Ceinsys Tech Limited (CEINSYS) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Census Tech Q4FY26 Earnings Conference Call hosted by Ariane Capital Markets. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Ananya Mukhne from Aryan Capital Markets. Thank you, and over to you, ma'am.

Hello, and good afternoon to everyone. On behalf of Arihant Capital Markets, I thank you all for joining into the Q4 FY26 earnings conference call of Census Tech Ltd. Today, from the management, we have Mr. Koshik Kona, Managing Director, India Operations, Dr. Abhay Kimitskar, Managing Director, and Mrs. Amita Saxena, Chief Financial Officer. So, without any further delay, I'll hand over the call to Mr. Kaushik for his opening remarks. Over to you, sir.

Everyone, it's a pleasure to welcome you at this earnings conference call for the fourth quarter and the full year ended financial year 2025-26. Let me at the first thank our host of today's call, Mrs. Ariant Capital. We have pleasure to present the best quarterly and financial results of the company for the year ended 31st March 2026. In the interest of some of the people who may be new to the company, let me first start by giving you a brief overview of the company, followed by the performance highlights of the quarter and the year under review. Sciences Tech has been rebranded to CS Tech AI, while the corporate name remains as Sciences Tech Limited. We are a leading technology solution provider in the IT-enabled sector, providing engineering and technology solutions in the infrastructure domain. We are acclaimed for our expertise in geospatial engineering as well as other engineering services and solutions. We offer a broad range of geospatial intelligence services, including data creation, data analytics, decision support system, and enterprise web solutions. After the acquisition of Mobility business of Allegro in 2022, we acquired geospatial business of VTS in USA in the year 2024, which was majorly operating into telecom gaming. Since then, we are identifying some more targets for the inorganic growth to expand our horizons into the domains where the company is already operating, i.e. the geospatial engineering services and the technology solutions, for which the company is already mobilized around US$28 million. We serve prestigious global clientele that include large corporates, OEMs, asset management companies and government bodies, highlighting our robust reputation in both geospatial and manufacturing sectors. With offices in India, US, UK, and Germany, the company combines local expertise with the brand international reach. Additionally, the company has initiated and invested into the development of product solutions focused on the infrastructure vertical and emerging technologies through new vertical focus on artificial intelligence and machine learning and embedded electronics. This vertical emphasizes the development of the AI and ML-enabled applications and solutions. To enhance our delivery for the existing domains at the outset, reflecting the company's commitment to innovation and maintaining a competitive edge in a dynamic technological landscape. Now let me come to the highlights of our financial and operational performance for the fourth quarter and the year ended, 31 March 2026. We have delivered our best of our quarterly performance, marking continued sequential improvement and extending our growth momentum over the last eight quarters. For the quarter under review, the operational revenue stood at 171 crores, registering a strong growth of 20% year-on-year. EBITDA for the quarter increased significantly by 50% on year-on-year to 40 crores, with EBITDA margins improving to 23.6%, representing an expansion of 475 basis points compared to the corresponding period of the last year. Net profit for the quarter stood at 37 crores, reflecting a robust growth of 70% year-on-year. Pat margins also improved substantially to 21.8% and an expansion of 641 basis points year on year. For the financial year 25-26, the operational revenue stood at 661 crores, registering a strong growth of 58% year on year. The EBITDA for the year stood at 145 crores, reflecting a robust increase of 86% year on year, while the EBITDA margins improved significantly to 21.9% on the full year basis. Representing an expansion of 327 basis points over the previous year. Net profit for the year stood at 133 crores, delivering an exceptional growth of 111% year-on-year, and a fat margin also surpassed 20% for the first time with an expansion of 507 basis points year-on-year. This robust performance was supported by strong growth across various business segments. For the quarter-under review, our geospatial engineering services revenue increased by 75% to 102 crores. On the technology solution side, the revenue slightly declined to 68 crores and therefore reflecting the mix of the two segments. For the full year, our geospatial engineering services revenue increased by 76% year-on-year to 359 crores. Similarly, our technology solutions grew by 41% year-on-year to 301 crore. Demand for our offerings remains strong. During the quarter, we booked our new orders aggregating to 62 crores, excluding mobility and product services. Taking our closing order booked as on 31st March 2026 to a healthy number of 876 crores. At the same time, we have maintained discipline on working capital with our net working capital cycle improved marginally to 157 days from 162 days of the previous quarter. Another key highlight for the year was our strong cash generation. We delivered positive cash flow from operations and further strengthened our balance sheet, with the overall net cash balance increasing to Rs.248 crores as on 31st March 2026 from 123 crores a year ago. We continue to strengthen our order book by securing multiple orders across domestic and international markets. Domestically, the company has secured a major contract from MADA for Rs.41 crore for the development and maintenance of integrated project management system and GIS-based digital platform along with the service order from ISRO, which also contributes to a three-year subscription renewal. On the international front, the company has received an order of 21 crore for the design, supply, and installation of Georgia land information system. And through our U.S. subsidy, we have secured a purchase order also for a hybrid power transfer case amount of Rs. 4 crore. This is a result of a continuous business development effort which we are doing for the U.S. operations. These wins reflect the breadth of our capabilities and our continued success in securing large and strategic projects. Across multiple domains. We have been aggressively working on building the pipeline for the new orders and we are expecting good conform order book in Q2, Q3 of this year. There are many opportunities which could not be concluded due to several instances of code of conduct in the last 12 months, but now we are seeing positive traction for those opportunities to conclude in the near future. Overall, our strong financial performance, healthy order book, improving cash position, and continued success in securing strategic projects provide us with confidence on delivering sustainable growth and creating long-term value for all our stakeholders. With this, now I open the floor for the question and answer session. Thank you.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Ashish Soni with Family Office. Please go ahead.

