C.E. Info Systems Limited — Q1 FY26 earnings call

Call held 7 Aug 2025

Management summary

C.E. Info Systems reported a strong Q1 FY26 with robust revenue and profit growth, driven by its Map-led and Automotive segments. The company made strategic investments in Zepto and increased its stake in Gtropy, while navigating a transition period in its IoT business. Management reiterated its FY28 revenue goal of INR 1,000 crores, emphasizing long-term scalability and operational efficiency.

Highlights

  • Revenue of INR 121.6 crores, up 19.8% YoY, demonstrating robust financial performance.

  • EBITDA rose by 30.6% YoY to INR 55.9 crores, with EBITDA margin at 46.0%, underscoring operational efficiency.

  • PAT increased by 27.7% YoY to INR 45.8 crores, with a PAT margin of 33.9%.

  • Map-led business remained a key growth engine, delivering a strong 26% YoY growth with an EBITDA margin of 54.8%.

  • Automotive and mobility tech (A&M) revenue grew 24.4% YoY, supported by growing demand for advanced automotive solutions.

Concerns

  • IoT-led business was largely flat in Q1 FY26, following a 4% decline in the previous quarter, indicating a transition period.

  • Management noted that the nature of the business should be observed on a yearly basis rather than quarter-on-quarter, implying potential quarterly volatility.

Key financials

  1. Revenue ₹121.6 Cr +19.8%YoY
  2. EBITDA ₹55.9 Cr +30.6%YoY
  3. PAT ₹45.8 Cr +27.7%YoY
  4. EBITDA Margin 46%
  5. PAT Margin 33.9%

What they filed

Q1 FY27: revenue up 20.4%, net profit up 10.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue84 96 118 103 85 +1%85 −11%128 +8%124 +20%
EBITDA34 39 52 56 20 −41%23 −41%53 +2%60 +7%
Net profit31 33 49 50 18 −42%22 −33%47 −4%55 +10%
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

  • Map-led Business
    0.26 decimal_fraction YoY Growth54.8% EBITDA Margin
  • Automotive and Mobility Tech (A&M)
    0.244 decimal_fraction YoY Growth
  • Consumer Tech & Enterprise Digital Transformation (C&E)
    0.161 decimal_fraction YoY Growth

Order book

medium confidence
Management confirmed that a previously announced INR 233 crores e-commerce related business order has started to contribute to revenues.

Source: Q&A

Capital allocation

high confidence
  • M&A Gtropy Systems Private Limited Acquisition · Closed · Consideration ₹[object Object] (cash)

    To grow and address the IoT opportunity, increasing shareholding from 75.98% to 96.0%.

    Aims to put the IoT business back on a growth path with increased profitability.

    The company believes in the long-term prospects of its IoT business and is increasing its shareholding in its IoT subsidiary, Gtropy Systems Private Limited from 75.98% to 96.0%. ... One is Zepto, which is INR25 crores. One is Gtropy, another INR25 crores and the INR20 crores dividend which is getting paid right now.
  • M&A Zepto Investment · Announced · Consideration ₹[object Object] (cash)

    To enhance capabilities and adoption of solutions for the large and fast-growing quick commerce industry, and to deepen offerings for quick commerce.

    Aims to increase market split and service the quick commerce area better in India and internationally.

    Additionally on August 7, 2025, the Board has approved a strategic financial investment of INR25 crores in Zepto. This investment will enhance the capabilities and adoption of our suite of solutions for the large and fast-growing quick commerce industry.
  • Liquidity Cash ₹676 Cr This cash balance is as of June 30, 2025, before three major cash outflows (Zepto investment, Gtropy shareholding increase, and dividend payment) totaling approximately INR 70 crores.
    I'll give you the full figure. INR 676 crores as of 30th June. Now three major cash outflows either have happened or is going to happen shortly. One is Zepto, which is INR25 crores. One is Gtropy, another INR25 crores and the INR20 crores dividend which is getting paid right now. So if you add up the fee, it comes out to INR70 crores.

Guidance & targets

Revenue

  • Revenue Goal Revenue · FY28 · High confidence INR 1,000 crores
    Looking ahead, we are confident about the opportunities that lie ahead to achieve our revenue goal of INR1,000 crores in FY '28.

    — Rakesh Verma

Margin

  • EBITDA Margin Margin · FY26 · Medium confidence 35% plus
    I think we have said that it will be 35% plus, if I remember from my investor meet, which happened 2 months back.

