eMudhra Limited

eMudhra reported a robust Q3 FY26 with total income of INR 1,911 million (INR 191.1 crores), marking a 35.6% year-on-year growth. EBITDA for the quarter stood at INR 441 million (INR 44.1 crores), with a margin of 23.1%, growing 38.2% YoY, while net profit was INR 290 million (INR 29 crores), up 29.5% YoY. For the nine months ended December 31, 2025, total income reached INR 5,166 million (INR 516.6 crores), a 36.5% YoY increase, with EBITDA at INR 1,255 million (INR 125.5 crores) and PAT at INR 805 million (INR 80.5 crores).

Growth during the quarter was primarily driven by increased product-led revenues across various markets, which helped offset margin pressure in the U.S. services business. The CRYPTAS acquisition significantly contributed to Europe's performance, adding INR 34 crores to Q3 revenue, up from INR 24 crores in Q2, and turned profitable with INR 1-1.25 crores PAT. Management highlighted that 65% of the company's revenue is recurring, with the balance being one-time^📎 license delivery, indicating a stable revenue base and improving overall margin quality.

eMudhra is actively expanding its global footprint, with U.S. data centers now live to support local TLS certificate issuance and enterprise adoption. In the Middle East, a new UAE data center is being set up with an investment of INR 15 crores, driven by new local trust service provider guidelines. The company's product portfolio, including emCA and CERTInext, is being integrated into CRYPTAS's offerings, and AI Cyber Forge's secret management engine has been amalgamated into the U.S. subsidiary, eMudhra Inc.

Despite achieving INR 516.6 crores in revenue for 9M FY26, management reiterated its full-year FY26 revenue guidance of INR 700 crores, indicating confidence in Q4 performance. The total CAPEX for FY25-26 is projected to be around INR 75-80 crores, including INR 60-62 crores for software development (PQC, data privacy, remote signing) and an additional INR 15 crores for the UAE data center. Approximately 72% of the planned CAPEX (excluding the data center) has already been incurred, with the balance to be incurred.

The company expects trust services revenue to grow by 22-25% year-on-year, reaching INR 120-122 crores for FY26, driven by initiatives like DPDP compliance and property digitization in India. While eSign volumes have increased significantly from 50,000-1 lakh per day to over 4 lakh per day, the per-eSign revenue of INR 5 and 25% margin after Aadhaar charges mean volume growth has a limited impact on overall profit. Regulatory frameworks like NIS2 and DORA in Europe continue to reinforce demand for certificate lifecycle management and identity solutions.

eMudhra differentiates itself in the global market by offering equally capable or superior products (like CA solutions and CLM) at a more competitive price point compared to U.S. competitors like DigiCert, especially in regions like the Middle East, Africa, and Far East. While DSC issuance and eSign are commoditized, the company's CERTInext emCA and identity authentication management solutions are considered non-commoditized, with only a few global providers. The company estimates that out of its INR 700 crores FY26 revenue, INR 130-140 crores will come from commoditized products, with the rest from differentiated offerings.