Sir, our first question is on the acquisition. You said two quarters back acquisition should be done by sort of this time frame. So what is happening on that front and if you can elaborate when we can Thank you for the right position.

Sure. So, as you are aware, we have been targeting to get some inorganic growth and we have also been working for various opportunities which we have been tapping. In fact, the two opportunities which we were kind of tapping, there was some challenge as regards the business continuity and therefore we had to take a call to not to pursue that. But we have also been pursuing few opportunities, and based on these opportunities, we find that the new opportunity which we are tapping right now, there could be a closure of inorganic growth for the purpose of due diligence in next one or two quarters. The amount of Rs. 235 crore which was mobilized had been earlier earmarked for the particular 70%, 20% and 10% kind of scenario. With the kind of options which we are getting, there may be a slight change in the requirement of the funds, but that is why the board has decided to slightly modify and instead of around the... 220 crore being 210 crore for the purpose of acquisition and expansion that has been now restructured to also include the opportunities by way of joint venture, etc., which were not earlier included, and therefore that small changes are also being proposed for which the special resolution by way of postal ballot will be circulated. So there are some opportunities which we are pursuing for which we are trying to find some changes as already mentioned.

Okay. And regarding management changes, so what is the plan? Are we searching for some senior leadership? Because I think he was given last U.S. leadership. So what is the plan and do you think you can maintain the growth rate what you have seen in the last two, three years going forward in the next two, three years?

Certainly a good question. In fact, we were expecting Suraj sir to contribute to a new vertical, but as he decided to move on, in fact, we have re-mobilized and I would say re-structured the entire organization structure and the U.S. business is also being, we have already. I would say he recruited three major senior positions in the U.S. who are doing the business development as well as execution, and our COO, Mr. Rahul, is going to head that U.S. business delivery also. So, and he has already been performing on a year-on-year basis with a growth of more than 50 percent. On a CAGR basis, he has already developed his team at U.S. and he has also been taking control of the new initiatives. In fact, the two major businesses which you see, the 22 crore of Georgia and 4 crore I just mentioned, are the result of the continuous BD efforts and also his involvement over there. So I think we have got the new management team, although we have realigned the management team to take care about the U.S. business, and we are seeing very good traction for the efforts which we already built in in the last three to four quarters.

And the growth question, you said, I asked that, can you maintain the growth movement of what we have shown in the last two, three years, in the next two, three years?

I am sure that things are moving in the same direction. In fact, the kind of capabilities which we have developed, you can see that we have enjoyed a growth of almost 58% CAGR in the last three years, which is also part of our presentation, and we are hopeful, while we are already targeting to that, but we are hopeful that this growth momentum will continue.

And last thing, you spoke about the objective change for the preferential issue to include joint ventures. So any particular area you are lacking or it's a complementary to your thing which you are looking for? And will it give us a global reach or some clientele? I just want to understand that perspective.

So, as of now, I would not be able to give you further guidance, but yes, the kind of acquisition which we are looking at are to acquire certain capabilities where there are some two options where there are industry leaders, and they may not be open for acquisition, but they are open for alignment by way of a joint venture, and therefore, this option is also being addressed. That is the only reason, and this is, again, we are not going to diversify from the existing businesses, which is geospatial and engineering solutions. We are going to fortify by enhancing the domains and also adding more clients by way of maybe having good logos and all. So those purpose of acquisition and the inorganic growth continue the same.

And last question, what is the situation on receivables and the recovery from the government? I see it because AGM, we had a lot of issues last year. So, can you elaborate how much in terms of receivables left from that earlier thing and in terms of aging and when do you think the recovery can happen?

Sir, in case of recovery, we have a data of 153 crores outstanding as on 31st March 2026, out of which... Approximately 94 crores is less than 90 days. So you can understand out of 153, the 94 crores is, the 61% quantum is less than 90 days, and less than one year is approximately 127 crores. So, the recovery or the age in which we have more than one year is hardly 27 crores out of the total 153 crores. So, funds, we are, last year also we have collected a lot of funds including JJM and this financial law also we are targeting and we are hopeful that we will be able to recover our most of the funds from JJM and other projects also. So, we don't foresee any problem in case of recovery.

But this 27 crore, which is more than one year, what's the challenge we are facing? Is this a milestone? What exactly is the challenge there?

