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    C.E. Info System

    MAPMYINDIA
    Information Technology·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

    5

    • 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

    2

    • 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.

    What Changed2

    vs Q2 FY26

    Guidance items5 → 2 (-3)Risks discussed6 → 3 (-3)

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue₹121.6 Cr+19.8%YoY
    2. 02EBITDA₹55.9 Cr+30.6%YoY
    3. 03PAT₹45.8 Cr+27.7%YoY
    4. 04EBITDA Margin46%
    5. 05PAT Margin33.9%

    Segment breakdown

    Map-led Business
    26% YoY Growth54.8% EBITDA Margin
    Automotive and Mobility Tech (A&M)
    24.4% YoY Growth
    Consumer Tech & Enterprise Digital Transformation (C&E)
    16.1% YoY Growth
    List

    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

    3
    high confidence
    CategoryHeadline
    M&A

    Gtropy Systems Private Limited

    acquisition · closed · Consideration ₹NaN (cash)

    M&A

    Zepto

    Other · announced · Consideration ₹NaN (cash)

    Liquidity

    Cash ₹676 crores

    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.

    Guidance & targets

    2
    CategoryTargetPriority
    Revenue
    Revenue Goal
    INR 1,000 crores
    		High
    Margin
    EBITDA Margin
    35% plus
    		Medium

    IoT business growth and profitability

    next quarter
    CurrentLargely flat growth in Q1 FY26
    TargetBack 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.

    How to verify

    key_financials.segment_breakdown[name='IoT-led Business'].metrics[label='YoY Growth']

    Risks & concerns

    3
    RiskSeverity

    Quarterly volatility in business performance

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

    low

    Transition period in IoT-led business

    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. — Management acknowledged

    medium

    JV (TerraLink Technologies) losses

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

    medium

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.