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    Newjaisa Technologies Q4 FY26 earnings call

    NEWJAISA
    Information Technology·28 May 2026
    Management Summary

    Newjaisa Technologies faced a challenging FY26 with revenue dropping to ₹40 crores from ₹65 crores in FY25, primarily due to Amazon's exit from refurbished goods sales, leading to a significant one-time write-off of ₹13.85 crores and a negative EBITDA of 6%. Despite this, the company successfully re-oriented its business, achieving 225% growth in its own channels and pivoting to enterprise sales, while maintaining a healthy cash position of ₹15 crores and aiming for profitability by optimizing its cost structure and inventory.

    Highlights

    5

    • Own channels (website, education vertical) grew 225% year-on-year, demonstrating successful re-orientation.

    • Average selling price improved on a year-on-year basis as the company shifted to enterprise sales.

    • Strong demand is building up, particularly in the enterprise segment, with a robust pipeline and transactions with at least 15 Fortune 100 companies.

    • The company maintains a healthy cash position of ₹15 crores, providing sufficient liquidity for growth initiatives.

    • Core PC business showed approximately 10% growth from H1 to H2, indicating recovery in the primary segment.

    Concerns

    5

    • Revenue dropped significantly from ₹65 crores in FY25 to ₹40 crores in FY26.

    • A total one-time write-off of approximately ₹13.85 crores was recorded, including ₹12.38 crores for inventory.

    • The company reported a negative EBITDA of around 6% for FY26.

    • A cash burn of approximately ₹2.35 crores was incurred for the last year.

    • The company is degrowing compared to the industry standard, which is growing at 50%.

    Key financials

    Metrics

    8

    Periods

    3

    Headline

    2
    • Cash Position
      ₹15 Cr
    • Total Inventory Value
      ₹26 Cr

    FY25

    1
    • Revenue
      ₹65 Cr

    FY26

    5
    • Revenue
      ₹40 Cr
      YoY-38.5%
    • EBITDA Margin
      -6%
    • Cash Burn
      ₹2.35 Cr
    • One-time Write-off
      ₹13.85 Cr
    • Inventory Write-off
      ₹12.38 Cr

    Order Book

    low confidence

    Pipeline

    deal pipeline tcv

    Strong pipeline building, including transacting with at least 15 of the top 100 companies in India.

    "Management notes strong demand building up across own website and enterprise segments, supported by a robust pipeline and high customer retention in enterprise."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Liquidity

    Cash ₹15 crores

    Company has a reasonably okay cash position to support growth.

    Guidance & targets

    4
    CategoryTargetPriority
    Profitability
    EBITDA Level
    older EBITDA level
    		Medium
    Cost Structure
    Fixed Component of P&L
    7 to 8%
    		High
    Inventory Management
    Inventory Optimization
    another 10-15%
    		Medium
    Inventory Management
    Inventory Level Increase
    not increase significantly
    		High

    What to watch in Q1 FY27

    5

    EBITDA Margin

    Next quarter / as volumes grow
    CurrentNegative 6% for FY26
    TargetPositive EBITDA

    Why it matters

    Key indicator of business turnaround and profitability.

    if we exclude our extraordinary items📎, we had a negative EBITDA of around 6% cumulatively for FY 26... we are pretty confident that we will be back in track in like as the things were before the last year as such.

    Risks & concerns

    5
    RiskSeverity

    Revenue decline due to Amazon exit

    65% of sales were coming from Amazon, which stopped selling refurbished goods, leading to a significant revenue drop. — Management acknowledged

    high

    Significant write-offs and negative profitability

    Total one-time write-off of ~₹13.85 crores, including ₹12.38 crores inventory write-off, resulted in negative 6% EBITDA and ₹2.35 crores cash burn for FY26. — Management acknowledged

    high

    Older generation inventory liquidation challenges

    Inventory older than 8th generation faced demand issues due to Windows 10 support ending and Amazon channel exit, requiring liquidation at lower price points. — Management acknowledged

    medium

    Degrowth compared to industry

    Company is degrowing while the refurbished market is growing at 50%, explained by one-time mobile transaction and focus on rebuilding channels. — Analyst acknowledged

    medium

    High fixed cost component

    Fixed cost component was 15-20% of P&L, contributing to negative EBITDA, with a target to reduce it to 7-8% as business scales. — Management acknowledged

    medium

    Q&A highlights

    7

    “So last 6 months largely our online channel grew at almost approximately like 2 to or pretty much remained. So H1 to H2 comparison, right? So, our like retail channel pretty much or the online channel remained flat, right? And there was so just to add you know like in the H1 we had a onetime transaction because we did a mobile transaction, right? In H1 that was the problem. approximately of 2 CR, right, okay? So, I mean if I take that out, we approximately, yes, I mean as you said, we didn't double definitely, right? We saw an approximately like an 10% kind of a growth on a H1 to H2 basis. In terms of, yes, I mean it was definitely not like doubling of on a like H1 to H2 basis, but it has been on a positive trend as such, right? So yes, that one time transaction of like 2 crore with mobile, it does look like kind of a degrowth but in our core business as a PC, we have like grown by approximately 10%.”

    Analyst challenged the company's performance against the growing refurbished market, and management explained the H1 mobile transaction impact and 10% H1-H2 growth in core PC business.

    asked by Sachin Sehrawat

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Re-orientation Post Amazon Exit

    Newjaisa Technologies experienced a significant business disruption in February 2025 when Amazon stopped selling refurbished goods, impacting 65% of the company's sales. This necessitated a rapid re-orientation, leading to a revenue drop from ₹65 crores in FY25 to ₹40 crores in FY26. The company doubled down on its own channels, including its website and education vertical, achieving 225% growth in these alternative channels.

    02

    Financial Performance and One-Time Write-offs

    For FY26, the company reported a negative EBITDA of approximately 6% and a cash burn of about ₹2.35 crores. This was largely influenced by a total one-time📎 write-off of approximately ₹13.85 crores, which included an inventory write-off of ₹12.38 crores. The inventory write-off was attributed to older generation stock and the Amazon channel exit, impacting overall profitability.

    03

    Inventory Management and Optimization

    The company undertook a comprehensive inventory audit, resulting in the ₹12.38 crore inventory write-off, primarily for older generation laptops, desktops, and associated spares. Currently, 85% of the inventory is 8th generation and above, with 10-15% being older. The total inventory value stands at ₹26 crores, with an average aging of 90-105 days. Management aims to further optimize inventory by 10-15% but does not foresee significant increases or radical reductions beyond that due to order book requirements.

    04

    Growth in Own Channels and Enterprise Segment

    Despite the overall revenue decline, Newjaisa's own channels, including its website and education vertical, demonstrated robust growth of 225% year-on-year. The company successfully pivoted to the enterprise segment, building a strong pipeline and transacting with at least 15 of the top 100 companies in India. This shift is expected to improve margins, supported by increased demand for refurbished products due to rising hardware costs (30-40% increase in RAM, SSD).

    05

    Cost Structure and Path to Profitability

    The company's fixed cost component, including management overhead and capital expenditure, was approximately 15-20% of the P&L, contributing to the negative EBITDA. Management aims to stabilize this component at 7-8% as volumes scale, which is crucial for returning to positive EBITDA levels. The company currently holds a cash position of ₹15 crores, which is deemed sufficient to support growth in its re-oriented channels.

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