Sir, there are challenges. Maybe some are because of the milestone, others are because of the government funds and sanctions, which we are waiting, and we are hopeful to get the same in the same financial year, 26-27. Okay.

Thanks, and all the rest for the future. Thank you.

The next question comes from the line of Kaushal Sharma with Equinox Capital Venture. Please go ahead.

Hi, sir. Very good morning. Good afternoon. How are you?

Yeah, you are. Good afternoon.

So my question is on your working capital side. I can see that your trade payment has increased in each country during the year. So what was the key?

Sorry to interrupt, Kaushal. Kaushal, you are not quite clear. I would request you to use your phone on the handset mode in case if you are on a hands-free mode.

Hello, now is it audible?

Yes, a little better. Go ahead, please.

Yeah. So my question is on your working capital side, like the trade is the trade table has been increased significantly during the year. So what was the key reason? Did we renegotiate with our supplier and our fund built revenue also increased significantly more than our revenue growth? What was the reason about it?

So, if I can just address, first of all, the current liabilities. In most of the cases,

these are all back-to-back contracts, and once we will get the funds, even we will pay our suppliers, because we have the terms with them, similar terms with them, that once we will realize our data, we will pay of our back-to-back contractors. That's why you might be seeing that change in case of payables.

Okay, and what about the build, uh, unbuild revenue that has increased? Unbuild revenue?

The unbilled revenue, I think, yes, what you have pointed out is correct, that it has increased in this financial year, but this is just because the milestones have not been achieved, as on 31st March 2026, which may come up in this financial year, in this first quarter also, and in the coming next quarter also, we will be able to bill substantially out of this unbilled revenue, because our milestone, we will reach to the milestones of billing in this first and second quarter of this financial year.

And sir, my next question is on your acquisition. Like you acquired VTS two years back. So what is the current status and their revenue as of now and order book for the margin? What is going on over there?

So, VTS, we have invested a substantial amount by way of manpower, business development efforts, and what we had earlier projected that this year, in the FI 25-26, they were to kind of enhance their revenue, which they have, but we are seeing the growth. We are expecting the growth in this financial year after all the BDA effort which we had done last year. So, VTS, we may expect a good revenue jump. In fact, it may be more than two times or more than two times from what we have achieved in the 25-26 on VTS. So, we are expecting VTS to not only contribute a turnover of more than 20 CR, but it could be also a profitable growth. So, we are quite, and even quarter one is in line with the projection. So, I think that's. That has come out quite well. We have been mentioning about this in the last two IR calls also, that the business development efforts are happening, and that can come. So these are some of the results of the continuous efforts.

How much revenue did it contribute in current financial year 26 and the profitability now?

So, in the financial year, 25, 26, the turnover was not significant. It was around 7 to 8 crores, and it was EBITDA positive, but after the BD expenses, it was negative because we had incurred some of the BD expenses, and this, as I said, this year we are projecting to be more than 20 crores with a positive EBITDA and substantial positive EBITDA.

And sir, we have around 876 crores of order books. So what is the execution period that we are expecting to execute this order book and what is the order pipeline as of now in India and as per the global level like you have the subsidy in the US?

So, let me first clarify, there are two segments of business which are not mapped under the order book, which is mobility and the product solution. These two segments contribute, which is they are an annual run rate kind of business where we further acquire new businesses and all, and these contribute almost 150 crore of our total top line. When we talk about the order book, the 876 crore order book, there are various projects which are having an execution pipeline of 12 to 18 months. And many of these projects would have closed within this year. We will have a spillover order book going into next two to three quarters of the next quarter in some of the some of the projects. So we expect order book to substantiate for this financial year as well as one or two quarters next year. And the order pipeline I am I'm sure if you are there he can contribute otherwise he was at a at a At a client's call. Are you there, Abhay Ji?

Yeah, I'm there. Are you able to hear me?

Yes, we can.

Yeah, so coming to the order book and pipeline. We've been doing a lot of hard work on that site, Q4 and Q3. We did good homework, and we have created some good fun help. Unfortunately, Q4, we couldn't have those closures, but Q1 and Q2, we have substantial order book to be closed. We are L1 in a few cases, and there are some direct orders, extension of the existing orders. Those are all in pipeline. And then we've been able to do some inroads in some of the major departments in Maharashtra and outside Maharashtra as well, primarily in the infrastructure space. We are also doing some inroads in the power segment. So these two will be there in the two quarters. We will see a lot of borders coming into this particular domain.

Could you be certain, like, one time working on the road pipeline?

I can't tell you the numbers. But when I said that last quarter I couldn't close it, it should be next two quarters we'll have our numbers, whatever we have designed to fulfill in two quarters. It may match up to the last years or adding more into that. So number what we close would be definitely more than what we have closed in last year.

The EBITDA margin has increased substantially like 347 BIFs. So what was the key growth drivers in this EBITDA and is this margin sustainable in future?

