Newjaisa Technologies Ltd — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

NEWJAISA Technologies Limited reported a challenging H1 FY26, marked by a nearly 30% dip in top-line sales year-over-year, largely due to Amazon's policy change impacting refurbished product sales. Despite this, the company demonstrated strong recovery by growing its web and B2B channels 4X, recovering 75% of lost revenue. Strategic cost controls, including a 40% workforce reduction, and investments in technology were implemented, alongside receiving the R2 accreditation to enhance direct procurement capabilities. Management anticipates the current fiscal year will remain unprofitable as they continue to rebuild and invest in growth.

Highlights

  • Recovered almost 75% of the lost revenue in H1 FY26 by focusing on web and B2B channels.

  • Monthly revenue run rate from own web channel grew 4X, from ₹50-60 lakhs in February to over ₹2.5 crores.

  • SME/Enterprise B2B revenue grew 4X, from under ₹1 crore run rate to over ₹4.5 crores in Q1 FY26.

  • Received R2 international accreditation, held by only 5 Indian companies, enabling direct procurement from large corporates.

  • Active users crossed 1 million, and social followers grew from under 3,000 to over 50,000.

Concerns

  • H1 FY26 top-line sales experienced an almost 30% dip compared to H1 last year.

  • Monthly revenue run rate dropped significantly from ₹6 crores to ₹1.8 crores in February 2025 due to Amazon's policy change.

  • Capacity utilization decreased to almost 40% due to high fixed costs and lower sales volume.

  • The company expects to remain "in red" this year due to rebuilding efforts and continued marketing investments.

Key financials

4 periods

Headline

  • Monthly Revenue Run Rate (Pre-Amazon Event)
    ₹6 Cr
  • Monthly Revenue Run Rate (Post-Amazon Event, Feb 2025)
    ₹1.8 Cr
  • Web Channel Monthly Revenue Run Rate (Feb)
    ₹0.55 Cr
  • Web Channel Monthly Revenue Run Rate (Current)
    ₹2.5 Cr
  • B2B/Enterprise Channel Monthly Revenue Run Rate (Pre-Feb)
    ₹1 Cr
  • Employee Cost Reduction
    -70%
  • Capacity Utilization
    40%
  • October Sales Uptake (MoM)
    5%

Q1 FY26

  • B2B/Enterprise Channel Monthly Revenue Run Rate
    ₹4.5 Cr

H1 FY26

  • Lost Revenue Recovery
    75%
  • Inventory Reduction
    ₹5 Cr
  • Fresh Inventory Purchases
    ₹9 Cr

YoY H1 FY25 vs H1 FY26

  • Top-line Sales Growth
    -30%

What they filed

Q4 FY26: revenue down 52.8%, net profit down 533.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY23Q4 FY23Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue14 30 26 36 34 +143%32 +7%23 −12%17 −53%
EBITDA3 6 4 5 5 +67%-4 −167%-4 −200%-13 −360%
Net profit2 5 3 3 4 +100%-5 −200%-5 −267%-13 −533%
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.

Capital allocation

medium confidence
  • Liquidity Liquidity disclosed Cash in hand is being managed at a similar level, with a 1.5 to 2 Cr. trend due to EBITDA.
    So, first is in terms of inventory in hand, there is definite reduction of almost 5 crores as such which is so and we will continue to keep our focus on the inventory, it is still on a higher side slightly but as the sales pick up, We are very confident that we will be able to come to a much more manageable level as such. Trade receivables definitely has slightly improved over and also some of the advances that's just like cash or short-term advances. So key things two I want to call out that in terms of like cash in hand we are managing it at a similar level. Yes, I mean, there's a 1.5 to 2 Cr. kind of a trend because of the EBITDA that we are seeing, but we have cash as such.

Guidance & targets

Revenue

  • Monthly Revenue Run Rate Recovery Revenue · by end of this year (2025) · High confidence Full recovery (to pre-Amazon event levels, implied ~6 crores/month)
    So, by the end of this year, we feel we will would have in terms of like monthly run rate, we feel we would have done a full recovery by end of this year.

    — Vishesh Handa

Direct Procurement

  • Direct Procurement Volume Direct Procurement · H2 FY26 · High confidence At least double current volume
    So, this H2 we are expecting to at least double whatever is the direct procurement which is happening.

    — Vishesh Handa

Capacity

  • Capacity Utilization Capacity · Within a year · Medium confidence Full utilization
    so that we will be hopefully within a year back to full utilization as such.

    — Vishesh Handa

Profitability

  • Overall Profitability Profitability · This year (FY26) · High confidence In red (unprofitable)
    I think the third key point I want to share with the group is that if we are looking at pure play on the pack levels and stuff like that, yes, I mean, this year, we will continue to be in red, as we build it back and we continue to invest on the marketing.

    — Vishesh Handa

What to watch in Q3 FY26

Monthly Revenue Run Rate Recovery

By end of 2025
Current ₹2.5 Cr+ (web channel), ₹4.5 Cr+ (B2B channel)
Target Full recovery to ₹6 Cr/month

Why it matters

Key indicator of business recovery and return to pre-Amazon exit levels.

by the end of this year, we feel we will would have in terms of like monthly run rate, we feel we would have done a full recovery by end of this year.

Risks & concerns

  • Continued Unprofitability

    high

    The company expects to remain "in red" for the current fiscal year due to ongoing rebuilding and marketing investments.

    Management acknowledged

  • Low Capacity Utilization

    medium

    Capacity utilization has dropped to 40% due to lower sales, impacting fixed cost absorption. Management expects full utilization within a year.

