STYL

Seshaasai Technologies reported a robust Q4 FY26, with revenue from operations reaching ₹405 crores, marking an 8.1% sequential growth and 9.6% year-on-year increase. This growth was driven by stronger execution across business verticals, improved throughput, and better contribution from diversified segments like communication, fulfilment, and IoT. The company achieved an EBITDA of ₹125 crores, with a margin of 30.8%, reflecting a 330 bps YoY expansion, and a PAT of ₹82 crores, with a margin of 20.2%, up 316 bps YoY.

For the full year FY26, revenue from operations stood at ₹1,441.1 crores, a slight decline of 1.5% YoY, primarily due to temporary moderation in the Payment Solutions business. However, this was largely offset by strong growth in communication and fulfilment solutions and continued scaling of IoT solutions. FY26 was a landmark year, marking the company's listing and a strategic transition towards becoming a solutions-oriented and platform-led organization, with continued investments in innovation and technology.

In Q4 FY26, Payment Solutions contributed 47.5% of revenue, Communication and Fulfilment 39.8%, and IoT Solutions 12.4%. For the full year, Payment Solutions contributed 50%, Communication and Fulfilment 39% (growing 29% YoY), and IoT Solutions 11% (growing 45% YoY). The company emphasized its increasing business resilience, improved diversification across revenue streams, and lower dependence on any single vertical, with 97-98% of revenue being recurring in nature.

Seshaasai continues to invest in innovation, automation, and new growth platforms. The company was granted a patent for metal cards in February 2026, having been the first Indian manufacturer to file for such patents in October 2021. New facilities in Navi Mumbai and Kundli became operational in Q4 FY26, while Nagpur and Bengaluru facilities are under construction, supporting future growth. The Bengaluru facility also received GSMA SAS-UP certification for SIM and eSIM manufacturing, positioning the company as one of the few global players with these integrated capabilities.

The company maintained a strong balance sheet with cash and cash equivalents of ₹398 crores as of March 31, 2026, including ₹195 crores of unutilized IPO funds. Total IPO and pre-IPO funds amounted to ₹600 crores, with ₹405 crores utilized by FY26. For FY27, the company plans a capex of ₹160-200 crores for Payment Solutions, IoT, and overall modernization, partly funded by IPO proceeds. The Board recommended a dividend of ₹2.5 per share.

Management remains cautiously optimistic for FY27, acknowledging global macroeconomic and geopolitical uncertainties, supply chain disruptions, currency volatility, and broader demand conditions. They plan to provide formal guidance after Q1 FY27, once there is better visibility. The company's diversified business model, strong customer relationships, recurring revenue base, and continued investments in future-ready technologies are expected to help navigate these challenges.