ROX Hi-Tech Ltd — Q2 FY26 earnings call

Call held 20 Nov 2025

Management summary

ROXHITECH reported strong H1 FY26 results with a 31% YoY increase in total income to Rs. 110.96 crore and a net profit of Rs. 10.48 crore. The company is actively pursuing international expansion and investing in talent to strengthen its digital transformation and AI capabilities. Management reaffirmed its FY26 topline guidance of Rs. 220 crore and aims for a main board listing once revenue reaches Rs. 250 crore.

Highlights

  • Total income grew 31% year-on-year to Rs. 110.96 crore for H1 FY26.

  • EBITDA margin stood at a healthy 15.05% (Rs. 16.69 crore).

  • Net profit was Rs. 10.48 crore, reflecting a strong profitability of 9.45%.

  • Employee benefit expense significantly reduced due to increased in-house capabilities and reduced external advisory services.

  • Strategic international expansion is underway with subsidiaries set up in Singapore, Denmark, USA, and Mauritius, expecting engagements in H2 FY26.

Concerns

  • Operational challenge in acquiring quality manpower, requiring significant investment in training new recruits.

  • Medical automation product AI partner tie-up is still in conversations and trials, with no definitive announcement yet.

Key financials

  1. Total Income ₹110.96 Cr +31%YoY
  2. EBITDA ₹16.69 Cr
  3. EBITDA Margin 15.1%
  4. Net Profit ₹10.48 Cr
  5. Net Profit Margin 9.4%
  6. EPS ₹4.59

What they filed

Q4 FY26: revenue up 11.1%, net profit down 9.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue77 99 83 104 110 +43%110 +11%
EBITDA16 16 16 10 16 +0%16 +0%
Net profit10 11 10 9 10 +0%10 −9%
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

medium confidence

Pipeline

deal pipeline tcv

Opportunity worth in the marketplace

Management is working towards converting the pipeline and executing milestone-based projects in H2 FY26.

Source: Q&A

Capital allocation

high confidence
  • Debt Gross ₹53 Cr
    Okay. And this borrowing which is suddenly we are currently at Rs. 53 crores.

Guidance & targets

Revenue

  • Topline Revenue · FY26 · High confidence Rs. 220 crore
    Sir, we have guided for 220 Cr. topline for FY'26. So, are we on track for that, sir? Yes, that's the pursuit. My team is on.

    — Jim Rakesh

  • Revenue for Main Board Listing Revenue · 18-24 months · Medium confidence Rs. 250 crore
    Yes, that's the plan for the next 18 months to 24 months. That's what our pursuit is. So, once we reach the Rs. 250 crore mark, I think, yes. 250 crore in terms of revenue or...? Yes, revenue.

    — Jim Rakesh

What to watch in Q3 FY26

International subsidiary engagements

H2 FY26
Current In progress, licenses and personnel in place
Target First customer engagements in H2 FY26

Why it matters

Signals successful international expansion and potential revenue streams from new geographies.

yes, we will see engagements in the H2 with customers.

Risks & concerns

  • Quality manpower acquisition

    medium

    Operational challenge in getting quality manpower, requiring significant investment in training new recruits from campuses.

    Management acknowledged

  • Rapid technological advancement

    medium

    Technology is advancing at a fast pace, requiring continuous adaptation and investment in new capabilities to remain relevant.

    Analyst acknowledged

  • Need for additional capital for scaling

    low

    To scale globally and improve execution efficiency, the company anticipates requiring more capital in the future.

    Management acknowledged

Q&A highlights

7 direct
Employee benefit expense reduction Direct
Last year, more of the employee benefit contribution were into various different fields. And it also included external adversary services. And this time, it was drastically brought down because our strength was increased and the amount of around Rs. 4 crores was reduced, which was incurred last year. The overall employee cost has considerably declined because our strength in the employee engagement increased within the Company and the in-house capabilities were maximized.

Analyst questioned a significant drop in employee benefit expense; management explained it was due to increased internal capabilities and reduced reliance on external services, indicating improved cost efficiency.

Asked by Rakshit Dholakiya

Progress on international subsidiaries Direct
So, we have set this up. It is a six-month young development of setting up the subsidiaries. Yes, we have got now the business licenses for these territories. We have set up the bank accounts. We have identified a couple of persons who will represent these territories. And also, internally, we have identified who will support them technically in terms of addressing the customer requirements. So, yes, this is in progress and yes, we will see engagements in the H2 with customers. And we are predicting cash flows will come from next financial year.

Provided an update on the strategic international expansion, detailing the setup progress and expected timelines for customer engagements and cash flows.

Asked by Aditiya Bhutra

Long-term vision and capital needs Direct
Honestly, if you ask me, we were now to scale. Because we need to start representing an organization, start participating in opportunities across the world to see scale... So, that is where I think we will require more capital. Maybe we will come to investors like you once that plan is in place.

