Summary
Tracxn Technologies Limited - Q3 FY26 Earnings Call Summary Thursday, February 05, 2026
Event Participants
Executives 3 Abhishek Goyal (Executive Director), Neha Singh (Chairperson and Managing Director), Prashant Chandra (Chief Financial Officer)
Analysts 5 Anurag Arora (Individual Investor), Aryaman Pawar (Individual Investor), Miten Lathia (Individual Investor), Param Jain (Individual Investor), Praneeth Bommisetti (Individual Investor)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹21.00 crores | +3.4% YoY; sideway market activity in private markets impacted growth rates. |
| EBITDA | -₹1.70 crores | Negative due to increased headcount in GTM units and non-cash ESOP charges. |
| PAT | ₹0.10 crore | Remained positive for the quarter; supported by other income/interest. |
| Adjusted PAT | - ₹0.10 crore | Excludes non-cash ESOP expenses; reflects temporary investment in growth initiatives. |
| Cash & Cash Equivalents | ₹90.20 crores | Net of buyback outgo in H1 FY26; provides buffer for organic/inorganic growth. |
| Active Customer Accounts | 2,246 | +32% YoY; momentum continued with 103 net new accounts added in Q3. |
| Total Active Users | 6,156 | +33% YoY; more than 1,000 users added in the first nine months of FY26. |
| International Revenue % | 56% | Majority of revenue remains global, spanning over 50 countries. |
Geographic & Segment Commentary
- India BU: Revenue grew 14% YoY while customer accounts surged 43%. Growth was driven by verticalized sales teams and the 10x expansion of private company financial data, making the platform best-in-class for Indian entity coverage.
- International BU: Overall customer accounts grew 17% YoY. UK performance turned around from -3% in FY25 to +7% revenue growth in 9M FY26 following the replication of the India “vertical team” playbook. US remains a focus area for data augmentation in calendar year 2026.
- Corporate & Investment Segments: Corporate sales revenue grew 23% YoY as firms use Tracxn for M&A and competitor benchmarking. Investment banking and PE segments are being targeted with new datasets like “loans and charges” and “cap tables” covering 15+ countries.
Company-Specific & Strategic Commentary
- Vertical Sales Teams: Management has implemented “mini-BUs” for specific segments (IB, Corporate, Universities). This playbook led to 80% growth in corporate account counts and is being exported to US/UK markets.
- AI in Data Production: AI allowed Tracxn to increase data coverage 4x in 2025 while reducing data production headcount by 20%. Management noted they can now build datasets in weeks that previously took years.
- Dataset Augmentation: Significant push into regulatory data, now tracking 6.3 million companies with detailed financials and 350,000+ cap tables globally. Coverage of private company financials increased 50x over two years.
- Strategic Partnerships: Entered a partnership with TMX Datalinx (Canada) to access their financial institution network, aiming to accelerate enterprise customer acquisition in North America.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Sales Team Size | 60 Closing Reps by end of CY2026 | Plans to nearly double the team from current 34 to drive outbound sales in India and International Geos. |
| Profitability | Positive EBITDA in “a few quarters” | Management expects operating leverage to kick in as revenue growth accelerates from recent GTM investments. |
| Data Coverage | Continued Expansion | Focus on US revenue estimates, headcount data, and CXO profiles to bridge gaps with international peers. |
Risks & Constraints
| Risk | Context |
|---|---|
| Market Activity | Global private market deal volumes are at 10-year lows, specifically impacting the VC customer segment which remains sideway/flattish. |
| Margin Pressure | High employee benefit expenses (88% of total costs) and increased GTM hiring have led to a temporary lack of EBITDA margin expansion. |
| High Concentration | While international revenue is high, US growth has been impacted by the funding winter, requiring significant reinvestment in data to maintain competitiveness. |
Q&A Highlights
International Turnaround
- Question: What is causing the pain in international sales and why is the UK strong? (Aryaman Pawar)
- Answer: VC segment is most impacted globally by low deal activity. UK turnaround (+7% growth) resulted from replicating the India playbook: augmenting local datasets and deploying verticalized sales teams (Neha Singh).
Growth vs. Profitability
- Question: When will the business turn EBITDA positive from operations rather than interest income? (Praneeth Bommisetti)
- Answer: The business has 90% gross margins and high operating leverage. Incremental revenue flows 80% to the bottom line once growth exceeds investment. Management is prioritizing growth/market share currently (Neha Singh).
Employee Costs & Governance
- Question: Why is employee cost 90% of revenue and why are independent director fees high? (Anurag Arora)
- Answer: High costs reflect R&D for building a global data platform. Director fees are market-standard for high-caliber professionals. The company maintains “Big Four” audits for high governance standards (Neha Singh, Prashant Chandra).
AI Displacement Risk
- Question: Can LLMs crawl the web and displace Tracxn’s data value? (Miten Lathia)
- Answer: Much of Tracxn’s data is behind paywalls, in regulatory registries, or unstructured. While AI helps produce data, enterprise-grade structured data for private markets remains complex and proprietary (Neha Singh).
Key Takeaway
Tracxn Technologies reported a steady Q3 FY26 with revenue of ₹21.00 crores, though EBITDA remained negative at -₹1.70 crores due to aggressive investments in its Go-To-Market (GTM) strategy and data production. The company saw robust volume growth, adding 103 net new accounts to reach a total of 2,246, driven largely by its India business (+14% revenue) and a turnaround in the UK. Strategic focus has shifted toward “verticalized” sales teams and the use of AI to scale datasets; AI enabled a 4x increase in data points while reducing production headcount by 20%. While the VC segment remains pressured by a global funding slowdown, Tracxn is diversifying into Corporate M&A and Investment Banking segments, where revenue grew 23% and 16% respectively. Management’s forward outlook centers on doubling the closing sales team to 60 reps by year-end 2026 and leveraging the TMX partnership to penetrate the North American enterprise market. Future profitability remains contingent on successfully replicating the India growth playbook across the US geography to trigger historical operating leverage.
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