Concall AI

C.E. Info Systems Limited — Q2 FY26 earnings call

Call held 11 Nov 2025

Management summary

C.E. Info System reported a mixed Q2 and H1 FY26, with strong revenue growth of 14.7% in H1 and significant IoT segment expansion. Key wins with IOCL and Survey of India highlight robust government and enterprise traction. However, margins were impacted by strategic investments and one-off expenses, with Q2 EBITDA margin falling to 24.7%. Management reiterated its FY28 revenue target of ₹1,000 crores and expects margins to improve as investments normalize.

Highlights

H1 FY26 revenue grew 14.7% over FY25 H1, indicating steady top-line expansion.
IoT revenue significantly increased by almost 50% to ₹74.5 crores from ₹54 crores, demonstrating successful investment in this segment.
Secured a landmark ₹110 crore contract with IOCL over 5 years, primarily IoT-led, and a good-sized contract with Survey of India, signaling strong government sector traction.
The Mappls consumer app user base crossed 40 million, showcasing strong product adoption and brand visibility.
Cash and cash equivalents increased to ₹639 crores from ₹565 crores a year back, reflecting a healthy liquidity position despite investments.

Concerns

Q2 FY26 EBITDA margin fell to 24.7% from 36.1% a year back, and H1 FY26 EBITDA margin declined to 35% from 39% YoY.
A one-off technical services outsourcing expense of ₹10-15 crores impacted EBITDA in the quarter.
The international joint venture with Hyundai Autoever is expected to take a couple more years to reach breakeven.
Map-led business was impacted by GST changes in the automotive vertical, and Q2/Q3 are noted as 'normal business as usual' quarters, implying lower performance compared to Q1/Q4.

Key financials

3 periods

Q2 FY26

EBITDA Margin
24.7%

H1

FY26 Revenue Growth
14.7%
YoY +14.7%
FY26 EBITDA
₹84 Cr
FY26 PAT
₹64 Cr
FY26 EBITDA Margin
35%

H1 FY26

IoT Revenue Growth
38%
YoY +38%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	84	96	118	103	85 +1%	85 −11%	128 +8%	124 +20%
Expenses	50	57	66	47	65	62	75	64
EBITDA	34	39	52	56	20 −41%	23 −41%	53 +2%	60 +7%
Margin	41%	40%	44%	55%	24%	27%	41%	48%
Other income	10	9	23	14	12	12	19	18
Interest	0	0	0	0	0	0	0	0
Depreciation	3	3	3	4	4	4	4	5
Profit before tax	41	45	72	66	28 −32%	31 −31%	67 −7%	73 +11%
Tax rate	24%	28%	32%	23%	33%	27%	30%	24%
Net profit	31	33	49	50	18 −42%	22 −33%	47 −4%	55 +10%
EPS	5.75	5.99	8.98	9.25	3.38	4.11	8.51	10.12

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
47.3% EBITDA Margin
IoT Business
₹74.5 Cr Revenue (H1 FY26)₹54 Cr Revenue (H1 FY25)

Order book

high confidence

Inflow this quarter

₹110 Cr

Execution

over a period of 5 years

Composition

Government (IOCL) (client type) ₹110 Cr
IoT-led (IOCL) (product)

Pipeline

deal pipeline tcv

Potential few hundred crores opportunity from road safety vertical (IoT and government)

Management highlighted significant new contract wins with government entities like IOCL and Survey of India, and an MoU with DMRC, indicating strong traction in the public sector and a growing pipeline, particularly in IoT-led solutions.

Source: Prepared remarks

Capital allocation

high confidence

M&A Hyundai Autoever (JV) Joint venture · Integrated

International business expansion
Expected to take a couple more years to reach first breakeven.

Now that investment and that company, of course, will take a couple of years to mature. I think a year has passed and it might take a couple more years to bring it to the first breakeven.
M&A Gtropy Acquisition · Closed

Organic investment in existing business

In spite of the fact that we have made some organic investment in terms of buying stakes of the original founders of Gtropy, that's what has happened.
Liquidity Cash ₹639 Cr Cash and cash equivalents increased from ₹565 crores a year back.

if you look at the balance sheet overall, then you can easily find that the cash and cash equivalent when we look at a year back was INR565 crores; today, we are sitting at INR639 crores.

Guidance & targets

Revenue

Revenue Target Revenue · FY28 · High confidence ₹1,000 crores

Yes, your thinking is right. FY '28 goal is definitely not changing.