Management outlined its strategic vision for global scaling and hinted at future capital raising to support growth and execution efficiency.

Asked by Aditiya Bhutra

AI adoption in enterprise customer base Direct
So, this is, I would say the latest discussion on the boardroom in most of the enterprises where the CEOs want the CIOs to adopt AI. So, where initially the lowest, I would say, or the easiest use case where AI can be used is in invoice process automation, accounts payable, receivable, where or maybe an analysis towards your competition, real-time analysis on a CFO dashboard.

Provided insights into the current and future adoption trends of AI within their enterprise client base, highlighting initial use cases and the need for IT stack upgrades.

Asked by Jayesh

Medical automation product tie-up Partial
So, the conversations are on. So, we are yet to finalize the Al partner for this technology for our product. So, currently, I think the conversations are on, the trials are on, work is in progress. So, yes, we will come back to you on this shortly.

Analyst sought an update on a previously mentioned product development; management confirmed ongoing progress but no definitive announcement yet, indicating a cautious approach.

Asked by Manish Shah

FY26 topline guidance confirmation Direct
Sir, we have guided for 220 Cr. topline for FY'26. So, are we on track for that, sir? Yes, that's the pursuit. My team is on.

Management reaffirmed its full-year revenue guidance, providing confidence in its growth trajectory.

Asked by Disha Chordiya

Main board listing target Direct
Yes, that's the plan for the next 18 months to 24 months. That's what our pursuit is. So, once we reach the Rs. 250 crore mark, I think, yes. 250 crore in terms of revenue or...? Yes, revenue.

Management disclosed a specific revenue target and timeline for migrating from the SME platform to the main board, indicating a significant growth ambition.

Asked by Joel Peter

Current borrowings and future increase Direct
Okay. And this borrowing which is suddenly we are currently at Rs. 53 crores. So, do you expect to see further increase in borrowings going forward? Not much. I think we are having good cash flow right now. I think we don't owe anybody much. So, yes. But yes, if it's a complex project and all, we might take invoice factoring or maybe discounting, those kind of facilities.

Clarified the current debt level and management's expectation of minimal future increases, citing strong cash flow, while also mentioning potential short-term financing for specific projects.

Asked by Akshay Shah

2 min read 6 chapters

Detailed narrative

H1 FY26 Financial Performance Overview

ROX Hi-Tech Limited delivered a strong financial performance for the first half of FY26. The total income for the period stood at Rs. 110.96 crore, marking a significant 31% year-on-year increase. EBITDA came in at Rs. 16.69 crore, achieving a healthy margin of 15.05%. The company reported a net profit of Rs. 10.48 crore, with a profitability margin of 9.45%, and an EPS of Rs. 4.59.

Digital Transformation and AI Focus

The company is actively focusing on scaling its digital transformation offerings and deepening capabilities in AI, cyber security, and cloud. Management noted strong execution across digital transformation, AI-led automation, network modernization, and IT security businesses. Initial AI adoption is seen in areas like invoice process automation and accounts payable/receivable, with a bullish market expectation for AI adoption in the next 3-5 years, necessitating IT stack upgrades for clients.

International Expansion Strategy

ROX Hi-Tech is expanding its global footprint through newly established subsidiaries in Singapore, Denmark, USA, and Mauritius. These entities are six months young, with business licenses and bank accounts in place, and personnel identified. The company anticipates customer engagements in H2 FY26 and expects cash flows from these international operations starting next financial year, primarily focusing on regional expansion and addressing local customers.

Talent and Capability Building

A key focus for the company is strengthening its internal capabilities and talent pool. Employee benefit expenses saw a significant reduction from Rs. 8.41 crore (March 2025) to Rs. 3.12 crore (September 2025) due to increased in-house strength and reduced reliance on external advisory services. The company is investing in training and upskilling its team, including recruiting from campuses, to address the operational challenge of acquiring quality manpower and to build next-generation capabilities.

Medical Automation Product Development

The company is developing a medical automation product, specifically in patient care management for oncology. Conversations are ongoing to finalize an AI partner for this technology, and trials are currently in progress. Management expects to make an announcement regarding this product shortly, emphasizing a cautious approach to ensure market readiness and product effectiveness.

FY26 Outlook and Strategic Goals

ROX Hi-Tech has guided for a topline of Rs. 220 crore for FY26 and confirmed it is on track to achieve this target. The company also has a strategic goal to move from the SME board to the main board within the next 18-24 months, contingent upon reaching a revenue mark of Rs. 250 crore. The current borrowings stand at Rs. 53 crore, with management not expecting significant increases due to strong cash flow, though invoice factoring might be used for complex projects.

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