So, I think if you see our presentation, you will see that EBITDA margins have not suddenly increased. There is a constant, persistent effort. Based on the last eight quarters, you can see that EBITDA margins have been increasing, and it's sustainable. I would say the reasons there would be, I would bracket into three reasons. One is that we have improved our delivering capacity. We are therefore trying to tap a higher value segment rather than going into the lower value segment of data acquisition. We are more into solutions. That is one reason. Second is the skilling of the people which we are enhancing. In fact, if you look at the number of employees to turnover ratio, which was in the 2023-2024, the employees to turnover ratio was around 24 lakh. Today we are talking about around 55 lakh. So, it is only because the people who have been able to deliver have been getting a better skilled people or we are getting new skills for the existing people. And third is we are able to tap certain new technology segments which are enabled by AI. Okay, so... In the year, this year as well as in the coming year, we believe that there will be certain technology initiatives which will contribute to a substantial improvement in the EBITDA on a consistent basis. I think these are some of the initiatives which we believe that this could keep our EBITDA at a sustaining level.

Dr. Chapman, if you are in a front seat, yes.

The next question comes from the line of Ashwin Patel with Alpha Strait Intelligence. Please go ahead. What's up? Good afternoon.

My question is, India actually didn't...

Ashwin, you are not quite audible.

Hello.

Now, sir?

Yes, please go ahead.

My question is, India accelerating offshore oil and gas exploration.

Does census any meaningful opportunities in GIS mapping, digital thing, and survey project from this sector over the next few years?

We are certainly... Experts, I would not say expert, but we have all the capabilities of the data acquisition, the mapping, the 3D plan, as well as the digital twin, and it applies to all the segments. Now, oil and gas, we have not had any earlier exposure, except for one exposure, which we had from U.S. And we are trying to find out if we can tap those opportunities. However, these opportunities are typically taken by the oil exploring companies themselves, and it takes little more time to get more drill into the new businesses with those sectors. But we are exploring those, including some of the opportunities which we are working for, transport, telecom, as well as maybe defense and all other segments which we are expanding our domain. So, oil and gas exploration has not been, except for one contract, we have not got into the contracts, but we are certainly capable of delivering the... The digital twin by the 3D mapping of the area to be mapped. So we are working on those options as well.

Yeah, so Ashwin, to add further, the other domains of varying sciences have its stresses of prominence are growing faster than oil and gas. And oil and gas in India is steadily growing, and they love all the benchmark solutions. Those are the technical side. But as what Kaushik has just mentioned, we are there for the digital twin side of the operations, and that we will pursue. But having said that, the others are growing and we are really jumping into those opportunities space. So perhaps by comparing to scale, you will find we are growing faster in other domains compared to...

A reminder to all participants, you may press star and 1 to ask a question. The next question comes from the line of Gunit Singh with counter-silical PMS. Please go ahead.

Thank you for this opportunity. So firstly, my question is regarding the order book and the bid pipeline. So if you look at the order book, it has been shrinking year on year. And I think in FY26, we were ordered intake was around 400 crores, around 350 crores, which is less than what we executed during the year. And all throughout FY26, we were told that in the next quarter, in the fourth quarter, in the three-quarter order intake and so would be high because the bid pipeline is strong. And then in the fourth quarter, I mean, we were sure that during Q1 before the call, I mean, we would see some order and so. So, as an investor, I just want to understand, I mean, what is the bid pipeline? How much have we built currently? How many projects are we L1 in? And what kind of order inflow can we realistically expect in FY27? So if we share this information, we will have an idea as to, I mean, how the actual environment is, because right now, I mean, we have no idea as to what is going on.

Please, thank you.

Gumit, good question. You are very right. We were saying in the last quarter that we will be able to close three of them, but those got really postponed. And we are still on those projects. We have three L1 projects at this point in time. I won't provide your number, thanks to those L1, but those would be any day we would be able to get those orders. We have one order, which is the LOI. We have started executing that, but we haven't, because we haven't got a form order. But as the timeline is very challenging, so we have started up. Having said that, Q1, what we were anticipating, again, it got slipped to Q2. I agree to your statement. But Q2, definitely, we have a strong and strong pipeline. I can boast to you that what we have closed in 26, we will surpass that in Q2 history. That's my statement. So we have a strong pipeline with infrastructure space. When I say infrastructure, it's on the roadside, it's on the site, and other building customer side. Those are all big pipelines. So we have usually a different lifecycle of project or BD. We will get one or the other domain, you know, picking up and getting, because as government funds, as government and debt comes, accordingly, even the business runs. It's a natural phenomenon. So, similarly, water took over two years because JJ was there funding it now. The infrastructure site on the highways, on the metros, and similarly, the ports and this kind of project are coming up. And we are very much winding up for them. And we have been a few of them. Definitely, we will be in those projects because we see that we are pretty competitive and we have other challenges that we may have.

So basically, in Q2, what we are trying to say is, by Q2, we should have orderings of more than FY25, which was around 354 units here.

We would be able to match what FY26 we close by Q2, and then we will be able to surpass what we achieved FY26 by Q3.