    Management acknowledged

  • Inventory Management and Obsolescence

    medium

    Concerns raised about high inventory levels despite claims of inventory shortage impacting sales, and the adequacy of write-offs for older generation products. Management promised an aging report next quarter.

    Analyst acknowledged

Q&A highlights

3 direct
Obsolete Inventory Valuation and Write-offs Direct
So, at least in the lab of the PC category there's a standard depreciation. I mean, the valuations do not vary as widely as Mobiles and we do follow the same methodology, that's where you see the sign-offs, that we at least take 15-20% you know of the internal inventory which is there. Ah, depreciation base is the aging that is happening.

Addresses a core concern about the company's business model (refurbished goods) and its ability to manage asset value and potential losses.

Asked by Aditya Goyal

Inventory Levels vs. Sales Impact Partial
So, I'm unable to reconcile that with your total inventory number your total sales itself is 22 crores and your inventory is 35 crores and this inventory you have not added a good part of this inventory. This inventory has been there in the system for a while, because you had actually slowed down buying new PCs and laptops... You cannot be stocked out at sales of 8 crore in a quarter when you have 36 crores of inventory, so I'm unable to reconcile if you can throw some light on this.

Directly challenges management's explanation for sales impact (lack of inventory) given the reported high inventory levels, suggesting potential issues with inventory quality or management.

Asked by Bijal Shah

Customer Support Issues Post-Amazon Exit Direct
The reason was definitely, you know because, as you said, I mean, we were on a very different architecture. We were... Amazon was most of the sales were through Amazon, so customer support was given by Amazon. And when we shifted here, of course, we have to build our own team, so what happened, of course, building the capacity, then the number of calls were high, so we had to rely only on email, which led to, I would say at least 2 to 3 months, and then we got Salesforce, implemented Salesforce.

Highlights a critical operational challenge during the transition from Amazon and management's steps to address it, impacting customer satisfaction and brand reputation.

Asked by Aditya Goyal

Timeline for Full Revenue Recovery Post-Amazon Exit Direct
So, by the end of this year, we feel we will would have in terms of like monthly run rate, we feel we would have done a full recovery by end of this year.

Provides a clear timeline for the company to return to its pre-Amazon exit revenue levels, a key indicator of business stability.

Asked by P N Krishnan

Impact of Competitors (GTG) on Market Position Partial
So, I think two aspects, the answer is if you look at the... first of all I think 78% is from outside India and right around 22% is... It's a good validation of the model. We would rather like to argue that, yes, our multiples should be also looked at the similar lines but it's a good opportunity. It's a huge market and as I said like we are also only being able to do 70 crores whereas the market size is way way higher and probably they would be doing, I don't want to guess the numbers, but yes, I mean, it's probably 10% of the total revenue, which is PC category India-centric, right? So, it's a good validation. I don't think it's a competition in that sense.

Explores the competitive landscape and management's view on market share and the potential for multiple players to grow the refurbished PC market.

Asked by P N Krishnan

3 min read 6 chapters

Detailed narrative

Impact of Amazon Exit and Recovery Strategy

NEWJAISA faced a significant challenge in February 2025 when Amazon stopped selling refurbished products on its Indian platform, causing the company's monthly revenue run rate to drop sharply from ₹6 crores to ₹1.8 crores. In response, the company focused on rebuilding sales channels, recovering almost 75% of the lost revenue in H1 FY26 by expanding its own web channel (newjaisa.com) and B2B/enterprise segments. The web channel's monthly run rate grew 4X from ₹50-60 lakhs to over ₹2.5 crores, while B2B revenue also saw a 4X increase from under ₹1 crore to over ₹4.5 crores in Q1 FY26.

Cost Management and Operational Efficiency

To mitigate the financial impact, NEWJAISA implemented aggressive cost control measures, including a workforce reduction of over 40% within 2-3 months, leading to an approximate 70% drop in employee costs. Despite these efforts, the company's capacity utilization fell to about 40%, and it anticipates remaining "in red" for the full fiscal year due to ongoing investments in marketing and channel development. Management expects to achieve full capacity utilization within a year.

Inventory Management and Valuation

The company adopted a conservative approach to inventory, writing off older generation RAMs, hard disks (DDR3, DDR4), and laptops (3rd, 4th gen). While inventory in hand was reduced by ₹5 crores, concerns were raised by analysts regarding the adequacy of write-offs given the total inventory value of ₹35 crores. Management clarified that 10-15% of inventory still comprises 6th generation and below assets, but their focus is on 7th, 8th generation and above, and they will provide an inventory aging report next quarter.

Customer Support and Brand Building

Following the transition from Amazon, NEWJAISA experienced customer support challenges, with complaints about unreachability and slow resolution times. Management attributed this to building an in-house support team and capacity after Amazon previously handled it. They have since implemented Salesforce and opened phone support in the last 20 days, noting a significant reduction in complaints and an improvement in positive feedback, with a current rating of 3.8-4.3+ out of 3,800 comments.

Strategic Accreditations and Market Expansion

NEWJAISA received the R2 international accreditation, a certification held by only five companies in India, which enables direct procurement and partnerships with large corporates and multinationals. This strategic move is expected to accelerate direct purchases, with management targeting at least a doubling of direct procurement in H2 FY26. The company also expanded its retail presence by securing a new tie-up in a southern state, adding to its existing modern trade partnerships.

Outlook and Competitive Landscape

Management is confident in achieving a full recovery of its monthly revenue run rate to pre-Amazon levels (around ₹6 crores) by the end of 2025. They view the refurbished PC market as a large opportunity, with their current sales of ₹70 crores representing only about 10% of the India-centric PC category. They believe the market needs more players to build awareness and confidence, and do not see competitors like GTG as a direct threat, but rather as validation of the model.

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