    — Rakesh Verma

What to watch in Q2 FY26

IoT business growth and profitability

next quarter
Current Largely flat growth in Q1 FY26
Target Back on growth path with increased profitability

Why it matters

Management indicated that the IoT business is in a transition phase and expects it to return to growth and profitability in the next quarter.

And over the course of next quarter will be both back on growth path as well as increase in profitability as we identify certain gaps in the past; we are addressing those. And again, we'll be on the growth path, both on top line and bottom line for a Gtropy and overall IoT led business point of view.

Risks & concerns

  • Transition period in IoT-led business

    medium

    The IoT business is undergoing a transition period involving management change at Gtropy and a refocusing on higher-margin enterprise business, leading to flat growth in Q1 FY26.

    And so we're going through this transition period where we are refocusing the business on the way MapmyIndia has been doing in the enterprise world, which is higher margin, large enterprises and having certain fiscal prudencies in mind. So I would say that this is part of a transition.

    Management acknowledged

  • JV (TerraLink Technologies) losses

    medium

    Analyst inquired about the turnaround of the JV and when it would cease making losses, indicating it is currently loss-making.

    Apologies for joining the call a little late. So I just wanted to get a sense of when can we expect a turnaround in the JV in terms of the losses that you're currently making?

    Analyst acknowledged

  • Quarterly volatility in business performance

    low

    The nature of the business implies that performance should be observed on a yearly basis rather than quarter-on-quarter due to seasonalities.

    At the same time, we would like to communicate that the nature of this business is such that it should be observed more on a yearly basis rather than quarter-on-quarter.

    Management acknowledged

Q&A highlights

6 direct
IoT-led business growth trajectory Partial
So as an entire group, we are servicing the IoT business. We figured out that one of the ways that we could grow and address this IoT opportunity is to increase our shareholding in Gtropy, which was 76% previously to 96% right now with the optional right to acquire balance 4% in the coming 4 years. Until March, the management of Gtropy was being run by the earlier founder. We transitioned the management in the beginning of Q1. And so we're going through this transition period where we are refocusing the business on the way MapmyIndia has been doing in the enterprise world, which is higher margin, large enterprises and having certain fiscal prudencies in mind. So I would say that this is part of a transition.

Analyst questioned the flat growth in IoT, and management explained it as a strategic transition period involving increased shareholding in Gtropy and a refocusing on higher-margin enterprise business.

Asked by Shobit Singhal

Zepto investment and business agreement details Direct
We wanted to work closely in a strategic manner with somebody who can complete or deepen our offerings for quick commerce and also see the kind of flagship adoption so that customers can get the benefit of the entire suite of MapmyIndia solutions. So with that objective, this investment is being made both from a strategic business agreement point of view, wherein MapmyIndia solutions shall be used by Zepto, but also an investment point of view, where MapmyIndia's suite of solutions will also get rounded out and increase the market split, with a wide gamut of solutions for quick commerce so that we can service that area in a better way today in India, and then of course, over time, out internationally also.

Clarifies the strategic rationale behind the INR 25 crores investment in Zepto, highlighting its dual purpose of business agreement and strategic investment to deepen quick commerce offerings and expand market reach.

Asked by Shobit Singhal

INR 233 crores order contribution to revenue Direct
Let me answer the second part, yes, it has. On the other one, back ended, I don't call it back ended. From your language, it is also correct. What we say always that it is the entire year that you have to look at. And there are certain seasonalities in our business. And history has shown us that the Q4 is quite high compared to anything in Q1, Q2, Q3. So if you call it as a back-ended growth that will happen, the answer appears to be right yes.

Confirms that the previously announced INR 233 crores e-commerce order has started contributing to revenues, providing clarity on its impact on current and future financial performance.

Asked by Chandramouli Muthiah

Automotive and mobility tech (A&M) growth drivers Direct
Yes. So it's a happy news, right? So the reason is the more we are able to get into more depth of in the automotive sector, as Rohan talked about, our NCASE Solutions. And what it is doing is it's getting adopted more and more. And in spite of the overall automotive industry that didn't grow that much, our part of the solutions did get a better adoption. So this is how we have been successful in Q1.

Explains that strong A&M growth (24.4% YoY) is due to deeper penetration and increased adoption of their NCASE solutions within the automotive sector, even amidst a modest overall industry growth.

Asked by Chandramouli Muthiah

Sustainability of Map-led margins Partial
Again, you are looking at the quarter. Please look at the whole year. We know that 54% is more than 50% last quarter. But please look at the Map-led margin for the whole of last year. We would like to do better than last year.

Analyst questioned if the 54% Map-led EBITDA margin is sustainable, and management advised looking at annual performance due to quarterly variations, aiming for better than last year's annual margin.