— Rohan Verma
Implied Growth Run Rate Revenue · FY26 · Medium confidence 20-25%

I just want to understand, if you look at it on a full year basis for F '26, maybe sort of the implied growth run rate should be in the range of that 20% to 25% run rate.

— Chandramouli Muthiah (Analyst)

Margin

EBITDA Margin Aspiration Margin · Medium confidence 35-40%

I think you've spoken about aspiration to meet the 35% to 40% margin range and then on the top line run rates you discussed as well.

— Chandramouli Muthiah (Analyst)

Expenses

Technical Services Outsourcing Expenses Expenses · From next quarter onwards · High confidence Will keep coming down

Relatively, they will come down, yes. ... In '26 only, from next quarter onwards? That's correct.

— Rohan Verma

Automotive Segment

Automotive OEM Performance Automotive Segment · Q3 · Low confidence Hope for better performance

So let's hope that in Q3, the automotive OEMs do better. And we are hoping that it will reflect on us also.

— Rakesh Verma

What to watch in Q3 FY26

Technical Services Outsourcing Expenses

Next quarter onwards

Current ₹10-15 crores one-off expense in Q2

Target Expenses coming down

Why it matters

Reduction in these expenses is expected to contribute to margin improvement.

We will keep investing, but maybe the investment amounts will keep coming down. So margins will keep getting better. And so this was probably the peak of the investment that we had to make, it will continue to decrease. ... In '26 only, from next quarter onwards? That's correct.

Risks & concerns

Seasonality and lumpiness of business performance
medium

Q2 and Q3 are considered 'normal business as usual' quarters, implying lower performance compared to Q1 and Q4, which can lead to lumpiness in results.

Management acknowledged
Impact of GST changes and automotive sector slowdown
medium

The map-led business, particularly in the automotive vertical, was impacted by GST changes, and automotive sales slowed down after the August 15 announcement, affecting Q2 performance.

Management acknowledged
One-off technical services outsourcing expenses impacting EBITDA
medium

A one-off expense of ₹10-15 crores for technical services outsourcing impacted EBITDA in Q2, contributing to margin compression, though management expects this to be the peak.

Management acknowledged
Meeting long-term guidance if short-term growth rates are missed
medium

An analyst expressed concern that missing short-term growth rates could jeopardize the ability to meet the long-period guidance, highlighting the importance of consistent performance.

Analyst acknowledged
Long gestation period for international joint venture to reach breakeven
low

The joint venture with Hyundai Autoever in Jakarta (international business) is expected to take a couple more years to reach its first breakeven point.

Management acknowledged
Increase in trade receivables due to government business ramp-up
low

Trade receivables went up as government business ramps up, especially in Q2, but management stated these are collectible in due course.

Management acknowledged

Q&A highlights

5 direct, 1 evasive

Lumpiness in Q2 performance and factors affecting map-led vs IoT-led business Direct

IoT-led business already grew dramatically. If you're asking on the map-led business, there was some impact of GST, particularly in the automotive vertical. And corporate lumpiness, I think we have always said we see good revenue in Q1 and very good revenue in Q4, while Q2, Q3 are normal business as usual.

Analyst sought clarity on the uneven performance between segments, and management explained the impact of GST, automotive slowdown, and seasonality on map-led business, while highlighting strong IoT growth.

Asked by Chandramouli Muthiah

Future trajectory of one-off technical services outsourcing expenses and their impact on margins Direct

We will keep investing, but maybe the investment amounts will keep coming down. So margins will keep getting better. And so this was probably the peak of the investment that we had to make, it will continue to decrease.

Analyst questioned if the ₹10-15 crore one-off expense would recur, and management confirmed it was likely the peak, with expenses expected to decrease, implying future margin improvement.

Asked by Chandramouli Muthiah

Opportunity size and monetization strategy for the Railways MoU Evasive

Well, you know what happens is an MoU from the absolutely top level, it just lays down the contour of what all can be done. For the opportunity you can think about in railways, it's up in the air for us and yourself to imagine. If you're asking me for any numbers that have been written in the MoU - they don't write the numbers there. It is for us to start converting it into business.

Analyst sought quantification of the Railways opportunity, but management provided a qualitative response, emphasizing the strategic importance of the MoU as a precursor to future business without specific numbers.

Asked by Krupa Desai

Monetization strategy for the Mappls consumer app with 40 million users Direct

Mappls app as a technology showcase. Converting into a business or anything like that is not in today's agenda. So I will not speak anything on that, but it has a direct or indirect impact on our entire business that we do.