And, Gunit, thanks for your continuous kind of interest. And I can also substantiate that earlier the run rate business, which was not supported with the order book, was small. Now the run rate business has also increased substantially. So I think what we are trying to build is a sustainable business where we don't need to rely on orders, on a one-time order. So I think in the beginning of the meeting also I mentioned that we have two divisions, which is mobility and the product solutions where more than 150 crore worth of orders, our execution is not backed by order book because they are a run rate business. So I think that we are confident about the growth is what we have been pursuing.

Got it. I just want a clarification. Did you mention that the order inflow in BioQ2 would be more, I mean, equal to the order inflow in FY25? Is that what you mentioned?

I didn't get you.

What is that?

So, basically, you mentioned that by Q2, the order inflow that we will see will almost equal or exceed the order inflow in whole of FY25. Is that what you mentioned?

Now, for the FY26 we just closed, we may exceed to that by Q2 or half of Q3.

Okay, in terms of order inflow, right?

Orderly value, cumulative value of our order received.

Sir, so we close FY26 at 800 crore order book. So, I mean, I don't understand exactly what you're trying to say.

No, no, that's what we've been doing. I think

what he mentioned is that during the year FY2526, we had a new order of all the 350 crores. And in Q2, Q3 beginning, we should at least get those new orders of that value, although we are not able to quantify because we don't give the numbers. But as and when we will get the confirmation, the same will be kind of intimated. But I think the pipeline is substantially good, and as Abhay sir already mentioned, there are three large orders where we are L1.

Perfect. Thank you very much for clarifying. So if we talk about the bid pipeline, what kind of bid pipeline are we looking at currently? I mean, and how does it compare if we were sitting at the same time last year? Is the bid pipeline healthier? And I mean, if you can throw some light on that.

Yeah, what usually happens, the bid pipeline from shop, when you work for two quarters or more than two or three quarters, then you get, you know, the RFP's published and then bid submitted and it's about to close up, become an admin. So these are the long-term process, usually take three quarters. What has happened this year, what we have done last two quarters, those are really matured, and we are about to get some bits published. Whatever bits we have been did or whatever RFPs have got published in Q1, we just got those getting closed in this quarter or early quarter. So it's a really good pipeline. So, we have a lot of hard work, because when we saw that QLDC is not, you know, converting into the light kind of closure, so we started working on new projects, new areas, and then whatever new points which were given by central government and state government, so those projects were with that, and then we were able to publish some of the projects or some of the RFPs for those projects. And so, there is a good pipeline, and we have already created some RFTs, so unlike what Q4 and Q1 we have.

Got it. So my next question is regarding the unbilled receivables that we have, about 330 crores. So these seem to be growing at a very fast rate. So I want to understand what is the reason? Is it because, I mean, why are we not able to bill our clients at the milestone, number one? So there's a mismatch. And are we, I mean, doing some aggressive accounting currently? Because the unbuild event seems to be growing at a very fast rate. And as on date, I mean, how much of this 30 crores as of March 31st, how many of this has actually been built? And how does it work? I mean, if you can help us understand in detail what's going on here, that will be really helpful.

I think I have already explained this unbilled revenue on 31st March 2026. Yes, the number is higher side on 31st March 2026 because the milestones which are required to build has not been attained at 31st March 2026. We will be attaining those milestones in first quarter and second quarter and those unbilled revenue will get converted into billing and we will recover the funds in these two quarters. So, there is no aggressive kind of accounting what we are doing. It is the normal as per in days accounting is being done. And the amount which you are looking in unbilled revenue is just because the milestones in government projects, we have a milestone wherein only we can bill once the milestone has been achieved and the certification process is done by the government. So we are expecting that it is in process and we are expecting that to complete in this Q1 as well as Q2. So this unbuilt revenue will come down substantially in these two quarters, but at the same time, the new work will happen, the new execution will happen, so another new unbuilt revenue will also come. So it's a continuous cycle.

Gunir, also you should appreciate that the turnover is increasing by almost 58 percent. So, Unbuilt Revenue, because the cycle will continue, the cycle of execution will continue. And obviously, when you are working with at least 10 major projects and almost like 50 small projects, every project has a different timeline or milestone for billing. So I think that's a normal practice. And when we grow, I mean, if we talk about comparing ourselves before two years and now, I think the numbers itself, the baseline itself has changed. So I think let's, these unbuilt revenues are...

Got it. Thank you very much for the clarification. And for this subsidiary, which is loss-making, I think if we go from standalone to consolidated figures, EBITDA falls by 26 crores. So, are we, I mean, by when do we think that this will break even loss-making subsidiary? And if you can throw some guidance on how the business is going there.

So, if I can just recap, we have been communicating about this business development in the last three, four, five quarters, about our efforts in business development, because these were acquisitions and we wanted to grow. Now, these investments into BD has also developed into, and we also developed some IPs, which have been expensed out in the subsidiary at TA, and therefore the concerted results have shown lower results than the standalone. However, in Q1, as I think in the earlier question I already mentioned, that in Q1 this year there is a visible improvement. We have seen new orders, which I also mentioned. One new fresh order of 4 crore, another order of Georgia of 22 crore. Which is also because of the sustained efforts of business development, and as per the business plan, which is envisage for this year, we are expecting a good turnaround and no negative profit.

