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    Seshaasai Technologies Q1 FY27 earnings call

    STYL
    Financial Services·24 Jul 2026
    Management Summary

    Seshaasai Technologies reported a strong Q1 FY27 with robust revenue growth of 21.1% YoY to INR 377 crores, driven by strong performance across all segments, particularly IoT solutions. Despite gross margin pressures from material costs and geopolitical issues, EBITDA and PAT margins expanded significantly due to disciplined execution and operating efficiencies. The company continues to invest in capacity expansion and technology, maintaining a positive outlook for the year.

    Highlights

    5

    • Revenue of INR 377 crores, up 21.1% YoY, reflecting strength of diversified business model.

    • EBITDA margin at 25.1%, an increase of 135 bps YoY, supported by disciplined cost management.

    • PAT of INR 60 crores, registering a growth of 63.8% YoY, with margin at 16% (up 418 bps YoY).

    • IoT solutions contributed 18% to total revenue and witnessed a growth of 145% on Y-o-Y basis.

    • Won two multi-year tenders from leading PSU banks, representing approximately INR 73 crores in revenue.

    Concerns

    3

    • Gross margin moderated to 41.7% in Q1 FY27 from 44.5% in Q1 FY26, due to material cost mix and rising geopolitical issues.

    • Operating environment impacted by geopolitical uncertainties, currency fluctuations, and cost pressures.

    • Lead times from suppliers have gone up, requiring close monitoring for potential upward price revisions.

    Key financials

    Single quarter

    08 metrics
    1. 01Revenue from Operations₹377 Cr+21.1%YoY
    2. 02Gross Profit₹157 Cr+13.3%YoY
    3. 03Gross Margin41.7%
    4. 04EBITDA₹94 Cr
    5. 05EBITDA Margin25.1%

    Segment breakdown

    Revenue ContributionYoY Growth
    Payment Solutions42%5%
    Communication and Fulfillment Solutions40%13%
    IoT Solutions18%145%
    Heatmap· 2 shared metrics

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹6.7 crores this quarter · ₹140 crores (FY27) planned

    Liquidity

    Cash ₹369 crores

    Guidance & targets

    10
    CategoryTargetPriority
    Revenue
    Overall Revenue Growth
    8% to 12%
    		Medium
    IoT Solutions
    IoT Segment Growth
    around 45%
    		Medium
    IoT Solutions
    IoT Segment Growth
    35% to 40%
    		Medium
    IoT Solutions
    IoT Revenue Contribution
    15% to 18%
    		Medium
    Communication and Fulfillment
    Communication and Fulfillment Growth
    flattish range
    		Medium
    Payment Solutions
    Payment Solutions Growth CAGR
    10% to 12%
    		Medium
    Overall Growth
    Overall Company CAGR
    close to 12%
    		Medium
    Capex
    Annual Capital Expenditure
    INR 140 crores to INR 160 crores
    		High
    Bengaluru Facility
    Bengaluru Facility Operational Status
    operational
    		High
    Bengaluru Facility
    Bengaluru Facility Revenue Contribution
    start contributing
    		Medium

    What to watch in Q2 FY27

    5

    Bengaluru Metal Card Facility Operationalization

    by Q4 FY27
    CurrentUnder construction, nearing ready state
    TargetOperational by end of calendar year (Q4 FY27)

    Why it matters

    This new facility is crucial for expanding metal card capacity and supporting growth in the payment solutions segment.

    We expect the Bengaluru facility to be operational by the end of the calendar year after the necessary regulatory approvals.

    Risks & concerns

    3
    RiskSeverity

    Geopolitical Uncertainties and Cost Pressures

    The company operates in a challenging environment impacted by geopolitical uncertainties, currency fluctuations, and rising input costs, which create near-term headwinds. — Management acknowledged

    medium

    Gross Margin Compression

    Gross margins moderated in Q1 FY27 due to material cost mix and rising geopolitical issues, though management expects improvement in H2. — Management acknowledged

    medium

    Supply Chain Disruptions and Price Revisions

    Lead times from suppliers have increased, and the company is closely watching for upward price revisions, ready to take appropriate action to manage the supply chain. — Management acknowledged

    medium

    Q&A highlights

    8

    “we foresee a growth of about 8% to 12% on a year on year basis on the revenue compared to last year from a growth perspective. And on the margin, as a matter of practice, we really don't put out specific EBITDA or PAT numbers, and that position hasn't changed.”

    Management provided revenue growth guidance but explicitly declined to give specific EBITDA/PAT numbers for the full year, citing market uncertainties.

    asked by Deeya Jain

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    Seshaasai Technologies Limited reported a strong start to FY27, with revenue from operations reaching INR 377 crores, marking a 21.1% year-on-year growth. Despite a sequential moderation of 6.9% from Q4 FY26, the company achieved a gross profit of INR 157 crores, up 13.3% YoY. EBITDA stood at INR 94 crores with a margin of 25.1%, an increase of 135 bps YoY. Profit After Tax (PAT) grew significantly by 63.8% YoY to INR 60 crores, with a margin of 16%, up 418 bps YoY.

    02

    Segmental Performance and Growth Drivers

    The company's diversified business model saw varied performance across segments. Payment solutions contributed 42% to total revenue with a nominal 5% YoY growth, driven by healthy demand and increasing adoption of premium metal cards. Communication and fulfillment solutions accounted for 40% of revenue, growing 13% YoY, supported by recurring requirements from BFSI, enterprise, and government clients. IoT solutions emerged as a key growth driver, contributing 18% to total revenue with an impressive 145% YoY growth, fueled by demand for RFID-led traceability and automation solutions.

    03

    Strategic Investments and Capacity Expansion

    Seshaasai continues to invest in innovation and capacity. The new greenfield facility for metal cards in Bengaluru is nearing completion and is expected to be operational by the end of the calendar year, pending regulatory approvals. This facility will significantly enhance metal card capacity. The company deployed INR 24.4 crores in Q1 FY27, including INR 6.7 crores for capex and INR 13.7 crores for GCP, and plans to maintain an annual capital expenditure of INR 140-160 crores for FY27.

    04

    Margin Pressures and Mitigation Strategies

    Gross margins moderated to 41.7% in Q1 FY27 from 44.5% in Q1 FY26, primarily due to the material cost mix and the impact of geopolitical issues on currency, commodity pricing, logistics, and freight costs. Management is actively working with customers on price revisions and strengthening supply chain agility through diversified sourcing and strategic inventory management to protect profitability. They anticipate better performance in H2 FY27 due to favorable product mix and operating leverage.

    05

    Outlook and Future Growth Trajectory

    The company maintains a positive outlook, expecting an overall revenue growth of 8% to 12% for FY27. IoT solutions are projected to grow around 45% in FY27 and 35-40% in FY28, contributing 15-18% of total revenue. Payment solutions are expected to grow at a CAGR of 10-12%, while communication and fulfillment solutions are anticipated to remain flattish. Management aims for an internal overall CAGR of close to 12%, driven by strong customer relationships and focus on future-ready technologies.

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