Analyst questioned the direct monetization of the popular consumer app, and management clarified it's primarily a technology showcase and brand builder, indirectly benefiting B2B/B2B2C, rather than a direct revenue stream currently.

Asked by Shobit Singhal

Recurring nature of government contracts, especially platform-led initiatives like Survey of India Direct

Gautam, it's a mixture. See, in the government also, once they engage in digital transformation, they also need to continue it. So many times, these extensions also happen. The nature of the beast is that they can't have an open contract. So they will give it for a particular time frame, a particular solution. But in many cases, if there's continuity in the government or the policies, et cetera, they do extend.

Analyst probed if new government platform-led projects would be recurring, and management explained that while contracts are time-bound, the platform nature often leads to extensions and sustained relationships, aligning with their strategy.

Asked by Gautam Rathi

Ease of use of MapmyIndia APIs for developers and focus on the developer ecosystem Partial

Given that majority of our business has been coming from enterprises, where the propensity to pay is higher, MapmyIndia is positioned more towards supporting large enterprises in India who have an ability to pay rather than use the API or focus on API as marketing. We use Mappls app as marketing, but we focus on customers who have the ability to pay and we provide them full service.

Analyst raised concerns about developer feedback on API complexity. Management clarified their current focus is on large enterprise clients with higher propensity to pay, rather than a self-serve, long-tail developer strategy, though they are open to it for 'large volumes, small value' opportunities.

Asked by Gautam Rathi

Allocation of investment costs (e.g., for government orders) between map-led and IoT-led segments and its impact on normalized EBITDA margins Direct

More in IoT-led. ... Overall, EBITDA of the company would have been higher and overall EBITDA of IoT-led would have been higher, if not for this investment that we have been making.

Analyst sought to understand how strategic investments impacted segment margins. Management confirmed these costs were primarily in the IoT-led segment, explaining why IoT-led margins had come down by 1% YoY despite strong revenue growth, and that overall company EBITDA would have been higher without these investments.

Asked by Shrinarayan

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Detailed narrative

Q2 & H1 FY26 Performance Overview

C.E. Info System reported H1 FY26 revenue growth of 14.7% over H1 FY25. However, Q2 was noted as a 'different type of quarter' with EBITDA margins falling to 24.7% from 36.1% a year back, and H1 EBITDA margins declining to 35% from 39%. This was partly attributed to a one-off technical services outsourcing expense of ₹10-15 crores and impacts from GST changes in the automotive sector.

Strategic Government and Enterprise Wins

The company secured a significant ₹110 crore contract with IOCL over 5 years, primarily IoT-led, and a good-sized contract with Survey of India for building a national geospatial platform. An MoU was also signed with DMRC, signaling potential for commercial expansion in the Railways sector. These initiatives are seen as landmark entries into building government's national geospatial platforms and next-generation logistics solutions.

Map-led vs IoT-led Business Dynamics

The IoT-led business demonstrated strong growth, with revenue rising almost 50% to ₹74.5 crores in H1 FY26 from ₹54 crores in H1 FY25. Management indicated that IOCL contract will be classified mostly into IoT-led business. The map-led business maintained a healthy EBITDA margin of 47.3%, similar to the previous year, despite some impact from GST changes in the automotive vertical.

Mappls Consumer App and Technology Showcase

The Mappls consumer app has successfully crossed a total user base of over 40 million, showcasing the company's technological strength. While not a direct monetization focus, the app serves as a leading front-end and technology showcase, indirectly impacting B2B and B2B2C businesses by demonstrating the company's capabilities and creating pull for its technology.

Capital Position and International Expansion

The company maintained a strong liquidity position, with cash and cash equivalents increasing to ₹639 crores from ₹565 crores a year back. Strategic investments include buying stakes in Gtropy and a joint venture with Hyundai Autoever in Jakarta. The international JV is still in its early stages and is expected to take a couple more years to reach its first breakeven.

Long-Term Vision and Margin Outlook

Management reiterated its FY28 revenue target of ₹1,000 crores and an aspiration to achieve a 35-40% margin range. They anticipate that the one-off technical services outsourcing expenses, which impacted Q2 margins, will decrease from the next quarter, contributing to margin improvement. The company's strategy focuses on sustained relationships with government clients through platform-led solutions rather than one-time service offerings.

This is an AI-generated summary of a publicly available earnings call transcript.

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