We will be in break-even in this financial year. We are targeting to have that break-even in these subsidiaries, but we may also incur certain expenses towards BD in this financial year, but yes, the numbers will substantially change in this financial year.

That's great. So, I mean, we can expect the standalone consolidated margins to, I mean, I mean, consolidated margins to move, tend more towards standalone, right? And what's the 40 crore investment technology, was that expensed out?

Yes, yes. Except for 8, except for 12 crore, which we have capitalized, the other expenditure has already been expensed out in the subsidiary.

Got it. Got it, sir. Thank you very much, and I appreciate the work that you're doing, and wish you all the best.

Thank you.

The next question comes from the line of Shubham, an individual investor. Please go ahead.

I'm going to do it.

Bye, Shubham.

Yeah, sir, congratulations on the good set of numbers. I have couple of questions. So the first question is with respect to the tax rate in S by 26. What I could see is that the tax rate has been dropped sharply with respect to S by 25. It was around 29% and then dropped to 40-15%. So, sir, what was the reason for this? And what is the normalized tax rate that we can assume for S by 27 and S by 28?

No, no, that is not the tax rate has gone down. We have got a refund of 8-9 crores, which has received in this financial year. We have reversed a provision, excess provision, which we have done in income tax in 24-25, which got reversed in 25-26. That's why there is the difference. So there is no change in the tax rate. The tax rate applies to company is 22% plus a charge plus this. So there is no such...

I think FY27-28, it will be 25% tax rate, normal tax rate.

Got it, sir. Got it.

So the second question is that, I think as you mentioned in your opening speech as well, that technology solution segment has, I think, some decline in revenue as well as EBITDA in Q4. So, sir, is this temporary or is it indicating that there is some moderation in demand? Like, how do we see this going forward?

No, no, it is completely temporary. In fact, the overall mix of technology solutions in the contract has been more than 55-60%. And as it happens during a particular quarter, maybe I have not achieved the milestone for recognizing the revenue. And therefore, the percentage of the technology solutions revenue is slightly lower. But if you see the overall annual percentage, I think we have grown 41% of the technology solutions also. So it's a temporary, I mean, every project has elements of technology solutions and engineering solutions. In a particular quarter, technology solutions may have... For that contract may have been less, and therefore you see the percentage falling. But on and over, overall numbers, you would have seen at least last five, six quarters, the technology solutions percentage has increased. And I also mentioned in my opening speech that our AI ML enabled solutions will enable the, which is a part of the technology solutions turnover, will further enhance the turnover in the coming quarters.

I understand, sir. So this one is embracing. Other question is that, like, we know that our company is primarily in AI, ML, geospatial opportunities, right? These are all, like, very tech-focused segments. So how much revenue today that is coming is actually coming from proprietary IP-flash platforms versus how much is coming from manpower, like, engineering services? You can give that split at least in terms of percentage.

First of all, let me clarify, we don't do any manpower services, so we are all solutions provider only. There are some certain projects which are created on the OEM platform as required by the customer. So, what happens is that there will be certain customers who want a particular solution based on a particular software or OEM. It could be Autodesk, it could be Bentley, it could be EZRI. There are certain solutions which are the AI enabled solutions are all proprietary because we have the IP already applied for that. And there are certain open source applications also which we have developed, which we are providing for the some of the solutions. So I think it's a mix of mix of OEM based solutions and the open source solution and it is all guided by. The customer's requirement and wherever there is a possibility that customer doesn't specify any specs, then obviously we will try to prefer our open source applications. And the open source application turnover also is steadily growing because of the enabling of the AI and ML based on some of the products which we have developed.

Understood sir. Sir, thanks for the other time. So just the last question. Sir, so we see that there are a lot of additional tailwinds that have come in. Like for example, JLG1 mission has been extended. And then obviously then oil exploration also relates to that and a lot of schemes have been introduced by the government. And I feel that we are at somewhere at the center of this where we are able to benefit from all of this. I just wanted to understand the future outlook would still be like how we have been growing. Obviously we have done a very good job for the last 2-3 years. Will the growth be, are we still being conservative in giving the growth numbers or can we expect that the growth can be faster in coming years? Like any commentary on that sort of thing, whatever you can.

No, but you are mentioning two domains. Are you connecting that growth to these two domains only or do you want the entire, uh, entire... Overall, I'm asking, like overall, overall. So we've not been very conservative, but not even very well. We've been very, you know, steady, and we've been projecting, and we're trying to achieve what we have said. Some last, if you see, three, four years, we've been gradually growing as well as if order book grows, and even the revenue side. And then we plan it properly. Every year we do some brainstorming and decide to do some kind of introduction to some of those departments where we see the funds are going to come and this huge technological intervention is going to happen. So by virtue of those, we create our entire funnel, entire roadmap, and accordingly we go to the department and we hire people and create our entire business development funnel. And then we start creating the RFPs and start winning the projects. So it's a long-term process, but we've been very much on the job. What we see that next five years, how are we going? Accordingly, we're hiring people. Accordingly, we are, you know, even trying to see the government and how they are coming and building up our entire business, these things. Okay, yeah.

