Seshaasai Technologies Ltd

- As of Q3 FY26, Seshaasai Technologies Limited has been actively deploying IPO proceeds primarily towards debt repayment, having repaid approximately INR 300 crores so far. - Capital expenditure during Q3 was INR 34.28 crores, with about INR 254 crores of IPO proceeds remaining unutilized, planned for future deployment. - There is no specific mention of any current or immediate future fundraising plans through debt or equity in the call. - The company appears well-capitalized with a cash and cash equivalents balance of approximately INR 387 crores as of December 31, 2025. - No announcements or indications of new fundraises through debt or equity were disclosed during the Q3 FY26 earnings call.

- The company is undertaking construction across four locations for new facilities in Bengaluru, Nagpur, Navi Mumbai, and Kundli to support future business growth. - In Q3 FY26, capital expenditure stood at INR 34.28 crores. - Total IPO proceeds utilized as of Q3 FY26 were INR 346 crores, with approximately INR 254 crores remaining to be utilized over subsequent quarters. - The company is investing in capacity expansion, including metal card manufacturing capabilities, to prepare for increasing demand and large upcoming opportunities. - Strategic investment in Alomind Labs, enhancing their IoT product maturity and enabling new projects related to data logging and cold chain monitoring. - Final stages of GSMA SAS certification expected soon, facilitating growth in their eSIM business within the IoT vertical.

- **Payment Solutions**: Expected upward trajectory in Q4 FY26 with multi-year contracts secured, including a large public sector bank expanding into metal, biometric, and dynamic CVV cards; strong traction in metal and premium cards anticipated. Growth driven by volume increase and premium product demand. - **Communication and Fulfillment Solutions**: Stable growth driven by regulatory communication needs and government contracts; multi-year contracts secured worth approximately INR210 crores over contract periods; steady demand expected. - **IoT Solutions**: Significant growth seen with 100% year-on-year increase; near-term revenue impact due to project rollout delays expected to be compensated in Q4; new large retail client anticipated to become the largest account. Expansion through global partners supplying RFID tags; growth supported by investments in product maturity, data logging, cold chain monitoring, and upcoming eSIM business. - **Overall Outlook**: Medium-to-long-term optimism with capacity expansions and technological investments; Q4 historically stronger, expected to continue growth momentum across verticals.

- Q3 FY26 showed 10.1% Y-o-Y revenue growth and 19.3% Y-o-Y PAT growth with a PAT margin of 17.15% - Payment solutions segment is expected to grow steadily with multi-year contracts secured, including metal and premium cards driving future demand - IoT business grew 100% Y-o-Y, with strong volume ramp-up expected in next two months and new large retail customer potential, projecting continued growth in the coming years - Communication and fulfillment solutions remain stable with multi-year contracts adding to revenue visibility - Gross margins improved to around 43-45%, driven by product mix, operational efficiencies, and procurement initiatives, expected to maintain similar range - The firm is investing in capacity expansions (IoT, automation, metal cards) to support medium to long-term growth and expects a stronger Q4 FY26 performance - Overall outlook is optimistic on disciplined execution, contract wins, and technology investments fueling future operating earnings and profits growth

- The company has a sizable order book for metal cards expected to grow significantly starting Q4 FY26 and into the next financial year. - They are working on multiple metal card projects with at least three government banks and several large customers. - A large new retail client in the IoT segment is pending allocation of order volumes; once confirmed, it will become the largest account. - There are ongoing discussions with global fintechs and other large clients for new orders, especially in IoT and payment solutions. - Overall, key upcoming orders in metal cards, IoT tags, and other payment solutions are expected to bolster revenue and growth. - The company plans to expand metal card capacity to meet anticipated demand from new contracts.