Frog Cellsat — Q2 FY26 earnings call

Call held 12 Dec 2025

Management summary

Frog Innovations Limited (formerly Frog Cellsat) held a business update call discussing its strategic repositioning into broader technology domains including CCTV, AI analytics, and EMS. While new initiatives like AI EYE and DCRA appointment show promise, the company anticipates significant revenue degrowth for FY26 due to a slowdown in its traditional DAS business and operator capex. Management is focused on building new revenue streams to achieve its FY28 revenue target of INR 500 crores.

Highlights

  • Company name changed to Frog Innovations Limited to reflect expanding presence across multiple technology domains.

  • Appointed by TRAI as a Digital Connectivity Rating Agency (DCRA), creating a new scalable revenue vertical.

  • AI EYE, an advanced AI-based video analytics platform, is scheduled for launch in the upcoming quarter with revenue expected next quarter.

  • Expanded service portfolio with end-to-end 5G site implementation services to mobile network operators.

  • EMS facility is operational, with capacity to manufacture 5,000 cameras per day, and discussions for smart meters, induction heaters, and PoE switches.

Concerns

  • Significant revenue degrowth expected for FY26, with revenue projected around INR 110-120 crores compared to INR 220 crores last year.

  • DAS business saw insignificant contribution in H1 FY26 and significant delays in deal conclusion.

  • STQC certification for FROG EYES CCTV camera portfolio is delayed, with approvals expected within FY26 and commercial rollout in early FY27.

  • Operator capex spending slowdown has impacted business, particularly in DAS.

What they filed

Q4 FY26: revenue down 49.9%, net profit down 134.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ3 FY24Q4 FY24Q1 FY25Q2 FY25Q3 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue45 44 36 80 91 +104%140 +214%47 +31%40 −50%
EBITDA5 7 4 6 22 +387%29 +343%-0 −107%-4 −157%
Net profit3 7 2 5 16 +451%18 +179%-2 −182%-2 −135%
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.

Order book

high confidence

Total value

₹50 Cr

as of 2025-09-30 range

Execution

Execution from the order received, it can be executed within three months.

Pipeline

deal pipeline tcv

DAS business pipeline

The order book at the end of H1 was around INR 50-52 crores, with a current pipeline of INR 100 crores for DAS business.

Source: Q&A

Capital allocation

medium confidence
  • Capex ₹15 Cr
    • Adding one SMT line for manufacturing ₹10 Cr
    our capex requirement between now and FY28 to achieve that target should be about INR 15 crores to INR 20 crores at max.

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · Medium confidence INR 110-120 crores

    From INR 220 crores (FY25) today

    Okay. So, this year, we should see substantial revenue degrowth on a Y-o-Y business. Let's say, last year, we ended around INR220 crores kind of revenue. So, this year, we should be looking at somewhere around INR 110 crores - INR 120 crores. Is that the right assumption? There will be definitely a revenue degrowth this year. That much I can tell.

    — Ankit Gupta, Konark Trivedi

  • FY28 Revenue Revenue · FY28 · High confidence INR 500 crores
    our FY28 vision to do INR 500 crores in revenue there.

    — Konark Trivedi

CCTV Certification

  • STQC Certification Approval CCTV Certification · FY26 / next quarter · Medium confidence Within FY26 / next quarter
    We expect certification approvals within FY26 with commercial rollout planned for early FY27. ... in next quarter, we should have those approvals in place.

    — Konark Trivedi

AI Analytics

  • AI EYE Launch AI Analytics · Upcoming quarter · High confidence Upcoming quarter
    AI EYE, our advanced Al-based video analytics platform scheduled for launch in the upcoming quarter.

    — Konark Trivedi

  • AI EYE Revenue Generation AI Analytics · Next quarter · High confidence Next quarter
    from Al analytics tools we expect revenue generation even in next quarter.

    — Konark Trivedi

New Service

  • Get Five Bars Launch New Service · Nearing launch · High confidence Nearing launch
    Another key initiative nearing launch is Get Five Bars, a pan-India service designed to address indoor mobile signal challenges.

