Summary
Vertoz Limited - Q3 FY 2026 Earnings Call Summary Tuesday, February 10, 2026 4:00 PM
Event Participants
Executives 2 Ashish Shah (Promoter and Director), Hiren Shah (Founder and Managing Director)
Analysts 3 Himanshu (Accenture), Nitin Kumar Shrivastav (Shree Imperial), Rudra Singhan (Individual Investor)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue | ₹75.42 crores | +14% YoY; reflects steady growth amid strategic recalibration and internal business shifts. |
| Consolidated EBITDA | ₹13.46 crores | +63% YoY; +29% QoQ; driven by operational discipline, cost tightening, and improved campaign execution. |
| Consolidated EBITDA Margin | 18% | Significant expansion from previous periods; supported by a shift toward high-margin digital services. |
| Consolidated PAT | ₹6.16 crores | Growing despite ongoing investments and recalibration of the business model. |
| Standalone Revenue | ₹20.30 crores | +22% YoY; +6% QoQ; indicates a successful turnaround journey over the past few quarters. |
| Standalone EBITDA | ₹2.76 crores | 14% margin; reflects the core business stabilization and focus on fundamental recovery. |
| Standalone PAT | ₹1.74 crores | +21% YoY; margins remained stable at approximately 9%. |
Geographic & Segment Commentary
- International Operations (USA): The company significantly expanded its US footprint through the acquisition of Webimax, a New Jersey-based AI-driven marketing automation firm. This entity contributes approximately $12 million (₹87 crores) in annual revenue and $2.4 million (₹17 crores) in PAT.
- Digital Ecosystem: Vertoz has transitioned from an advertising-led business to a diversified player across media monetization, digital identity, and cloud infrastructure. Management is focused on converging these silos to capture larger market opportunities.
Company-Specific & Strategic Commentary
- Strategic Recalibration: Management is undergoing an internal review to align market perception with the current reality of being a broad media-tech company rather than just an ad-tech firm.
- Inorganic Growth (Webimax): The acquisition of Webimax brings predictive performance systems and data layer consulting capabilities, expected to be EPS accretive from Day 1.
- Operational Discipline: Focus has shifted toward “fixing the basics,” including tighter cost controls and more disciplined campaign execution to stabilize margins.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | Sustainable growth | Management expects it to align with the growth trends of the last two quarters. |
| Margin Profile | Stability | Focus is on maintaining current margin levels through better use of scale and cost discipline. |
| Synergies | 18 - 30 months | Substantial cash flow inflows expected via cost savings and synergies from the Webimax acquisition. |
Risks & Constraints
| Risk | Context |
|---|---|
| Global Uncertainty | Management noted that global macro conditions remain uncertain, which could impact discretionary media spends. |
| Margin Volatility | Margins do not move in a straight line due to the “blended” nature of high-margin services vs. volume-driven offerings. |
| Integration Risk | Realizing the projected ₹17 crore PAT and synergies from Webimax depends on successful integration over the next 1.5 to 2.5 years. |
Q&A Highlights
Profitability Sustainability
- Question: Is the strong EBITDA growth seen this quarter sustainable? (Rudra Singhan)
- Answer: Margins are a blended outcome of high-margin and volume-driven services; however, underlying strength is improving due to operational discipline and cost tightening (Hiren Shah).
M&A Strategy
- Question: Are there more acquisitions planned for this year? (Nitin Kumar Shrivastav)
- Answer: The company is evaluating opportunities but is not under pressure to buy; fit and price must be right to strengthen market entry or capabilities (Hiren Shah).
Business Positioning
- Question: What does the “internal review of positioning” mean for the company? (Nitin Kumar Shrivastav)
- Answer: Vertoz is no longer just an advertising business; it now spans monetization, identity, and cloud; the review aligns market perception with this multi-part ecosystem reality (Ashish Shah).
Webimax Acquisition Detail
- Question: What is the vision behind the Webimax acquisition and its contribution? (Himanshu)
- Answer: It provides a $12M revenue base and 20% EBITDA margins in the US; it adds AI-driven marketing automation and predictive data layers, making it financially accretive immediately (Ashish Shah).
Key Takeaway
Vertoz Limited delivered a robust Q3 FY2026 performance, characterized by a 63% YoY surge in consolidated EBITDA to ₹13.46 crores and a 14% rise in consolidated revenue to ₹75.42 crores. The quarter was defined by the strategic acquisition of US-based Webimax, which adds approximately ₹87 crores in annual revenue and high-margin AI-automation capabilities. Management has successfully pivoted the business from a pure ad-tech play to a diversified media-technology platform encompassing digital identity and cloud infrastructure. While management avoids specific forward guidance, the focus remains on sustaining the growth trajectory observed over the last two quarters and realizing synergies from recent acquisitions over the next 18-30 months. Investors should monitor the integration of Webimax and the company’s ability to maintain 18% EBITDA margins as it scales globally.
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