Any current/future new fundraising through debt or equity?

The company raised fresh funds and issued equity and share warrants worth INR 235 crores in September 2024. The first tranche of INR 105 crore from this raise is currently available. Fund allocation plan approved in the EGM resolution: 70% for acquisitions, 20% for expansion, and 10% for working capital. As of now, these funds have not been utilized but are available for inorganic growth. No mention of any new or upcoming fundraising through debt or equity beyond this. Working capital limits exist but are not significant, and interest costs related to working capital are expected to remain sta

Any current/future capex/capital investment/strategic investment?

The company has raised fresh funds of INR 235 crores (equity and share warrants) in September 2024 to support both organic and inorganic expansion. Currently evaluating several inorganic growth options, with four acquisition opportunities under evaluation; two are in final stages expected to close within 2-3 months. Allocation of raised funds approved as: 70% for acquisitions, 20% for expansion (organic growth), and 10% for working capital. Exploring the data center business but have not committed significant resources; expected to make decisions within 1-2 quarters. Focus on building capacity

Future growth expectations in sales/revenue/volumes?

The company targets bidding for INR 400-450 crore orders per quarter with an 80-90% success rate, implying potential order wins of around INR 200-300 crore quarterly. Management cautions that no official revenue forecasts are provided, but past track records suggest strong growth potential. The company has experienced a CAGR of over 70% in revenue growth over the last 4-8 quarters, indicating robust expansion. Focus is on increasing technology solutions revenue, which has higher margins compared to geospatial engineering, leading to an improved revenue mix going forward. The order book

Future growth expectations in earnings/operating earnings/profits/EPS?

Management refrains from giving explicit earnings or profit guidance for FY '25 and FY '26, focusing instead on quarterly updates. There is an 80%-90% success rate on bids worth INR 400-450 crore each quarter, suggesting a strong potential order inflow. Current growth runs at a CAGR of over 70% in recent quarters, indicating robust revenue expansion. The company aims to scale operations, particularly in tech solutions, which offer higher margins, driving profitability. Operating leverage is expected to improve as subsidiaries like Allygrow scale up, shifting from EBITDA negative to positive. F

Current/ Expected Orderbook/ Pending Orders?

As of December 31, 2024, Ceinsys Tech Limited's confirmed order book stands at approximately INR 1,390 crore. The water domain constitutes around INR 1,189 crore of this order book. Technology solutions make up about 60-65% of the order book. Out of the total order book, INR 64 crore is for support and O&M services; the remaining INR 1,200 crore is core orders. The order book execution for the financial year 2025-26 is expected to be around INR 550 crore. Specifically, about INR 220 crore of the INR 550 crore execution in FY '26 relates to the river linking project. Some INR 100 crore from the

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Ceinsys Tech LtdQ4 FY26IT - Software

Ceinsys Tech Ltd Q4 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹913P/E: 14.8Market Cap: ₹2.0K CrSector: IT - Software

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 1

→The company targets bidding for INR 400-450 crore orders per quarter with an 80-90% success rate, implying potential order wins of around INR 200-300 crore quarterly.
→Management cautions that no official revenue forecasts are provided, but past track records suggest strong growth potential.
→The company has experienced a CAGR of over 70% in revenue growth over the last 4-8 quarters, indicating robust expansion.
→Focus is on increasing technology solutions revenue, which has higher margins compared to geospatial engineering, leading to an improved revenue mix going forward.
→The order book as of December 31, 2024, stands at INR 1,390 crore, with expected execution of about INR 550 crore in FY '25-'26.
→International revenue and consistent annuity streams are expected to grow, contributing to increased margins and sustained revenue growth.
→Opportunistic acquisitions aligned with AI and geospatial sectors may also boost future growth.

Margin guidance

Category 3

→Management refrains from giving explicit earnings or profit guidance for FY '25 and FY '26, focusing instead on quarterly updates.
→There is an 80%-90% success rate on bids worth INR 400-450 crore each quarter, suggesting a strong potential order inflow.
→Current growth runs at a CAGR of over 70% in recent quarters, indicating robust revenue expansion.
→The company aims to scale operations, particularly in tech solutions, which offer higher margins, driving profitability.
→Operating leverage is expected to improve as subsidiaries like Allygrow scale up, shifting from EBITDA negative to positive.
→Focus on increasing international revenue share to secure consistent annuity with higher margins.
→Working capital management improvements and strong order book execution underpin stable future cash flows.
→No risk perceived in the existing INR 1,390 crore order book, with 100% confidence in executing projects as scheduled.

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Fundraise plans

Yes

→The company raised fresh funds and issued equity and share warrants worth INR 235 crores in September 2024.
→The first tranche of INR 105 crore from this raise is currently available.
→Fund allocation plan approved in the EGM resolution: 70% for acquisitions, 20% for expansion, and 10% for working capital.
→As of now, these funds have not been utilized but are available for inorganic growth.
→No mention of any new or upcoming fundraising through debt or equity beyond this.
→Working capital limits exist but are not significant, and interest costs related to working capital are expected to remain stable.
→The company does not have term loans currently.

Order book

→As of December 31, 2024, Ceinsys Tech Limited's confirmed order book stands at approximately INR 1,390 crore.
→The water domain constitutes around INR 1,189 crore of this order book.
→Technology solutions make up about 60-65% of the order book.
→Out of the total order book, INR 64 crore is for support and O&M services; the remaining INR 1,200 crore is core orders.
→The order book execution for the financial year 2025-26 is expected to be around INR 550 crore.
→Specifically, about INR 220 crore of the INR 550 crore execution in FY '26 relates to the river linking project.
→Some INR 100 crore from the non-river linking orders (out of INR 1,000 crore) is expected to be executed in the current quarter.
→The company maintains a quarterly pipeline of approximately INR 400-450 crore in new orders.
→The management expresses confidence in executing the current order book as per schedule without delays.

Capex plans

Yes

→The company has raised fresh funds of INR 235 crores (equity and share warrants) in September 2024 to support both organic and inorganic expansion.
→Currently evaluating several inorganic growth options, with four acquisition opportunities under evaluation; two are in final stages expected to close within 2-3 months.
→Allocation of raised funds approved as: 70% for acquisitions, 20% for expansion (organic growth), and 10% for working capital.
→Exploring the data center business but have not committed significant resources; expected to make decisions within 1-2 quarters.
→Focus on building capacity by hiring 384 employees (277 technical) in FY '24-25 to support larger, higher-value projects.
→Strategic investments include enhancing AI capabilities and integrating AI layers across company functions.
→Interest cost and depreciation increased due to working capital utilization; no major term loans outstanding.

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