Canarys Automations Ltd Q2 FY26 Earnings Analysis

- Canarys expects 20% to 25% growth year-on-year, with bullish outlook for FY26 and beyond. - Anticipated consolidated revenues around INR 200-210 crores, combining INR 110-120 crores from Canarys and INR 70-80 crores from Fortira. - Fortira acquisition brings approximately USD 15 million (~INR 120 crores) order book, contributing significantly to scale. - Order book visibility extends over the next 2-3 years, with execution spread mainly over next two years. - Increasing focus on expanding technology solutions globally, particularly in North America and domestic markets. - Emphasis on product innovation, AI, cloud, and automation to drive growth. - Ongoing investments in talent and solutioning to accelerate business expansion. - Long-term aim to grow Fortira business aggressively with integration and cross-selling to Canarys’ client base.

- Canarys anticipates 20% to 25% growth in revenues, supported by organic growth and the Fortira acquisition. - Estimated revenue for FY '26 could be around INR 200-210 crores combining Canarys (INR 110-120 crores) and Fortira (INR 70-80 crores). - EBITDA and PAT margins post Fortira acquisition are expected to be similar to historical levels, around 16% EBITDA and 9% PAT margins. - Management is bullish on growth and aims for faster expansion, with heavy investments in North America and domestic markets. - Fortira’s integration and business growth are key focuses with expected scaling and cross-selling opportunities. - Management expects to correct margin dips caused by recent investments, targeting improved profitability in coming years. - No specific EPS guidance was given, but continued growth and margin sustainability imply positive earnings trajectory.

- Canarys is making significant investments in solution development and global scaling, particularly in North America. - A portion of IPO proceeds (~INR5 crores) remains earmarked for solution development. - The company is heavily investing in AI, cloud, automation, and product innovation. - Focus on empowering 25% of employees with AI, ML, and data skills as part of FY26 priorities. - Strategic acquisition of Fortira Inc. (51% stake) for USD 2.55 million to enhance geographic reach and capabilities. - No immediate plans for further acquisitions in the next quarter, but the company remains open to strategic growth investments. - Future acquisition of the remaining 49% stake in Fortira is on the cards, to be funded through a combination of internal accruals and other sources. - Overall, investments concentrate on integration, solutioning, product building, and geographic expansion.

- No specific plans for immediate new fundraising through debt or equity were mentioned. - The company raised around INR 47 crores in the recent IPO, of which about INR 5 crores remain for solution development; other amounts have been utilized. - For acquiring the remaining 49% stake in Fortira, funding is expected to be a combination of sources (internal accruals and possibly others), but no detailed plan or percentage breakdown is provided yet. - Management is currently focused on integrating Fortira and growing the business before planning further fundraising activities. - The company remains open to strategic growth investments and acquisitions but does not have active plans for any other acquisition or fundraising in the near term.

- As of June 30, 2025, Canarys Automations Limited has an order book of approximately INR165 crores. - This order book includes around INR105 crores from technology solutions and INR60 crores from water resource management. - Most of the order book is for the next two financial years, with about 15% extending into the third year. - For FY 2025-26, at least INR80 crores of this order book is expected to be executed. - Fortira Inc., acquired recently, adds a strong order book of close to $15 million, of which Canarys holds 51%. - The overall order book visibility extends over 2 to 3 years with continued growth expected. - Management notes opportunities to onboard additional orders during the remaining quarters of FY 2025-26, indicating a bullish outlook on order inflow.