Any current/future new fundraising through debt or equity?

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.

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

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 bu

Future growth expectations in sales/revenue/volumes?

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

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

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 mar

Current/ Expected Orderbook/ Pending Orders?

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

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eMudhra LtdQ2 FY25IT - Services

eMudhra Ltd Q2 FY25 Earnings Call Analysis

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

Price: ₹452P/E: 36.1Market Cap: ₹3.9K CrSector: IT - Services

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Order

Yes

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→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.

Margin guidance

Category 3

→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.

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Fundraise plans

→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.

Order book

Yes

→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).

Capex plans

Yes

→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.

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