C.E. Info Systems Limited — Q3 FY26 earnings call

Call held 16 Feb 2026

Management summary

C.E. Info Systems reported a weak Q3 FY26 with muted financial performance primarily due to delayed government projects and customer-requested delivery deferrals. Despite this, the company saw a healthy increase in its open order book to INR1,770 crores and reaffirmed its FY26 EBITDA margin guidance of 35% and FY28 revenue target of INR1,000 crores. Management highlighted a strategic focus on AI integration and new revenue streams from key projects, expressing confidence in a stronger Q4 and future growth trajectory.

Highlights

  • Open order book grew to INR1,770 crores by December 31, 2025, indicating strong future revenue visibility.

  • Successfully booked INR600 crores in orders during the first nine months of FY26.

  • Maintained FY26 EBITDA margin guidance at 35%, demonstrating confidence in profitability.

  • Reiterated the ambitious FY28 revenue target of INR1,000 crores.

  • Significant progress in integrating AI into products and technology, aligning with future market trends.

Concerns

  • Q3 FY26 was a 'weak quarter' with 'muted financial performance' due to delayed deliveries.

  • 60-70% of the decline in C&E business was attributed to government delayed projects, including fiscal grant delays and urban state elections.

  • PAT is impacted by a couple of crores of operating expense related losses from the Indonesia Joint Venture.

Key financials

3 periods

Headline

  • Open Order Book (as of Dec 31, 2025)
    ₹1,770 Cr
  • Map-led Business Revenue Share (Overall Mix)
    60%
  • AI Tools Revenue Share (Overall Mix)
    10%

9M FY26

  • Gross Order Booked
    ₹600 Cr
  • IoT Business Revenue Share
    35%

FY26

  • Government Revenue Share
    20%

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.

Order book

high confidence

Total value

₹1,770 Cr

as of 2025-12-31 quantified

Pipeline

other

New order book is happening in Q4, with expectations for similar or better closing levels.

Cancellations & deferrals

  • deferred: Delayed delivery to customers in Q3 due to customer requests.
  • deferred: Government delayed businesses, 60-70% of C&E decline, due to delayed fiscal grants for national flagship projects and urban state elections in Maharashtra and Bihar.
The open order book has grown significantly, demonstrating strong customer confidence and future revenue visibility, despite Q3 delivery delays.

Source: Prepared remarks

Guidance & targets

Order Book

  • Open Order Book Order Book · FY28 · High confidence INR2,000 crores
    We had talked about our target for FY '28, where we had said that we will reach around INR2,000 crores as open order book.

    — Rakesh Verma

Revenue

  • Total Revenue Revenue · FY28 · High confidence INR1,000 crores
    So beyond this, the two questions that you will have in mind would be if we will reach our INR1,000 crores target by FY '28

    — Rakesh Verma

  • Revenue from IOCL Revenue · next fiscal (FY27) · High confidence INR20 crores
    Well, if you look at IOCL, let me put it into 2 different buckets. The next year, if you ask me, it will be around close to INR20 crores.

    — Anuj Jain

  • Revenue from Survey of India Revenue · next fiscal (FY27) · High confidence INR7-8 crores
    And from Survey of India, I can only comment on the one that we have already in our pocket, but we also have add-on business opportunity from Survey of India. ... To just crisply answer your question, it will be to the tune of around INR7 crores to INR8 crores.

    — Anuj Jain

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 35%
    we have given you a guidance of 35% EBITDA margin in FY '26. We stand behind that, Q4 is halfway done. We see no reason why we will not achieve that.

    — Rakesh Verma

Revenue Growth

  • Q4 FY26 Revenue Growth Revenue Growth · Q4 FY26 · Medium confidence better than last Q4
    As far as the revenue growth this year overall is concerned, I would simply say that the Q4FY26 growth will be better Q4FY26.

    — Rakesh Verma

What to watch in Q4 FY26

Q4 FY26 Revenue Growth (YoY)

next quarter
Current Q3 was weak, Q4 expected to be better than last Q4
Target Specific YoY growth rate for Q4 FY26

Why it matters

To assess the recovery from Q3 delays and the overall FY26 performance.

As far as the revenue growth this year overall is concerned, I would simply say that the Q4FY26 growth will be better Q4FY26.

Risks & concerns

  • Weak Q3 financial performance and muted growth

    high

    Q3 FY26 was a 'weak quarter' with 'muted financial performance' due to delayed deliveries and customer requests.

    Management acknowledged

  • Government project delays

    high

    60-70% of the C&E business decline was due to delayed fiscal grants for national flagship projects and urban state elections in Maharashtra and Bihar, pushing revenue to Q4 FY26 and Q1 FY27.

    Management acknowledged

  • Impact of Indonesia JV on PAT

    medium

    The Indonesia JV is in a 'build phase' and is currently impacting PAT by a couple of crores of operating expense related losses each quarter.

    Management acknowledged

  • Private sector delays and scope changes

    medium

    Beyond government delays, the private sector also contributed to the C&E business slowdown due to billing delays and changes in project scope, particularly related to AI infusion.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
Q3 C&E business dip, corporate vs government impact, and FY28 revenue target Direct
So your question, if I understood it correctly, were two parts. One is related to the decline in C&E, which I'll explain and what is the contributory factor coming from the government loan. And the second is what is the spread going forward in FY '28, if I understood you correctly. So let me answer your question first. ... But primarily, if you see the decline, around 60% to 70% is due to government delayed businesses.

Addressed the primary reason for the weak Q3 performance and reaffirmed the long-term revenue target.