    — Konark Trivedi

Capex

  • Total Capex for FY28 Vision Capex · FY28 · High confidence INR 15-20 crores
    our capex requirement between now and FY28 to achieve that target should be about INR 15 crores to INR 20 crores at max.

    — Konark Trivedi

PLI Incentives

  • Contribution from PLI PLI Incentives · Next year · Medium confidence More than last year

    Previously Not much contribution this year → More than last year

    this year, I don't see any much contribution coming in from PLI anyways because the number is down, but yes for next year we should be aiming at something more than what we claimed last year.

    — Konark Trivedi

What to watch in Q3 FY26

STQC Certification for CCTV

next quarter
Current In process, modifications done
Target Approval in place

Why it matters

Crucial for commercial rollout of FROG EYES CCTV and entering the tender market.

in next quarter, we should have those approvals in place.

Risks & concerns

  • Slowdown in DAS business

    high

    Significant delays in deal conclusion for DAS business, leading to insignificant contribution in H1 FY26.

    Management acknowledged

  • Operator capex spending slowdown

    high

    Unanticipated slowdown in capex spending by telecom operators (Jio, Airtel) impacting business.

    Management acknowledged

  • Revenue degrowth for FY26

    high

    Company expects substantial revenue degrowth for FY26, projecting INR 110-120 crores compared to INR 220 crores in FY25.

    Management acknowledged

  • Delays in STQC certification for CCTV cameras

    medium

    Certification approvals for FROG EYES CCTV are now expected within FY26, with commercial rollout in early FY27, later than initially planned.

    Management acknowledged

  • Government bottlenecks in approval processes

    medium

    STQC certification process is lengthy, with government-side bottlenecks and iterative product modifications required.

    Management acknowledged

Q&A highlights

8 direct
DAS business slowdown and FY26 revenue outlook Direct
Look, as apparent from our first half, the market is a bit slow this year. So, overall, DAS business was not there in first half or significant DAS business was not there in first half. Operator business was also slow because of the capex spending slowdown. So, we see some better results in H2, because we are expecting some closure of DAS system in this half, yes.

Highlights the primary reason for the expected revenue degrowth and management's expectation for H2 improvement.

Asked by Ankit Gupta

Reasons for deviation from double-digit growth optimism Direct
Right. So, what has happened is, as I mentioned, there has been a significant slowdown in terms of capex spending by the operators. And yes, this was not anticipated. And anyway, Jio was slow on capex spending, but it was not expected that Airtel will take a cue from that and also put a slowdown on capex spending there.

Explains the unanticipated market slowdown and operator capex cuts as the main drivers for missing growth targets.

Asked by Gunit Singh

Monetization timeline for EMS and AI analytics Direct
Right. So, EMS facility is already up and running. Our SMT line is up and running. So, it's technically ready. And we are just in the conclusion stages of a few deals for that. On AI analytics, as I mentioned, we have already, did a launch of our analytics tool in IFSEC exhibition in Delhi, which is currently taking place. So, it's ready. We have to just do the go to market now, for that.

Provides clarity on the readiness and immediate next steps for monetizing new business segments.

Asked by Gunit Singh

CCTV manufacturing capacity and capex for expansion Direct
So, in terms of manufacturing capacity, we can with the current capacity we have, we can manufacture like 5,000 cameras per day, but this capacity is easy to upgrade. So, as and when, we see requirements going up all what we need to do is to add another SMT line to our floor. So, the space is already there. The infrastructure is already there. We just need to order a SMT line and that's it. ... to add one SMT line, the capex requirement is about INR10 crores.

Quantifies current manufacturing capability and the relatively low capital expenditure required for significant expansion.

Asked by Siddhant Singh

FY28 revenue target of INR 500 crores and associated capex Direct
Most likely we should be able to do with current facility, but at max I think our capex requirement between now and FY28 to achieve that target should be about INR 15 crores to INR 20 crores at max.

Provides a long-term revenue target and the relatively modest capex required to achieve it, indicating asset-light growth potential.

