Frog Cellsat — Q4 FY25 earnings call

Call held 21 May 2025

Management summary

Frog Cellsat delivered exceptional financial results in FY25, with robust revenue growth of 39.1% and significant margin expansion to 16.1%, driven by strong DAS solution deployments. The company is investing in new product lines like SMT and CCTV, targeting a 30% revenue growth for FY26 and a long-term vision of INR 500 crores revenue by FY28 with sustained high margins. While Q4 saw slower order inflow and increased receivables, management expressed confidence in future growth from new projects and market opportunities.

Highlights

  • FY25 Revenue of INR 219.39 crores, up 39.1% YoY, outpacing 30% forecast.

  • Adjusted EBITDA increased by 72.6% and PAT by 51.7% YoY.

  • EBITDA margin expanded 314 bps to 16.1% in FY25, exceeding 15% guidance.

  • Successful delivery of DAS solutions for major airport projects (Noida, Mumbai, Guwahati).

  • Strategic vision for FY28 targeting INR 500 crores revenue with >15% EBITDA margin.

Concerns

  • Q4 order inflow was the slowest in the last three to four quarters.

  • Receivables increased sharply by INR 30-40 crores, though management expects collection within 3 months.

  • International market revenue for OneDAS is not expected in FY26 due to extensive groundwork required.

Key financials

2 periods

Headline

  • Revenue from Operations
    ₹219.39 Cr
    YoY +39.1%
  • Adjusted EBITDA Growth
    —
    YoY +72.6%
  • PAT Growth
    —
    YoY +51.7%
  • EBITDA Margin
    16.1%
  • EBITDA Margin Expansion
    314 bps

FY25

  • PLI Incentives
    ₹5.99 Cr

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

₹71 Cr

as of 2025-03-31 quantified

Composition

  • Network Accessories (product)
  • Repeaters (product)
  • Services Component (service)
  • DAS Component (product) ₹0 Cr 0%
Order inflow in Q4 was the slowest in the last 3-4 quarters, but management sees a good funnel for future DAS projects.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹15 Cr
    • SMT line ₹10 Cr
    So, for FY 2026, there is SMT line which will be added in this year only because it has been implemented now. So, and for that, the Capex investment is close to INR 10 crores. So that's what we are looking at. In addition to that, maybe there will be some more Capex. So overall, maybe around INR 15 crores is a rough figure which you can consider.

Guidance & targets

Revenue

  • Overall Revenue Growth Revenue · FY26 · High confidence 30%
    in our 30% projection which we have given, we have not taken any revenue from these markets as of now.

    — Konark Trivedi

  • New Product Lines Revenue (CCTV, SFPs, ONT) Revenue · FY26 · High confidence INR 60-70 crores
    our internal target, which is very conservative in nature, we have taken almost like INR 60 crores to INR 70 crores coming in for these new product lines in this financial year.

    — Konark Trivedi

  • Domestic OneDAS Revenue Revenue · FY26 · Medium confidence INR 140-150 crores

    From INR 110 crores today

    So, do you expect the OneDAS revenue from the domestic market to move from INR 110 to INR 140, INR 150 crore in FY '26? Konark Trivedi: It is a possibility.

    — Konark Trivedi

  • Total Revenue Revenue · FY28 · High confidence INR 500 crores
    our strategic roadmap to achieve INR 5,000 million in revenues and EBITDA margin in excess of 15%.

    — Konark Trivedi

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 15% plus
    we have kept our guidance on the margins to be again growing by 30% EBITDA, we should be doing in the range of 15% plus.

    — Konark Trivedi

  • EBITDA Margin (post-PLI) Profitability · FY28 · High confidence >15%
    We have given a projection of INR 500 crores in revenue with 15% EBITDA. So, financial year '28 is going to be without incentives, without PLI incentives, for us. And, yeah, we will be doing 15% plus in EBITDA that time as well.

    — Konark Trivedi

Market Share

  • CCTV Market Contribution Market Share · Medium confidence 5%
    We expect the CCTV market, we should be having to go with 5% contribution for us is also going to be pretty big, which works out to maybe a revenue of about INR 1,000 crores plus.