Asked by Anmol Garg

Margin profile for FY27/FY28 and impact of AI developments Partial
Okay. I don't think we would like to make any commentary on FY '27, FY '28 margin at this point of time. When we work on the budget and look at FY '27 revenue mix, we'll be able to give you guidance, which is at the next quarter, but for FY'26 EBITDA margin will definitely be 35%.

Management deferred specific long-term margin guidance but confirmed the FY26 target, and clarified AI integration is a long-standing strategy, not a new disruption.

Asked by Vaibhav Mishra

Mix between Map-led and IoT business and revenue burn of the order book Direct
The IoT business is kind of on a steady growth path. ... It's an independent vector to the Map-led business, at least on the government side. ... So steady state, we don't want to kind of put a fixed number, I think, because we want to let both of the businesses kind of achieve whatever best they can achieve.

Provided insight into the strategic importance and growth trajectory of both key business segments and their independent growth paths.

Asked by Rishabh Rathi

Expectations for Q4 FY26 growth given Q3 delays Evasive
I wish I had the liberty of disclosing the number exactly. We are working on it closely to see what best we can get. So when we have said it will be better than last year year-on-year, that's the best I can share at this time. We will attain 35% plus EBITDA.

Management deferred specific Q4 revenue target despite analyst's push, indicating uncertainty about the extent of Q3 deferral recovery.

Asked by Sujit Jain

Revenue contribution from new projects with IOCL and Survey of India Direct
Well, if you look at IOCL, let me put it into 2 different buckets. The next year, if you ask me, it will be around close to INR20 crores. ... And from Survey of India, I can only comment on the one that we have already in our pocket, but we also have add-on business opportunity from Survey of India. ... To just crisply answer your question, it will be to the tune of around INR7 crores to INR8 crores.

Quantified the expected revenue from significant new deal wins for the next fiscal year, providing visibility into future growth drivers.

Asked by Shobit Singhal

Status of the joint venture in Indonesia and its impact on PAT Direct
Yes. So it's in build phase. This is something that we had expected. ... But yes, I mean, if you notice our PAT, it is impacted every quarter by a couple of crores of operating expense related losses. But that's to be expected in a JV, which over the course of time will contribute in the tens of millions.

Provided an update on international expansion efforts and acknowledged the short-term negative impact on profitability, while maintaining long-term optimism.

Asked by Shobit Singhal

Slowdown in consumer/enterprise business beyond government/IoT Direct
So basically, yes, when it comes to the reduction in the business for C&E, majority is attributed towards government, but there is private sector also that's playing some role over there. There has been a delay in us being able to bill our customers in quarter 3, I think Nikhil had touched upon this slightly while he was explaining - There have been changes in scope of work in some of the projects that we had undertaken.

Clarified that private sector delays and scope changes also contributed to the C&E business slowdown, not just government issues.

Asked by Gautam Rathi

Government order book mix and funding mechanisms (state vs central) Direct
So we could have grown much faster in government space than what you are seeing today. But we are very choosy in seeing of the type of contract we should take. ... For instance, if I give you an example, even if it's happening at the state level project NAKSHA, there is a central agency (Survey of India) involved in executing and giving approvals. Once that happens, it becomes much simpler.

Explained the company's selective approach to government contracts and the preference for centrally-funded schemes with clearer execution paths, which impacts revenue recognition.

Asked by Shrinarayan R. Mishra

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance and Delays

C.E. Info Systems reported a 'weak quarter' with 'muted financial performance' for Q3 FY26, primarily due to delayed deliveries to customers. These delays were partly due to customer requests and significantly impacted by government-related projects. Approximately 60-70% of the decline in the C&E business was attributed to government delays, including postponed fiscal grants for national flagship projects and disruptions from urban state elections in Maharashtra and Bihar, pushing revenue recognition into Q4 FY26 and Q1 FY27.

Strong Order Book Growth and Future Visibility

Despite the Q3 challenges, the company's open order book demonstrated robust growth, increasing from INR1,500 crores at the beginning of the fiscal year to INR1,770 crores as of December 31, 2025. This indicates strong future revenue visibility. Gross order bookings for the first nine months of FY26 totaled INR600 crores. Management expressed confidence that the new order book momentum would continue into Q4, with expectations for similar or better closing levels.

Strategic Focus on AI and Product Development

The company emphasized its ongoing focus on developing new-age AI-related products, noting that AI elements have been integrated into its products and technology for years. This strategic investment in AI is seen as crucial for future growth and has helped the company mitigate the broader impact seen in the IT sector. Management also highlighted that private sector delays were partly due to customers seeking to ensure AI components in deployed solutions.

Business Segment Mix and Growth Drivers

The overall revenue mix for the fiscal year is approximately 20% from government business. The Map-led business contributes 60-70% of the overall mix, while the IoT business has seen sharp growth, contributing around 35% of revenue as of 9M FY26. AI-related tools account for the remaining 10%. Management views both Map-led and IoT as independent growth vectors with significant Total Addressable Markets (TAMs), driving diversified growth.

FY26 and FY28 Financial Targets Reaffirmed

C.E. Info Systems reaffirmed its guidance for a 35% EBITDA margin for the full fiscal year 2026, expressing strong confidence in achieving this target. The company also reiterated its long-term revenue target of INR1,000 crores by FY28, supported by the growing order book. Additionally, new revenue streams from projects with IOCL (approximately INR20 crores) and Survey of India (INR7-8 crores) are anticipated for the next fiscal year (FY27).

Indonesia Joint Venture Update

The joint venture in Indonesia is currently in a 'build phase,' with MapmyIndia contributing to various countries and partnering with local providers. While the JV is impacting the company's PAT by a couple of crores of operating expense related losses each quarter, management views this as an expected part of the build-out phase, anticipating future contributions in the 'tens of millions' once monetization begins.

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