Current/ Expected Orderbook/ Pending Orders?

Current status of contracts: - First contract has been signed; volume yet to pick up. - Expected to sign two more contracts in the current month if things progress well. All contracts are currently in the contracting stage. Management is focused on contracting and expects order volumes to increase as contracts get finalized.

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

eMudhra has incurred around INR 30 crores in capital expenditure on three product developments, funded from cash accruals. For the full year, approximately INR 54-55 crores is being capitalized predominantly for these three product developments. No acquisition payments are planned in the next 6 months, supporting stable cash flows. Strategic investments include hiring localized teams in the U.S. and South America to support sales and certificate issuance, ensuring timely service due to time zone differences. Marketing investments focused on hosting 4-5 key events annually, including eCAB, RSA

Future growth expectations in sales/revenue/volumes?

Company expects overall growth of around 25%-30% year-over-year, driven primarily by product business growth despite services business stagnation. U.S. product business leads pipeline includes 5-6 major customers with deals of $1 million+ each, with some contracts expected to close imminently. Service business, especially in the U.S., is expected to remain flat due to visa and local hiring challenges. Trust services revenue projected to grow from INR 100 crores to INR 120-130 crores annually, supported by increased e-signature volumes. Expansion in regions like Middle East, Africa, and APAC (e

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

eMudhra expects overall revenue growth of around 25-30% year-over-year driven mainly by product business growth, while service and trust segments may remain stagnant or have modest growth. For FY 2026, the company targets total revenues around INR 675-700 crores, with a stronger second half expected due to deal closures and seasonal impact on trust services. Profit margins improved, with Q2 EBITDA margin at 24.8% and PAT margin at 15.1%, and similar or better margins expected going forward. Integration of recent acquisitions (Cryptas, AICyberForge) is expected to enhance product offerings and

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eMudhra LtdQ3 FY25IT - Services

eMudhra Ltd Q3 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

→Company expects overall growth of around 25%-30% year-over-year, driven primarily by product business growth despite services business stagnation.
→U.S. product business leads pipeline includes 5-6 major customers with deals of $1 million+ each, with some contracts expected to close imminently.
→Service business, especially in the U.S., is expected to remain flat due to visa and local hiring challenges.
→Trust services revenue projected to grow from INR 100 crores to INR 120-130 crores annually, supported by increased e-signature volumes.
→Expansion in regions like Middle East, Africa, and APAC (especially Philippines) contributing to product business growth.
→Upcoming product launches (e.g., data privacy stack, voice authentication) expected by March-April to enhance competitiveness.
→Localized U.S. presence with data centers and subsidiary CERTInext Inc. aimed at strengthening brand and accelerating growth in the U.S. market.
→Marketing investments in the U.S. showing early pipeline results, with continued focus on enterprise customers and industry events.

Margin guidance

Category 3

→eMudhra expects overall revenue growth of around 25-30% year-over-year driven mainly by product business growth, while service and trust segments may remain stagnant or have modest growth.
→For FY 2026, the company targets total revenues around INR 675-700 crores, with a stronger second half expected due to deal closures and seasonal impact on trust services.
→Profit margins improved, with Q2 EBITDA margin at 24.8% and PAT margin at 15.1%, and similar or better margins expected going forward.
→Integration of recent acquisitions (Cryptas, AICyberForge) is expected to enhance product offerings and profitability within 2 quarters.
→U.S. product business is projected to grow with potential $1 million+ deals underway, contributing to future earnings.
→Continued R&D investments (~INR 54-55 crores capitalized in FY), focusing on new product enhancements, are expected to support sustainable long-term growth.
→The company aims to diversify geographically and reduce dependence on visa-related service constraints, supporting stable profit growth.

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Fundraise plans

- No acquisition payments or major cash outflow planned in the next 6 months. - Current cash balance stands at INR 102 crores. - Confident that cash accruals will increase cash flow to around INR 125-140 crores. - Management does not foresee any requirement to raise additional money through debt or equity in the near term. - Cash is deemed sufficient to support ongoing operations and investments. (Source: Page 17 and 21 of the transcript)

Order book

Yes

→Current status of contracts:
→ - First contract has been signed; volume yet to pick up.
→ - Expected to sign two more contracts in the current month if things progress well.
→All contracts are currently in the contracting stage.
→Management is focused on contracting and expects order volumes to increase as contracts get finalized.

Capex plans

Yes

→eMudhra has incurred around INR 30 crores in capital expenditure on three product developments, funded from cash accruals.
→For the full year, approximately INR 54-55 crores is being capitalized predominantly for these three product developments.
→No acquisition payments are planned in the next 6 months, supporting stable cash flows.
→Strategic investments include hiring localized teams in the U.S. and South America to support sales and certificate issuance, ensuring timely service due to time zone differences.
→Marketing investments focused on hosting 4-5 key events annually, including eCAB, RSA Conference, and Black Hat, with event costs ranging from $30,000 to $50,000.
→Ongoing R&D efforts involve product enhancements such as data privacy stack, voice authentication, mobile PKI, post-quantum cryptography, and integration with AI technologies.
→No major marketing spend surges, focusing instead on targeted and continuous outreach.

How does eMudhra Ltd rank vs peers in IT - Services?

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