    — Konark Trivedi

Tax Rate

  • Sustainable Tax Rate Tax Rate · High confidence 27%
    See net tax rate, we are actually considering it at 25% plus the Cess, approximately 27% is the tax rate which is being provided for.

    — Charan Jeet Kalra

What to watch in Q1 FY26

SMT line operationalization and new product revenue

next quarter
Current In process of installation, expected functional within next month
Target Functional and operational, contributing to FY26 revenue

Why it matters

This new manufacturing capability is key for new product lines (CCTV, SFPs, ONT) and is targeted to contribute INR 60-70 crores in FY26.

SMT line has now been delivered to us. It is just from last week, and it is in the process of installation. We see that, you know, most likely within next month, it should be, functional and operational.

Risks & concerns

  • Slow order inflow in Q4

    medium

    Q4 order inflow was the slowest in the last 3-4 quarters, raising questions about future growth momentum.

    Analyst acknowledged

  • Increased receivables

    medium

    Receivables increased by INR 30-40 crores, attributed to milestone-based payments for large DAS projects, though collection is expected within 3 months.

    Analyst acknowledged

  • Delay in international market revenue for OneDAS

    low

    Entry into Europe and Africa markets for OneDAS requires substantial preparation, pushing revenue contribution to FY27 or later, not expected in FY26.

    Management acknowledged

Q&A highlights

8 direct
OneDAS contribution to FY25 revenue and FY26 growth outlook Direct
for the full year, if you look at it, then contribution of OneDAS in our revenues, this stands at almost 50%. So yes, this has been a big growth for us in this year... good funnel for our OneDAS solution in the domestic market... It is a possibility [to reach INR 140-150 crore in FY26].

Clarifies the significant role of OneDAS in current revenue and future growth strategy, especially domestically, and provides a potential target for FY26.

Asked by Ankit Gupta

SMT line operationalization, products, and initial revenue targets Direct
SMT line has now been delivered to us... within next month, it should be, functional and operational... our internal target... we have taken almost like INR 60 crores to INR 70 crores coming in for these new product lines in this financial year.

Provides a timeline for the new manufacturing capability and quantifies initial revenue expectations from new product lines like CCTV, SFPs, and ONT.

Asked by Ankit Gupta

Base business (non-DAS) growth and overall growth drivers Direct
it has not degrown as such. think it has maintained itself... The growth has come primarily from the DAS market... The IBS accessories or maybe network accessories market should remain stable. That's how we see it. And our growth should keep coming in from DAS and these new segments of businesses, which is CCTV or SFPs or ONT.

Clarifies that traditional segments are stable, with growth primarily driven by DAS and new product verticals, indicating a strategic shift in focus.

Asked by Ankit Gupta

Increase in receivables and expected collection timeline Direct
good amount of that is already collected post 31st March 2025. And balance amount will also be, I think, collected within the next three months because as the project will be implemented, installed and commissioned, we'll be getting that payment.

Addresses a potential concern about working capital by explaining the nature of project-based payments and providing a clear timeline for collection.

Asked by Thwanil Desai

International market entry for OneDAS and FY26 revenue contribution Direct
I don't see much of revenues generated from these market in FY26, because there is a lot of work that need to be done for entering in these markets. So, in our 30% projection which we have given, we have not taken any revenue from these markets as of now.

Sets realistic expectations for international revenue contribution, indicating a longer gestation period and confirming it's not factored into near-term guidance.

Asked by Thwanil Desai

Starlink as a competitive threat to Frog Cellsat's business Direct
Starlink is not going to replace your mobile phone... Our solution goes in airport, in metros, tunnels, coverage in the tunnels or in the stadiums or large concert venues. These are the areas where our DAS solution goes.

Management clarifies their distinct market niche and differentiates their offerings from satellite internet services, mitigating a potential competitive concern.

