Summary
Ceinsys Tech Limited - Q3 FY 2026 Earnings Call Summary Thursday, February 12, 2026 12:00 PM IST
Event Participants
Executives 3 CA Amita Saxena (CFO), Dr. Abhay Kimmatkar (MD), Kaushik Khona (MD-India Operations)
Analysts 10 Aman Soni, Ankit, Apeksha Bajaj, Athar Syed, Charu Manral, Darshil Jhaveri, Garvit Goyal, Gunit Singh, Narayana Lodhavia, Vaibhav Mishra
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Operational Revenue | ₹170 crores | +52% YoY; Driven by 122% growth in Geospatial and Engineering Services. |
| EBITDA | ₹40 crores | +88% YoY; Reflects strength in operating model and execution maturity. |
| EBITDA Margin | 23.48% | +452 bps YoY; Improvement due to higher technology absorption and value-added orders. |
| Net Profit (PAT) | ₹39 crores | +119% YoY; Resulted in a PAT margin of 22.9%. |
| Order Book | ₹999 crores | Flat QoQ; Excludes mobility and product services (~₹125-150 crores annual turnover). |
| Net Working Capital | 160-162 days | Stable QoQ; Collections of ₹170 crores matched quarterly revenue. |
| Unbilled Revenue (UBR) | ₹250 crores | Continuous cycle; Milestone-based billing with ₹140 crores billed during the quarter. |
| Debtors | ₹150 crores | 84% of receivables (₹126 crores) are aged less than one year. |
| Borrowings | ₹30 crores | Primarily cash credit utilization against an ₹80 crore limit; long-term debt is negligible. |
Geographic & Segment Commentary
- Geospatial and Engineering Services: Revenue grew 122% YoY to ₹109 crores for the quarter. Growth is supported by large-scale projects like river linking, national soil mapping, and urban change detection.
- Technology Solutions: Revenue declined by 3% YoY to ₹61 crores in Q3, though it grew 79% for the 9-month period. Management attributes quarterly fluctuations to project execution cycles between technology and geospatial phases.
- International Operations (USA/Middle East): USA subsidiary (including VTS/TAI) generated ~₹21 crores in 9M FY26 (~5% of total revenue) with 20% operational EBITDA. The company is actively setting up business development teams in Dubai and Saudi Arabia (KSA).
Company-Specific & Strategic Commentary
- Strategic Alliances: Entered MOUs with Tech Mahindra for global telecom/utility business and Aetosky (Singapore) for AI-led satellite imagery and image interpretation solutions.
- AI & ML Integration: Established a new vertical focused on AI/ML and embedded electronics to enhance delivery across infrastructure domains; ₹16 crores of R&D/BD was expensed to P&L this quarter.
- Inorganic Growth: Management confirmed that ₹170 crores (~$28 million) has been mobilized for acquisitions. Due diligence for new targets is nearing completion, with expected closure in Q1 FY27.
- Leadership Stability: Mr. Sagar Meghe (Chairman) has transitioned to an Executive role (Whole-Time Director) to oversee daily business development and strategic sales operations.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | Sustainable Momentum | Management expects to maintain current growth trajectory despite lack of specific numerical guidance. |
| Working Capital Cycle | 120-125 days (Target) | Target to reduce 162-day cycle to historical Q4 lows as government disbursements peak in March. |
| Order Book Closure | ₹900 - ₹1,000 crores | Anticipating closure of pending bids in Q4 FY26 or Q1 FY27 originally delayed by elections. |
| Margin Profile | Stable to Improving | Expected to remain steady at ~23% due to operating leverage and higher-margin technology work. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory/Election Impact | Model Code of Conduct (COC) during Maharashtra elections stalled government tender finalizations for ~4 months in FY26. |
| Client Concentration | Significant revenue remains tied to government initiatives like Jal Jeevan Mission (JJM) and River Linking, susceptible to budget cycles. |
| Working Capital Intensity | Unbilled revenue remains high (₹250 crores) due to the milestone-based nature of government contracts, though collections have improved. |
| Inorganic Integration | Delays in concluding new acquisitions (now pushed to Q1 FY27) due to prolonged due diligence and compliance processes. |
Q&A Highlights
Order Book Discrepancy (Garvit Goyal)
- Question: Why is the closing order book ₹999 crores when calculations based on Q2 and new orders suggest ₹1,140 crores?
- Answer: The opening balance on April 1st was ₹1,192 crores; execution of ₹490 crores in 9M FY26 brings it to ₹999 crores. Mobility and product services adding ₹125-150 crores annually are excluded from the reported backlog (Kaushik Khona).
USA Investment vs. Revenue (Darshil Jhaveri)
- Question: We are investing heavily in the US, but 9M revenue is only ₹21 crores. Can we get more clarity on US profitability?
- Answer: Operational EBITDA in the US is ~20%. However, we expensed ₹16 crores in business development costs this quarter to build the team and mine logos from the VTS acquisition (Kaushik Khona).
Tech Mahindra Partnership (Athar Syed)
- Question: What is the scope of work with Tech Mahindra given their size?
- Answer: Ceinsys complements them in the Water and Energy domains where they lack presence. We are also building AI scanning platforms for their content creation needs and partnering globally in the US and Europe (Abhay Kimmatkar).
Jal Jeevan Mission (JJM) Outlook (Krishna Revan)
- Question: Is JJM slowing down due to contractor issues?
- Answer: The mission is active until 2028. Ceinsys has high visibility and is pursuing both ongoing execution and new pipeline orders within the scheme (Kaushik Khona).
Key Takeaway
Ceinsys Tech Limited delivered a strong Q3 FY2026 performance, with revenue growing 52% YoY to ₹170 crores and EBITDA margins expanding 452 bps to 23.48%. The growth was primarily led by the Geospatial and Engineering segment, which surged 122% YoY, offsetting a marginal dip in Technology Solutions. Strategically, the company is pivoting toward AI-integrated infrastructure solutions and international expansion, specifically in the USA and Middle East, supported by ₹170 crores in mobilized capital for inorganic growth. While the order book remained flat at ₹999 crores due to election-related delays in government tender awards, management maintains a robust inquiry pipeline for FY2027. Key watch points include the successful deployment of capital for acquisitions in Q1 FY27 and the reduction of unbilled revenue/working capital days as government disbursement cycles peak. Management remains confident in sustaining high double-digit growth and stable margin profiles.
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