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    ROXHITECH

    ROXHITECH
    Information Technology·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

    5

    • 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

    2

    • 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

    Single quarter

    06 metrics
    1. 01Total Income₹110.96 Cr+31%YoY
    2. 02EBITDA₹16.69 Cr
    3. 03EBITDA Margin15.1%
    4. 04Net Profit₹10.48 Cr
    5. 05Net Profit Margin9.4%

    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

    1
    high confidence
    CategoryHeadline
    Debt

    Gross ₹53 crores

    Guidance & targets

    2
    CategoryTargetPriority
    Revenue
    Topline
    Rs. 220 crore
    		High
    Revenue
    Revenue for Main Board Listing
    Rs. 250 crore
    		Medium

    International subsidiary engagements

    H2 FY26
    CurrentIn progress, licenses and personnel in place
    TargetFirst 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.

    How to verify

    detailed_narrative[title='International Expansion Strategy']

    Risks & concerns

    3
    RiskSeverity

    Quality manpower acquisition

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

    medium

    Rapid technological advancement

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

    medium

    Need for additional capital for scaling

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

    low

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.