Asked by Vishal Pandiya

Telecom operator Capex trends and focus areas (e.g., Airtel/Reliance) Direct
basic coverage has already been achieved... operators need to work and potentially invest money in. One is the rural coverage... Second is, the densification... And third place is in building solutions... they don't need to build towers.

Explains the shift in operator investment focus towards areas like densification and in-building solutions, which aligns with Frog Cellsat's core DAS offerings.

Asked by Vishal Pandiya

EBITDA margin sustainability after PLI incentives expire (FY28) Direct
financial year '28 is going to be without incentives, without PLI incentives, for us. And, yeah, we will be doing 15% plus in EBITDA that time as well... our growth is anyway coming from active components, active items, which are high margin items.

Provides confidence in long-term margin sustainability even after government incentives, driven by a strategic shift towards higher-margin active components.

Asked by Reena Gattani

3 min read 7 chapters

Detailed narrative

Q4 & FY25 Financial Performance Highlights

Frog Cellsat reported robust financial results for FY25, with revenue soaring to INR 219.39 crores, marking a 39.1% year-on-year increase. Adjusted EBITDA saw a significant rise of 72.6%, and PAT grew by 51.7%. The company achieved an EBITDA margin of 16.1%, expanding by 314 basis points year-on-year and surpassing its guidance of 15%. This strong performance outpaced the earlier forecast of 30% revenue growth.

OneDAS Solution and Market Expansion

The OneDAS solution was a key growth driver, contributing almost 50% of FY25 revenues, approximately INR 110 crores. The company successfully delivered DAS solutions for major projects at Noida, Chhatrapati Shivaji Maharaj Mumbai, Navi Mumbai, and Guwahati International Airports. Frog Cellsat is targeting the $1 billion+ global DAS market, with initial focus on Europe and Africa, though no international revenue is expected in FY26 due to necessary groundwork. Domestically, OneDAS revenue is projected to grow to INR 140-150 crores in FY26.

SMT Line and New Product Verticals

The new SMT line, delivered recently and expected to be functional within the next month, will primarily be used for in-house manufacturing of new products including CCTV, SFPs, ONT, and repeaters. The company conservatively targets INR 60-70 crores in revenue from these new product lines in FY26. The Indian CCTV market alone is valued at $6 billion, presenting a significant opportunity, with Frog Cellsat aiming for a 5% contribution, potentially exceeding INR 1,000 crores.

Strategic Vision and Long-Term Targets

Frog Cellsat has outlined a strategic roadmap for FY28, aiming to achieve INR 500 crores in revenues with an EBITDA margin exceeding 15%. This long-term margin target is expected to be sustainable even without PLI incentives, driven by a shift towards higher-margin active components. The company's growth strategy is bolstered by its expanding product suite, operational discipline, customer trust, and favorable industry dynamics, particularly the 5G rollout.

Industry Dynamics and Competitive Landscape

Management addressed concerns regarding Starlink, clarifying that their DAS solutions cater to mobile signal coverage in specific indoor and high-density outdoor environments (airports, metros, stadiums), which Starlink's broadband services do not replace. They also noted a shift in telecom operator Capex from basic tower infrastructure to rural coverage, densification, and in-building solutions, aligning with Frog Cellsat's core offerings. This indicates a favorable market trend for the company's specialized solutions.

Capital Allocation and PLI Incentives

The company plans an overall Capex of approximately INR 15 crores for FY26, with about INR 10 crores specifically allocated to the SMT line. Frog Cellsat received INR 5.99 crores in PLI incentives in FY25, which contributed to the expanded EBITDA margin. These incentives are expected to continue for two more years, primarily benefiting products like repeaters and OneDAS solutions. The company's sustainable tax rate is estimated at approximately 27%.

Order Book and Receivables Management

As of March 31, 2025, the order book stood at INR 71 crores, with no DAS component as all such orders were shipped by March. The current order book primarily comprises network accessories, repeaters, and services. While Q4 saw a slower order inflow, management highlighted a 'good funnel' for future DAS projects. Receivables increased by INR 30-40 crores due to milestone-based payments for large DAS projects, but a significant portion has been collected post-March 31, 2025, with the balance expected within three months.

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