eMudhra Q2 FY26 Earnings Analysis

- Revenue for FY26 is expected around INR 675-700 crores, possibly slightly above INR 700 crores considering organic growth and acquisitions. - Enterprise order book has grown by 28% year-on-year, indicating healthy future sales pipeline. - U.S. product business currently at ~INR 80 crores annually, expected to grow but large-scale expansion anticipated over 2-3 years. - Token volume shortage eased, leading to INR 1.5-2 crore revenue increase in Trust Services. - Pricing and partner commission strategy adjustments aim to recapture larger reseller partners, improving DSC sales volumes. - Larger deal sizes are increasing to INR 10-20 crores range; bidding for very large deals (INR 50-100 crores) considered through system integrators. - New product initiatives like emSigner and expansion into new geographies (e.g., Central Asia) expected to contribute to growth. - Overall balanced growth mix from organic innovation and inorganic acquisitions targeted to continue over next 2-3 years.

- eMudhra expects continued growth driven by a balanced mix of organic and inorganic (acquisitive) expansion, with a long-term trend of 20-25% growth from acquisitions alongside organic growth. - FY26 revenue guidance is around INR 650-700 crores, factoring in recent acquisitions. - Profit margins expected to be maintained around 16-16.5% PAT margin despite short-term margin pressure from integrating Cryptas acquisition, which is currently making small losses but expected to become profitable over time. - Enterprise Solutions and product businesses, particularly in the U.S. and international markets, show strong growth potential as cybersecurity demand increases. - U.S. product business currently around INR 80 crores annually, expected to scale up significantly with system integrator partnerships and expanded operations. - Continued emphasis on improving product mix and cost efficiencies aimed at maintaining robust gross margins (~80-85%) in enterprise software. - Investments in R&D and geographic expansion underpin long-term profitable growth trajectory.

- eMudhra has completed the acquisition of AI CyberForge to complement its product portfolio, enabling quicker market entry in cybersecurity areas where they currently lack products, avoiding a 1-1.5 year build time. - The company has set up an on-premise data center in the U.S., with audit completion expected by mid-August 2025. This will allow issuing certificates locally in the U.S. - Plans to deploy 1-2 operational staff in the U.S. to handle time zone and client servicing improvements. - Organizing two conferences (September and November 2025) targeting CIOs and CTOs to boost visibility and business pipeline in the U.S. - Continuous investments in R&D focused on Converged Identity, Data Privacy, and Generative AI to enhance product innovation and competitiveness. - No need for additional short-term loans for capital requirements as cash accruals and collections are expected to cover acquisitions and investments.

- eMudhra Limited does not currently plan to raise new funds through debt or equity. - The company has a strong cash balance of around INR 175 crores as of March. - Upcoming acquisition payments for Cryptas and AI CyberForge will be managed through existing cash collections. - Management expects to maintain or slightly reduce cash levels by year-end, factoring in profits and dividend payments. - No need for short-term loans or additional borrowing is anticipated to meet working capital requirements.

- Enterprise order book has grown by 28% year-over-year as per Venkatraman Srinivasan (Page 14). - Average deal size in cybersecurity is around INR 10 crores to INR 20 crores; the company is also preparing to bid for larger deals of INR 50 crores to INR 100 crores in the future (Page 13). - Order book details for Enterprise Solutions were not immediately available but will be provided later (Page 13). - Several new project wins across geographies, including Managed PKI and TLS for a global FMCG, Certificate Lifecycle Management for a UAE bank, Identity & Access Management for a government tax platform in Asia, and others indicate an active and growing order pipeline (Page 4). - The company is expanding internationally and securing large enterprise and government contracts, underlying a growing and healthy order book (Pages 4, 12, 13).