eMudhra

eMudhra delivered a robust financial performance in FY26, with total income reaching INR 7,132 million, marking a significant 35% year-on-year growth. EBITDA for the year stood at INR 1,654 million, up 33%, while PAT increased 26% to INR 1,100 million. Over a five-year horizon, the company has compounded PAT at an impressive 30.5% per annum, showcasing consistent profitability. The fourth quarter of FY26 also demonstrated strong growth, with total income at INR 1,966 million (up 31.7% YoY) and PAT at INR 296 million (up 21.6% YoY).

The Enterprise Solution segment was the primary growth engine, contributing 59% of the total revenue and growing 55% year-on-year, comprising 23% organic and 32% acquisitive growth. Trust Services accounted for 20% of revenue, growing 32%, while Pure Services remained flat at 21%. Geographically, international revenue now represents 64% of the total, having grown nearly 39% year-on-year. North America leads with 34% of revenue, followed by India (36%), Europe (12%), Middle East and Africa (11%), and Asia-Pacific (7%).

eMudhra's R&D investments are concentrated on post-quantum cryptography (PQC), CertiNext (certificate lifecycle management), and SecurePass (identity and access management). These investments have translated into customer wins across diverse sectors including financial services, government, energy, and education globally. The company is also embedding agentic AI as a capability layer across its four platforms and developing a data privacy stack to address compliance with regulations like India's DPDP Act and GDPR in Europe.

In North America, eMudhra secured a large TLS certificate order for a university federation, covering approximately 700 universities, which is expected to drive 25-30% growth in the US product segment. The acquisition of Cryptas in Europe is facilitating cross-selling of eMudhra's CLM platform, with deals anticipated to close in the coming quarters. The company is also actively pursuing DPI deployments in Africa and seeing continued upgrades in the Middle East, indicating broad international momentum.

For FY27, eMudhra anticipates organic top-line growth of 15-18% and bottom-line growth of 25-30%. The Enterprise Product segment is expected to drive this growth with an estimated 25-30% increase, while Trust Services are projected to grow 20%. The company aims to double its PAT over the next three years, driven by a higher proportion of product-led revenue due to its superior gross margins compared to services. Tailwinds from AI, data sovereignty, PQC transition, and tightening compliance requirements are expected to fuel demand.

The company notes significant tailwinds from the cybersecurity landscape, with agentic AI expanding the attack surface and increasing enterprise demand for robust security solutions. AI models like Mythos are enhancing vulnerability identification, prompting enterprises to significantly improve their cybersecurity posture. This trend is evidenced by a large public sector bank's plan to ramp up cybersecurity spending by 50%, underscoring the growing market opportunity for eMudhra's product offerings.

eMudhra reported an order book of INR 238 crores, primarily comprising product business. The company generally projects a 2X order book, with a current projection of 2.2X-2.3X for the next year. However, some orders from the Middle East expected in March were delayed due to regional conflict. Management clarified that revenue recognition for large orders, particularly from government and banks, depends on execution capabilities, including infrastructure and team readiness, which is factored into their conservative estimates.