Summary
eMudhra Limited - Q3 FY26 Earnings Call Summary Tuesday, February 03, 2026, 4:00 PM
Event Participants
Executives 2 M R. Venkatraman Srinivasan (Executive Chairman), Ritesh Raj Pariyani (CFO)
Analysts 5 Aashray Vasa, Akshat Mehta, Jyoti Singh, Rishi Maheshwari, Samraat Jadhav, Siddharth Mishra, Sumukh
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹191.1 crores | +35.6% YoY; Growth driven by product-led revenues and Europe (CRYPTAS) contribution. |
| EBITDA | ₹44.1 crores | +38.2% YoY; 23.1% margin affected by one-time acquisition costs and gratuity provisions. |
| Adjusted EBITDA | ₹49.3 crores | 25.8% margin; Back-calculated using management’s stated margin excluding non-recurring items. |
| Net Profit (PAT) | ₹29.0 crores | +29.5% YoY; 15.2% margin; Includes ₹1.25 crore PAT contribution from CRYPTAS. |
| Enterprise Revenue | ₹407.9 crores (9M) | +39.2% YoY (9M); Benefited from global identity and cybersecurity compliance mandates. |
| Trust Services Revenue | ₹100.3 crores (9M) | +25% YoY (9M); Driven by retail eSign and banking digitization in India. |
| Cash Balance | ~₹100 crores | Reflects outflows for CRYPTAS/AI Cyber Forge acquisitions and ongoing data center capex. |
Geographic & Segment Commentary
- Europe (DACH Region): Revenue reached ₹34 crores in Q3, up from ₹24 crores in Q2, as the CRYPTAS business turned PAT positive (₹1.25 crores). Growth is accelerating due to NIS2 and DORA compliance mandates, driving demand for Certificate Lifecycle Management (CLM).
- North America: Performance remained stagnant in the services segment due to H-1B visa issues and AI shifts, but product revenue grew. New data centers are now live, enabling local TLS certificate issuance to improve turnaround times for US enterprises.
- India & Middle East: India saw eSign volumes rise to 4 lakh transactions per day, though margins remain capped by Aadhaar charges. In the UAE, new Trust Service Provider guidelines have mandated a local data center, currently under audit for commissioning.
Company-Specific & Strategic Commentary
- Acquisition Integration: CRYPTAS has been integrated with the e-IDAS trust stack, moving from selling third-party products to eMudhra’s emCA and CERTINext solutions. AI Cyber Forge’s secret management engine has been fully amalgamated into eMudhra Inc. (USA).
- R&D and Product Roadmap: Focus remains on Post-Quantum Cryptography (PQC), privacy-led data discovery, and converged identity. Early deployments of PQC and consent management are underway with regulated enterprises for risk compliance.
- Operational Transition: Management is phasing out a legacy stock-issue with partners/distributors, which currently impacts margins by ~₹3 crores per quarter; normalization is expected in 1-2 quarters.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Annual Revenue | ₹700 crores (FY26) | Reiteration of target; 9M performance at ₹516 crores provides high confidence. |
| Organic Growth | 18% - 19% (FY27) | Management expects steady organic growth driven primarily by product-led sales. |
| Capex | ₹75 - ₹80 crores (FY26) | Includes ₹60-62 crores for software R&D and ₹15 crores for the mandatory UAE data center. |
Risks & Constraints
| Risk | Context |
|---|---|
| US Services Headwinds | H-1B visa constraints and AI-led shifts are stagnating the US services business. Management is pivoting toward product-led growth to offset this margin pressure. |
| Regulatory Compliance (UAE) | Sudden changes in UAE Trust Service guidelines necessitated unbudgeted ₹15 crore capex for local data centers. Any delay in the ongoing French-led audit could stall local trust service commissioning. |
| Commoditization | Retail DSC and eSign are increasingly commoditized with low margins (~25%). Growth relies on high-volume banking/fintech use cases or high-value enterprise CLM solutions. |
Q&A Highlights
US Performance and CRYPTAS
- Question: What changed in the US during the quarter given the flat growth? (Rishi Maheshwari)
- Answer: Product business is stable, but services are stagnant due to visa and AI issues. CRYPTAS revenue grew to ₹34 crores with a positive PAT of ~₹1.25 crores vs. a loss in Q2 (Venkatraman Srinivasan).
Recurring Revenue and Deal Sizes
- Question: How much of the 35% growth is recurring and what are the average deal sizes? (Samraat Jadhav/Jyoti Singh)
- Answer: 65% of revenue is recurring. emSigner deals average $250k–$500k internationally, while complex emCA/CERTINext implementations range from $600k–$700k (Venkatraman Srinivasan).
Competitive Positioning
- Question: How do you compete with global players like DigiCert? (Sumukh)
- Answer: We focus on flexibility and customization for IoT and banking verticals, which Microsoft/Azure CA solutions don’t offer. We position as a cost-effective yet technically capable alternative in the Middle East and Africa (Venkatraman Srinivasan).
Key Takeaway
eMudhra delivered a steady Q3 FY26 with a 35.6% YoY revenue increase to ₹191.1 crores, underpinned by the successful turnaround of the CRYPTAS acquisition in Europe and sustained momentum in Indian trust services. While the US services segment remains stagnant due to macroeconomic and visa-related headwinds, the company is successfully pivoting toward a product-led model, which accounted for an adjusted EBITDA margin of 25.8%. Strategically, the firm is strengthening its global infrastructure through new data centers in the US and UAE to meet local compliance mandates. Management maintained its FY26 revenue guidance of ₹700 crores and anticipates 18-19% organic growth for FY27. Key watch points include the completion of UAE data center audits and the stabilization of the US services business as the company scales its high-margin cybersecurity product portfolio.
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