I hope I address your question. Yeah, sure, thanks. Thanks for answering all the questions. Thank you.

Participants, please press star and want to ask a question. The next question comes from the line of Ashish Soni from Family Office. Please go ahead.

Sir, what is happening to our collaboration with Tech Mahindra? Are we getting any business? So if we can throw light and are we having some bigger pipeline or joint solutions with them?

Yeah, I will answer that. We've been exploring what are the areas, which are the domains, which are their individual domains, and where we can intervene. We have already done a few POCs. We are doing some projects with them, some POCs in the U.S. with them. They want some projects, and they are going to do a project to us. I cannot spell out the names of those projects. We've been doing, collaborating, now telecom we have begun with, slowly we move into the other domains like energy and water, but they wanted our assistance in telecom and that we've been providing them what they want. So, we have already done a small project, but we'll grow this over the years, and then they are also committed to, committed for this partnership, and we're very, very optimistic about that. You'll see number going.

And another question is, I think management alluded earlier that your international business will get pushed drunk off maybe over a period of time in next two, three years. So, do you still see the trajectory moving that direction and dependency on maybe Indian government schemes to be reducing? So, where do you see in next two, three years that progressing?

Yeah, the first part, Kaushik has rightly handled and addressed it elaborately on how we've grown and what are the plans for next two, three years, and how Rahul has taken over and he has handled that international piece.

My question is, trajectory-wise, do you see international business becoming a good part of your business and dependency reducing in the next two, three years? That's the question, because you are still in like...

Abhay Ji, maybe in a network zone which may not be quite clear, but to answer your question, yes, in fact, if you look at our vision statement before more than one year, that is our vision that we want to expand into international, reduce the government dependency, but still grow both simultaneously. So I think that's what we are doing.

And any other senior management hire you are looking for achieving that or everything is in place in terms of your international expansion?

No, we are already completely onboarded with the team. Internet expansion, international expansion team has already been there for last more than two quarters now. In fact, a few of them were there before two, three, four quarters. The team is already in place. The orders are already coming. The execution has already started. So I think in the sense, the new order execution also started. So we have taken those steps and I think right now the team is adequate enough.

We grow as the business will grow, but right now the team is available to meet the...

I think if somebody mentioned about some IP development in US, I think when I think somebody spoke about the question of expanding out expenses. So can you just highlight anything

new in terms of IPs we have developed over the last one year or which will help in the business going forward?

So, we have developed two IPs which are already applied for. We are expecting maybe a registration soon. In fact, we have also been using those IPs, those product solutions for not only POCs, but also commercial utilization. But I think the focus for the current year will be to build more IP products in this one and two years. We want to invest more into that. So I think that is the focus of enhancing the IP portfolio. And how much will that expenses be for IP, development of IP? In the recent AOP, we have identified at least three major IPs where the expenditure outlay is targeted to be in the range of around 12 to 15 crore, but that is also part of our revenue expenditure.

Any risks and challenges do you see for your growth in next one or two years? And what's the plan to make like that?

I mean, it's a normal SWOT analysis for any company. We have our action plan taken to ensure that we expand ourselves in line with the demand. And therefore, you see that we have been able to be fungible to move from, let's say, energy to water. And now we are trying to refocus on where new investments are coming into infrastructure, digital twin or transport, and also a little bit focus on how to enhance the satellite defense and all. So we have been adjusting to the domain where there is demand and there is outlet. So, we are taking our adequate care that the risk obviously will always be there for any business, but we are trying to have a mitigation plan for that purpose.

For that matter, we have adequate base of various domains. So, we are not confined to one individual domain wherein, you know, we put all our eggs. So, if you alternate or, you know, sometime or other, you have other one domain performing and other domain going down. So, because as per the government demand, as per the market, the things come into picture. And accordingly, you get your business. So, that way, we also plan and we have plans created for next two years. How the individual domains will perform, we have those ideas. Taking the numbers of the market, how the market has expanded, how the government has formulated like the National Geospecial Mission, National Geospecial Data Policy. So it has enabled a lot of new areas of opportunities. So likewise, we create our funnel and we focus on the market.

Yeah. The next question comes from the line of Maitri Shah with Sapphire Capital. Please go ahead.

Yeah, hello, my audible. Yeah, good morning. Most of the questions have been answered. Just a few. Firstly, on the growth side, for the last two years, we've grown upwards of 60%. And again, we're saying that we grow in line with those targets. So where do you see the, which domains are you focusing on more? Also, currently in Alderbook, how much contribution are we getting from JDM and any new JDM contracts we are bidding for?

So, answer, there are three questions. I would answer two. One answer, I think, Dr. Abhay will give. The current order book percentage of Jaljivan mission is less than 15 or 20 percent. I have not exactly calculated, but these are less than 15 percent now. That is one. Second is, the domain-wise, we are changing our, as we already mentioned, that we keep on shifting the focus based on the focus where the government spending is more, because these are all infra projects, and infra projects require large expenditure, and therefore we kind of modify ourselves to that. As regards, Jaldivin Mishan, Abaiji, the new BD. Are you able to hear, Abhay Ji?