Asked by Siddhant Singh

Competitive landscape and differentiation for AI analytics tools Direct
And our solution is made developed for both small size deployment of CCTV cameras, where even someone has 4, 8 or 16 cameras, it is going to work seamlessly for them also. And it is going to work seamlessly for even setups where you have hundreds of cameras deployed. So, yes, this is kind of differentiator for us.

Clarifies the company's unique selling proposition in AI analytics, focusing on compatibility with existing camera setups and scalability.

Asked by Rudraksh Raheja

Business model for Get Five Bars service Direct
No, no, no. So, it's not that. It will be simple. If someone has issues in indoor coverage, he wants a solution, he will connect with us, and we will go and fix the issue. This is what. It's not consultation. So the solution is we'll put an in-building coverage solution. So, we'll put some wires, antennas inside this device, and we'll get a repeater from operator and install it along with this setup, and we'll get better coverage.

Details the direct-to-consumer/business service model for Get Five Bars, emphasizing a solution-oriented approach rather than just consultation.

Asked by Rudraksh Raheja

Delays in STQC certification for CCTV cameras Direct
So, look, it's both ways. So, there has been, you know, one is bottleneck at the government side. And second is, once the product is evaluated, there are some findings on that which require some modification on our side of it. So, we have done those modifications. It's a bit of an iteration process also.

Explains the dual reasons for certification delays, involving both government processes and internal product modifications.

Asked by Prafull Rai

2 min read 6 chapters

Detailed narrative

Strategic Repositioning and Name Change

Frog Cellsat Limited has transitioned to Frog Innovations Limited, marking an important milestone in its evolution. While Frog Cellsat remains the dedicated brand for wireless coverage solutions, the new corporate identity reflects an expanding presence across multiple technology domains. This repositioning aligns the company with fast-growing sectors of the digital and technology ecosystem, enabling participation in long-term structural growth opportunities.

New Business Verticals and Digital Connectivity Rating Agency (DCRA) Appointment

Frog Innovations is actively building scale in CCTV and intelligence surveillance, AI-based video analytics, electronics manufacturing services (EMS), and connected devices. A significant development is the appointment by TRAI as a Digital Connectivity Rating Agency (DCRA), which will assess and rate buildings on digital connectivity readiness, creating a new scalable revenue vertical. The company's EMS division is engaged in manufacturing smart meters, induction heaters, and PoE switches, with an operational SMT line capable of 5,000 cameras per day.

DAS Business Slowdown and FY26 Outlook

The traditional DAS business experienced a significant slowdown, contributing insignificantly in H1 FY26 due to delays in deal conclusion and a broader capex spending slowdown by telecom operators. The company anticipates a substantial revenue degrowth for FY26, projecting around INR 110-120 crores compared to INR 220 crores in FY25. Management expects some improvement in H2 FY26 with the closure of a few DAS deals.

AI Analytics and CCTV Portfolio Development

The FROG EYES CCTV camera portfolio is undergoing STQC certification, with approvals expected within FY26 and commercial rollout in early FY27. In parallel, the advanced AI-based video analytics platform, AI EYE, is scheduled for launch in the upcoming quarter, with revenue generation expected from the next quarter. AI EYE is designed to operate with any CCTV camera, providing intelligent real-time alerts for various use cases and enhancing surveillance value.

Defense Market Focus and New Service Launch

The company is expanding its presence in the growing defense market, providing solutions for telecom infrastructure needs in remote locations. Products enhancing mobile connectivity have been successfully deployed, and mitigation filters for sensitive border areas are undergoing trial. Additionally, a new pan-India service called 'Get Five Bars' is nearing launch, designed to address indoor mobile signal challenges across various spaces, with individuals and businesses investing directly in the solution.

Long-Term Vision and Capex Plans

Frog Innovations Limited aims to achieve INR 500 crores in revenue by FY28, with 50% from wireless operations and 50% from new segments like CCTV, EMS, and ONTS. The total capex requirement to achieve this FY28 vision is estimated to be INR 15-20 crores. The current manufacturing facility can produce 5,000 cameras per day, and adding another SMT line would require approximately INR 10 crores, easily expandable to meet demand.

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