Asked by Abhishek Kumar

Reasons for IoT business decline and hardware growth Direct
Yes. A few factors I can explain. We want to see the contribution margin in our IoT business, especially around hardware sales go up. And so there's a conscious effort to increase contribution margin. We also felt that the inventory that we had on hand in Gtropy was a bit too high compared to what our comfort factor would be. So we wanted to run down the inventory a little bit, but without affecting the contribution margin.

Management clarified that the flat IoT performance was a deliberate strategy to improve contribution margins, reduce excess inventory in Gtropy, and clean up systems for future secular growth.

Asked by Abhishek Kumar

Rationale for separate government and defense subsidiary Direct
I think it creates a focus. Again, there's a large business to be done around government digital transformation, government digital twin and government defense tech. And so the rationale to house that business within the wholly owned subsidiary was to create focus. In the longer term, it might create some value also. But primarily right now, just from a management perspective, it gives the teams there end-to-end focus on servicing the needs of the government.

Management explained that creating a separate subsidiary (Mappls DT Private Limited) for government and defense sectors is to enhance focus, leverage the large market opportunity, and provide end-to-end service to these critical sectors.

Asked by Abhishek Kumar

JV turnaround and international revenue contribution Direct
Yes. On the international revenues, they've already started to flow in international from MMI. I'll come to the JV in a bit. For MMI from international, revenues have already started to come in, and it will only increase over the time that to come. We are having wins every quarter. Of course, for it to become sizable enough, it will probably take, like we said, about a year or 2, but it will become sizable then. For the JV also we've talked about that - end of FY '26 or Q1 FY '27 is when the JV will start also generating revenues.

Analyst inquired about the turnaround of the JV (TerraLink Technologies) and the timeline for international revenue becoming sizable, to which management provided a timeline for both MMI's direct international revenues and the JV's revenue generation.

Asked by Sagarika Chetty

2 min read 6 chapters

Detailed narrative

Q1 FY26 Performance Overview

C.E. Info Systems commenced FY26 with a strong performance, reporting a 19.8% year-on-year revenue growth to INR 121.6 crores. EBITDA increased by 30.6% to INR 55.9 crores, resulting in a robust EBITDA margin of 46.0%. Profit After Tax (PAT) also saw a significant rise of 27.7% to INR 45.8 crores, with a PAT margin of 33.9%, demonstrating strong operational efficiency and business model strength.

Strategic Investments and Partnerships

The company made two key strategic moves in Q1 FY26. It increased its shareholding in IoT subsidiary Gtropy Systems Private Limited from 75.98% to 96.0%, investing INR 25 crores to bolster its IoT business. Additionally, C.E. Info Systems approved a strategic financial investment of INR 25 crores in Zepto, a quick commerce company, aiming to enhance its solutions for the fast-growing quick commerce industry and expand its market presence both domestically and internationally.

Segmental Performance Highlights

The Map-led business continued to be a primary growth driver, achieving a 26% year-on-year growth with an EBITDA margin of 54.8%, up from 50.1% in Q1 FY25. The Automotive and Mobility Tech (A&M) segment also performed strongly, with revenue growing 24.4% year-on-year due to increased adoption of advanced automotive solutions. The Consumer Tech & Enterprise Digital Transformation (C&E) segment registered a 16.1% year-on-year increase, contributing to the overall robust performance.

IoT Business Strategy and Transition

The IoT-led business experienced a flat growth trajectory in Q1 FY26, following a 4% decline in the previous quarter. Management clarified this as a strategic transition period, involving a change in Gtropy's management and a refocusing on higher-margin enterprise clients. The company is consciously working to improve contribution margins in hardware sales and reduce inventory, with expectations for the IoT business to return to a growth path and increased profitability in the next quarter.

Future Growth Drivers and Digital Transformation

C.E. Info Systems is actively developing advanced mapping technologies, including live high-definition (HD) maps for autonomous driving and lane-level navigation. The company is also focusing on 4D digital twin solutions, which encompass 360-degree real-time updating and immersive views, catering to emerging use cases like drone corridors, EV routing, and urban planning. These initiatives position the company for growth in various sunrise sectors and digital transformation needs across government and defense.

International Expansion and Joint Ventures

The company's international revenues from MapmyIndia (MMI) have begun to flow in and are expected to become sizable within the next 1-2 years. The joint venture, TerraLink Technologies (TLT), with Hyundai AutoEver, is currently in the build phase, developing maps for 10 large Southeast Asian countries. TLT is projected to start generating revenues by the end of FY26 or Q1 FY27, contributing to the company's long-term international growth strategy.

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