Sir, Abhay Ji has got disconnected. I will reconnect it.

So, the new pipeline is not focused on Jaldeevan mission except for some of the projects where there is expansion and enhancement. So, there are a few projects where we have already implemented some of the projects and maybe the MBIT is getting expanded. Or there are projects where the limit, the time limit is getting extended. So there are few projects where we are expecting enhancement in those Jaljeevan mission projects. But most of the new initiatives are into domains like the infrastructure or transportation or energy or even some of the initiatives which we are taking for defense.

Okay, that's great. And also, you mentioned that once our VTS kind of has a positive EBITDA will stop the drag on the console margin. So, where do you see this business getting a consolidated EBITDA margin at a steady level up to?

So, this year itself, CFO has already explained that this year we expect to be a breakeven. So, the drag on the consolidated results are not expected at the year end. And obviously, the margins, because of the margins improvement. And next year onwards, we can see the positive results from the subsidiaries also.

And the growth on the 50% stage, do you maintain that for the next few years because we are entering new domains where we're seeing better focus now coming forth?

We don't commit any numbers on growth. We keep on pushing ourselves. So, it would be difficult for me to answer numbers or the percentage growth.

And the three projects where L1 and R are currently in these new domains that we're targeting, is that correct?

Sorry, three projects, what did you say?

The three projects, the PIA and UNN, these are in the new domains, we are targeting.

Yes, yes, not new domains, yeah, but some transport, energy, and those sectors.

Those sectors, okay. Yeah, thank you very much. All the rest.

Thank you.

The next question comes from the line of Amit Kochar with Padam Investment. Please go ahead.

Yeah, good noon, sir. My question was regarding Mr. Tarun Raisoni, who was a strategic investor and an advisor to the company. So, is he associated with the company for advising any of the AI in any ways or is he not associated right now?

No, no, he is a strategic advisor, so he does give his inputs for our AI initiatives. In fact, he has also been developing a new venture in US as well as, so he is obviously on our board for advisory, and he does give input for any expansion related to any IP projects. So I think he is a good input. He always keeps on giving.

Right. So, if I'm not wrong, RareCP is their company, or is it someone else's?

RareCP is a US-based fund, and obviously, the promoter is, I think, they are US-based.

Mr. Rai Souni and Mr. Mehta.

Yeah, so they may be joint promoters, but this is something which they have invested, I think, before 2024.

Right, and the warrants are being converted right now in 2026 event.

Yeah, they are only converted, fully converted.

So it is fair to believe that they are associated with the company.

They are, they are.

Right, thanks, that also, that's all from my side.

Yeah, thank you.

The next question comes from the line of Gunit Singh with counter-silical PMS. Please go ahead.

So, I want to understand the tax rate going forward. So, what should be the steady-state tax rate? Do we have any more credits left?

No, no. Tax rate is 25%. Credits have, it was a one-time feature, and therefore, tax rate will continue to be at 25%, which is including surcharge, etc.

Got it. And with regards to the Dexway L1N, the margin profile would be similar to our margin profile since you mentioned that there is some energy and transport. Yes. So what the margin profile is?

Yes. Margins are typically almost similar in all the domains where we operate. So we don't have a sector-wise drag of any one domain. So, I think every project has a decent margin which enables us to keep up the overall EBITDA margins.

Got it. And in terms of the long-term view, say, over the next three to five years, I mean, where do you see the company standing? I mean, do you have some aspirations in terms of top line and bottom line or mix of government versus international projects? I just want to understand what is the strategic direction of the company for the coming three to five years?

I think long-term vision we have already shared once and then our idea is to grow. Obviously, I can't quantify. Grow in both the segments, which is the international segment as well as India segment. Continues to be kind of contributed more by government business. So grow international faster, grow India business at its own pace without taking much exposure or risk, and still have a combination of changing the mix from the present of government business from, let's say, average 70% to less than 50% over next two to three years, but while continuing to grow.

So, I mean, obviously, you haven't given a number of the kind of growth that we should expect, but considering that the beginning order book is low, so do we still feel that the company will actually grow on a, at least for the India business this year?

I think even international business will grow. So we have already pulled up our socks. We already got some opportunities. I think Abhayji has already mentioned about the 3L1s and new projects. So I don't see any problem in execution targets for this year.

So, I mean, we should expect the company to grow at a good rate this year as well. I mean, that's what you're understanding, right?

Absolutely. That's correct.

All right. Thank you very much.

Thank you.

Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for the closing remarks.

Thank you, Aryan Capital. Thank you all for participating in this earnings conference call. We hope that we have been able to answer all your questions satisfactorily. If you still have any further questions and you want to know more about our company, please reach out to our IR managers at Valorum Advisors. Thank you once again, everyone, and Aryan Capital.

Thank you, sir. Ladies and gentlemen, on behalf of Arian Capital Markets, that concludes this conference call. Thank you for joining us, and you may now disconnect your links.