... And secondly, also felt in a way as a small token of appreciation for our shareholders... So, we looked at a size which will still enable us to still go ahead with our plans on potential acquisition opportunities.

Explains the strategic thinking behind the buyback, including shareholder appreciation and the intention to preserve capital for ongoing M&A evaluations.

Asked by Rishi Maheshwari

Volatility and performance of Singapore and Dubai subsidiaries Direct
we have actually undertaken a restructuring of the Singapore subsidiary... we brought in a new managing partner for our Singapore business... In Dubai, we have a 2-Tier structure... on a consolidated basis, there was an impact on EBITDA in Dubai.

Provides specific reasons for past volatility in international markets and outlines steps taken (restructuring, new leadership) to improve future performance.

Asked by Keshav Garg

Explanation of MyRCloud business model and client acquisition Direct
MyRCloud is a platform-based business... we have recruiters on the platform who will pick up the jobs... we have a quality control organization, a small, the machine-based and the artificial intelligence-based QC layer... MyRCloud has a business development team... when we are recruiting CXOs, those same companies also hire at the other levels within the organization.

Clarifies the operational model of a new, technology-driven vertical and how it leverages existing client relationships for client acquisition, highlighting its scalability potential.

Asked by Keshav Garg

Impact of geopolitical events (war) on the Dubai market Direct
the war actually broke out somewhere on the 28th of Feb... So, this led to a little bit of pressure on our business in March... But now as we speak, Dubai is stabilizing.

Acknowledges external risks and their short-term impact on a specific geographic segment, providing an update on the current stabilization efforts.

Asked by Kamal Biswani

Differentiation between EMA Partners, James Douglas, and MyRCloud, and strategy for new businesses Direct
EMA Partners focuses on senior level Executive Search... James Douglas, as a business, focuses on mid-to-senior level hiring. And MyRCloud focuses on entry to mid-level hiring... we are absolutely focused on growing our Executive Search business... we have such strong client relationships at the top and also the market opportunity in the mid-to-senior-level segment.

Clearly defines the market segments addressed by each brand and explains the strategic rationale for expanding into mid-to-senior and entry-level hiring, leveraging existing client relationships and market opportunities.

Asked by Keshav Garg

2 min read 6 chapters

Detailed narrative

Overall Financial Performance in H2 & FY26

EMA Partners reported a strong second half of FY26, with revenue from operations reaching INR 47 crores, marking a 35% year-on-year growth. EBITDA for H2 FY26 stood at INR 7 crores, a 70% YoY increase, with margins improving to 14.25% (292 bps expansion). For the full FY26, consolidated revenue was INR 87 crores, an 18% YoY growth, while EBITDA came in at INR 14 crores, up 8% YoY, with margins at 16.45%. Net profit for FY26 was INR 12 crores, achieving a 14% PAT margin.

Strategic Investments in New Business Verticals

The company has invested approximately INR 15 crores in new business verticals, including James Douglas and MyRCloud, with INR 11 crores allocated to employee costs. These new ventures generated about INR 4 crores in revenue for FY26 but are currently loss-making, contributing an EBITDA loss of INR 11 crores and a PAT loss of INR 9 crores. Management expects these new businesses to become EBITDA positive within the current financial year (FY27), with MyRCloud already showing a financial turnaround.

Performance and Outlook of Core Executive Search Business

The established core Executive Search business remains a strong and profitable segment, delivering an EBITDA margin of approximately 29% and PAT margins of roughly 25% in FY26, with EBITDA of INR 25 crores and PAT of INR 22 crores. Management anticipates maintaining an 18-20% year-on-year growth in this segment, consistent with its performance over the last three years. The long-term PAT margin target for the steady-state business is 25%.

Capital Allocation: Buyback and Acquisition Strategy

EMA Partners announced its first share buyback, aggregating to INR 7.25 crores at INR 100 per share, representing approximately 3.12% of the paid-up capital. Promoters are not participating in the buyback. The company holds net cash of INR 107 crores and is actively evaluating two to three potential acquisition opportunities, aiming to balance shareholder returns with strategic growth investments.

Geographic Performance and Restructuring

The Singapore subsidiary underwent restructuring, including bringing in a new managing partner in early 2026, to improve its overall health and build it into a steady revenue and profit-generating engine. In Dubai, the company operates a two-tier structure, with the ramp-up of the James Douglas professional business impacting consolidated EBITDA. The Dubai business also experienced pressure in March 2026 due to geopolitical events but is now stabilizing.

MyRCloud Business Model and Future Scaling

MyRCloud is a platform-based recruitment business designed to build an entry to mid-level hiring segment through a network of freelance recruiters. It utilizes a technology-intensive approach with an AI-based QC layer to determine candidate fit. The business leverages existing client relationships from the core Executive Search segment for client acquisition and aims to scale rapidly, with expectations to be PAT positive in FY27.

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